Jul
17
Posted on July 17, 2017
During the most recent Industry Trends Task Force meeting, held during the National Forums Symposium in April, NAIOP Foundation Governors and invited guests participated in a session focusing on technological innovations impacting the CRE industry.
Topics discussed include:
- Legal documents can be produced and executed more easily today than they could years ago – one simple example of how technology has facilitated leasing and sales transactions.
- There are a tremendous number of regulatory barriers that prevent zoning technology from advancing. Parking ratios required by zoning laws are too high in some instances and too low in others. Sensors enable the collection of reliable data about when and where cars are parked but correcting the imbalance will require a change in local zoning, a feat that historically has been difficult to achieve.
- Drones have become more sophisticated and can be used for surveying, inspection of roofs, and many other aspects of either pre- or post-construction. Drones could begin to replace people, including site crews and inspectors.
- With aerial photography and Google, it’s now possible to look at a site and conduct market analytics, enabling a retailer, for example, to select an optimal location.
- The brokerage industry may become like the travel industry; in the future, real estate brokers (both commercial and residential) may provide guidance rather than carry out transactions. Building management software now tracks work orders. A tenant can submit a problem and the building engineer can change a setting from an iPad without having to travel to the site.
- A key problem is the pace at which change is occurring today. There is an inherent disconnect between technology that changes rapidly and physical, fixed, tangible real estate products that take a long time to build and modify. To address this, the industry must begin to think about how to build flexibility into real estate assets.
The session was moderated by NAIOP Distinguished Fellows Mark Stapp, Executive Director, Master of Real Estate Development, W.P. Carey School of Business, Arizona State University; and Chris Redfearn, Director, Dollinger Masters of Real Estate Development program, Price School of Public Policy, University of Southern California.
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