The word proptech has been trending a lot lately, but what does it mean? Is it an app? Is it something I can buy? Do I already use proptech?
Let’s start with the basics: What does proptech mean?
Proptech is a shortened term for “property technology.” Property technology is meant to create efficient, connected and optimized systems and workplaces that improve tenant and employee experiences. It is often used as a tool for sustainability initiatives, keyless entry, booking a conference room and any other internet-based system. It also connects the building systems, such as HVAC, lighting and elevators to monitor and reveal efficiency opportunities or for safety, quality and comfort control. Proptech is the path to a modernized future that we are long overdue for.
In commercial real estate, we see proptech as a sublime tool that is completely disrupting and revamping office buildings. Depending on the IoT platform, proptech can benefit building owners, operators, and tenants. It basically provides the best intuitive and time-saving experience for everyone in the building while increasing asset value.
The Importance of Proptech
Tenants demand proptech integrations
As tenants return to the workplace, they are demanding new integrations that make the office experience more enjoyable and convenient. With smart building apps like Cohesion, employees have more control at the office. Integrations such as mobile key cards, visitor management, elevator reservations, and even maintenance request services are in high demand. Proptech can also facilitate safe social interactions after months of isolation through reserving conference rooms and amenities.
Tenants are requesting access to important information that ensures safety. To maintain a healthy environment, proptech users can receive quick updates about building events, emergencies and indoor air quality.
These proptech integrations make going back to the workplace more desirable as they introduce an entirely new office experience. With the help of proptech, tenants can return to the office in an efficient manner.
Proptech is data driven
Proptech is most efficient when data is appropriately collected and utilized. Smart building platforms like Cohesion gather comprehensive data through machine learning (ML) and artificial intelligence (AI) to better understand a building’s behavior, operative performance and space utilization. Information such as energy usage, occupant traffic and service requests can all be gathered and converted into insightful dashboards. This robust data helps building owners and operators make data-driven decisions to improve their property’s efficiency and maximize ROI.
For example, Environmental, Social and Governance Reporting (ESG) is a tool that showcases building health information in a single, monthly snapshot. ESG reports typically include indoor air quality, greenhouse gas emissions, building environmental certifications, community engagement, and more. Once building owners and operators are presented with ESG snapshots, they can implement sustainability goals which attract/retain tenants and significantly increases asset value.
With the integration of intelligent office building technology, proptech leverages data and insights to deliver the best-in-class tenant experience for a green, healthy and operationally efficient building.
Proptech is forward-thinking
In a recent Deloitte research report, the use of technology and climate change initiatives can strengthen the worker-employer relationship as it represents leadership readiness and engagement from employers.
As the pandemic continues to loom over our heads, health precautions are top priority for tenants and operators. Mentioned in an article by The New York Times, “The idea that each office building should have its own app is rapidly becoming the industry standard as features such as contactless building access, amenity booking, visitor management, and health precautions are in high demand.”
With the use of proptech, building management can integrate features that limit the spread of germs and provide transparency. Touchless building access, remote amenity reservation, and indoor air quality monitoring are excellent features that may reduce the risk of getting sick.
A McKinsey & Company study reveals CRE professionals are quickly recognizing the value of proptech integrations. Instead of resisting the urge to change, employers are listening to their employees’ demands for a modernized workplace.
Proptech is a smart investment
While proptech has been prevalent for a while now, the pandemic is speeding up the property technology evolution, resulting in a high demand for smart building integrations. In a study by Building Owners and Managers Association International (BOMA) and Building Engines, CRE software investments are expected to increase by 42% in 2022. While this may come as a surprise, proptech integrations are rapidly growing due to the exceptionally high expectations of employees. After working remotely for months, tenants demand a newly transformed office building that is safe, efficient and more transparent.
Intelligent building platforms like Cohesion are setting a new high standard for the CRE industry and completely changing the office workplace experience – for tenants and management teams. Proptech is the start to a smarter future.
Schedule a demo with Cohesion to see how proptech can help you.