BEInformed | The summer edit | 2023

BEINFORMED The summer edit 2023

Issue 1

Everything you need to know about AI, tech and data Brought to you by

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2 | The summer edit 2023

Be in BEINFORMED and help inform your built environment peers!

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

plausible (if formulaic) its responses were, I was disturbed

declared AI a “force for good, not a threat to humanity”. It

by disclaimers warning that ‘”the systems may occasionally

followed an earlier letter in which tech leaders including

generate incorrect or misleading information and produce

Elon Musk suggested AI posed an “existential risk”. So,

offensive or biased content”. It also admitted “there may

which is it?

be times when I encounter questions that are beyond my

I’m no technophobe, but I’m no digital native either,

knowledge” and suggested that “for the latest information,

and I prefer to think for myself than rely on someone –

it’s always a good idea to consult trusted sources or seek

or something – else to do it for me. As well as worrying

expert advice”.

it will make people mentally lazy, I’d like people to keep their jobs.

And therein lies the problem. ChatGPT says in a disclaimer “it is not intended to give advice”, yet in a

The experts we spoke to for the opening feature in our first BE Informed collection of thought leadership

response it implies that is exactly what it is used for.

I was advised (by a human) that I’d elicit better answers

pieces were more equivocal, but I’m still not convinced.

if I had a proper conversation with it, but honestly? I’d rather

In my chat with ChatGPT, while I was shocked at how

cosy up to Terminator. You?

WHAT’S INSIDE

How ChatGPT will affect property P4

We hear from ChatGPT itself P8

Live data is key, says ELIXR’s Daniels P20

Yardi’s Gerritsen on tech’s true ROI P12

Stonal’s Rivaton on automation P22

Swish Fibre’s Bratt on the rise of BTR P14

Technologywithin on the fourth utility P16

Askporter’s MD on Drogman talks net AI’s job prospects zero Smart Spaces P24 P26

Improve visibility, urges Facilio CPO P18

Focus on demand, says CACI’s Necar P28

BEINFORMED | 3

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. Noella Pio Kivlehan reports CHATGPT has taken the world by

computer, the internet and the

Is this as impactful? I think this is far

storm and sparked a media frenzy as

mobile phone.

more impactful long term in terms of

people predict how this new artificial

But on 29 March, a report and

how it might replace and supplement

intelligence (AI) chatbot, which racked

statement appeared highlighting

everyday tasks that humans do today.”

up 100 million users in just eight

the potential downsides to such

Grill says one of the big upsides

weeks after its November launch, will

technology. In an open letter on the

is that it can help with mundane tasks

change the world.

Future of Life Institute website, Elon

and ultimately free people up to do

The AI app – full name Chat

Musk and 1,000 other technology

other things. He adds: “The impact of

Generative Pre-trained Transformer

leaders labelled AI tools, including

ChatGPT on companies in the built

– was developed by OpenAI and is

ChatGPT, as “dangerous and

environment sector will really depend

programmed to give spookily human-

unpredictable”, warning that they

significantly on how it’s integrated

sounding answers to questions online

presented “profound risks to society

and implemented into our existing

in seconds.

and humanity”.

systems. If we can utilise it as a task,

Often called ‘generative AI

we’re going to become more efficient.

models’, such apps are not limited to

It goes all the way through the

text; they can be used to generate

building lifecycle: how do we adjust

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,

It’s immediately beneficial to us. We’ll just deliver more work faster and more efficiently Dan Drogman, Smart Spaces

ChatGPT and its fellow generative AI models have the potential to

the data and integrate it into what already exists today?”

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

Meanwhile, a Goldman Sachs

could then automatically run it

affect construction, design, project

report stated that 300 million jobs

through the process of getting it to a

management, building management

worldwide could be replaced by

plumber, who could respond and also

and architecture, as well as being

automation as a result of generative AI.

talk to the generative AI app.

deployed by companies for content

As ever with new technology, the

creation and presentations.

built environment industry is adopting

Time-saving benefits

a cautious approach. Laurent Grill, a

Dan Drogman, chief executive at

do they herald the new dawn of a new

partner at JLL Spark, says most of the

Smart Spaces, can already attest to

era in which AI replaces people’s jobs

companies it is seeing, not necessarily

the time saved. The proptech firm,

and ultimately human intelligence?

