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Technological Trends

How should institutional real estate investors react to technological trends?

Jack Sibley
Technology & Innovation Strategist, Real Estate
Smart city, real estate

Real estate is facing a structural shift in its approach to technological innovation. Whether it’s the explosion of venture capital investment in the real estate vertical, the growing number of unicorns, Big Tech making moves into the built environment, or the transportation and connectivity revolutions forecast to take place over the next decade, all signs point to an unprecedented level of change driven by innovation and technology

The industry is in the first innings of a breakthrough 5-10-year period - call it digital transformation, technological disruption or another label – by 2030, real estate, as an industry and as an asset class, will look very different than it does today. As a large institutional investor and one of the world’s leading real estate investment managers, we pride ourselves on being ready to both embrace this change and to play a strong part in helping to shape it, in line with our tomorrow’s world philosophy.

Real estate is a long value chain with the demand for innovation spread throughout. For an institutional investor there is plenty to find interesting, but much less that is directly relevant. The challenge is to filter through the noise and find the key trends and innovators that are driving change in those areas that applicable to an investor’s core objectives.

Technological innovation can be a wide-ranging, all-encompassing topic, so it is helpful to have a framework to organise different trends into. One way of doing this is to look at the lifecycle of making an investment which, excluding development, can be bucketed into three stages: research, transaction and asset management. Within these stages, some themes are more relevant than others.

Research

Transaction
 
Asset management
  

 

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