Despite recognizing the long-term potential for innovation to drive increased revenue and efficiency, the emphasis changes when real estate professionals assess the advantages leveraging technological innovation within their own operations and organizations. Operational efficiency is most frequently cited, with increasing revenue via deal flow (75 percent), and customer satisfaction (25 percent).
While efficiency remains key to long term viability, the short term effect of capital efficiency takes precedence, according to our RE:Tech › Insight survey. The manner in which technology operates matters less than capital performance. “If brokers aren't able to generate new business or maintain existing business using technology or software, it will be short lived,” explains a commercial real estate broker survey respondent. “Technology won't change our companies business model but it can help with acquiring and maintaining business.”
However, as two-thirds (67 percent) of commercial real estate professionals expect competition in real estate tech to increase in 2016, providing similar services at breakneck speed may not be enough. Meanwhile 13 percent expect tech startups to generate new offerings through new products and/or services.
The tendency of commercial real estate respondents to focus on efficiency, cost reduction, and capital acquisition when considering on-boarding of technology echoes a similar pattern observed in other sectors including FinTech. "The real estate tech movement is refreshing, but at the end of the day brokers invest in digital strategies as a growth tool."