BEInformed | The summer edit | 2023

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This September, BE News will be publishing a BE Informed ‘back-to-school edit’ on ‘The future of the workplace’. Like the ‘summer edit’, the collection will kick off with a leader comment written by BE News editor Liz Hamson and a hard-hitting feature to set the scene. Then it’s over to you, the industry experts and thought leaders, to drill down into the detail and share your insights with your peers across the built environment industry.

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LIZ HAMSON EDITOR-IN-CHIEF, BE NEWS

Is AI friend or foe to the built environment?

THIS July, an open letter signed by more than 1,300 experts declared AI a “force for good, not a threat to humanity”. It followed an earlier letter in which tech leaders including Elon Musk suggested AI posed an “existential risk”. So, which is it?

I’m no technophobe, but I’m no digital native either, and I prefer to think for myself than rely on someone –or something – else to do it for me. As well as worrying it will make people mentally lazy, I’d like people to keep their jobs.

The experts we spoke to for the opening feature in our first BE Informed collection of thought leadership pieces were more equivocal, but I’m still not convinced. In my chat with ChatGPT, while I was shocked at how

plausible (if formulaic) its responses were, I was disturbed by disclaimers warning that ‘”the systems may occasionally generate incorrect or misleading information and produce offensive or biased content”. It also admitted “there may be times when I encounter questions that are beyond my knowledge” and suggested that “for the latest information, it’s always a good idea to consult trusted sources or seek expert advice”.

And therein lies the problem. ChatGPT says in a disclaimer “it is not intended to give advice”, yet in a response it implies that is exactly what it is used for.

I was advised (by a human) that I’d elicit better answers if I had a proper conversation with it, but honestly? I’d rather cosy up to Terminator. You?

Is it really good to ChatGPT?

The latest artificial intelligence app, ChatGPT, has everyone asking what impact it will have on the sector and how many jobs it will replace.

CHATGPT has taken the world by storm and sparked a media frenzy as people predict how this new artificial intelligence (AI) chatbot, which racked up 100 million users in just eight weeks after its November launch, will change the world.

The AI app – full name Chat Generative Pre-trained Transformer – was developed by OpenAI and is programmed to give spookily humansounding answers to questions online in seconds.

Often called ‘generative AI models’, such apps are not limited to text; they can be used to generate images, videos and code and are constantly evolving. The more powerful image-based GPT-4 was launched on 14 March, while Google’s response to ChatGPT, Bard, became available in February.

In the built environment world, ChatGPT and its fellow generative AI models have the potential to affect construction, design, project management, building management and architecture, as well as being deployed by companies for content creation and presentations.

But will they be a force for good or do they herald the new dawn of a new era in which AI replaces people’s jobs and ultimately human intelligence?

Bill Gates hailed the creation of ChatGPT as being as fundamental innovation-wise as the microprocessor, the personal

computer, the internet and the mobile phone.

But on 29 March, a report and statement appeared highlighting the potential downsides to such technology. In an open letter on the Future of Life Institute website, Elon Musk and 1,000 other technology leaders labelled AI tools, including ChatGPT, as “dangerous and unpredictable”, warning that they presented “profound risks to society and humanity”.

Noella Pio Kivlehan reports

Is this as impactful? I think this is far more impactful long term in terms of how it might replace and supplement everyday tasks that humans do today.”

Grill says one of the big upsides is that it can help with mundane tasks and ultimately free people up to do other things. He adds: “The impact of ChatGPT on companies in the built environment sector will really depend significantly on how it’s integrated and implemented into our existing systems. If we can utilise it as a task, we’re going to become more efficient. It goes all the way through the building lifecycle: how do we adjust the data and integrate it into what already exists today?”

Meanwhile, a Goldman Sachs report stated that 300 million jobs worldwide could be replaced by automation as a result of generative AI.

As ever with new technology, the built environment industry is adopting a cautious approach. Laurent Grill, a partner at JLL Spark, says most of the companies it is seeing, not necessarily AI firms, are “presenting a vision and a path that includes AI in it because you must”. He adds: “It’s more table stakes. Is this different than the dotcom boom, the change of the internet?

The technology could also change how landlords communicate with tenants. For instance, according to Grill, if a tenant had a clogged toilet, they could talk to their building management system, and the system could then automatically run it through the process of getting it to a plumber, who could respond and also talk to the generative AI app.

Time-saving benefits

Dan Drogman, chief executive at Smart Spaces, can already attest to the time saved. The proptech firm, whose smart building operating system is used at 22 Bishopsgate and Fifty Paddington, is using the chatbot to help write code.

“We are querying ChatGPT

It’s immediately beneficial to us. We’ll just deliver more work faster and more efficiently

Dan Drogman, Smart Spaces

with questions on how to modify a functionality to check the code we’re writing,” says Drogman. “One of the challenges we have with our platform is making sure our UI – user interface – fits all different displays.

“It’s not writing the code for us; it’s giving us snippets that our team are using and it’s speeding up how quickly we can deploy new features and updates to our clients. It’s immediately beneficial to us. We’ll just deliver more work faster and more efficiently. Historically, we have wasted a lot of time reformatting code, Googling for these answers.”

He estimates a ChatGPT search can save one person two hours of Googling: “If you start adding that up every day, it’s going to be a few days a month. It’s powerful.”

Where ChatGPT will start to advance is when there are more application programming interfaces that allow users to upload analytics data, according to Drogman.

“If we can feed the data from our buildings and then query the data using natural language without writing code and database queries to extract the data, reporting will be ultra-efficient and easily

accessed by anyone,” he explains.

“As soon as a plugin is available for GPT4, we will be able to feed that data directly into ChatGPT and then say ‘show me the best day of the week to book the office based on my team’s availability, show me the air quality, lighting scene and comfort level’. We can include whether we need to invest in new HVAC systems if usage has not met our energy commitments and it’ll build you the power point out of the data set.”

Currently, ChatGPT is only as good as the human prompts given to it, which has led global architecture

MMD CREATIVE | SHUTTERSTOCK

practice Gensler to launch a Prompt Engineering course internally.

“We want to teach and work with our creatives on how to use and craft the prompts,” says Joseph Joseph, a principal at Gensler and global director of the firm’s Design Technology Studio. “It’s a powerful component to how we ingest important building data. This could be usability, trends of spaces or the swing of office to residential or lifestyle to work. We are able to leverage the power of AI to look at our

Andrew Knight, global data and tech lead at RICS, says there are question marks around the reliance placed on AI tools and how they are used, whether they are generating code, text or images.

“We would [need] to be clear to our clients we are using generative technology to produce some of our work output and what there might be in terms of issues of IP patterns, reliance upon that information and this being used for a serious commercial purpose,” he explains. “These tools are very impressive, but they do have weaknesses in sometimes not being correct.”

Simpson agrees, saying: “It needs to be approached with care.”

data to see how we can continue to bring value to our clients in a way that you historically couldn’t see.”

Enhanced content creation

Colliers is also using the chatbot, but in a different way. It is deploying the technology to “enhance content creation” and to suggest “punchy headlines for press releases and blogs”, says Suzy Simpson, head of content, communications and PR at Colliers. It’s a valuable time-saver, she says, adding that it can quickly summarise the content that her team has produced in collaboration with Colliers’ market experts and turn it into social posts.

“It can even act as an extension to the team when brainstorming new projects,” she says. “It’s a great starting point for new inspiration on campaign ideas or if you want to experiment with the messaging.”

The sector is acutely aware of the ChatGPT negatives, however.

The apps can quickly produce polished content that to an untrained eye can be very convincing, says Simpson. “The content always needs looking at with a critical eye, and most of the time will need tweaking or refining to suit the audience or brief in question,” she adds.

Joseph highlights confidentiality, particularly around writing a letter or the beginning of a technical description of a project featuring a client’s name, project location and the industry it is in.

