An overview of some of the trends we are seeing in the market, stats, in conjunction with some our latest developments. In this Proptech Facts newsletter, we provide insight in different topics.
The built environment generates 40% of annual global CO2 emissions.
Of those total emissions:
Building operations are responsible for 27% annually
Building construction is responsible for 6% annually.
Other construction industry - 7% annually
As we see continuing efforts to reduce CO2 emissions under Net-Zero initiatives, we expect all actors in the real estate sphere to be examining their own impact.
Technology is not the panacea, but it can help get better insights into energy usage, wastage and opportunities for efficiency in building management.
It is interesting to see how some of the big real estate players looking to assess the ESG + amenities trade off.
The "first wave" of energy optimization for many has plateaued. The next phase requires significant investment. Conversely, many aren’t using buildings the same (post covid) and the consumption of real estate has dramatically changed.
For example, Sydney’s train usage is still down 20% to pre-covid levels and cellphone usage in SF CBD is 31% compared to pre COVID.
The question then arises – what do you do?
The answer is it depends on your strategy.
We at The Proptech Connection have built out 8 key strategies many asset owners are adopting.
“In times of shrinking footprints and rising vacancies, the relationship between the Asset Manager and the Tenant is perhaps the most crucial of all.”
The one thing that AI can not do yet is effectively mimic the interpersonal relationship between people.
So, the advent of automated Asset Management functions within commercial buildings has to be seen as a huge opportunity for improved tenant engagement, as automation is designed to eliminate much of the mundane and the administrative and free up the Asset Managers for proactive and strategic Tenant engagement.
A survey conducted by The PTC, of Commercial Asset Managers, gave this dominant answer in response to this question:
Q: As a percentage of your weekly time, how would you apportion the following activities?
-Option 1: 0-20%
-Option 2: 20-40%
1: Tenant Matters (20-40%)
2: Contractor Matters (20-40%)
-Following up on maintenance
-Managing contractor invoices
3: Direct Tenant Experience (0-20%)
-Understanding tenant changing needs
-Meeting tenant decision-makers and staff
-Providing strategic space solutions
4: Team Matters (20-40%)
-Engaging and communicating with your team
It’s anecdotal and simplistic, but the results were consistent and presented a glaring opportunity for improved tenant outcomes.
Ultimately, this is the role that technology is designed to fulfill, not to replace people but to elevate people.
Once administrative activities are siphoned off, people are left to focus on what they do best. Relationships, critical thinking and value creation.
Since the "return to the office" post-COVID, we are seeing a greater variety of use cases as large office owners look to protect usage.
Some of these include flexible office booking, hybrid models, complementary firms office sharing and core/ satellite offices in urban centres.
This is a trend we are exploring for some large office owners, and we expect more innovation in this space in 2023-2025, especially in growing cities in South East Asia and the Middle East.
The number of co-working spaces worldwide is expected to surpass 40,000 by 2024.
Living in cities, especially in big cities like Hong Kong or Los Angeles, is not cheap. You may already know a number of the most expensive real estate markets. Still, you will probably be surprised that there are also many you wouldn’t necessarily expect among the least affordable, including some in Australia and Canada.
While the supply and demand mismatch worsens, some technologies are being applied to provide solutions.
❇ 3D printing and modular housing construction can reduce the cost and time of construction, which can help increase the housing supply.
❇ AI, drones, and robots assist in risk prediction and reduction by delivering more data to plug into the current risk prediction models. They speed up work and minimize injury risks.
❇ To increase worker productivity, various software and mobile applications are being used in the industry. Data can be collected, updated, changed and transmitted in real time.