This week on the CRT Labs blog, Jacob Knabb from NAR’s Commercial division writes about some much-needed advancements in commercial real estate technology.
Four industry leaders met recently in Chicago to discuss the state of commercial real estate technology, exploring what disruption might mean for the future of commercial real estate.
Emily Line, Vice President of Commercial Services, Realtors Property Resource® (RPR), Constance Freedman, Founder and Managing Partner, Moderne Ventures and the Moderne Accelerator, and Karin Kraai, Senior Managing Director, Newmark Grubb Knight Frank, joined moderator Ginger Downs, Chief Executive Officer, Chicago Association of REALTORS®, for an informative discussion of commercial real estate technology to a packed room of Chicago-area real estate practitioners.
(L-R) Kraai, Line, & Freedman. (photo by Jacob S. Knabb)
Ready or Not Here Comes Commercial Real Estate Technology
The first major takeaway is complexity inhibits technology adoption, as does fear of change.
Line pointed to a 2016 Forbes survey, which found only 11% of respondents consider themselves on the leading edge of technology. Yet the same executives also believe that technology is “revolutionizing the industry.” A similar survey by KPMG revealed that over 94 percent of commercial real estate executives identified complexity as their greatest challenge, Line noted, with 84% identifying ‘information management’ as one key solution. “Despite the fact that 84% recognize the solution, 89% are still not willing to step out of what’s comfortable,” Line said.
It is impossible to ignore the fact that new technology companies are entering the industry at a rapid pace, creating cost-efficient products designed to simply workflow. Most of these companies offer supportive data in a more digestible fashion. One great way for REALTORS® to establish yourself in the tech sector is to sign up to test new products “At Moderne, most of the companies we fund asked to create pilot programs where users can try a new company’s product for free in exchange for user feedback,” said Freedman. “Get involved and you may build a real relationship with a company.”
Commercial Real Estate Technology Isn’t Exactly Disruptive
The second key takeaway is that commercial real estate hasn’t had a true disruption yet. “We’ve had embellishers and enhancers [in commercial real estate technology] but not a disruptor,” said Kraai. Commercial real estate still hinges on human expertise at its core and as a result “brokers don’t want to be disrupted,” Kraai argued. Freedman agreed, noting the importance of human relationships. “Deals can take five or more years to complete [and] clients want an advisor or a consultant,” Freedman argued.
“Disruption is separate from the individual,” echoed Downs. “And the products need to make the broker more efficient.”
Technologies created for other markets will penetrate commercial real estate, enhancing how the industry functions. There movement towards smart buildings in smart cities is undeniably changing the way brokers and investors think about properties. “Buildings are becoming greener and offer far more smart tech options for tenants,” said Kraai. “Here in Chicago’s riverfront we are seeing a definite desire on the part of tenants and firms to have a smaller footprint.”
Intentionally Cultivating a Growing Workforce
The final takeaway is three-fold: Diversity creates better companies, the key to building diversity is through mentorship, and this matters to the incoming millennial workforce. Line argued the “Work, Live, Play” movement is unavoidable.
“Shifting lifestyle preferences are prompting major changes in the real estate landscape, forcing developers, investors, and REALTORS® to dive deeper into research and think about the full picture for a community,” Line referenced a study commissioned by NAR and conducted by Swanepoel T3 Group called the Commercial Real Estate ALERT. According to the report, Millennials will make up 75 percent of the workforce by 2030. “One of the most pressing challenges for commercial real estate is to plan for where this important segment of society will live, work, and play,” Line reasoned.
This incoming workforce brings a different set of expectations about diversity. Freedman noted a particular lack of diversity when it comes to the investor space. “The managing partners in firms across equity is roughly 7%,” she said. “In real estate, it’s closer to 3%.” Freedman bemoaned the fact that hardly any women have their own fund despite the fact that almost all want to.”
That said, Downs noted a marked shift in company culture to attract younger employees and improve the happiness of current ones. “Millennials will soon be the largest demographic in the work force, so it’s important to consider what they are looking for in a work place and find spaces to make those dreams a reality,” said Downs. “Because so many of us live tech-heavy, fast-paced lives, we need our work places to be innovative and efficient.” The entire panel strongly believed that practitioners should commit to the old-school method of mentorship to support millennials, particularly women and minorities, entering the commercial real estate and technology space. A diversified industry creates much stronger returns. As Kraai succinctly put it: “All of the Top-20 Tech firms have women in at least 20% of their key positions. It makes better thinking and increases profitability.”
Jacob S. Knabb is Commercial Communications & Member Services Associate for the National Association of REALTORS®. He works frequently with CRT Labs, keeping us informed of the latest and greatest in commercial real estate technology trends.
Check out the Touchstone Indoor Environmental Quality sensor, with its new SLS-printed enclosure, in this week’s Facebook Live Office Hours. To find out more about this project, head on over to Akram’s recent post outlining the current Touchstone project. And to participate in Office Hours, like our Facebook page at facebook.com/crtlabs.
Facebook Live Office Hours: Touchstone from CRTLabs on Vimeo.