He says: “Prompt engineering as it relates to getting the best value of these generative platforms, and maintaining ethics, confidentiality and secrecy around our intellectual property, are things we are thinking about. As an industry and as humans, [we] have to pay close attention to the ethics and the unconscious bias of these platforms and put that filter on it.”

Opinions are split about whether ChatGPT, and generative AI overall, will replace people. Drogman says certain jobs are at risk: “It’s going to be in administrative tasks, for those creating presentations on data that

Most of the time, content will need tweaking or refining to suit the audience or brief

Suzy Simpson, Colliers

already exist. Now the person asking for the report can build the report.”

However, he adds, those who just use ChatGPT alone and do not add any human creativity and flare “will fall behind”.

Knight takes a slightly different view. “These tools will be complementary in the creative process, or to the other kinds of software tools and other tools people use to do their job… Roles will evolve,” he says.

The open letter signed by Musk et al called for a pause on training of AI systems more powerful that GPT-4

for six months so the industry could assess the risk they pose. Whether this will happen is not yet known and technology is changing almost daily. In one way, this benefits the built environment industry.

As AI learns more about the overall vertical market context - for example specialist built environment market knowledge – the quality of its responses will keep improving, says Noam Naveh, co-founder of stylib.com, an AI-driven material search platform for architects and interior designers.

“This has radical implications for our sector. Soon, we expect these models will be adapted to create floorplans, architectural details, policy documents and more – all in a level of detail and proficiency that is comparable to an industry professional with many years of experience.”

Knight remains optimistic about the future. “This generative wave we have seen over the last few months is incredibly exciting and interesting and indicates another generation of AI that’s producing some really interesting output.”

He puts himself in the “glass half full” camp as far as the impact on people goes. As AI tools evolve, Knight says, “we will realise their limitations, their power, but also that they will help us do our job”. He adds: “They won’t necessarily replace jobs in the way people think, and particularly the creative, advisory and consulting element, where you still have people working with people.”

With such AI tools to hand, the temptation to want more, better and faster will only increase. We’re also very much in the honeymoon period at the moment. The novelty has yet to wear off. Time will tell what AI means ethically, morally, for people’s jobs… and for humanity.

We will realise their limitations, their power, but also that they will help us do our job

Andrew Knight, RICS

ChatGPT

In a collection of thought leadership pieces on AI, tech and data, it would be remiss of us not to hear from the digital poster ‘child’ of AI, ChatGPT. So we decided to put a few questions to the OpenAI chatbot to find out what its responses would be. Pictures by AI image generator Midjourney

BE News: Will artificial intelligence (AI) be good or bad for the real estate industry?

ChatGPT: AI has the potential to bring both benefits and challenges to the real estate industry. Here are some ways AI can impact the sector:

1. Enhanced Property Search: AIpowered algorithms can analyze large amounts of data and provide more accurate property recommendations to buyers and renters. By considering individual preferences, budget, location, and other factors, AI can streamline the property search process, saving time and improving the overall experience.

2. Improved Valuation and Pricing: AI algorithms can analyze historical data, market trends, and property features to generate more accurate property valuations and pricing predictions. This can help sellers, buyers, and investors make more informed decisions based on reliable and data-driven estimates.

3. Efficient Property Management: AI can assist property managers by automating routine tasks such as rent collection, maintenance requests, and tenant communication. Chatbots and virtual assistants can handle inquiries and resolve common issues, enhancing efficiency and reducing administrative burdens.

ChatGPT is an artificial intelligence chatbot developed by OpenAI and launched on 30 November 2022. It is notable for enabling users to refine and steer a conversation towards a desired length, format, style, level of detail and language used.

vast amounts of data to identify patterns and anomalies, helping to detect potential fraud in real estate transactions. This can contribute to more secure and transparent property transactions, reducing risks for both buyers and sellers.

4. Predictive Analytics: AI can leverage predictive analytics to forecast real estate market trends, identify investment opportunities, and mitigate risks. By analyzing various data sources, including economic indicators, demographic information, and social media sentiments, AI can provide valuable insights for real estate investors and developers.

5. Smart Buildings and Energy Efficiency: AI-powered systems can optimize energy usage and improve sustainability in buildings. Smart sensors and AI algorithms can monitor energy consumption, analyze patterns, and make real-time adjustments to optimize efficiency. This can lead to cost savings, reduced carbon footprint, and improved occupant comfort.

6. Risk Assessment and Fraud Detection: AI algorithms can analyze

7. Market Research and Demand Forecasting: AI can analyze data from various sources, including real estate listings, economic indicators, and demographic information, to provide accurate market research and demand forecasting. This information can assist developers and investors in making strategic decisions regarding property development and investment opportunities.

However, it’s essential to consider potential challenges and risks associated with AI in the real estate industry, including:

1. Data Privacy and Security: The use of AI involves handling vast amounts of personal and sensitive data. Proper safeguards must be in place to ensure data privacy and prevent security breaches.

2. Bias and Fairness: AI algorithms are only as unbiased as the data they are trained on. If the training data reflects biases or discriminatory patterns, AI systems can inadvertently perpetuate these biases in real estate decisions, such as pricing or rental

discrimination. It’s crucial to ensure AI systems are trained on diverse and unbiased datasets.

3. Disruption of Jobs: The automation and optimization brought by AI may impact certain job roles in the real estate industry. Routine administrative tasks, such as data entry or property management, could be automated, leading to shifts in job responsibilities and the need for upskilling and reskilling. Ultimately, the impact of AI on the real estate industry will depend on how it is implemented, regulated, and embraced by stakeholders. With proper consideration of ethical guidelines, transparency, and responsible use, AI has the potential to bring significant benefits to the industry, improving efficiency, decision-making, and sustainability.

BE News: What role will the metaverse end up playing in real estate?

ChatGPT: The metaverse has the potential to significantly impact the real estate industry by creating new opportunities and transforming

how people interact with physical and virtual spaces. Here are several potential roles the metaverse may play in real estate:

1. Virtual Property Ownership: The metaverse can introduce the concept of virtual property ownership, where individuals or businesses can acquire

physical constraints. Real estate companies and professionals can utilize these virtual environments for virtual property tours, remote meetings, design collaboration, and interactive presentations, enhancing efficiency and reducing the need for physical travel.

ChatGPT

and develop virtual land, buildings, or spaces within the digital realm. Virtual properties can be used for various purposes, including virtual events, virtual commerce, social interactions, and entertainment experiences.

2. Virtual Meetings and Collaboration: The metaverse can provide immersive virtual meeting spaces where individuals can gather and collaborate without

3. Virtual Property Visualization: The metaverse can offer advanced virtual reality (VR) and augmented reality (AR) tools to visualize and experience real estate properties before they are physically built. Potential buyers or tenants can virtually walk through properties, explore floor plans, and experience design options, enhancing the pre-sales and leasing process.

4. Virtual Commerce and Retail: The metaverse can support virtual commerce experiences, allowing retailers to create virtual storefronts and offer virtual products and services. Consumers can explore and purchase items within the metaverse, creating new opportunities for e-commerce and expanding the reach of retail businesses beyond physical locations.

5. Virtual Events and Entertainment:

AI has the potential to bring significant benefits to the real estate industry

PICTURES BY AI IMAGE GENERATOR MIDJOURNEY

The metaverse can host virtual events, conferences, concerts, and exhibitions, providing immersive and interactive experiences to a global audience. Real estate developers and event organizers can create virtual event spaces, offering new revenue streams and engaging attendees from anywhere in the world.

6. Advertising and Branding: The metaverse can provide opportunities for advertising and branding within virtual environments. Real estate developers can incorporate virtual advertising spaces within their digital properties, enabling targeted and interactive advertising experiences. Brands can also create virtual experiences, installations, or branded environments within the metaverse to engage with consumers in new and innovative ways.

7. Social Interactions and Community Building: The metaverse can facilitate social interactions, enabling people to connect, socialize, and build communities in virtual spaces. Real estate developers can create virtual communities, shared spaces, and hubs within the metaverse, fostering collaboration and connection among residents or tenants.

