Over two and a half days, RETCON 2023 brought together the world’s leading commercial real estate (CRE) owners, operators, and developers to facilitate technology adoption and innovation within the industry.
The Building Engines team was fortunate to participate in the event, learning from some of the brightest minds in the industry. Here’s your roundup of the biggest takeaways from RETCON 2023, straight from the experts.
This roundup includes expert insights from:
- Michael Rudin, EVP of Rudin Management Company
- Brian Wallick, Senior Associate, Asset Management, Office, Real Estate, Americas at Nuveen
- Chris Blackman, Partner at Garcia Blackman Holdings
- Jesse Carrillo, CIO at The Howard Hughes Company
- Clint Osteen, Senior Director of Information Technology at Granite Properties
- James Whalen, Senior Vice President, Chief Information and Technology Officer for Boston Properties
- Jeff Thompson, Head of Global PM Technology Product Management at Building Engines
- Matt Christy SVP, Head of Architecture & Engineering at AEW Capital Management
- Mark Ferris, COO of Bridge Commercial Real Estate
- Ilan Zachar, Chief Technology Officer at Carr Properties
1. Old vs. new buildings & what tenants want
Tenants today have many more commercial building options and amenities that weren’t available even as recently as three years ago, Michael Rudin, EVP of Rudin Management Company, noted during the opening keynote of RETCON 2023. “New buildings come chock-full of amenities and technology,” he said.
And while newer buildings have certainly upped the game when it comes to competition, that doesn’t mean older buildings should be discounted. “How do we get the rest of the [older buildings] up to that level? Technology is, generally, the easier path to take in terms of adding something to an existing building,” Rudin said.
It is, however, putting more pressure on CRE property teams to figure out exactly what their tenant experience strategy needs to be in order to remain competitive.
The answer isn’t so simple, though. “There’s no one-size-fits-all answer for every building. You can’t just say, ‘Add technology and we’ll attract tenants.’ It’s a holistic approach where every building is a snowflake and needs to be looked at individually,” Rudin said, adding that property teams need to:
- take stock of exactly who their tenants are;
- know what their tenants are willing to pay;
- understand what tenants’ employees are looking for; and
- determine what will attract those employees back to the office.
2. Data is key to tenant experience
So, how can property teams truly understand their tenants’ needs? Tenant engagement is key. One of the easiest ways to engage with tenants is through a tenant app. And the data gathered from such technology is invaluable to bolstering the tenant experience.
“Now, more than ever, data matters. It’s all about how it gets manipulated and what the output is from that input. Having building apps allow you to get that data and have it at your fingertips, and they let you make a lot more informed decisions,” Brian Wallick, Senior Associate, Asset Management, Office, Real Estate, Americas at Nuveen. Wallick spoke during the “Bringing Them Back: Does It Fall on Owners, Operators, or Tenants to Bring People Back to the Office?” session at RETCON 2023.
“We’re seeing this every day, and it’s only getting better and better. The more we get from tenants as they give us information, it allows us to put together a more effective output. The tenant is going to have more of what they want and a better experience,” Wallick added.
However, experts advised CRE property teams to be careful when implementing a tech solution. Selecting the wrong tool could have a negative impact on the tenant experience.
“If it’s something that impacts your tenants, like an app that is used to engage with tenants, it’s getting it right. You have one chance, especially if it’s facing your tenants, to get it right. If it’s not, you’re likely not going to get that opportunity again,” said Chris Blackman, Partner at Garcia Blackman Holdings, during the “Property IQ: Boosting Your Properties’ Smart Building Capabilities” session.
At the end of the day, buildings are “dumb,” Clint Osteen, Senior Director of Information Technology at Granite Properties, said during the same session. “Data is what drives buildings to be smart.” He said it’s time for CRE companies to “integrate or die.”
3. Implementing the best tech stack
However, James Whalen, Senior Vice President, Chief Information and Technology Officer for Boston Properties, said it’s important for property teams to be cautious when implementing new technology in their portfolios. “Walk before you run, and crawl before you walk – and don’t be afraid to walk away if something isn’t working,” he said during the “Property IQ” session.
