Story image

Disruptive tech to shape future of commercial real estate

27 Aug 2018

What will technology mean for commercial real estate and its investors, and what opportunities lie ahead? That’s the focus of a recent research paper by Clarion Partners’ Tim Wang and Julia Laumont.

They believe that rapid innovations that capitalise on market inefficiencies will bring challenges and opportunities, particularly as those innovations shape every aspect of people’s lives.

Commercial real estate investors will need to tackle the speed of change and the struggle of infrastructure to keep up, the authors say.

There will also be seven key areas of change ahead. These include AI and robotics, ecommerce, sharing economy platforms, autonomous cars, fintech, cloud computing, and the future of the supply chain.

The authors believe that AI and robotics will have significant impacts of labour markets.

“Major transformations lie ahead in additional industries. Office-using employment sectors, such as legal, finance, government, and design, may be more at risk.”

Ecommerce and omnichannel retail are responding to the shift in consumer shopping preferences. The authors say they will transform supply chain logistics.

Sharing economy platforms such as peer-to-peer activities like obtaining, giving, and sharing access to goods and services will create social and economic power.

“Online platforms have given rise to the ‘sharing economy,’ which is revolutionising many businesses across different industries.”

Autonomous vehicles will add ‘trillions’ to the global economy, with mass adoption predicted by 2030, the authors say.

Fintech, mobile banking and blockchain will transform the financial services industry.

“Fintech is rapidly changing old-fashioned banks and investment managers, making it easier to save, borrow, and invest without ever dealing with a traditional bank, broker, or accounting ledger. Blockchain, for example, opens the door for game-changing virtual transactions, which could disrupt a wide range of professional and business transactions,” the authors explain.

Cloud computing and big data will increase demand for data centre facilities. Amazon, Google, IBM, and Microsoft are leaders in this space.

Supply chains will include drone delivery and 3D printing, which will impact expenses and long lead times from imports and exports, as well as inventory costs.

Clarion Partners is an affiliate property investment management firm associated with Legg Mason.

NVIDIA announces Jetson Nano: A US$99 tiny, yet mighty AI computer 
“Jetson Nano makes AI more accessible to everyone, and is supported by the same underlying architecture and software that powers the world's supercomputers.”
Slack doubles down on enterprise key management
EKM adds an extra layer of protection so customers can share conversations, files, and data while still meeting their own risk mitigation requirements.
NVIDIA introduces a new breed of high-performance workstations
“Data science is one of the fastest growing fields of computer science and impacts every industry."
Apple says its new iMacs are "pretty freaking powerful"
The company has chosen the tagline “Pretty. Freaking powerful” as the tagline – and it’s not too hard to see why.
NZ ISPs issue open letter to social media giants to discuss censorship
Content sharing platforms have a duty of care to proactively monitor for harmful content, act expeditiously to remove content which is flagged to them as illegal.
Partnership brings AI maths tutor to NZ schools
“AMY can understand why students make a mistake, and then teach them what they need straight away so they don't get stuck."
Polycom & Plantronics rebrand to Poly, a new UC powerhouse
The name change comes after last year’s Plantronics acquisition of Polycom, a deal that was worth US $2 billion.
Unencrypted Gearbest database leaves over 1.5mil shoppers’ records exposed
Depending on the countries and information requirements, the data could give hackers access to online government portals, banking apps, and health insurance records.