It’s important to note that the metaverse is still a developing concept, and its full impact on the real estate industry is yet to be realized. As technology continues to evolve and the metaverse evolves with it, new possibilities and applications will emerge, potentially revolutionizing how real estate is experienced, transacted, and utilized. Real estate professionals and stakeholders should closely monitor the development of the metaverse and explore ways to leverage its potential for their specific needs and goals.

BE News: Is AI going to make humans lazy-minded?

ChatGPT: The impact of AI on human behavior and mindset is a topic of ongoing discussion and debate. While AI has the potential to automate certain tasks and processes, it does not necessarily make humans lazyminded. Here are a few perspectives to consider:

1. Automation of Routine Tasks: AI can automate repetitive and mundane tasks, freeing up time and allowing humans to focus on more creative, strategic, and complex activities. This can enhance productivity and efficiency, rather than fostering laziness. Humans can utilize the extra time and cognitive resources to engage in higher-level thinking, problem-solving, and innovation.

their limitations. Humans can leverage AI as a tool for assistance, leveraging its computational power, data analysis capabilities, and pattern recognition to enhance problemsolving and decision-making. This partnership between humans and AI can lead to more effective and innovative outcomes.

4. Ethical and Responsible AI Development: The design and implementation of AI systems are in the hands of humans. By ensuring ethical guidelines, transparency, and responsible use, AI can be developed in a way that empowers humans rather than fostering laziness. It is essential to strike a balance between automation and human involvement, recognizing the unique qualities and values that humans bring to various domains.

2. Skill Enhancement and Augmentation: AI can augment human capabilities by providing tools, insights, and assistance that enhance our skills and decision-making abilities. For example, AI-powered data analysis can help humans make better-informed decisions, AIdriven virtual assistants can support productivity, and AI-based learning platforms can facilitate personalized education. Rather than promoting laziness, these advancements enable individuals to expand their knowledge and skills.

3. Collaborative Work with AI: AI systems can work collaboratively with humans, complementing their strengths and compensating for

However, it is crucial to remain mindful of potential challenges that need to be addressed, such as job displacement, overreliance on AI, and the potential for cognitive biases in AI systems. Balancing the integration of AI with human skills, fostering lifelong learning, and promoting a holistic approach to technology can help mitigate these challenges and ensure a positive and productive relationship between AI and humans.

Ultimately, the impact of AI on human behavior depends on how it is designed, deployed, and integrated into our lives. By focusing on leveraging AI as a tool for augmenting human potential and addressing societal needs, we can harness its benefits while maintaining our active engagement, creativity, and critical thinking.

> Let us know what you think of ChatGPT’s responses or AI in general by emailing us at editorial@benews.co.uk

AI can be developed in a way that empowers humans rather than fostering laziness

ChatGPT

The true ROI of tech

Richard Gerritsen, senior director at Yardi, discusses how

BE News: Are real estate companies seeing technology as a focus in their business?

Gerritsen: For a lot of companies, the pandemic pushed them to rethink their strategies and it hasn’t stopped. In the 2022 EPRA and Yardi Proptech Survey, we found that 46% of businesses did not consider proptech adoption as a high priority compared with other business initiatives. However, nearly 70% of participants recognised that the adoption of technology was now a business topic, which meant businesses were starting to realise that technology was required to run their business better.

However, despite people in the industry recognising the importance of tech in driving the future of business, nearly 46% are classifying this topic as a low priority – they are succumbing to the idea that they are not ready to digitise, which is an underlying issue that we need to change. The real question is: what is my cost if I don’t invest?

Digitalisation is a strategic business decision that drives the future of an organisation. Investing in technology is fundamental, but businesses need to be prepared to undergo this process before they can get to the other side of innovation.

BE News: If digitalising processes is key, what are your thoughts on artificial intelligence (AI) as it has become a hot topic with the release of ChatGPT?

Gerritsen: We utilise AI and machine

learning within Yardi’s technology. These asset management solutions deep-dive into operational data and go beyond presentation with predictive insights and prescriptive recommendations. Our intuitive solutions help elevate portfolio performance by lowering costs, balancing risk and increasing revenue.

We now live and work in a digital world and residents and tenants want to have a digital experience going forward. By digitalising the customer journey from marketing websites and online leasing to online payments and reporting, you can save time. Technology helps you provide a better experience for both customers and staff and have more time to nurture and build those relationships with your customers. This is why every process in real estate, whether it’s residential, retail, commercial or coworking, is digitalised in our platform.

In the industry, we have seen that clients and customers are gathering their data from different places and aren’t focusing on having a strong data foundation. A strong data foundation can be utilised for AI, predictive analysis and the future of their business.

REAL ESTATE RUNS ON YARDI

is

technology,

Based on each factor, for example if I want to increase rent or reduce rent, the KPIs and predictive analysis we receive from AI can help us make the right decisions. So, we believe having a strong data foundation in place and aggregating this data will help companies be more productive and make better decisions in their future operations.

BE News: Where is the return on investment (ROI) in real estate technology?

Gerritsen: We work closely with our clients to ensure our solutions can support their requirements. As the market changes, the business requirements change, so our solutions need to be flexible and adapt to any changes in business processes and business operations. Customers are diversifying their real estate portfolios to reduce risk and to improve their ROI – especially after the past few years when they saw specific real estate verticals struggle more than others. Our technology has already helped clients save over 30 hours of data gathering and strategic planning, reduced the leasing planning cycle by 40% and saved 50% of time from automatic reporting. The unified platform helps to easily evaluate current and future occupancy with visual floorplans, helps attract prospects, improves customer experience and provides better analytical insights with a click of a button.

Yardi’s solutions help clients

real estate

using

where artificial intelligence comes in and what the future looks like for the industry

Do more with innovative property management software and services for any size business, in every real estate market.

scale their businesses and save time through automation. Businesses need to move away from spreadsheets as you can’t gain valuable insights into your data or trends. It makes it difficult to find the right information and involves a lot of manual input. The industry is fast-moving and without the right technology that works with you and grows with you, you may start to struggle.

Within the retail sector, they generate more data each month than most vertical real estate markets. Automation is key to success as you can optimise your shopping centre revenue. Property management solutions such as Yardi’s, which is specifically designed for real estate, help remove manual processes and attract prospects, improve the customer experience and help retain current tenants.

BE News: Looking to the future, what’s next for Yardi?

Gerritsen: As we look ahead, data and technology are still important factors in real estate. There is recognition that proptech is an important factor in business, as mentioned previously. However, companies need to understand the true ROI of technology.

We are working hard to make sure we release new products and solutions that can support the everchanging requirements of our clients. As the market changes, the business requirements change, which puts stress on technology to make sure it’s flexible and can adapt to any changes in business processes and business operations.

We shouldn’t be relying on outdated software that requires a lot of manual input when proptech can save 50% of your time through automation alone. You cannot afford to not invest in technology, especially

when planning for growth – there are a lot of overhead costs, but technology can help you save money and scale your business. This year, we will continue to

demonstrate to the industry the true value of a single solution that is designed for real estate. Our commercial offering is strong with solutions such as Retail Manager and Deal Manager that are developed for niche market needs.

We will continue to help real estate businesses thrive with the use of a connected solution and one source of truth. By investing in the right technology and understanding the true ROI, real estate owners and operators can transform the way their business operates.

Digitalisation is a strategic business decision that drives the future of an organisation

A new way of living

WHEN it comes to the roof over our head, attitudes in the UK stand apart from our European neighbours. In a nutshell, aspiring to home ownership is the cultural norm here, with 62% of Brits wanting to get on the housing ladder, while our continental cousins seem content to rent – including in countries like Germany, where fewer than half dream of owning their own home.

But necessity could be driving a major attitudinal shift in the UK as, for many, the goal of home ownership feels further out of reach than it did just a few decades ago. The latest census in 2021 showed a sharp rise in the number of households renting – more than doubling since 2001, increasing from 1.9 million to five million in England and Wales. In fact, many are predicting that in the not-too-distant future, ‘generation rent’ will be more likely to rent than own in the UK. And the stats don’t disagree.

