The report found that 10 per cent of commercial real estate executives “don’t really understand blockchain and what it does”, while 37 per cent of executives expect blockchain to start having an impact on the CRE industry within the next two years.
While blockchain’s future seems less than certain, there appears to be a growing buzz around smart cities with 31 per cent of executives stating that smart city initiatives and projects are already having a major impact on their investment and portfolio decisions
A large majority of firms have also invested in integrated software solutions for critical commercial real estate functions with the main motivation to create greater efficiencies.
“The combination of new market entrants, new technologies and changing demographics have created disruptive models within commercial real estate,” Altus Group chief executive Bob Courteau said.
“This is having a profound impact on portfolio planning and decision-making.”
“At the same time, this presents new opportunities for organisations who rapidly embrace innovation and PropTech to reduce complexity, increase efficiency and drive performance.”
However, 60 per cent of executives said their firms are still utilising spreadsheets as their primary tool for reporting, 51 per cent for valuation and cash flow analysis and 45 per cent for budgeting and forecasting, indicating that despite significant innovation, the industry continues to lag in certain areas.