AI firms, are “presenting a vision and a

whose smart building operating

path that includes AI in it because you

system is used at 22 Bishopsgate

creation of ChatGPT as being as

must”. He adds: “It’s more table stakes.

and Fifty Paddington, is using the

fundamental innovation-wise as

Is this different than the dotcom

chatbot to help write code.

the microprocessor, the personal

boom, the change of the internet?

But will they be a force for good or

Bill Gates hailed the

4 | The summer edit 2023

“We are querying ChatGPT

MMD CREATIVE | SHUTTERSTOCK

with questions on how to modify a

He estimates a ChatGPT search

accessed by anyone,” he explains.

functionality to check the code we’re

can save one person two hours of

writing,” says Drogman. “One of the

Googling: “If you start adding that up

for GPT4, we will be able to feed that

challenges we have with our platform

every day, it’s going to be a few days a

data directly into ChatGPT and then

is making sure our UI – user interface

month. It’s powerful.”

say ‘show me the best day of the

– fits all different displays.

“It’s not writing the code for us; it’s

Where ChatGPT will start to

“As soon as a plugin is available

week to book the office based on my

advance is when there are more

team’s availability, show me the air

giving us snippets that our team are

application programming interfaces

quality, lighting scene and comfort

using and it’s speeding up how quickly

that allow users to upload analytics

level’. We can include whether we

we can deploy new features and

data, according to Drogman.

need to invest in new HVAC systems

updates to our clients. It’s immediately

“If we can feed the data from

if usage has not met our energy

beneficial to us. We’ll just deliver

our buildings and then query

commitments and it’ll build you the

more work faster and more efficiently.

the data using natural language

power point out of the data set.”

Historically, we have wasted a lot of

without writing code and database

Currently, ChatGPT is only as

time reformatting code, Googling for

queries to extract the data, reporting

good as the human prompts given to

these answers.”

will be ultra-efficient and easily

it, which has led global architecture BEINFORMED | 5

practice Gensler to launch a Prompt

Andrew Knight, global data and tech

Engineering course internally.

lead at RICS, says there are question

“We want to teach and work with

marks around the reliance placed

our creatives on how to use and craft

on AI tools and how they are used,

the prompts,” says Joseph Joseph, a

whether they are generating code,

principal at Gensler and global director

text or images.

of the firm’s Design Technology Studio.

“We would [need] to be clear to

“It’s a powerful component to how we

our clients we are using generative

ingest important building data. This

technology to produce some of our

could be usability, trends of spaces

work output and what there might

or the swing of office to residential

be in terms of issues of IP patterns,

or lifestyle to work. We are able to

reliance upon that information

leverage the power of AI to look at our

and this being used for a serious commercial purpose,” he explains.

“These tools are very impressive, but they do have weaknesses in

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

sometimes not being correct.”

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

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

data to see how we can continue to

of the time will need tweaking or

bring value to our clients in a way that

refining to suit the audience or brief

you historically couldn’t see.”

in question,” she adds.

Enhanced content creation

particularly around writing a letter

Colliers is also using the chatbot,

or the beginning of a technical

but in a different way. It is deploying

description of a project featuring a

the technology to “enhance content

client’s name, project location and

creation” and to suggest “punchy

the industry it is in.

Joseph highlights confidentiality,

headlines for press releases and

He says: “Prompt engineering

blogs”, says Suzy Simpson, head of

as it relates to getting the best value

content, communications and PR at

of these generative platforms, and

Colliers. It’s a valuable time-saver,

maintaining ethics, confidentiality

she says, adding that it can quickly

and secrecy around our intellectual

summarise the content that her team

property, are things we are thinking

has produced in collaboration with

about. As an industry and as humans,

Colliers’ market experts and turn it into

[we] have to pay close attention

social posts.

to the ethics and the unconscious

“It can even act as an extension to the team when brainstorming new projects,” she says. “It’s a great starting

bias of these platforms and put that filter on it.”

