CRE Industry & Technology: Part 2
We are not technology experts by any stretch of the imagination and do not purport to be. However, since subscribing to one of the original “CREtech” newsletters (PikeNet) in the 90’s we have been fascinated by how technology will impact CRE, and more importantly, the impact technology has on the real demand for office space.
Last week’s CREview questioned the narrative around the CRE industry being slow to adopt new technologies. From our own research, we opined that the CRE industry is not necessarily slow. We just haven’t found the right solutions yet.
Shortly after, Antony Slumbers brought to our attention a report by Altrio CEO, Raj Singh, AI’s impact on real estate capital markets: six predictions. It is worth a read and provides an interesting perspective on some of the narrative around the CRE industry and technology.
Raj is right, we are a sceptical bunch and the longer one works in the industry the more sceptical one becomes. Its part and parcel of dealing with people all of the time – not technology.
We particularly liked this… “Some have made the argument that real estate professionals have been slow to adopt predictive models because they simply do not appreciate their potential. However, we don’t believe this. If there were examples of the technology making a clear and material difference to the performance of participants in the market, the natural instincts (and economic imperative) to compete would compel all firms to pay attention and follow suit.”
Singh’s sentiments ring true to our own, technology that adds real value simply hasn’t been found – yet.
The CRE industry is a people industry and that makes us naturally less structured, less predictable and therefore potentially less impacted by technology. But things can and do change.
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