Embracing the Potential of Technology and Innovation in Commercial Real Estate Investment
By Oliver Durham-Winch
October 21, 2024
While 2024 wasn't my first experience of EXPO Real, it was enlightening to join this year's event under my new role of Executive Vice President of InvestorFlow EMEA, giving me a refreshing perspective on the future of the commercial real estate industry.
Here are three observations that stuck with me after discussing the future of commercial real estate in private markets with global firms:
Investor sentiment is getting greener
The commercial real estate industry (CRE) has transformed more in the last few years than ever, with many industry-wide challenges adding pressure to the day job. While investor sentiment remains cautious, and many seek stable assets amid economic uncertainties, EXPO highlighted a growing appetite for more innovative investment strategies such as impact investing and green bonds.
Many discussions at EXPO Real underscored the increasing importance that professionals place on diversifying their portfolios, particularly in relation to sustainability and ESG principles. This growing emphasis is a positive sign, indicating a shift towards long-term thinking in investment decisions. It's now imperative for investment and asset managers to integrate sustainability as a core strategy, paving the way for a more responsible and resilient industry.
The CRE industry's relationships are evolving
In an industry known so well for the strength of its relationships and networks, we're seeing even more emphasis on collaboration between the property and technology sectors this year.
Real estate's market knowledge and property and financial technologies' specialized capabilities can catapult growth and efficiency. Conversations at EXPO Real highlighted the importance of building these relationships to remain competitive in the private markets.
Data remains key to unlocking capital-raising potential
Technology's role in reshaping fundraising processes was a prominent theme at the conference. Financial technology solutions drive how capital is raised and allocated in CRE, with many big players putting AI-driven analytics at the core of their businesses. Technology undoubtedly enhances transparency and efficiency, making it easier for investors to assess risks and opportunities.
Both a risk and opportunity, data continues to be a game-changer in commercial real estate and private equity. Throughout the event, experts emphasized how advanced analytics and big data, such as predictive modeling and consumer behavior analysis, provide deeper insights into market trends and consumer behavior, enabling investors to make more informed decisions. It's crucial for making informed investment decisions and tailoring offerings to meet investor demands.
Recent tech innovations have given business professionals the tools to enhance their existing data and instantly extract AI-driven insights - pushing productivity to a new level. With this, the importance of accurate, consistent and reliable data has never been more prominent.
As always, EXPO Real was not just about networking; it was about understanding the future of our industry. As real estate professionals, investors, and industry stakeholders, our willingness to embrace technology and collaboration will be crucial in shaping the industry's future.