Opinions are split about whether

point for new inspiration on campaign

ChatGPT, and generative AI overall,

ideas or if you want to experiment with

will replace people. Drogman says

the messaging.”

certain jobs are at risk: “It’s going to

The sector is acutely aware of

be in administrative tasks, for those

the ChatGPT negatives, however.

creating presentations on data that

6 | The summer edit 2023

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

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

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

already exist. Now the person asking

says, “we will realise their limitations,

for the report can build the report.”

their power, but also that they will

IMAGES: DIEGO THOMAZINI | NIKOSTUDIO | SHUTTERSTOCK

However, he adds, those who just

help us do our job”. He adds: “They

use ChatGPT alone and do not add

won’t necessarily replace jobs in the

any human creativity and flare “will

way people think, and particularly

fall behind”.

the creative, advisory and consulting

Knight takes a slightly different view. “These tools will be

element, where you still have people working with people.”

complementary in the creative

With such AI tools to hand, the

process, or to the other kinds of

temptation to want more, better and

software tools and other tools people

faster will only increase. We’re also

use to do their job… Roles will evolve,”

very much in the honeymoon period

he says.

at the moment. The novelty has yet to

The open letter signed by Musk

wear off. Time will tell what AI means

et al called for a pause on training of

ethically, morally, for people’s jobs…

AI systems more powerful that GPT-4

and for humanity.

BEINFORMED | 7

8 | The summer edit 2023

PICTURES BY AI IMAGE GENERATOR MIDJOURNEY

In conversation with…

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

vast amounts of data to identify

(AI) be good or bad for the real

ChatGPT is an artificial

patterns and anomalies, helping to

estate industry?

intelligence chatbot

detect potential fraud in real estate

ChatGPT: AI has the potential to bring

developed by OpenAI and

transactions. This can contribute to

both benefits and challenges to the

launched on 30 November

more secure and transparent property

real estate industry. Here are some

2022. It is notable for enabling

transactions, reducing risks for both

ways AI can impact the sector:

users to refine and steer a

buyers and sellers.

Enhanced Property Search: AI-

conversation towards a desired

7.

powered algorithms can analyze large

length, format, style, level of

Forecasting: AI can analyze data

amounts of data and provide more

detail and language used.

from various sources, including real

1.

Market Research and Demand

accurate property recommendations

estate listings, economic indicators,

to buyers and renters. By considering

and demographic information, to

individual preferences, budget,

4.

Predictive Analytics: AI can

provide accurate market research and

location, and other factors, AI can

leverage predictive analytics to

demand forecasting. This information

streamline the property search

forecast real estate market trends,

can assist developers and investors

process, saving time and improving

identify investment opportunities, and

in making strategic decisions

the overall experience.

mitigate risks. By analyzing various

regarding property development and

data sources, including economic

investment opportunities.

2.

Improved Valuation and Pricing:

AI algorithms can analyze historical

indicators, demographic information,

data, market trends, and property

and social media sentiments, AI can

potential challenges and risks

features to generate more accurate

provide valuable insights for real

associated with AI in the real estate

property valuations and pricing

estate investors and developers.

industry, including:

predictions. This can help sellers,

5.

buyers, and investors make more

Efficiency: AI-powered systems

use of AI involves handling vast

informed decisions based on reliable

can optimize energy usage and

amounts of personal and sensitive

and data-driven estimates.

improve sustainability in buildings.

data. Proper safeguards must be in

Smart Buildings and Energy

However, it’s essential to consider

1.

Data Privacy and Security: The

Efficient Property Management:

Smart sensors and AI algorithms

place to ensure data privacy and

AI can assist property managers by

can monitor energy consumption,

prevent security breaches.

automating routine tasks such as rent

analyze patterns, and make real-time

2.

collection, maintenance requests,

adjustments to optimize efficiency.

are only as unbiased as the data

and tenant communication. Chatbots

This can lead to cost savings, reduced

they are trained on. If the training

and virtual assistants can handle

carbon footprint, and improved

data reflects biases or discriminatory

inquiries and resolve common issues,

occupant comfort.

patterns, AI systems can inadvertently

enhancing efficiency and reducing

6.

administrative burdens.

Detection: AI algorithms can analyze

3.

Risk Assessment and Fraud

Bias and Fairness: AI algorithms

perpetuate these biases in real estate decisions, such as pricing or rental BEINFORMED | 9

PICTURES BY AI IMAGE GENERATOR MIDJOURNEY

discrimination. It’s crucial to ensure AI

how people interact with physical

physical constraints. Real estate

systems are trained on diverse and

and virtual spaces. Here are several

companies and professionals can

unbiased datasets.

potential roles the metaverse may

utilize these virtual environments

play in real estate:

for virtual property tours, remote

3.