There are more tech integration opportunities than ever for the commercial real estate industry – and likely more to come to market as providers continue to innovate to solve complex problems. But, as Blackman said, any tech integration needs to move the needle on tenant experience. Likewise, it’s important to look for best-of-breed solutions that have staying power.
“Is the technology coming out even going to be around in the next year or two? We’ve all seen technology that we’ve tried to implement at our properties come in and halfway through, they’re gone; they’ve folded. You really have to look and say, ‘Is this something that’s going to be here, or is it just the flavor of the month?’” said Blackman.
“Some tech companies were trying to come into the CRE industry, but they didn’t know the industry. The successful tech companies realize that this industry is unique.” —Jesse Carrillo, The Howard Hughes Company
Especially as the pandemic led to a big proptech explosion with startups popping up, the marketplace has become crowded. Property teams need tech solutions that:
- Understand the nuances of the commercial real estate industry (because they were created by people from the industry)
- Leverage data to help property teams prioritize issues, create sustainable strategies, and increase efficiency
- Have an easy-to-use and intuitive interface, especially as teams are working with fewer team resources and training can be a bottleneck
- Lead to a justifiable return on investment and translates building data into cost savings and actionable insights
- House data in the cloud so that all key stakeholders and team members can access the information they need when and where they want
4. Sustainability is table stakes
During the keynote address, Rudin noted that sustainability is essential to the longevity of the CRE industry. It starts with reducing buildings’ carbon footprint and emissions. And, he said, it’s critical to look for technologies that can help improve sustainability.
“Sustainability is now table stakes. It’s no longer just an option,” Jeff Thompson, Head of Global PM Technology Product Management at Building Engines, said during “The Evolving Workplace Requires a Modern Tech Stack” session at RETCON 2023.
Matt Christy SVP, Head of Architecture & Engineering at AEW Capital Management, said during the “Data & ESG: Harnessing the Power of Building Intelligence” session that implementing tech tools to help with ESG initiatives starts by first defining the purpose for each tool considered. “The first step is to take a step back and find out where do we need to focus and why do we need to focus on those areas?”
It’s a balancing act, according to Mark Ferris, COO of Bridge Commercial Real Estate, speaking during the “Maximizing Management: Optimizing Property Management with Savvy Tech” session. “With ESG, you have to try to do good while also managing well-run properties efficiently,” he said.
Thompson said that property teams can meet their goals by building out a tech stack that avoids point-to-point integrations with no central, single truth around the portfolio. It’s important to create a tech stack that will centralize your building data and improve efficiency. Too many tech solutions can cause data confusion and require too many integrations. Look for a tech solution that, as Thompson said, will, “sit at the centerpiece.”
5. A continuous need to adapt & innovate
As Rudin said during the RETCON 2023 keynote address, technology certainly helps. However, property teams need to continuously adapt and innovate to succeed as the industry evolves.
Data output is a big area where the CRE industry needs to continue innovating. “Data is just data. It’s the raw input that needs to be cleaned, structured, and integrated before it becomes useful,” said Ilan Zachar, Chief Technology Officer at Carr Properties. “AI is the output, the intelligence that results from the processed data.”
Artificial intelligence (AI) is a hot topic in the CRE industry right now. It could hold the key for tech companies to further innovate to help property teams adapt. For example, the CRE industry is seeing AI help optimize some building systems, such as HVAC. An AI-powered platform that optimizes the HVAC system and makes micro-adjustments in response to real-time conditions can significantly reduce total energy consumption.
As the industry continues to evolve, property teams and their tech partners will be looking for new ways to adapt and innovate. Property teams planning their long-term strategies should look for tech partners who are constantly moving the needle on innovation. Those are the tech solutions that have staying power and can help CRE companies scale and adapt as needed.
Contact us to learn more about how you can scale your tech stack to help you continuously adapt to the industry’s evolution.
