A recent report estimates “the number of devices with IoT adoption in office buildings will rise to 3,331 million across all markets by 2022,” which is a 153 percent increase over a five-year period.
This dramatic increase reflects a shifting consumer demand from tenants and investors.
It’s proven that integrating PropTech like IoT helps attract and retain tenants, and increases the overall value add of many different commercial property types, here’s how:
Using Technology to Attract Tenants
It’s reported that only 15 percent of buildings are classified as “smart.” Developments that offer PropTech solutions instantly set themselves apart from 85 percent of other competitors. The reports and statistics surrounding the inevitable integration of technology into workplaces, businesses and buildings aren’t secret.
In a period of transition in the commercial real estate industry, potential tenants are keen on choosing properties that can provide any glimpse of a sustainable future. With global demand for connected properties increasing, progressive buyers are seeking out developments that offer solutions that align with the future.
A survey conducted by Deloitte found that 80 percent of commercial real estate investors believe that “companies should prioritize the use of predictive analytics and business intelligence.” To attract serious tenants, you need to provide serious data.
How Technology Can Help Retain Tenants
PropTech like Mallcomm improves operations and creates a positive experience for all types of tenants. Functions like property access, car parking, climate control, food ordering, maintenance, and cleaning make building and service requests east and more efficient.
Room booking, auditing and inspections, maps and navigation, and a cloud-based document library improve business for tenants. Additional tools like promotions, engagement in events, tenant campaign/event calendar, B2B marketing documents, sales, footfall, analytics, and integration with 3rd party systems benefit tenant performance.
An expert from JLL and the MIT real estate explained that lab “investors should consider technology that (1) automates and helps them run their business more efficiently; (2) impacts the size of tenant spaces and future-proofs buildings throughout their lifecycle; and (3) collects data for analytics useful in running buildings efficiently.”
PropTech adds more lasting value to a property than a new paint job or renovation, the data and promised long-term benefits results in a higher return on investment for the property owner. Technology provides unparalleled data that developments who don’t utilize technology can’t as accurately provide.
One of the biggest challenges real estate companies deal with is trying to figure out which types of technology to invest in. Most businesses only utilize technologies that focus on one area of operations. This is why utilizing an all-encompassing PropTech that offers everything a building needs in one place creates so much more value than other solutions.
In a survey by Deloitte, “nearly 53 percent of respondents believe that technology advancements will have the greatest impact on legacy properties within the next three years, and 15 percent believe that the impact is already visible.”
As PropTech pioneers Toolbox Group has capitalized on the role of technology in communication and engagement with its two award-winning platforms Mallcomm. It’s currently operating in 22 countries in 11 languages with recent expansion in America. It’s currently used in 250 properties, by 250,000 users in 20,000 tenants covering 6,600 brands in Europe alone. It’s the technology of choice for companies such as Unibail-Rodamco-Westfield, Savills, British Land, and Klepierre.
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