Disruption of Jobs: The

automation and optimization brought

1.

Virtual Property Ownership: The

meetings, design collaboration, and

by AI may impact certain job roles

metaverse can introduce the concept

interactive presentations, enhancing

in the real estate industry. Routine

of virtual property ownership, where

efficiency and reducing the need for

administrative tasks, such as data

individuals or businesses can acquire

physical travel.

entry or property management, could

3.

be automated, leading to shifts in

metaverse can offer advanced virtual

job responsibilities and the need for

reality (VR) and augmented reality

upskilling and reskilling.

With proper consideration of

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

ethical guidelines, transparency,

ChatGPT

Ultimately, the impact of AI on the real estate industry will depend on how it is implemented, regulated, and embraced by stakeholders.

and responsible use, AI has the

Virtual Property Visualization: The

(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:

potential to bring significant benefits

and develop virtual land, buildings, or

The metaverse can support virtual

to the industry, improving efficiency,

spaces within the digital realm. Virtual

commerce experiences, allowing

decision-making, and sustainability.

properties can be used for various

retailers to create virtual storefronts

purposes, including virtual events,

and offer virtual products and

BE News: What role will the

virtual commerce, social interactions,

services. Consumers can explore and

metaverse end up playing in

and entertainment experiences.

purchase items within the metaverse,

real estate?

2.

ChatGPT: The metaverse has the

Collaboration: The metaverse can

e-commerce and expanding the

potential to significantly impact

provide immersive virtual meeting

reach of retail businesses beyond

the real estate industry by creating

spaces where individuals can

physical locations.

new opportunities and transforming

gather and collaborate without

5.

10 | The summer edit 2023

Virtual Meetings and

creating new opportunities for

Virtual Events and Entertainment:

The metaverse can host virtual

ChatGPT: The impact of AI on human

their limitations. Humans can

events, conferences, concerts, and

behavior and mindset is a topic of

leverage AI as a tool for assistance,

exhibitions, providing immersive and

ongoing discussion and debate. While

leveraging its computational power,

interactive experiences to a global

AI has the potential to automate

data analysis capabilities, and pattern

audience. Real estate developers and

certain tasks and processes, it does

recognition to enhance problem-

event organizers can create virtual

not necessarily make humans lazy-

solving and decision-making. This

event spaces, offering new revenue

minded. Here are a few perspectives

partnership between humans and

streams and engaging attendees from

to consider:

AI can lead to more effective and

anywhere in the world.

1.

Automation of Routine Tasks:

innovative outcomes.

Advertising and Branding: The

AI can automate repetitive and

4.

metaverse can provide opportunities

mundane tasks, freeing up time

Development: The design and

for advertising and branding within

and allowing humans to focus

implementation of AI systems are in

virtual environments. Real estate

on more creative, strategic, and

the hands of humans. By ensuring

developers can incorporate virtual

complex activities. This can enhance

ethical guidelines, transparency, and

advertising spaces within their digital

productivity and efficiency, rather

responsible use, AI can be developed

properties, enabling targeted and

than fostering laziness. Humans can

in a way that empowers humans

interactive advertising experiences.

utilize the extra time and cognitive

rather than fostering laziness. It

Brands can also create virtual

resources to engage in higher-level

is essential to strike a balance

experiences, installations, or branded

thinking, problem-solving, and

between automation and human

environments within the metaverse to

innovation.

involvement, recognizing the unique

6.

Ethical and Responsible AI

engage with consumers in new and

qualities and values that humans

innovative ways.

bring to various domains.

7.

Social Interactions and Community

Building: The metaverse can facilitate

However, it is crucial to remain

communities, shared spaces, and

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

hubs within the metaverse, fostering

ChatGPT

social interactions, enabling people to connect, socialize, and build communities in virtual spaces. Real estate developers can create virtual

collaboration and connection among residents or tenants.

