Following a pandemic-fueled course correction, the global commercial real estate (CRE) industry faces transformational shifts in how buildings will be used, valued, and transacted in 2023 and beyond; and the impact of proptech trends will play a significant role. While the industry has been notoriously slow to adopt technology, property management firms, now more than ever, must embrace innovative solutions to stay ahead of the competition. From IoT and conversational AI to data integration and automation, proptech is imperative to improving efficiencies, reducing costs, driving new revenue streams and mitigating risk. Here are four ways proptech will impact CRE in 2023.
One of the most significant changes in commercial real estate over the past couple of years is the drastic shift in tenant expectations. More tenants are moving to high-quality buildings with state-of-the-art amenities in the post-pandemic world. If property owners want to attract and retain tenants, they must create an exceptional tenant experience.
According to, The State of Commercial Real Estate Building Operations for 2022 report, 49% of respondents expect tenant experience technology to be most beneficial to their business.
Tenant experience technology aims to help CRE firms streamline processes, enhance communication, and collect meaningful data. For example, PremiseHQ’s GroundFloor uses conversational AI to empower tenants with self-service access to critical building information and automated coordination, processing and approval of work order requests, leasing agreements, certificates of insurance, amenity reservations and more. GroundFloor also integrates IoT data like occupancy, cleaning supply levels and air quality to ensure buildings are always well-maintained and that adequate ventilation is provided for enhanced tenant health and comfort.
One of the most critical responsibilities of a property manager is handling compliance and risk mitigation. From adhering to building codes and gathering COIs to managing SLAs and ensuring safety and sustainability, a substantial amount of information must be collected, managed, and analyzed.
The challenge is that this information comes from disparate sources; vendor management systems, internal spreadsheets, building management systems, IoT devices, etc. Moreover, these tasks are often manually managed, which is time-consuming, tedious and error-prone.
For this reason, we’ll see a rise in property management platforms that can automate and centralize the collection, integration and management of critical compliance processes and data, including:
COI Tracking – Automating certificate of insurance requests, collection, validation, and resolution will give CRE teams a centralized repository to view compliance.
Vendor Management – Automating the prioritization, tracking, and reporting on all contractual service-level agreements will help reduce risk, identify financial gains and ensure the best possible vendors are on the job.
Inspections – Digitizing safety inspections, standardizing maintenance processes, automating escalations, and verifying resolution instantly through a central hub will help enhance safety standards, demonstrate compliance and prevent costly maintenance.
The effect of climate change on the CRE industry is growing more relevant every year, with new solutions needed to reduce energy waste. Efficiency solutions for existing buildings are quickly becoming a top priority for property managers and tenants and a focus from governments worldwide.
However, the cost of identifying efficiency opportunities in existing buildings can be prohibitive. Facilities managers often do not have the correct data or insights to understand the efficiency barriers in their facility or which solutions will have a strong return on investment.
As a result, a significant 2023 proptech trend will be investments in solutions that can transform building data into actionable ESG insights to minimize energy waste and carbon emissions, track net-zero progress and reduce costs.
For example, PremiseHQ’s Groundfloor platform integrates and analyzes ESG data such as energy consumption, indoor air quality, occupancy rates, CO2 levels and more across multiple buildings from a single platform. This enables property management firms to quickly identify trends and inefficiencies across their property portfolio, ensure accurate and comprehensive ESG reporting and provide an optimal working environment that dramatically improves tenant satisfaction.
Saving time and reducing costs through greater operational efficiency has become more critical than ever as property teams struggle to manage siloed systems across their property portfolio. With multiple solutions to manage operational processes and infrastructure, such as IoT, HVAC, lease and insurance administration and tenant support, CRE companies spend a substantial amount of time switching between systems or manually transferring data from one system to another.
As a result, technology that can automate the integration and standardization of all systems, data, and applications into a central platform will be at the forefront of adoption in 2023.
For example, PremiseHQ’s GroundFloor automatically unifies all critical building applications and data into a central hub, enabling property teams to digitize and automate day-to-day tasks like COI tracking, vendor management, property forms and tenant support. With all building applications and data in one place, an entire CRE organization can work from the same blueprint, eliminating the need to manage multiple systems and avoiding the discrepancies that arise from disparate data and different tools. Bringing technologies that power properties and CRE companies together will enable them to perform at a higher level and stay ahead of the rapidly evolving real estate industry.
Commercial real estate teams face new challenges as the industry evolves. As inflation remains unstable and the industry braces itself for a potential recession, CRE professionals need more help than ever before in understanding the shifting proptech trends for 2023.
We would love to know what your 2023 proptech predictions are – leave a comment below.