Vital statistics

1. Affordability

Over the last three decades, the average age of the first-time buyer has risen from 27 to 34. Back in the 1990s, the average house price was three times the average salary. Now, it’s more like 10 times the average.

This means affording your own property is simply not as realistic as it once was, and millennials are the first

generation to be hit by the reality that a good salary may no longer be enough. It might take a life event, such as losing a loved one, for them to afford their first home. And for those without such lifelines, the reality is even bleaker.

2. The pandemic hangover

The 2021 census revealed that households owning their home had decreased by 1.8%, whereas renters had grown by 3%. Since then, Covid and the subsequent cost-of-living crisis have put an even greater strain on household budgets, while at the same time, house prices rose by 20% during the pandemic due to increased demand, the stamp duty holiday and

by the UK’s historic home-ownership mentality, resulting in too few homes for too many home-hunters.

Yet the private rental market is far from a comfortable alternative. With supply drastically outstripping demand here too, rental prices are rising fast, with the average rental price across the UK up almost 11% year on year in December 2022. In Greater London, the average rental was more than £2,000 a month in December. With a lack of private residences, as well as social housing, the rental market has become a hotbed of eye-watering prices and conditions, yet bidding wars are becoming the norm and properties are commonly snapped up before viewings have even taken place – a radical shift from just a few years ago.

the desire to move out of urban areas. All these factors have seen the housing market spiral out of reach for many, driving a rental boom.

3. Supply-demand imbalance means higher house prices

The government’s target of building 300,000 new homes a year by the mid-2020s is proving beyond reach so far, with the reality being closer to half that number. Factors like arduous, lengthy planning processes and lack of available land are compounded

Rising house prices have a knockon effect for landlords, too. Many are selling up due to the increase in mortgage rates, or to take advantage of the prices before the housing bubble bursts. And increasing regulatory costs and tax changes are making buyto-let properties more expensive for individual landlords to run, meaning less profit and fewer incentives for them to stay in the game. In fact, landlords are behind a quarter of homes for sale in London

With a lack of ability to buy a house, and a rental market that is only growing more and more unattainable, Brits are increasingly turning away from the aspiration to buy, and are starting to seek out alternative ways of living.

So perhaps it’s no wonder, then, that the build-to-rent (BTR)

With ownership beyond the reach of many and private rental prices rising fast, it is no surprise the build-to-rent sector is proving popular – and not just among the younger generation

BTR is no longer the domain of the young professional. More and more families are taking advantage

Nick Bratt, head of business development, Swish Fibre

properties first introduced as part of the sustainability mission of the 2012 Olympics have experienced a major spike in recent years.

Rapidly growing market

BTR is a thriving market, growing more rapidly than any other housing sector. These buildings provide professionally managed, purpose-built rental housing, and appeal to investors, developers and residents alike, standing out with their state-of-the-art amenities, community-focused design and long-term returns.

BTR properties are a level up from the traditional housing renters are used to. Designed to offer a space in which to live, work and play all under one roof, they are designed to appeal to our evolving needs from one life stage to the next, and our need for convenience and, increasingly, a desire to be more social and healthy and to work from home. More often than not, they include communal gyms, shared workspaces, social activities and even concierge services.

Traditionally, BTR properties were designed for young professionals looking to emulate the social side of the university experience in their adulthood. The popular podcast WeCrashed recounts the rise and near fall of WeWork as it sought to create a home, work and social space that people would rarely feel the need to leave.

But the challenges of the UK housing market mean that BTR is no longer the domain of the young professional. Increasingly, more and more families are taking advantage, and there’s even been a boom for BTR properties aimed at people over 65, offering them access to a community on their doorstep.

For developers and investors, BTR provides incoming rent over a longterm period, as well as capital growth

on the asset itself – a perfect pairing of short-term stability and long-term returns. And with the typical longer tenancy agreements, there is added security to the investment.

Keeping up with renters’ needs

There’s a different mindset for buyers versus renters when moving into a property. Buyers expect the process to be long and painful, with disappointments, but renters expect ease, good service and quick, painless fixes when things go wrong.

With the Renters (Reform) Bill recently announced, the legislation around renting is changing and improving for the benefit of the tenant.

With high tenancy expectations matched by renter-friendly legislation, BTR properties offer a promising proposition for investors, but only if

developers ensure they do not fall short of the increasing standards of living required for renters to be able to participate in today’s digital society. To keep up with the needs of renters, developers should:

1. Build with flexibility in mind to accommodate everyone, ensuring spaces are fit for professionals, families and pensioners all under one roof;

2. Build communities beyond the front door by creating desirable shared spaces to live, work and play; and

3. Build in future-proof technology that offers the reliability and performance to meet the expectations of renters today, tomorrow and in 10 years’ time.

With almost half of UK workers working from home some or all of the time, BTR tenants will rely on the quality of the build to participate equally in the job market. With UK workers losing up to two working days to a poor connection – adding up to a loss of £598m to the economy – developers have an opportunity to build equal access to working-fromhome roles for their tenants. At the same time, they’d be future-proofing their builds against the expensive need to retrofit as the government targets for gigabit access come into sharper view, and the tenant-friendly legislation comes into effect.

Having an enhanced broadband connection enables BTR tenants to use digital management systems to book shared spaces, log issues or request cleaning, as well as to communicate with other residents.

There’s a business incentive for full fibre, too. Asset management in BTR properties becomes much simpler, more effective and more efficient when connected to a reliable network –each itemised asset becomes a data point, capable of informing greener and more cost-efficient use, saving up to 15% annually

Learn more about how Swish Fibre can keep you ahead of the competition and enhance the offer for BTR tenants with an unfailingly fast, reliable broadband connection. Talk to our team now at property@swishfibre.com or visit swishfibre.com/property

The fourth utility

THE problem with technology is that its physical demands and requirements, especially in an ever wireless, Bluetooth and portable world, are often not given real consideration. But when you’re building, retrofitting or redesigning a new office, you need to plan for digital infrastructure just as you would electricity, water or gas. Connectivity is the fourth utility – and arguably the most important in the modern workplace.

And the key to success is the bigger the better when planning fibre internet connectivity for workspace, to future-proof great performance. Fibre contracts are generally 36 months, so it is necessary to have a clear view of the likely needs of your building tenants when placing the order. This realisation is now becoming better understood, which is why we have seen a sharp rise in clients ordering 10Gb/sec lines – accounting for 10% of total orders over the past 12 months. Without the Covid lull, this trend would be stronger still, possibly three times higher.

In a new development, one of the biggest hold-ups is not being connected; yet the cost, resource and impact of installation is something operators often do not foresee, as they do not naturally consider digital infrastructure when building and fitting out a new space. Fibre delivery is currently taking between eight and 12 weeks from survey to installation. Sometimes this is a simple job but it usually requires

a wayleave agreement from the building owner and the involvement of a full range of contractors, adding to the programme time.

Why is this so important? With accelerated change in workplace culture, the growth of hybrid working and the rise of satellite offices in the war to retain and attract talent, high-performance connectivity is a necessity to enable a great user experience for workspace.

Wireless versus wired ports

It is very common to look around and see everyone around you connecting wirelessly, but in a flexible

consistent high-performance internet is necessary – as it is for any realtime activity, such as video calls –cabling is still the most effective way to deliver this.

When designing the wireless infrastructure for a building, best practice is to conduct a ‘predictive survey’ at the design stage to determine where to situate access points, a revised survey in the ‘as-built’ stage to ascertain whether materials or walls have affected wireless effectiveness, followed by a ‘postinstallation’ survey to ensure optimal coverage and to remove any residual wireless black spots. Addressing wireless connectivity issues during the building’s construction or fitout phase is significantly easier than rectifying it later down the line.