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

Skill Enhancement and

technology can help mitigate these

Augmentation: AI can augment

challenges and ensure a positive and

metaverse is still a developing

human capabilities by providing tools,

productive relationship between AI

concept, and its full impact on the real

insights, and assistance that enhance

and humans.

estate industry is yet to be realized.

our skills and decision-making

As technology continues to evolve

abilities. For example, AI-powered

human behavior depends on how it is

and the metaverse evolves with it,

data analysis can help humans

designed, deployed, and integrated

new possibilities and applications will

make better-informed decisions, AI-

into our lives. By focusing on

emerge, potentially revolutionizing

driven virtual assistants can support

leveraging AI as a tool for augmenting

how real estate is experienced,

productivity, and AI-based learning

human potential and addressing

transacted, and utilized. Real estate

platforms can facilitate personalized

societal needs, we can harness

professionals and stakeholders

education. Rather than promoting

its benefits while maintaining our

should closely monitor the

laziness, these advancements enable

active engagement, creativity, and

development of the metaverse and

individuals to expand their knowledge

critical thinking.

explore ways to leverage its potential

and skills.

for their specific needs and goals.

3.

It’s important to note that the

2.

Collaborative Work with AI: AI

Ultimately, the impact of AI on

> Let us know what you think

systems can work collaboratively

of ChatGPT’s responses or AI in

BE News: Is AI going to make humans

with humans, complementing their

general by emailing us at

lazy-minded?

strengths and compensating for

editorial@benews.co.uk.

BEINFORMED | 11

The true ROI of tech Richard Gerritsen, senior director at Yardi, discusses how real estate is using technology, where artificial intelligence comes in and what the future looks like for the industry

BE News: Are real estate companies

learning within Yardi’s technology.

seeing technology as a focus in

These asset management solutions

if I want to increase rent or reduce

their business?

deep-dive into operational data

rent, the KPIs and predictive analysis

Gerritsen: For a lot of companies,

and go beyond presentation with

we receive from AI can help us make

the pandemic pushed them to

predictive insights and prescriptive

the right decisions. So, we believe

rethink their strategies and it hasn’t

recommendations. Our intuitive

having a strong data foundation in

stopped. In the 2022 EPRA and Yardi

solutions help elevate portfolio

place and aggregating this data will

Proptech Survey, we found that 46% of

performance by lowering costs,

help companies be more productive

businesses did not consider proptech

balancing risk and increasing revenue.

and make better decisions in their

adoption as a high priority compared

We now live and work in a digital

Based on each factor, for example

future operations.

with other business initiatives.

world and residents and tenants want

However, nearly 70% of participants

to have a digital experience going

BE News: Where is the return on

recognised that the adoption of

forward. By digitalising the customer

investment (ROI) in real estate

technology was now a business

journey from marketing websites and

technology?

topic, which meant businesses were

online leasing to online payments

Gerritsen: We work closely with

starting to realise that technology was

and reporting, you can save time.

our clients to ensure our solutions

required to run their business better.

Technology helps you provide a better

can support their requirements. As

However, despite people in the

experience for both customers and

the market changes, the business

industry recognising the importance

staff and have more time to nurture

requirements change, so our solutions

of tech in driving the future of

and build those relationships with your

need to be flexible and adapt to any

business, nearly 46% are classifying

customers. This is why every process

changes in business processes and

this topic as a low priority – they are

in real estate, whether it’s residential,

business operations. Customers are

succumbing to the idea that they

retail, commercial or coworking, is

diversifying their real estate portfolios

are not ready to digitise, which is an

digitalised in our platform.

to reduce risk and to improve their ROI

underlying issue that we need to

In the industry, we have seen

– especially after the past few years

change. The real question is: what is

that clients and customers are

when they saw specific real estate

my cost if I don’t invest?

gathering their data from different

verticals struggle more than others.

Digitalisation is a strategic

places and aren’t focusing on having

Our technology has already

business decision that drives the

a strong data foundation. A strong

helped clients save over 30 hours

future of an organisation. Investing

data foundation can be utilised for AI,

of data gathering and strategic

in technology is fundamental, but

predictive analysis and the future of

planning, reduced the leasing

businesses need to be prepared to

their business.

planning cycle by 40% and saved

undergo this process before they can

50% of time from automatic reporting.

get to the other side of innovation.

The unified platform helps to REAL ESTATE RUNS ON YARDI

easily evaluate current and future

BE News: If digitalising processes

Do more with innovative

occupancy with visual floorplans,

is key, what are your thoughts on

property management

helps attract prospects, improves

artificial intelligence (AI) as it has

software and services for any

customer experience and provides

become a hot topic with the release

size business, in every real

better analytical insights with a click

of ChatGPT?

estate market.

of a button.

