According to the report, which is based on a global survey of 400 CRE executives, there exists a growing prioritisation by CRE firms to address these challenges through dedicated executive ownership and governance related to overall data strategy.
Altus Group’s CRE Innovation Report also highlights:
- Almost half (45%) of CRE teams are spending at least 15% to over 25% of their time managing and organizing data (equivalent to two to three months of the year);
- Eight out of 10 CRE firms now have a Chief Data Officer or equivalent senior executive who oversees their organization’s data strategy and data governance. This compares to Altus Group’s 2016 research where 44% of firms surveyed indicated a lack of executive sponsorship;
- CRE executives now believe the timeframe for competing technologies to start gaining traction and is upon us, with PropTech consolidation a necessary outcome;
- 89% of CRE executives said significant consolidation is needed for PropTech to more effectively deliver on the needs of the CRE industry, with 43% saying it is already underway or will occur within 12 months
- Areas of PropTech most likely to experience consolidation include property management, property transactions and listing services, and financing and lending firms;
- A large majority of CRE executives (87%) believe global data standards for commercial real estate will eventually be adopted, however, numerous obstacles were identified including a lack of standardized data definitions on a global scale, and privacy and data protection regulations; and
- 50% of executives believe 5G wireless will create major disruptive impact on the CRE industry with 81% saying it will support increased adoption and use related to smart city development.
The 2020 Altus Group CRE Innovation Report is based on a global quantitative survey of 400 CRE C-level and senior executives in both front and back office positions at owner operator and investor firms in North America, Europe, Asia-Pacific and Latin America. All firms represented in the survey had a minimum of assets under management of at least US $250 million at the time of being surveyed, representing an approximate total AUM of over US $2 trillion.