PropTech has become the buzzword in real estate. The multiple benefits from using real time, big data analytics resonates with property owners, occupiers and service providers alike, transforming the way businesses are being conducted in the present and the future. While some enterprising owners have made an early investment in their own propriety technology platform, many remain passive or non-committal in adopting the tools and systems that create the efficiency, productivity and an advantage for their organisation in an increasing competitive business landscape where actionable business intelligence can become the key difference between success and failure.
Property owners/landlords typically make a calculated decision between in-housing and outsourcing property management functions after a long process of cost-benefit analysis with outsourcing as a long-term investment in shareholder value. Outsourcing in property management is increasingly viewed not only as a strategy for delivering cost-savings to the bottom-line and as a means to reduce the cost of provision for ‘non-core’ business functions, hence lower labour costs; it is deemed necessary as a form of technology and innovation partnership with the progressive service providers.
As the in-house operating model expands trans-border spanning across different asset classes, the platform required to support the related business activities across HR, admin, marketing and legal supporting functions together with the IT infrastructure and operating systems has to keep pace with the complexity and corresponding issues to management. With property owners and landlords’ primary focus on providing shareholder and stakeholder return in property investment, the provision for capital investment in costly IT management systems often takes second place.
Increasingly, what is being recognised in the industry is the benefits to outsourcing property management to the industry specialists in order to direct inner resources to contribute to strategic, tactical and asset specific decisions. Transparency, capture, and collation of real time property and portfolio information is a game changer for many property ownership vehicles looking to maximise portfolio asset values.
Progressive owners and landlords have been actively seeking out specialised service providers to be their partner in technology and innovation because they understand that real-time data that is constantly updated on the ground can improve operational efficiencies. As the largest Property Outsourcing company with extensive investment in digital solutions across IT and management systems, CBRE’s key value proposition is two-pronged, i.e. to save our clients thousand into millions of dollars which would have otherwise channelled into selecting, implementing, managing and supporting third party hard and software; and to provide the necessary transparency as well as efficiency in managing the assets to the highest service delivery standard required by investors.
The views and opinions in these articles belong to the author and do not necessarily represent the views and opinions of CBRE. Our employees are obliged not to make any defamatory clauses, infringe or authorize infringement of any legal rights. Therefore, the company will not be responsible for or be liable for any damages or other liabilities arising from such statements included in the articles.