Gerritsen: We utilise AI and machine 12 | The summer edit 2023

Yardi’s solutions help clients

Sponsored by

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

demonstrate to the industry the

solutions that can support the ever-

true value of a single solution that

changing 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.

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

We shouldn’t be relying on

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

outdated software that requires a

when planning for growth – there

source of truth. By investing in the

lot of manual input when proptech

are a lot of overhead costs, but

right technology and understanding

can save 50% of your time through

technology can help you save money

the true ROI, real estate owners and

automation alone. You cannot afford

and scale your business.

operators can transform the way their

to not invest in technology, especially

This year, we will continue to

business operates.

BEINFORMED | 13

A new way of living 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

Nick Bratt, head of business development, Swish Fibre

generation to be hit by the reality that a

by the UK’s historic home-ownership

good salary may no longer be enough.

mentality, resulting in too few homes

It might take a life event, such as losing

for too many home-hunters.

a loved one, for them to afford their

Yet the private rental market is far

first home. And for those without such

from a comfortable alternative. With

WHEN it comes to the roof over our

lifelines, the reality is even bleaker.

supply drastically outstripping demand

head, attitudes in the UK stand apart

2.

The pandemic hangover

here too, rental prices are rising fast,

from our European neighbours. In a

The 2021 census revealed that

with the average rental price across

nutshell, aspiring to home ownership is

households owning their home had

the UK up almost 11% year on year in

the cultural norm here, with 62% of Brits

decreased by 1.8%, whereas renters

December 2022. In Greater London,

wanting to get on the housing ladder,

had grown by 3%. Since then, Covid

the average rental was more than

while our continental cousins seem

and the subsequent cost-of-living

£2,000 a month in December. With a

content to rent – including in countries

crisis have put an even greater strain

lack of private residences, as well as

like Germany, where fewer than half

on household budgets, while at the

social housing, the rental market has

dream of owning their own home.

same time, house prices rose by 20%

become a hotbed of eye-watering

But necessity could be driving a

during the pandemic due to increased

prices and conditions, yet bidding wars

major attitudinal shift in the UK as, for

demand, the stamp duty holiday and

are becoming the norm and properties

many, the goal of home ownership

are commonly snapped up before

feels further out of reach than it did just

viewings have even taken place – a

a few decades ago. The latest census

radical shift from just a few years ago.

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

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

likely to rent than own in the UK. And

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

the desire to move out of urban areas.

individual landlords to run, meaning

All these factors have seen the housing

less profit and fewer incentives for

Vital statistics

market spiral out of reach for many,

them to stay in the game. In fact,

1.

driving a rental boom.

landlords are behind a quarter of

Over the last three decades, the

3.

homes for sale in London.

average age of the first-time buyer has

means higher house prices

risen from 27 to 34. Back in the 1990s,

The government’s target of building

house, and a rental market that is only

the average house price was three

300,000 new homes a year by the

growing more and more unattainable,

times the average salary. Now, it’s more

mid-2020s is proving beyond reach

Brits are increasingly turning away from

like 10 times the average.

so far, with the reality being closer to

the aspiration to buy, and are starting to

the stats don’t disagree.

Affordability

Supply-demand imbalance

With a lack of ability to buy a

This means affording your own

half that number. Factors like arduous,

seek out alternative ways of living.

property is simply not as realistic as it

lengthy planning processes and lack

So perhaps it’s no wonder,

once was, and millennials are the first

of available land are compounded

then, that the build-to-rent (BTR)

14 | The summer edit 2023

Sponsored by

properties first introduced as part of

developers ensure they do not fall

the sustainability mission of the 2012

short of the increasing standards of

Olympics have experienced a major

living required for renters to be able

spike in recent years.

to participate in today’s digital society.

To keep up with the needs of renters,

Rapidly growing market

developers should:

BTR is a thriving market, growing

1.

more rapidly than any other housing

accommodate everyone, ensuring

sector. These buildings provide

spaces are fit for professionals, families

professionally managed, purpose-built

and pensioners all under one roof;

rental housing, and appeal to investors,

2.

developers and residents alike,

front door by creating desirable shared

standing out with their state-of-the-art

spaces to live, work and play; and

amenities, community-focused design

3.

and long-term returns.

that offers the reliability and

BTR properties are a level up from

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

Build in future-proof technology

of renters today, tomorrow and in 10 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

concierge services.