We’re running a contest over on our Facebook page – if you comment on our recent office hours, you’ll be automatically entered to win a Google Home! To find out more, watch the video, and then head on over to the Facebook post. As always, liking our Facebook page will notify you when we go live on Fridays at 3PM Eastern. If you comment before our next office hours (which will be 7/14/17), you’ll still be eligible for the Google Home. We’ll draw the winner live on 7/14! See you then!
Facebook Live Office Hours: Google Home Giveaway! from CRTLabs on Vimeo.
A trio of articles on this week’s Things Thursday deal with the Internet of Things, new ways of accessing your personal data, and keeping that data secure.
- 4 ways that AI is enabling today’s IoT revolution (via ReadWrite).
Artificial Intelligence and the Internet of Things aren’t buzzwords anymore, but companies are still struggling to grasp what AI and IoT can do for their industries. Good news is, most companies surveyed by Accenture are interested in implementing AI and IoT strategies over the next few years, with AI being at the heart of figuring out what to do with all that data that will be whizzing about into the cloud and IoT allowing companies to think creatively about the objects that will collect that data. I’m always dubious to hear companies thinking in these terms, but I’m glad to see that there is an interest in the overlap in physical objects and non-physical data.
- A biometric ring could replace your passwords, cards, and keys (via engadget).
One of the first leaps for turning your non-physical information into a physical object is the Token ring, which uses biometrics (identifiers about individuals – retina scans and fingerprint IDs are other examples of biometrics in the wild – the Token uses a fingerprint ID) to allow you to get into a locked building, pay for the bus, and more. We’ve seen a fair share of trinkets purport to do this very thing, but it looks like Token has caught the eye of some major vendors, including partnerships with several large metropolitan areas to cover their public transit. The tech that interests me the most here is the sensors included to identify if the ring is on or off your finger.
- On not fearing a full basket of eggs (via CRTLabs).
A bit of a cheat on this third item, but as this nebulous data becomes what identifies you, it’s important to keep that data safe. Joe’s post (here on the blog) on password managers is a good crash course in making strong passwords, and keeping your data safe, and should be required reading for everyone in this digital age. NAR has been working hard on getting out information to our membership to keep client data secure; a good first step in the process is to assess your own digital security and pass that information on to your clients.
This week’s guest post is republished with permission from our friends in Information Services at the National Association of REALTORS®. The librarians are some of our closest collaborators here at NAR, and recently Abby Creitz came to us with a series of projects that would help them rethink how members interact with our Library and Archives at NAR HQ. One of these projects, described here, includes a Raspberry Pi as a dedicated media/slideshow device. CRT Labs has featured the Raspberry Pi before, using them for projects like running servers and small computer projects, as well as as the base for an indoor air quality sensor. Other projects in the Library’s future include a customized iPad kiosk, a rethinking of the library’s lobby space, and more, which we will update you on as they happen!
Ever heard of Raspberry Pi? No, I’m not referring to a baked good or an obscure geometric theorem; I’m talking about a small, inexpensive computer perfect for learning to code, and for DIY experimentation. I first heard of Raspberry Pi when I came across a Tooth Fairy Transport system created by one of the greatest dads in the world. What peaked my interest in the video was the use of a pneumatic tube system (#HomeAmenityGoals), but the real takeaway was how a Raspberry Pi made the project possible. Raspberry Pi has been used in many other innovative ways, some of which are great ways to implement smart home and home improvement projects for those unafraid of learning a new skill! At NAR Library & Archives, we decided to use it to improve how we interact with visitors.
NAR Library & Archives decided to partner with NAR’s CRT Labs to create and run a looping slideshow full of information about how REALTORS® and NAR staff use the library and its services (inspired by the Chicago Association of REALTORS®’ new office space in the REALTOR® Building). We decided that a Raspberry Pi would be the best way to run the slideshow continuously, dedicating the unit to the sole purpose of running the slideshow.
Out of the box, the Raspberry Pi was fairly simple to set up. It is a single board computer, containing all the components of a regular computer, just on a smaller surface. There are a few different Raspberry Pi kits available for purchase, but the kit we chose comes with an SD card, power cord, and an HDMI cable. You have to provide your own input devices (mouse, keyboard, microphones, etc.) and output devices (screen, speakers, etc.). We connected a Raspberry Pi to a large wall-mounted TV using an HDMI cable, plugged in a keyboard and mouse to the Raspberry Pi unit, connected the Raspberry Pi to WiFi, opened up a browser, and lastly, ran the slideshow using Google Slides.
Why do this instead of using a desktop computer? There were a number of reasons, but just to name a few: a Raspberry Pi cost $35, whereas a desktop computer costs hundreds; a Raspberry Pi has a footprint the size of a deck of cards, while the desktop takes up much more space; and using a Raspberry Pi leaves the desktop computer free for other demonstrations, or for use by our visitors while still exposing them to the information about our department that we wish to convey.
This sort of informational slideshow set-up could be used at open houses using the owner’s TV, or in reception areas of real estate offices. What other kind of projects could you see yourself undertaking with this technology?
Abby Creitz is the Web Content & Information Specialist for NAR Library & Archives. This post was originally published by Information Services Blog on June 21, 2017.