CRE Industry & Technology
There is a common global theme that the CRE industry is slow to adopt new technologies. We have even said it ourselves based on what others keep saying. But is it really the case in Australia?
The landlord sector (supply) is huge and focused on CRE 100% of the time. The CRE service providers (supporting supply and demand sides) are the same. Globally, both sectors are leaders in thought leadership and innovation, and it is difficult to be this if one is not adopting the right technology.
Regarding the tenant sector (demand), it comprises numerous companies primarily focused on their specific businesses rather than CRE. While they are crucial to the CRE industry, suggesting they are slow to adopt new technologies, particularly those related to CRE, may be somewhat unfair. They prioritize more critical aspects of their businesses.
Who is saying it? I remember as a teenager starting an opinion with “they say” and my mother, would ask, “who are they”. I never knew exactly. It seems like they have successfully made many feel guilty by saying we are slow to adopt. Because there are exceptions to every rule, perhaps some of us are, but to be the global leaders in so many facets of the industry, it doesn’t really ring true. It’s not just technology that is the panacea for moving forward into the new era of CRE.
In fact, in our background research, we found that so much of the CRE technology to date has been clunky and expensive. Flashing coloured dashboards and countless data points do not always make for good CRE solutions. It seems like the common threads are high cost of entry and less than optimal benefit.
Technology should be simple, fast, inexpensive and fun. Canva and Atlassian are great locally founded examples in providing the perfect mix. Perhaps it is this simplicity that everyone is seeking but it hasn’t been delivered – yet. Perhaps we haven’t crossed the chasm; read Crossing the Chasm by Geoff Moore (no relation to Gordon Moore of Moore’s Law).
Maybe this is why the CRE industry is thought to be slow in adopting technology so far. We aren’t necessarily slow. We just haven’t found the right solutions yet. That being the case, it looks like the best is yet to come.
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