Technology’s role in property management has proven to be pivotal. In fact, according to a report by Building Engines, nearly every property team is investing in commercial real estate (CRE) software – a trend that has only accelerated due to recent societal and economical shifts.
But smart investments are not just about adopting the latest technologies. Rather, it’s about focusing on the right areas. According to the report, the top proptech areas of investment include:
- Building operations/equipment management
- Energy management/sustainability
- Tenant experience tech
In this blog, we’ll dive into each category and explain why these investments matter for property teams and their benefits.
1. Building operations tech
Why it matters:
Efficient building operations and equipment management are a full-time job. A considerable amount of time and resources are used in managing tenant issues, preventive maintenance, and managing Certificates of Insurance (COI), for instance. That’s why CRE professionals are prioritizing tech investment in building operations/equipment management.
Tools and technologies:
Automation tools come in as the top tech solution. They can significantly lighten the load by streamlining repetitive or complex tasks. Investing in property management automation software can alleviate time-consuming tasks like issue reporting and management, preventive maintenance procedures, and COI tracking.
Furthermore, work order management software plays a crucial role in managing issues and tenant complaints, allowing property teams to prioritize, track, and resolve work orders more efficiently.
Benefits:
Strategic investment in these technologies can translate to substantial benefits, including streamlining daily operations, leading to more effective and efficient processes. With speedier responses to tenant issues, the automation approach can significantly enhance tenant satisfaction levels. These tech investments aren’t just tools but a strategic shift toward smarter, more efficient property management.
2. Energy management & sustainability tech
Why it matters:
Commercial properties are under pressure to deliver more sustainable buildings. With more tenants heading back to the office full time, property teams are complying with the need to incorporate more energy-efficient practices. In fact, the demand for energy efficiency and expense reduction has topped the list of sustainability priorities for three years running, according to 64% of respondents in the Building Engines report.
Tools and technologies:
For energy management and sustainability, advanced technology solutions stand out as key investments. Tools such as utility performance analyzers, dedicated software for ENERGY STAR and GRESB certifications, and compliance report generators are enabling property teams to design actionable sustainability improvement projects. Smart property management software also ties in work orders and allows for extensive management and visual tracking of key metrics such as energy, water, and carbon usage.
One notable tool is Hank, an AI solution from JLL. Hank harnesses the power of AI and machine learning to manage energy usage and drive sustainability. Equipping property teams with real-time data monitoring and predictive analytics, Hank can intelligently optimize energy usage, contributing to significant energy savings, reduced carbon footprint, and boosted operational efficiency.
CapEx project execution and planning software is also becoming a tool of interest. This software helps track all capital projects graphically, allowing teams to compare performance data, estimate material costs and schedule project tasks. These tools assist in managing resources effectively and driving energy efficiency.
Benefits:
With these technologies, CRE professionals can make substantial strides toward their sustainability goals. They not only help to reduce the carbon footprint and improve energy efficiency but also contribute to enhanced tenant satisfaction and potentially to property valuation. These can lead to the property being more attractive to potential tenants who prioritize sustainability and can positively impact the property’s bottom line.
3. Tenant experience tech
Why it matters:
Given the increasingly competitive CRE landscape, providing a superior tenant experience is not just beneficial, it is crucial. According to the Building Engines report, 52% of property teams are prioritizing tenant experience in their tech stack enhancements this year. As tenants return to offices full time, creating a positive and streamlined tenant experience is key to further tenant retention and satisfaction.
Tools and technologies:
One specific tool is HqO, a tenant experience platform that can significantly enhance tenant engagement and loyalty. It allows for simplified communication with tenants, effortless management of events and amenities, and provides invaluable data on tenant behavior and preferences.
For efficient issue management, work order management software is a significant game-changer. It guarantees swift and efficient response to maintenance requests, thereby enhancing tenant comfort and satisfaction. Utilizing tenant communication platforms or apps further simplifies communication and issue resolution.
Benefits:
Investments in tenant experience tech can greatly boost tenant satisfaction which in turn leads to increased lease renewals and stable rental income. These technologies also provide valuable insights into tenant behavior and preferences, allowing property teams to make more informed decisions on property improvements and processes.
The top proptech investments
Adopting the right technologies is not an optional add-on but a necessity for modern property teams. Now is the time for us to reassess our tech strategies and think critically about the areas we will invest in.
You can download the full report for free to gain an understanding of the trends, challenges, and opportunities in the CRE industry.
