At REFA CRE Tech Session - Adapting and Adjusting is A Building Owner’s Necessity

BOSTON–Back in 2010 Apple locked up the rights to the slogan, “There’s an app for that.” Yet, nearly a decade after one of the worlds most recognized brands coined that phrase – and 75% of Americans own smartphones – nobody would ever accuse the commercial real estate industry of being early adopters. “I would say our industry is a ‘lager’ when it comes to technology,” Hisham Kader, EVP and CFO of GID Investment Advisers smirkingly stated at the opening of the REFA Education Series labeled, ‘CRE Tech In Practice’ held at the law firm of Morgan Lewis.

Comparing and contrasting this tech session to the dozens that fore-ran it reminded me of the expression, “straight from the horse’s mouth,” being it was a panel made up of the professionals who are in use of the technology, rather than the ones introducing or pitching it.

An experienced trio of national building operators openly spoke on the adaptation of technology systems and applications, including the aforementioned Kader - along with Maureen Joyce, Director and Sr. Portfolio Manager at AEW Capital Management, and Boston Properties’ Jim Whalen, SVP, Chief Information & Technology Officer. Moderated by Wilds Ross, Principal at KPMG, the discussions revealed a fresh perspective on the tech impact to their buildings and clients - and its effect to their bottom lines.

“Tenants and occupants are expecting a much better user experience within buildings. Ten years ago it was all about investing in custom software for buildings - today it’s about applying data and substantiating with confidence because of the data, which allows us to stay engaged with and understand user habits through the technology,” said Boston Properties’ Whalen, when discussing using various tech applications.

All of the panelists agreed that there is now depth and availability of boundless information through their collection of data, extracted by the automation within their systems. “We are all focusing on occupant experiences through our collected data as we witness the sheer growth of the digitization of buildings,” Whalen asserted.

However, technology, as they discussed, is a constantly evolving mechanism that comes with a cost, both in time and money. “It’s expensive to bring in new technologies, but it’s also a necessity,” claimed AEW’s Joyce.

“We are always adapting and adjusting new technologies for new offerings, and now with our latest ‘Flex’ space, we need to bring in [yet another] new technology for that space - to keep pace with the WeWorks and others,” added Whalen.

Ross then injected a piercing question. “Every company today is a data company, but how do we measure, justify the benefits and results?” The inquiry seemed to divert the flow of upbeat tech talk toward a more profound discussion of uncertainty. “Candidly, it’s very disjointed right now,” confided Joyce. “We’ve put a team together just to vet the vendors and products & services because so much time is being spent with vendors showing various technologies with numerous people that we had to put the brakes on.”

Joyce was swift to defend the investment of tech experimentation and the adoption of systems, though. “Even though it still feels early, we (she gestured to the panel) are the ones deciding where it is going, so we stay very much involved with the latest technologies.”

GID’s Kader agreed with the assessment and admits not all technology fits. “It’s still early in the game as far as how all of the systems will work together, sure … technology may not make sense for all building types, which is why it needs to be tested in smaller community, lab spaces. What might work in a garden-style apartment in California may not make sense in Westborough, Mass. We need to see, today the automobile is a computer on wheels, not too long ago it was fairly simple - frame, engine and wheels - buildings are still four walls, but evolving with new technologies and systems,” he asserted.

As the session drew to an end, Ross tossed a final question regarding the future of commercial real estate technology, and Joyce projected. “I had the fortune to sit at a technology round table with Apple, Facebook and Intel … and they all want access to our clients and their habits. So, I think it will still be all about the data - but I wonder what will it give us in ten years?”

The audience left with eyes wide open. “Tomorrow’s client will want the Amazon-style experience … maybe book an appointment on their app - go tour the building on their own - and on the way home - sign the lease on their tablet - having their own online experience,” Kader closed.