Several technological and consumer trends, such as the sharing economy and urbanization are changing the way that an office space is being used. Executives around the world will benefit in understanding how these dynamics hold great potential to change the industry over the next decade so that you can think deeper about longer-term strategic issues which may be caused by these disruptions. We show you how to stay ahead of these impacts here.
Change is abreast at commercial real estate firms and for professionals, as disruption is one of the hottest topics of discussion in every boardroom today. These disruptions are centered around its potential technology impacts on a business, as well as the convergence of one or more technologies. Using mobile, social media, cloud computing and analytics is leading to rapid-paced disruptions in the Asset managment industry. Organizations are taking lead by experimenting with product innovation and transforming their traditional value chains to power of the consumer.
Executives in commercial real estate will benefit from understanding how these disruptions in technology are being applied to the organization. As the keepers of your organization’s technologies, you could fundamentally change the commercial real estate demand-supply business and dynamics model. These disruptions are sweeping across all sectors, and you could change areas to also redefine urban planning through this nexus of consumer behavior changes.
I believe that commercial Real Estate Company must be flexible and agile in embracing these technological innovations. It is important to keep pace with competitors and to maintain a competitive advantage. In an inaugural longer-term commercial real estate outlook report by Deloitte, four themes were identified which would result in significant disruption for the industry over the next decade: collaborative economy; disintermediation of brokerage and leasing; war for talent, and the last mile. Organizations will have to be cautious of using their data in technology.
Technology Opportunities Through The Clouds
According to Deloitte, organizations may need to adapt to a hybrid approach, as tenants are likely to prefer a mix of long-term lease agreements for core space needs and short-term flexible leases to manage peaks and valleys of workforce and project-related needs. As a result, incumbents will have to reinvent their leasing approach and lease administration processes as their traditional approaches become increasingly irrelevant. They will also have to adapt to a dynamic revenue model because the short-term leasing phenomenon will provide opportunities to drive better demand-based pricing on rental rates, but reduce predictability in their revenue streams.
The commercial real estate industry will undergo a metamorphosis over the next decade. Deloitte’s report indicated that it’s a myth that traditional players will remain insulated from these disruptive forces. They will have to make a choice between proactive responses to the evolving business landscape or be disrupted by the new entrants and lose their competitive edge.