Most CRE Executives Expect To Increase Tech Investments Related To Tenant Experience
Location is no longer the only amenity of consequence in commercial real estate.
In today’s world, CRE tenants are actually more likely to place a premium on buildings with internal tech advances, such as artificial intelligence and the Internet of Things.
A survey of 750 CRE executives released by Deloitte this week found owners, developers, brokers and investors see their investments in tech-centric tools as one of the best ways to improve overall tenant experiences.
Of those leaders interviewed, 42% plan to moderately increase tech-related investments in tenant experiences in the coming 18 months, while 36% expect their organizations to keep investments in this area steady. Another 14% anticipate significant increases in tenant-experience tech tools, according to Deloitte.
Even with the industry preparing for a possible recession next year, Deloitte found CRE executives have no intention of slowing down these tech-related expenditures.
Demand for more AI and interactive tech tools is coming from growing urbanization, flexible office locations and shifting desires from the workforce, the Deloitte report said.
And in today's world, tools like AI are known not just for how they enhance the experience of tenants, but also for lowering costs and increasing overall efficiencies inside buildings.
The report notes that buildings vested in mobile apps and IoT-enabled buildings ideally have smart capabilities that allow tenants to do things like control the lights and room temperatures. Executives interviewed expect smart buildings to increase in number over the next 18 months.
Even though AI is still in the nascent stages in commercial real estate, Deloitte found that 63% of execs interviewed expect to use it in the future.