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-from-

on the asset itself – a perfect pairing

home roles for their tenants. At the

designed for young professionals

of short-term stability and long-term

same time, they’d be future-proofing

looking to emulate the social side

returns. And with the typical longer

their builds against the expensive need

of the university experience in their

tenancy agreements, there is added

to retrofit as the government targets

adulthood. The popular podcast

security to the investment.

for gigabit access come into sharper

Traditionally, BTR properties were

WeCrashed recounts the rise and

view, and the tenant-friendly legislation

near fall of WeWork as it sought to

Keeping up with renters’ needs

create a home, work and social space

There’s a different mindset for

that people would rarely feel the need

buyers versus renters when moving

connection enables BTR tenants to use

to leave.

comes into effect.

Having an enhanced broadband

into a property. Buyers expect the

digital management systems to book

But the challenges of the UK

process to be long and painful, with

shared spaces, log issues or request

housing market mean that BTR is

disappointments, but renters expect

cleaning, as well as to communicate

no longer the domain of the young

ease, good service and quick, painless

with other residents.

professional. Increasingly, more and

fixes when things go wrong.

There’s a business incentive for full

more families are taking advantage,

With the Renters (Reform) Bill

fibre, too. Asset management in BTR

and there’s even been a boom for BTR

recently announced, the legislation

properties becomes much simpler,

properties aimed at people over 65,

around renting is changing and

more effective and more efficient when

offering them access to a community

improving for the benefit of the tenant.

connected to a reliable network –

With high tenancy expectations

each itemised asset becomes a data

on their doorstep.

matched by renter-friendly legislation,

point, capable of informing greener

provides incoming rent over a long-

BTR properties offer a promising

and more cost-efficient use, saving up

term period, as well as capital growth

proposition for investors, but only if

to 15% annually.

For developers and investors, BTR

BEINFORMED | 15

IMAGE: CLARE LOUISE JACKSON | SHUTTERSTOCK

which to live, work and play all under

Build communities beyond the

performance to meet the expectations

the traditional housing renters are used to. Designed to offer a space in

Build with flexibility in mind to

The fourth utility Operators must prioritise digital infrastructure when fitting out a new office building if they want to retain and attract talent THE problem with technology

a wayleave agreement from the

consistent high-performance internet

is that its physical demands and

building owner and the involvement of

is necessary – as it is for any real-

requirements, especially in an ever

a full range of contractors, adding to

time activity, such as video calls –

wireless, Bluetooth and portable

the programme time.

cabling is still the most effective way

world, are often not given real

Why is this so important? With

consideration. But when you’re

accelerated change in workplace

building, retrofitting or redesigning

culture, the growth of hybrid working

infrastructure for a building, best

a new office, you need to plan for

and the rise of satellite offices in

practice is to conduct a ‘predictive

digital infrastructure just as you would

the war to retain and attract talent,

survey’ at the design stage to

electricity, water or gas. Connectivity

high-performance connectivity is

determine where to situate access

is the fourth utility – and arguably

a necessity to enable a great user

points, a revised survey in the ‘as-built’

the most important in the modern

experience for workspace.

stage to ascertain whether materials

workplace.

And the key to success is the

to deliver this.

When designing the wireless

or walls have affected wireless Wireless versus wired ports

effectiveness, followed by a ‘post-

bigger the better when planning fibre

It is very common to look around

installation’ survey to ensure optimal

internet connectivity for workspace, to

and see everyone around you

coverage and to remove any residual

future-proof great performance. Fibre

connecting wirelessly, but in a flexible

wireless black spots. Addressing

contracts are generally 36 months,

wireless connectivity issues during the

so it is necessary to have a clear view

building’s construction or fitout phase

of the likely needs of your building

is significantly easier than rectifying it

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

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

trend would be stronger still, possibly three times higher.

later down the line.