SMART benefits

workspace or multi-user site, wired ports and cabling generally still have an important role to play. This is especially true for the rising number of corporate users in flexible workspace who generally have a requirement for wired cabling for at least their core infrastructure, if not more devices.

Wireless performance has hugely improved over the last couple of years but ultimately still lacks the reliability and speed of wired ports when it comes to device connectivity, so if

The majority of the machinery and equipment installed in buildings today will have SMART technology functions. With connectivity sorted, you can fully leverage SMART technology – and more importantly its benefits. The term ‘SMART’ refers to ‘self-monitoring, analysis and reporting technology’. It is a technology that uses artificial intelligence, machine learning and big-data analysis to provide cognitive awareness to objects that were in the past considered inanimate.

The ‘Smart Workplace Global Market Report 2021: Covid-19 Growth and Change’ projects that the smart workplace market will reach $53bn

Operators must prioritise digital infrastructure when fitting out a new office building if they want to retain and attract talent

If consistent highperformance internet is necessary, cabling is still the most effective way to deliver this

(£41bn) by 2025 in the race to be more sustainable, support wellbeing and become carbon neutral. With ESG at the heart of the property agenda, one way to meet sustainability targets is through leveraging and monitoring this technology.

A great example of this is air conditioning units. SMART AC greatly reduces energy usage without compromising on cooling. In an office environment, once the desired cooling settings have been learnt, it will slow down as soon as the required temperature in the space has been achieved. Learning from individuals’ experience, it can also be targeted to specific areas. This means that it will not be consuming as much energy as it will not be working to full capacity at all times. Likewise, it can sync up with occupancy sensors and door entry systems, meaning that it is not in use when the building is empty.

Similarly, intelligent lighting can enable energy usage to be reduced by up to 80% based on occupancy, time of day, weather and seasonal changes. It can also adjust based on what is happening in the space and what is required. For the landlord or operator, data analytics on building usage and resulting energy usage enable them to take control. They can track energy consumed and even set limits to keep track of their bills.

All of these innovations add up to being able to offer solutions that connect and enable users to work smarter, better and more efficiently.

Digital infrastructure

Going into our clients’ offices, we are already seeing the future of the workplace materialising. This is no surprise when automation and the ‘Internet of Things’ (IoT) are increasingly in common use. This

goes beyond physical buildings and in today’s workplaces these technologies are used to improve the employee experience, unlocking their creativity.

Building operators compete to offer the best user experience and technology is at the heart of that, with innovations such as smart coffee machines that dispense baristastyle coffee at a click of the button, touchless door entry, digital booking screens outside meeting rooms and even robots acting as couriers.

In a multi-tenanted site, especially a flexible workspace the like of which we are specialist in, additional to connectivity to IoT and SMART tech, users need to be able to access secure and private connections.

Often there is a shared internet bandwidth service that all users can connect to. However, we are increasingly seeing a rise in larger corporate users, tech start-ups and businesses needing faster connections for working with larger files, high-quality video streaming and similar bandwidth-hungry activities. This provides operators with an opportunity to monetise bandwidth by selling dedicated connections to occupiers and gives their customers the quality of experience they require.

For the corporate user, this provides peace of mind as cybersecurity is front and centre of their operations and satisfies users requiring faster speeds. To deliver this within a shared building, it requires thorough planning, which is why cabling models are essential to ensure network traffic is not aggregated to avoid a cybersecurity breach.

Digital infrastructure is now central to the modern workplace, essential to provide the services that attract and retain tenants, manage the building itself and to deliver on those all-important ESG targets.

technologywithin offers the complete workspace technology solution for operators and landlords, including voice, data and workspace management software. Its internet bandwidth management product, twiindata, makes providing secure and resilient shared and dedicated connectivity in multi-tenanted workspace simple.

ZHU DIFENG SHUTTERSTOCK

Democratising data

Here’s a practical framework to help property operators get started with

operations and improve efficiencies across portfolios

REAL-TIME visibility into building operations is crucial for property owners and operators as it allows them to make informed decisions and drive operational efficiency. However, achieving this level of visibility is anything but straightforward. There are three primary factors that contribute to poor operational visibility: the fragmented nature of the property operations landscape, the dispersed and inaccessible building data and the limitations imposed by siloed building management software. Addressing these challenges is vital for owners and operators to gain complete control of and visibility over their portfolio’s performance.

Let’s look at these problems in the context of what’s changed in the last couple of years. The role of operations and maintenance (O&M) teams has changed. They are now tasked with keeping spaces comfortable, sustainable, efficient, safe, healthy and well maintained, and the list keeps growing as buildings are expected to deliver more.

The expectations of tenants have changed: they want workspaces that are industry certified for energy efficiencies and connectivity and are flexible enough to support hybrid work models. This puts increasing pressure on building owners and operators to rethink operations.

The good news is much of the data you need to uncover useful operational insights is already available within your existing infrastructure. Making buildings smarter is mostly a matter of finding ways to connect these existing systems and unlock their full potential in real time.

Data-driven operations

Property owners are recognising the business value in viewing building data as a whole, finding patterns in it and deriving meaningful insights or KPIs in real time. And the most efficient way to accomplish this is through data-driven operations

In most buildings today, this data is dispersed in silos. Some exist in the building automation system (BAS), some in the FDD tool and others in the computer-aided facility management (CaFM) software. When this data is centrally available, it can be leveraged in so many useful ways: what if all the data across your heating, ventilation and air-conditioning (HVAC) systems could be gathered to be viewed and

analysed in real time? What if, with minimal pre-configurations, you could deploy condition-based triggers, alarm notifications or reports? Now imagine your CaFM has access to this data. You could compare real-time HVAC information against its warranty/ work-order information and optimise maintenance schedules. Imagine tailoring your BAS sequences and schedules based on this data.

By unlocking just the HVAC information, you are able to optimise for energy, equipment health and occupant comfort. Now imagine if you could do this across a portfolio of buildings – a world where all data is centralised, portfolio-level insights are available at your fingertips and all systems work seamlessly with each other is suddenly possible. But where do you start?

The most practical way to power data-driven operations is to have a platform-powered architecture that can bring together real-time information across disparate sources in one place. This platform should:

• Be built on a cloud architecture;

• Use the edge technology and connect with IP-based, open-standard protocols to seamlessly access data from the BAS or any network;

• Have built-in analytical capabilities to turn the consolidated data into insights in real time; and

• Most importantly, meet your unique business needs today and scale to power your future operations.

This platform can become the centralised hub to manage and share information that drives all sorts of

data-driven

Raj Subramanian, co-founder and CPO, Facilio

operations and maintenance workflows, from monitoring HVAC performance to making informed equipment purchase decisions to controlling building automation and systems via the cloud.

While the possibilities look futuristic to us today, the technologies are actually tried and tested, and have been revolutionising other industries for decades. The Salesforce platform is one of the best examples. Built on a multitenant cloud architecture, Salesforce led the on-demand movement across enterprise use cases. It helped business teams focus less on software and more on the business. Having a centralised operations platform can empower your teams to focus less on managing data and software and more on creating wholesome and real-time experiences for your customers. And here’s how.

Insights on demand

Once all building data is centralised, it is possible to get a complete view of your entire operational scope – be it a single building or a portfolio of buildings. This holistic view allows you to understand, and eventually influence, the why behind what’s happening in your properties.

There is real-time data on the function of various systems and equipment, what went wrong and when.

Using the power of real-time analytics on top of these consolidated data sets can unlock powerful insights for multiple stakeholders. It can provide drilled-down insights into the root cause of every event, fault or condition trigger so your operating teams don’t have to spend the majority of their time putting out fires.

Having centralised data also makes it much easier to create reports and monitor KPIs. Imagine viewing energy star benchmarks, peak energy usage and total utility spend for all your properties, side by side and in real time, without having to scramble across multiple systems or spreadsheets.

