Adoption of technology now an imperative for the future of real estate, says IPUT report
Irish property company IPUT, has published a new report, ‘Shaping our Cities’, in conjunction with Arup, the global engineering and design group, looking at how digital technology is influencing the expectations and demands of investors, owners and occupiers.
This, in turn, is now driving the sector to more rapidly integrate technology into their buildings, service offering and asset management capability.
The report includes input from a broad range of international participants in the real estate sector including global investors such as Allianz Real Estate, CBRE Global Investors and UBS; occupiers such as Knotel, LinkedIn, Twitter and WeWork; and other influential organisations within the sector.
Niall Gaffney, IPUT CEO, says: “There is now a critical need for the real estate community to invest in sustainable buildings and the public realm. The value of technology in servicing the needs of investors and occupiers will influence the shape of the real estate sector over the next decade.
“As we commence the development of almost 65,000 sq m of mixed-use space in Dublin city centre, we saw an opportunity to explore the key digital drivers of change in real estate globally and ensure we are delivering stock that is at the industry’s cutting-edge. Drawing on this research, we can apply global best-practice to our projects for the benefit of our future occupiers and support long-term returns for our shareholders.
“Our commitment is to invest in sustainable buildings and the public realm - that enhance the occupier experience – which will set new environmental standards for offices in Ireland and mark us out as a landlord of choice in the sector.”
Léan Doody, Arup Europe Digital Property and Smart Cities Leader, says: “Real estate has always shaped cities, and technology has always shaped real estate. However, despite the pace of technological change over the past decade, the real estate industry has been slow to adapt – one study puts real estate behind other industries by as much as five years. That is now changing. We are seeing business models evolve and real estate owners and investors are adapting to capitalise on the potential that technology brings. Our research identifies the changing ways that we are looking at real estate investments; how we are adapting to the changing world of work; and building more sustainable buildings and business models.”
The disruption being caused by digital technology is one of the major issues facing real estate owners, investors and occupiers today. However, the real estate sector has been slow to embrace the digital revolution, with one estimate that the sector is behind other industries by as much as five years.
Two big drivers are now changing all of that: the climate crisis and the evolving structure of the industry. Investors want more granular asset level data to evaluate the sustainable performance of their investments. Occupants want quality office spaces to attract and retain talent but with more flexibility within the office environment.
Shaping Our Cities looks at how the commercial real estate industry is changing and explores how new business models will enable digital technology to create value. The report reviews the evolving structure of, and drivers of change within, the real estate industry. Shaping our Cities was researched and written by a team led by Léan Doody of Arup between July and November 2019. The process included interviews with over 30 professionals including real estate owners, investors, occupiers and other influential organisations within the sector.