Deloitte: Can Real Estate Firms Keep Up?

Posted on November 15, 2017

The U.S. commercial real estate industry ecosystem is changing at a rapid rate due to new forms of technology (e.g., artificial intelligence, smart cities, mobility improvements, sensors) and demographic changes in the workforce, according to Deloitte’s Commercial Real Estate Outlook 2018. The report urges the real estate industry to embrace these changes even though they might represent uncertainty.

The key, according to the report, is to close the gap between technological changes and business productivity over the next 12-18 months by prioritizing the following themes:

  • Accelerate business: Unlock the value for REITs by examining their corporate governance and communication strategies, optimizing property portfolios and reassessing public status.
  • Avail alternative capital options: Traditional commercial real estate companies can engage with fintech startups for sharable solutions, diversified funding sources and investment purposes.
  • Augment productivity: Companies should embrace robotics and cognitive automation to improve productivity in data collection, management and analysis.
  • Advance talent and culture: The commercial real estate industry is facing a talent shortage and must be agile, innovative and collaborative to attract new employees.
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