Today, most core O&M functions

use software that lacks real-time context and/or is disconnected from building information. A glaring example is your CaFM. Teams use it for service requests, asset and maintenance management and more. But making the CaFM datadriven is complex, including painful system integration, data extraction from dispersed silos and redundant storage.

Having CaFM capabilities on a centralised platform instead of as a siloed solution allows for optimisations such as automated work orders from alarms, proactive service resolution and optimised maintenance schedules. In most portfolios, switching to a new CaFM software isn’t an easy decision

away in a silo – the BAS, the lighting, the access control system, maybe a proprietary ‘Internet of Things’ solution that only an engineer can access.

Historically, real estate firms were required to buy, build and maintain their IT infrastructures. While the world has shifted to cloud computing and is leveraging the power of artificial intelligence to unlock efficiencies, a major part of the industry still relies on on-premise legacy software to control building operations. Even in the case of potentially cloud-based tools, they are either deployed in isolation or with a single or limited focus.

to make – the best case is to integrate the data-driven operations platform with your existing CaFM and unlock contextual insights and use cases.

Simplify data exchange

Without a common data model, just about any automation or efficiency-based initiative becomes a huge project with too much overhead. With a centralised platform, you can simplify data exchange across your enterprise applications and centrally manage third-party integrations. It can act as a middleware to expand future use cases at ease and share a unified context across your library of applications – without any additional integration efforts or cost.

Let’s take occupancy data as an example. We discover use cases that need occupancy data all the time. In most buildings today, this data is locked

But it’s the centralised platform approach that can pave the way for an autonomous future. It can facilitate two-way communication with the BMS – read system parameters and send commands to control system function. It can enable unified cloudbased BAS controls and become the perfect plug-and-play environment to develop and deploy use cases on the go that require changes to the building systems – without the need for painful system integration. Imagine being able to develop, browse and deploy applications for your buildings as easily as installing apps on your phone.

The future is democratising operations across your portfolio. It’s gaining the freedom to operate and optimise without limitations. It’s giving owners and operators complete control of and full visibility into their operations – and neither of these is far from reach as long as you are getting in the data-driven loop.

Once all building data is centralised, it is possible to get a complete view of your operational scope

Raj Subramanian is the cofounder and CPO of Facilio, a proptech company with a global customer base which offers an AI-driven suite of smart buildings software.

Data sharing is caring

Joseph Michael

ALAS, here we are, with more than two million houses underbuilt in the last decade, staring down the barrel of new legislation, such as the new EPC requirements, due to come into force in 2025 and 2028, and the Future Homes Standard, which becomes mandatory in 2025.

The new rules are going down badly with the Federation of Master Builders and the Construction Leadership Council, which are screaming that the blanket changes in standards will kill the SME market. And you know what? I agree.

I have said it many times before and I will say it again: we keep throwing shit at a wall and hoping it sticks. Let’s go back to the root problems instead. For me, there are three key issues:

a. We have this insane idea that insulating something excessively will solve our problems;

b. We reject on-land wind and nuclear and then cry when bills are high; and

c. It is clear that tech works, but only if operated correctly. It doesn’t work if it’s not the right fit. Too often, it’s not the right fit.

The upshot is that we don’t know what works and what doesn’t. Yet we keep trying to get a room to 25°C by throwing 70°C hot water round the place. So, why haven’t we moved on to data? Why haven’t we gone

ahead and driven outcomes?

I’ll tell you why – the lack of SDG 17 partnerships. The decisionmakers and powers that be still want to monopolise the market, and the old boys’ club is still alive and well. Only now, a decade after I built my first net zero school and stated at the RESI Convention that “the world is on fire” are people starting to have an “oh shit” moment.

– yet our measures are based on theoretic equations from a 2D plan and our data is input by humans. When we apply it to a 3D world, we wonder why things don’t work correctly.

Let’s talk about 4D, the things we can’t see and the things we simply can’t understand. Why can’t data and AI provide us with that? The simple answer is that they could – if we band together and give them the right data. Did you even know that our shores are now home to a Construction Data Trust? On its website, it describes itself as “an independently stewarded data trust” that “provides an opportunity to securely pool data for the benefit of the collective and broader society”.

It adds: “We drive up delivery productivity, delivering more for less with greater confidence. We make projects more investable.”

While the energy companies make a profit and the powers that be build standards based on theory rather than practice, we won’t get anywhere. Why drive innovation when taking risks affects the bottom line? Political fear of doing something different is stifling progress. For all the desire in some parts of the industry to do something, there is commercial fear, too, and that leads to stagnation.

Could artificial intelligence (AI) help get things moving? I think it could. But while it is the tool of the future, it is only as smart as the information it receives. It can’t solve issues without proper data, and that data needs to be captured correctly. We live in a 3D world – electricity and thermal matter

Ultimately, it may sound twee, but sharing really is caring. It doesn’t mean you need to give away your IP. But anonymously, who really cares who exactly does what, as long as there is enough data to provide a solution and reduce corrupt processes? What we care about is enabling government and regulators to make the right decisions to mitigate climate risk and enable social value and economic support.

By pooling this data anonymously, we can extract incredible information pooled across time and location to support decision-making. No more political ‘guestimates’; it won’t matter which regulator or politician is in power as the data will remain true.

It’s time we wake up to the possibilities of live data – we can use it to introduce a roadmap to net zero, clean energy and social comfort

While AI is the tool of the future, it is only as smart as the information it receives. It can’t solve issues without data

Daniels, founder ELIXR

I recently founded the Live Data Trust, currently in development, to help pool and support decision-making through data for our future. With live data now becoming ‘a thing’, this can really happen. People such as myself and Tom Fenton of Veritherm don’t want to see academic or private competition disable communities from growing. Ultimately, community growth is critical, and it has to be sustainable so that we also achieve economic, environmental and social growth.

So, what could we do with that data, I hear you ask? Well, this is the real kicker: instead of setting unrealistic targets based on guesstimates of space and heating, we should introduce a roadmap to net zero, clean energy and social comfort and use data to inform us on how to get there gradually, rather than all of a sudden.

I take my hat off to industry leaders such as Grant Findlay, executive managing director for buildings at Sir Robert McAlpine, for driving digital data, and the likes of Oliver Novakovic, technical and innovation director at Barratt, who is taking steps to understand data both at big corporation and big player level.

As Findlay notes: “There is significant untapped value in the data we generate on projects. By aggregating data from across the industry, we can generate new insights that will benefit society as a whole.”

We need these insights, and we need them now. Those who are not yet thinking in this vein need to start doing so as a matter of urgency. It’s not good enough when people’s lives are at risk, and they are overheating or freezing because no one knows how things truly work. Is living in monthly fear of bills acceptable as long as you have money? The simple answer is ‘no’. And if it isn’t, ask yourself why is humanity less important than your capital.

Eco-entrepreneur Joseph Michael Daniels founded sustainable affordable housing business Etopia, which he stepped down from recently. This July, he founded ELIXR, a purpose-driven venture builder focused on supporting ESG entrepreneurs, and appointed Catalina Valentino as chief executive.

Stay competitive

Automating data collection and processing helps fast-paced industries

as property to reduce human error and speed up transactions

this data to prioritise outcomes within the real estate market, and automation makes this process faster and more accurate.

GENERATIVE artificial intelligence (AI) applications such as ChatGPT, GitHub Copilot and Stable Diffusion have captured the attention of people across the world. Their ability to write poetry, carry out human-like conversations and provide insightful information has propelled them to the forefront of the conversation.

AI’s broad utility means these tools can be integrated across a variety of industries. As we grapple with the future of AI, we’re left wondering how it can improve data collection, interpretation and presentation within real estate.

We have numerous platforms that showcase the use of automation for front-end real estate transactions, but we are heading towards even greater automated support for back-end functions. There are already various applications of AI and automation within real estate, providing everything from market analysis to ESG reporting.

Despite the diverse applications, the use across them all is quite simple: AI helps asset managers acquire and process more information in a shorter amount of time.

