Revenue stagnation, increasing operational costs, and sustainability compliance regulations are primary causes of concern for the real estate industry and large enterprises globally in 2023. While most of these are common problems real estate owners and operators encounter, they threaten the very existence of such businesses during economic downturns.
So how do they keep themselves afloat and remain profitable?
Real estate owners and operators are seeking out technological solutions to reduce costs and enhance bottom line profit margins for 2023 and beyond. Stakeholders have started viewing property operations technology as an integral investment, demanding comprehensive insight into their real estate portfolios’ performance in a timely manner.
With this data, real estate management businesses will be able to make informed decisions that both reduce their operational costs and enhance productivity. As a result, they can improve their bottom line across the board. Innovative tools and platforms that deliver comprehensive information as well as real-time insights into vital operations and maintenance statistics for portfolio performance can prove invaluable moving forward if used effectively.
#1: PropTech will become an increasingly strategic investment
As the commercial real estate landscape shifts, it is essential to select a software-led method for optimizing property and asset portfolio operations. Businesses are turning to property operations platforms that can unite data silos and empower leadership teams with cost-effective operational and maintenance strategies while measuring progress against them. In lieu of dead-end tools, they want an all-inclusive system of action instead of just a record keeping system. Boosting productivity in this way will help businesses stay at the forefront of their competition in such a rapidly changing industry.
PropTech can be utilised as a strategic investment for real estate and property developers in several ways:
- Cost savings: Investing in PropTech can help to reduce costs by automating processes, streamlining communication and increasing efficiency.
- Increased revenue: Investing in PropTech can help to increase revenue through improved marketing, better tenant retention, and greater operational efficiencies.
- Improved Decision Making: Investing in PropTech can provide real estate and property developers with better data and insights, which can help to inform decision-making and identify new opportunities.
- Competitive advantage: Investing in PropTech can give real estate and property developers a competitive advantage by providing them with cutting-edge technologies and new business models that can improve their operations and services.
- Better building performance: Investing in PropTech such as smart building technologies can help to improve the performance of buildings, which can help to attract tenants and increase property values.
- Sustainable development: Investing in PropTech such as energy-efficient systems or building automation can help to reduce the environmental impact of the building and make it more sustainable, which can be a plus for attracting tenants and buyers.
Ultimately, PropTech has the potential to provide real estate and property developers with a range of benefits, from cost savings to improved revenue and increased competitiveness in the market.
As businesses strive to modernize, their leadership teams must be sure to find a property operations tech platform that meets and suits their requirements. This would enable all key stakeholders in the company access to data that is relevant and up-to-date. Furthermore, it will provide an overall view of important portfolio aspects and real-time statistics required by commercial facilities in today’s digital market. Businesses who are able to deploy tools which offer this type of scalability and accuracy have a significant advantage going into 2023 and beyond.
Trend #2: Faster time-to-value and flexibility to scale will be priority for operational and facility maintenance teams
In the digital era, at-the-click convenience has become a given for ordering meals and booking ride share services. Similarly, real estate owners and operators are now yearning for solutions that provide them with similar experiences when it comes to their daily operations. Therefore, they’re seeking out flexible PropTech platforms that can be easily scaled up as new technologies such as IoT sensors or building management systems come into play – making property portfolio management easier than ever before.
These platforms offer real estate owners and operators an unprecedented opportunity to begin profiting from their investments quickly, as increasingly faster rates.
PropTech can help ensure faster time-to-value and flexibility to scale for building operational and facility maintenance teams in several ways:
- Automation: PropTech can automate a range of tasks, such as scheduling, work order management, and inventory management. This can help to reduce the time and resources required to complete tasks, and improve efficiency.
- Real-time monitoring: PropTech can provide real-time monitoring of building systems, such as HVAC, lighting and security systems. This can help to identify and resolve issues quickly, reducing downtime and improving system performance.
- Predictive maintenance: PropTech can use data and analytics to predict when equipment and systems are likely to fail, allowing for proactive maintenance, which can help to reduce downtime and prolong the life of the equipment.
- Remote management: PropTech can allow for remote management of building systems, which can help to ensure that facilities can be maintained and operated from any location, and reduce the need for on-site staff.
- Smart building platforms: PropTech can provide a unified smart building platform that integrates multiple systems and data sources, which can help to improve communication, coordination and decision-making among building operational and facility maintenance teams.
- Scalability: PropTech can offer scalability, allowing building operational and facility maintenance teams to easily add new systems, devices and services as the need arises, without the need for extensive reconfiguration or additional investments.
In conclusion, PropTech provides operational and facility maintenance teams with the agility to grow their services as required for faster turnaround time, improved performance, and amplified value.
Trend #3: Decarbonization will remain a key focus area
Now, more than ever in the face of increasing government regulations and a potential recession, commercial real estate owners must think strategically when it comes to reducing emissions. Energy cost reduction can become an integral part of developing sustainable practices and habits that will enable businesses to achieve their decarbonizing goals.
When it comes to achieving net zero, the most cost-effective way forward is digital retrofitting and cloud-based control technology. This approach grants facility management teams accessibility to granular performance metrics for both energy and asset efficiency.
Supervisory platforms in the cloud enable organizations to monitor, analyze and remotely optimize their automation systems for a data-driven approach towards sustainability. This not only helps them identify existing opportunities for energy conservation but also guides further efforts to more advanced methods of optimization.
Reimagining property operations for 2023 and beyond
In the past few years, occupants of building spaces have become increasingly demanding in terms of service, safety, comfort, health and productivity. Technology has been used as a solution for some time, but it is also crucial to reassess your current facility operations and maintenance strategy in preparation for shifting trends and regulations in a digitally-driven operational landscape. Software as a Service (SaaS) driven agility and innovation will be increasingly essential to meet the ever-shifting expectations from commercial and residential buildings alike.
Picking a flexible, scalable PropTech platform that enables interoperability to put you on the path to more operational and maintenance efficiencies will make all the difference, delivering a portfolio of high-performing buildings and assets in 2023 and forever.
Looking to get started with digital real estate and property management software? Book a free PlanRadar product demo today.