In the third annual edition of its CRE Innovation Report
, Atlus Group found that most commercial real estate executives are expecting the automation of industry processes to a significant degree.
The report is based on a survey of over 400 industry executives at global firms with assets under management of at least $250 million USD.
Over 50% of the poll respondents indicated a belief that most major industry processes and workflows can be “significantly or completely” automated, “suggesting a potentially dramatic impact on people associated with these processes, and that the industry may be ripe for automation to take over.”
“The proliferation of commercial debt marketplaces allows lenders to quickly access hundreds of deals in a proactive manner, instead of learning about deals one-by-one from sponsors or institutional mortgage brokers. This process allows lenders to find deals that fit their parameters quickly,” the report quoted MetaProp NYC co-founder and advisor Zach Aarons as saying.
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And while a considerable proportion of the discourse surrounding new technologies involves the potential for disruption, only a minority of the executives polled indicated a belief that technologies such as blockchain (15%), augmented and virtual reality (18%), and artificial intelligence (28%) will lead to major disruptive changes in the industry.
A more pressing concern is the industry’s ability to actually keep up with the changes. 58% of the respondents said they are using significantly more applications now than they were three years ago, but 59% noted that their organizations did not have significant integration between major management systems/applications.
Most worryingly, half of all the firms surveyed said that they are either experiencing a significant shortage of skilled IT staff, or are not adequately staffed and need more technical resources.
“CRE firms need to start looking at how their technology infrastructure will allow their processes, workflows and data to ‘digitally plug’ into the technology advancements of the PropTech future that are starting to come to market now. This encompasses adoption of process automation and deploying data solutions that will allow firms to utilize new industry-wide processing frameworks, such as new commercial debt technology infrastructures and performance management benchmarking solutions,” the report stated.
Brokers will remain front and center
Thought leaders betting on analytics, automation, and big data