In an industry where speed and efficiency can be the difference maker for successful transactions, automation is key. Companies use

At Stonal, the leading artificial general intelligence platform for multi-class real estate asset owners and asset managers, we have proprietary algorithms powered by the latest technology to automatically comb through documents and categorise the data pulled from them. This allows asset managers to make data-driven decisions, without sacrificing their time.

This is a lot of information for an individual or organisation to collect manually. To get all this information into a comprehensive format, you need well-organised data. Data aids you in the analysis of property’s performance and helps make informed decisions.

Time-consuming process

In the cases where it is collected manually, it is incredibly timeconsuming. Within real estate, this is an even more exaggerated issue, as portfolio managers are required to pull this data from a large volume of long but crucial documents. There is added pressure to this because analysis and collection takes time, but in such a fast-paced industry, decisions need to be made quickly.

Automation is the future for successful organisations. As AI makes the processing and digestion of real estate data more efficient, those who do not adopt will struggle to remain competitive.

If you want to have a thorough exploration into the strength of your portfolio, you need a strong understanding of the asset’s details in it. This means you need information on its structure, its equipment, the tenant situation, the costs, the energy consumption, lots of financial data and extra financial data, and more.

Additionally, critical data must be accurate. When making decisions based on key data points, the output will only be as good as the input. When trying to collect data quickly, we run the risk of incorrectly recording data points, massively influencing our decision-making capabilities.

Buildings generate a lot of data. Information regarding these portfolios is critical to decision-making, but it is difficult for asset managers to obtain data regarding their portfolios when attempting to do it manually. That’s where AI comes in.

As mentioned previously, manual data collection and processing is incredibly time-consuming. Scanning through various lengthy documents

such

The increased access to data within the real estate industry has completely transformed the way deals are made

Robin Rivaton, chief executive, Stonal

Stonal is an AI-powered platform that enables asset owners and managers to make informed decisions based on trustworthy data, helping to preserve and enhance the value of portfolios and ensuring the ongoing liquidity of assets.

With two offices and 125 staff in France, Stonal has recently launched in the UK to expand its successful platform further.

and finding the correct data points takes time out of asset managers’ busy days. It also drastically slows down the decision-making process, making you less competitive.

In a fast-paced industry such as real estate, speed is an essential predictor of performance. Automation clears this issue up. Stonal’s AI tool, for example, automates document classifications, pulls key information from documents, detects signatures and benchmarks residences and assets to make it easy to compare them. This only scrapes the surface of the software’s capabilities.

This means that asset managers can have invaluable insights, but only take a fraction of the time obtaining and processing them.

Another key benefit of automating data collection and processing within real estate is the reduction of human errors. When manually extracting and interpreting data, we cannot help but make mistakes, especially when under tight deadlines.

Automation also reduces human error by ensuring consistency. Humans can apply inconsistent methodologies, but automation ensures a standardised approach.

Minimising errors

By using data collection tools such as Stonal’s, asset managers can reduce data errors. Stonal’s AI has a 95% success rate in reading, processing and filing documents automatically, without human intervention. When

there are inconsistencies, our team takes over for the technology to show the correct answers and better improve its processing.

Utilising automation frees up time for asset managers, reduces errors and provides valuable insights to inform decisions regarding your portfolio. Increased use of automation to improve data collection, processing and presentation is the natural progression of the real estate industry.

The increased access to data within the real estate industry has completely transformed the way deals are made. AI integration has improved operations by giving asset managers more information on their portfolios in a shorter timeframe while also reducing the risk of human error.

What now?

Stonal’s customers have found that integrating AI into their property management has allowed teams to focus on creating value by automating the repetitive and time-consuming tasks. So, where do we go from here?

AI is powered by data, and as it integrates further into organisations, we have a drive to continue to collect increasingly diverse data points. Integration of various devices that allow us to understand trends that were previously inaccessible will drive a rise of data-driven decision-making.

This will likely be coupled with the rapid advancement and adoption of AI. The improvements we have seen from automation in the last year will continue, and for real estate this means more efficient data collection and processing.

As portfolios continue to integrate automation, and see vast improvements in efficiency and outcomes, AI will become a necessary component of asset managers’ strategies.

AI will enhance jobs, not steal them

Artificial intelligence is not something to fear: it has the potential to improve every job it supports and to create more profitable businesses

Eichenauer,

“EVERY revolutionary idea seems to evoke three stages of reaction. They may be summed up by the phrases:

(1) it’s completely impossible; (2) it’s possible, but it’s not worth doing; and

(3) I said it was a good idea all along.”

So said legendary sciencefiction writer Arthur C Clarke, who also created perhaps the most famous fictional AI system, HAL 9000, in his novel 2001: A Space Odyssey, later transformed into a worldwide cinematic phenomenon by Stanley Kubrick. Although I assume Clarke wasn’t talking about the transformative possibilities of artificial intelligence (AI) within real estate, there is a case to be made that his quote can be reflected in the slow integration of tech within the industry.

It’s fair to say there is considerable cynicism around the role of AI across society, perhaps not helped by evil sentience imagined by Clarke in his dystopian creation. Although an apocalyptic AI is a remote and distant possibility, a more immediate and realistic issue for real estate professionals is: will AI take my job?

Realistically? Yes – partly.

Before you dust off your CV and Google “careers immune to AI”, we at askporter believe that our technology

– and AI in general – will not lead to mass redundancies across real estate. Instead, we believe that a goodquality, safe and reliable AI product will enhance every job it supports, improve the quality of work life and create more profitable businesses.

In brief, askporter’s AI property

obsolete. Rather, we will see a vast reduction in the number of small, repetitive and time-consuming tasks that slow progress and distract from the more serious and challenging parts of the job. In addition, those tasks that require the least thought can often cause the most amount of carelessness and mistakes, which will be eradicated with AI.

Transparency is key

management system uses automation to respond to customer queries; it is a digital assistant that can handle customer conversations autonomously and capture, sort and handle complex issues and processes from raise to resolution, creating actual operational efficiency. Askporter specifically integrates AI into the facilities management sector. With time freed up for facilities managers to complete more complex, technical and skilled tasks, no longer will we hear managers tell customers: “I’m sorry – I’m afraid I can’t do that.”

The tasks that AI will make obsolete for facilities managers are not those that will render their jobs

At askporter, we are well aware that to integrate AI systems into real estate, we and other companies need to be as transparent as possible with potential clients and consider the vitality of cybersecurity. It’s fair to say that real estate is one of the more traditional professional service sectors, and has been slower to integrate technology as a whole into the sector, even before AI became an integral part of proptech.

Firstly, we are fully transparent with potential clients about how much it will cost and how the technology will transform their business. We have perhaps become cynical at a consumer level about technology that promises to transform our lives, only to either come at a hefty price or to be presented as cheap/free but with expensive (yet vital) add-ons. Only if we and other companies are truly honest about financial cost/benefit will we win the trust of the sector.

We believe that our technology – and AI in general – will not lead to mass redundancies across real estate

Till

managing director, askporter

Security and trust

Secondly, and perhaps the most crucial aspect of integrating AI into the industry, is security and trust. All joking aside, we are not expecting askporter’s product to gain sentience and begin trash-talking your customers and setting off fire alarms.

But we do know that cybercrime is the single most dangerous threat to the security of most companies in 2023.

It is not enough for askporter to just provide a strong level of cybersecurity with our product, however; we need every company

introducing AI integration to customers, in the real estate market and beyond, to provide bulletproof products and the highest-quality security measures. Only then will we, as an AI technology community, earn the full trust of the industries we support.

POPTIKA SHUTTERSTOCK

Your net zero roadmap isn’t smart enough

It is imperative landlords unlock the potential of proptech if they are to reduce carbon emissions and cut costs

AS attention turns from landlords and investors’ net zero targets toward the progress made against their carbon reduction roadmaps, focus will sharpen on each and every small detail contributing to individual assets’ ESG credentials. This has been accelerated by recent changes to the MEES regulations, which set short deadlines for landlords to upgrade the EPC ratings of their assets.

