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While corporate real estate professionals recognise technology as a powerful ally to devise smart property solutions, a new report has shone the spotlight on how data has become a major bugbear in the industry’s decision-making process.
Yao Morin, chief technology officer for global real estate firm JLL, said the future of corporate real estate depends on “better data”.
However, the executive acknowledged the “data deluge” — with its overwhelming magnitude — has become a pain point for corporate property professionals in the decision-making process.
“[The] sheer amount of broad data that needs to be analysed is vast, unstructured, and international, requiring careful processing to turn it into a valuable resource,” she stated.
In April, a separate report from Oracle showed business leaders nationwide are feeling overwhelmed and lacking decision-making confidence due to the constant influx of data, causing some to abandon important questions altogether.
JLL’s research backed the study’s findings, with the global real estate firm stating real estate professionals are “drowning in a sea of data” sourced from operational, financial and supplier systems, building sensors, workplace apps, and employee surveys.
Interestingly, it also highlighted key data black holes or data blind spots often hamper decision making, with only 13 per cent of companies having access to up-to-date business intelligence and real-time analytics.
Ms Morin also noted the technology needed to turn the “dreaded d word” into applicable strategies represents a “new ground” for the majority of professionals in the industry who are having to quickly “get to grips” with proptech solutions that can aid in building management, sustainability efforts, and enhancing workplace experiences.
And the volume of data is only set to increase. By 2025, JLL found 78 per cent of companies plan to incorporate over 10 of 15 technologies identified as “anchors for hybrid work transformation”, adding to the reams of data being collected and processed.
While there is no “silver bullet” to the problem, Alister Langdon, JLL’s UK head of integrated sustainability data, said it’s important to address the issue strategically.
“Instead of jumping to invest in shiny solutions in the hope of a quick fix, it’s vital to properly evaluate root causes, understand desired outcomes and then invest time, effort, and patience in proper integration,” he stated.
Stephanie Hyde, JLL’s UK chief executive, said this means “greater collaboration” between stakeholders is required to “successfully implement the right technologies and move the needle”.
She added that bridging the transparency gap between landlord and occupier data is particularly key in helping understand the big picture.
On the upside, JLL noted there has been increased interest in the adoption of proptech.
Sam Lavers, principal growth and alliances partner for JLL Technologies, noted there is now an increasing number of traditional real estate players who are eager to learn how technology can give them the data they need to transform the built environment.
“It’s indicative of the increasing importance of proptech as an enabler in commercial real estate,” Mr Lavers said.
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