Day two of the 2019 CRETech New York conference wrapped up discussions on how the commercial real estate industry can adopt new technologies at a quicker and more meaningful pace. Here are five main takeaways from the second day of the event.
- “Data is the new oil,” says Sudeep Doshi, associate partner at McKinsey & Company, a management consulting firm. The most valuable companies in the world in 2019 are tech companies, compared to 2006, when it was oil companies. For this reason, there is a tremendous opportunity for technology to disrupt the real estate industry, which has been a laggard in adopting new tech.
- Industry insiders should pay special attention to the residential side of real estate, according to Vanessa Anderson, vice president of operations at Truss, an online marketplace helping small businesses find office and coworking space. The residential side of the market is embracing adoption of technology faster and, thus, is experiencing more rapid innovation. Anderson says some technology trends in residential real estate can translate to commercial real estate as well.
- Kia Nejatian, senior associate at Plug and Play Tech Center, an innovation platform, and MJ Cootsona, co-director of real estate and construction tech at Plug and Play Tech Center, say internal research and development needs to expand and real estate companies need to embrace disruptive technology.
- Some real estate players quit on new technology if they suffer a failed experience, but Nejatian and Cootsona advise that “failure is okay,” as it just takes one successful adaptation of a proptech product in order to reap the rewards.
- Three reasons blocking adoption of proptech in the commercial real estate industry are: a lack of infrastructure and skills, absence of overarching tech solutions and need for more return on investment, according to Nejatian and Cootsona.