Despite the most sustainable assets unlocking rental uplifts, which can offset the cost of ESG upgrades, it is not always financially viable for investors to complete a comprehensive sustainable refurbishment on standing assets. They must prioritise the most costeffective installations.

Fortunately, a high-impact solution is already widely in use, although many landlords are overlooking its potential to deliver meaningful progress toward sustainability targets.

The adoption of smart building technology is increasingly commonplace among sophisticated office landlords who recognise its value in creating a frictionless occupier experience. The unification

of desk and meeting room booking, amenity access and visitor management in one platform, and often one app, is expected as standard by many modern occupiers. Too few, however, are leveraging the power of smart building technology

digital twin streamlines building maintenance and provides a minuteby-minute readout of a building’s operational performance.

However, the true value of the digital twin is in the data points it exposes. A good example of this is a London client that has implemented a Smart Spaces solution aggregating more than 134,000 individual data points into the building’s operation. This has enabled an incredibly detailed analysis and management of the asset, which not only streamlines facilities management functions but also unlocks opportunities to detect and mitigate energy overconsumption.

to reduce occupational emissions and drive efficiencies, which can meaningfully accelerate net zero roadmaps.

The digital twin exemplifies this. This is a detailed virtual representation of an asset that allows landlords to monitor the health of every building system in operation in real time. The

Reducing wasted energy

The Smart Spaces digital twin adjusts indoor airflows to prioritise densely populated portions of the building, reducing wasted energy spent diverting clean air to less populated areas. It also provides live occupancy readouts, allowing an adjustment of future airflow, lighting and climate

This is the new frontier of sustainable building management: frictionless, cost effective and tech driven

Dan Drogman, founder, Smart Spaces

Smart Spaces is the multi-accredited and award-winning smart building operating system. Its cloud-hosted Smart Building Platform powers more than 60m sq ft of commercial real estate. The world’s leading real estate and occupier brands utilise Smart Spaces technology across a portfolio of alpha-class buildings in prime global locations. The software is currently in 26 countries and growing, it scales with your organisation’s needs and is compatible with all major languages.

controls based on weekly occupancy patterns, all of which can significantly reduce wasted energy when taken together.

The digital twin can also link indoor and outdoor air temperatures and set automated thresholds at which air conditioning units can be switched off in favour of less energyintensive alternatives, such as bringing in the cool air from outside. Perhaps most importantly, the Smart Spaces digital twin can issue automated alerts if the building’s energy performance drops below the BREEAM or NABERS threshold, prompting corrective action.

All of these measures, triggered

by automated programmes rather than manual monitoring, reduce the cost of keeping Smart Spaces clients on track for best-in-class sustainability performance.

More nuanced rules can also be established through the digital twin to respond to less common events, ensuring the building is ‘alive’ to changing circumstances and continues to perform at its best without routine human intervention.

This is the new frontier of sustainable building management: frictionless, cost effective and tech driven. These technologies have already been rolled out across a large

proportion of the UK’s office stock, although often more in response to occupiers’ post-pandemic workplace demands than as a measure designed to lower energy use.

Wider implementation of proptech solutions is the natural corollary of an increasingly sophisticated built environment sector, but awareness of their carbon reduction potential lags behind adoption. Wider education of the sustainable applications of new building technologies is vital if landlords are to unlock the ESG gains that already lie at many of their fingertips.

The right homes in the right places

Using data empowers housebuilders to deliver developments in the right areas and that truly serve the needs of future inhabitants

IN the last five years, approximately 1.2 million new homes have been delivered, 300,000 fewer than were deemed necessary in that time. The challenge now should be to better understand how we build the right homes in the right places. Follow the data; follow the demand.

The shortfall in housing supply is spoken about a lot, but not a huge amount of direction is given to the where, what and who. Start with the where. There has, for a long time, been a distinct disparity between parts of the UK in terms of delivery – Welsh and Scottish growth rates, for example, lag behind those in the English regions. Our Acorn data also shows that the bulk of development has typically been more concentrated in affluent neighbourhoods, areas that won’t appeal or be accessible to the majority of first-time buyers.

The way forward is about more than just meeting demand – it is about building the right homes in the right places. To achieve that, we have to be more forensic about our understanding of demand.

Bespoke approach needed

The number of homes the country actually needs is so much more

nuanced than a headline-grabber with lots of zeroes, and requires a bespoke approach within different regions, and sometimes at an even more granular level than that. We want to empower housebuilders by providing the tools to make a compelling and considered argument for why a particular development is required, based on a clearly identifiable demand.

Demand should be an indisputable part of the equation, answering the question: if this development is built, will it be fully occupied? Ultimately, that’s all that matters: providing homes that people will live in.

Build nearby

It all starts with local people. The vast majority only move short distances when relocating home – typically less than two miles – so if a developer wants to know who will live in the homes they plan to build, the answer is usually nearby. There will of course be regional variances – the more rural the location, the larger the sphere of influence – but this is something we account for when looking at a particular site.

We want to arm developers with clarity – a complete picture of what surrounds a particular development site, and what they need to deliver to serve its future inhabitants. There are complex calculations at play here, and while I’m not in the game of giving away trade secrets, there are a few key elements I can talk about.

Next up is a deep dive into who these people are. My word-count limit prevents detailing just how vast our data is in this regard, but using our consumer base, Ocean, we can access an understanding of society that cannot be matched at anywhere near the same scale, via millions of records, describing people against more than 500 individual characteristics. It’s an incredibly rich dataset and, simply put, allows CACI to calculate just how likely someone is to move house and the type of home they would be looking to move into.

Understand demand

That is achieved through affordability and suitability considerations, and this is where we can help developers in a more bespoke way. All schemes up and down the country, large or small, ultimately need to create a

If this development is built, will it be fully occupied? That’s all that matters: providing homes people will live in

Tolga Necar, principal consultant, CACI

Tolga Necar is a principal consultant at CACI, specialising in the use of new data techniques to uncover the changing relationships between People and Place. Tolga joined CACI’s Property Consulting Group in 2019 and heads up the residential and mixed-use sector, with a particular specialism in placemaking. Through leading innovation and tech solutions in the area, Tolga is helping his clients create commercially attractive and sustainable places that respond to their audiences’ needs.

community, and that can only happen if the right types of homes are built. It takes us back to the question: will this development be fully occupied? Yes it will, if you understand demand and can tailor the plans accordingly.

There’s no point in filling a site with three-bed family houses for sale if there is evidenced demand for predominantly one-bed rental flats, or if local people simply don’t have the cash or equity to afford large homes. Having that picture at the outset is critical to financial viability and creating a scheme that truly delivers for its local community.

So you’ve found a great site, you understand the local people and you have a perfectly optimised plan for a mix of housing types and tenures. All set? Well, not quite. Don’t for one

second assume that if you build it, they will come. New communities have an identity that extends beyond new bricks and mortar; it’s also crucial to understand what will motivate them to move.

The rational “I need to upsize” or “I want to move out of my parents’ house” must be matched by “and that area will have all the facilities I need and want”. We’ve seen over the past few years how much people value where they live, with some areas seeing the return of the 15-minute community, and that only puts more pressure on those responsible for placemaking in more residential areas.

Deliver approximate amenity

New schemes must deliver appropriate amenity. Don’t make

assumptions about what new residents might want. Understanding who would be in the market for your new development will provide enlightening information about what they’re after – whether it’s a new school for their kids, a healthcare facility, a skate park or flexible offices.

Not every development is going to be big enough to deliver amenity en masse, so when your space and finances are limited, knowing what your future residents want prevents guessing and assumptions that can eat into time and budgets.

This is all meaningless, though, if it isn’t communicated to the right people. The final stage is ensuring your future residents are being effectively engaged and know that your development is being shaped by what they need.

That, from start to finish, is how housing developers can tackle a more challenging market effectively by using objectively assessed demand. With supply targets falling away, it is time for demand-led development to finally come into its own.

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