Institutional investors’ expectations: Engage to gain a competitive edge.
Proptechs are increasingly popular with investors and are expanding their coverage across the real estate value chain. Consider this: Globally, almost 9 in 10 of those surveyed believe that proptechs will have a moderate to significant influence on the CRE industry .
Proptechs are using existing and developing technology to nurture new, innovative ideas that enhance operational efficiency, tenant experience, and information flow.
Today, CRE companies tend to be more aware of proptechs, but the industry seems to perceive them more as a disruptor than as a collaborator.
It is important for CRE owners/operators to understand that it is a win-win situation, where CRE companies can match their industry knowledge and business opportunities/needs with proptechs’ technology know-how and nimbleness.
To ensure a coordinated approach, companies may develop a governance model and guidelines to evaluate proptechs.43 CRE companies should consider assessing the size, scale, maturity, level of innovation, and relevance to existing business.
CRE companies should also establish quantitative and qualitative metrics to measure their return on investment from proptech investments. They may consider firm revenue and cost-saving targets, market penetration, or qualitative measures such as tenant feedback and level of transformation