For years, both construction and commercial real estate have been labeled as laggards in technology adoption. However, recent shifts indicate that this narrative is changing—at least for one of these industries. Construction has made significant strides in leveraging technology to navigate challenges, setting an example that commercial real estate might follow.
What Happened
Construction firms have been compelled to innovate due to unprecedented pressures such as skilled labor shortages, volatile material costs, and disrupted supply chains. These pressures have driven contractors to adopt advanced data strategies and integrate technology into their operations. According to Sasha Reed, Senior Director of Industry Transformation at Procore, contractors are increasingly using third-party data, like equipment rentals, to enhance project planning and streamline operations. This level of data sophistication is something most real estate owners have yet to apply to their portfolios.
The construction industry’s adoption of technology is particularly relevant to commercial real estate because of their interconnected nature. Real estate owners are frequently involved in developing, renovating, and managing properties, all of which generate vast amounts of data that often go underutilized post-project. Traditionally, the handoff of this data from contractors to property managers has been fraught with challenges, primarily due to interoperability issues between various software systems. However, advancements in AI are beginning to solve these technical barriers, enabling seamless data transfer and operational alignment.
What This Means for Your Business
For businesses in the AECM sector, the construction industry's technology adoption presents both a competitive challenge and an opportunity. The integration of AI and improved data interoperability can enhance project transparency and efficiency, reducing the adversarial nature of contractor-owner relationships. By adopting similar technological strategies, real estate operators can improve their asset management processes, potentially leading to cost savings and increased ROI.
Moreover, the evolution of data strategies in construction suggests a shift towards more collaborative project management, which could influence contract negotiations and procurement processes. As contractors demonstrate the value of integrated data systems, real estate firms might consider similar investments to maintain their competitive edge.
What US Operators Should Watch
AECM professionals should monitor the development and integration of AI solutions that facilitate interoperability between construction and property management systems. Understanding these technologies and their timelines for implementation could provide a strategic advantage.
Additionally, keeping an eye on emerging best practices in data management within construction could inform future real estate project strategies. As these technological advancements become more widespread, they could redefine standard operating procedures across the industry.
Source: Propmodo. Read the original story ->
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