Technology Integration Drives Strong CRE Brands in 2016
“Brands account for more than 30% of the stock-market value of companies in the S&P 500 index,” according to Millward Brown, a market research company.
And this is especially true for CRE entities today.
Is Branding Important to Commercial Real Estate Properties?
A strong building brand, one that includes the adoption of intelligent software solutions, delivers significant returns and creates enormous value through its influence on customers (your tenants or prospective tenants), employees and the capital markets (private investors, REITs, lenders, etc.). “Simply this: the cap rate and the yield that a building generates is in great part motivated by the strength of its brand,” Tom Silva, tells GlobeSt.com. “Brands of buildings rise and fall like absorption rates.”
How Does Technology Adoption Affect the Brand
It is imperative for the Property Manager, Asset Manger or Owner to view technology as a living business asset, helping to add to the building / portfolio’s strong identity to further differentiate itself in the market.
This was validated by a recent survey of 123 corporate real estate leaders conducted by CoreNet Global. The results show that 77 percent believe that brand is a critical driver for their business, yet only 54 percent said the marketplace plays a critical role in supporting it and only 15 percent said their facilities reflect their brand “very well.”
Despite the overall lag of tech adoption in the industry, CRE owners are beginning to implement technology-enabled solutions at the building level, piece by piece, beginning with HVAC, lighting and safety systems. Because one size does not fit all, the challenge for the PM is to find the solutions that best meet their needs and the specific needs of their stakeholders. The drive in the industry is now moving toward creating a technologically integrated or intelligent building; one that invariably connects building management, communication technology and business systems, resulting in PMs having the ability to have a broad, real-time view about various facilities, and better adapt and respond to the needs of specific tenants and buildings.
According to Deloitte’s 2015 CRE Outlook Report:
– CRE Owners may be at a competitive disadvantage by relying on manual and traditional processes in building design and maintenance.
TIP: Now Would Be a Great Time to Get Smart About Your Building
So, technology in the brand mix is now a real estate issue. Investing this way in your building’s brand is not just a nice extra. An intelligent building provides significant returns, boosting both perception and your bottom line. They create enormous value through their influence on tenants or buyers, your employees and the capital markets. Including technology adoption in your building’s brand mix, helps attract, retain, and motivate tenants; lowers the cost of financing; and raises valuations.
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