SMART benefits The majority of the machinery and equipment installed in buildings today will have SMART technology functions. With connectivity sorted, you can fully leverage

workspace or multi-user site, wired

SMART technology – and more

ports and cabling generally still have

importantly its benefits. The term

the biggest hold-ups is not being

an important role to play. This is

‘SMART’ refers to ‘self-monitoring,

connected; yet the cost, resource and

especially true for the rising number of

analysis and reporting technology’.

impact of installation is something

corporate users in flexible workspace

It is a technology that uses artificial

operators often do not foresee,

who generally have a requirement for

intelligence, machine learning and

as they do not naturally consider

wired cabling for at least their core

big-data analysis to provide cognitive

digital infrastructure when building

infrastructure, if not more devices.

awareness to objects that were in the

In a new development, one of

and fitting out a new space. Fibre

Wireless performance has hugely

past considered inanimate.

delivery is currently taking between

improved over the last couple of years

The ‘Smart Workplace Global

eight and 12 weeks from survey

but ultimately still lacks the reliability

Market Report 2021: Covid-19 Growth

to installation. Sometimes this is a

and speed of wired ports when it

and Change’ projects that the smart

simple job but it usually requires

comes to device connectivity, so if

workplace market will reach $53bn

16 | The summer edit 2023

Sponsored by

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, ZHU DIFENG | SHUTTERSTOCK

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 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.

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

(£41bn) by 2025 in the race to be more

Similarly, intelligent lighting can

connections for working with larger

sustainable, support wellbeing and

enable energy usage to be reduced

files, high-quality video streaming and

become carbon neutral. With ESG at

by up to 80% based on occupancy,

similar bandwidth-hungry activities.

the heart of the property agenda, one

time of day, weather and seasonal

This provides operators with an

way to meet sustainability targets is

changes. It can also adjust based on

opportunity to monetise bandwidth

through leveraging and monitoring

what is happening in the space and

by selling dedicated connections to

this technology.

what is required. For the landlord or

occupiers and gives their customers the quality of experience they require.

A great example of this is air

operator, data analytics on building

conditioning units. SMART AC greatly

usage and resulting energy usage

reduces energy usage without

enable them to take control. They can

this provides peace of mind as

compromising on cooling. In an

track energy consumed and even set

cybersecurity is front and centre of

office environment, once the desired

limits to keep track of their bills.

their operations and satisfies users

cooling settings have been learnt, it

All of these innovations add up

For the corporate user,

requiring faster speeds. To deliver this

will slow down as soon as the required

to being able to offer solutions that

within a shared building, it requires

temperature in the space has been

connect and enable users to work

thorough planning, which is why

achieved. Learning from individuals’

smarter, better and more efficiently.

cabling models are essential to ensure

experience, it can also be targeted to

network traffic is not aggregated to

specific areas. This means that it will

Digital infrastructure

not be consuming as much energy as

Going into our clients’ offices, we

Digital infrastructure is now

it will not be working to full capacity

are already seeing the future of

central to the modern workplace,

at all times. Likewise, it can sync up

the workplace materialising. This

essential to provide the services that

with occupancy sensors and door

is no surprise when automation

attract and retain tenants, manage the

entry systems, meaning that it is not

and the ‘Internet of Things’ (IoT) are

building itself and to deliver on those

in use when the building is empty.

increasingly in common use. This

all-important ESG targets.

avoid a cybersecurity breach.

BEINFORMED | 17

Democratising data Here’s a practical framework to help property operators get started with data-driven operations and improve efficiencies across portfolios analysed in real time? What if, with Raj Subramanian, co-founder and CPO, Facilio

minimal pre-configurations, you could deploy condition-based triggers, alarm notifications or reports? Now imagine your CaFM has access to this data.

REAL-TIME visibility into building

You could compare real-time HVAC

operations is crucial for property

information against its warranty/

owners and operators as it allows

work-order information and optimise

them to make informed decisions and

maintenance schedules. Imagine

drive operational efficiency. However,

tailoring your BAS sequences and

achieving this level of visibility is

schedules based on this data.

anything but straightforward. There are

By unlocking just the HVAC

three primary factors that contribute

information, you are able to optimise for

to poor operational visibility: the

energy, equipment health and occupant The good news is much of the data

comfort. Now imagine if you could do

operations landscape, the dispersed

you need to uncover useful operational

this across a portfolio of buildings – a

and inaccessible building data and the

insights is already available within your

world where all data is centralised,

limitations imposed by siloed building

existing infrastructure. Making buildings

portfolio-level insights are available at

management software. Addressing

smarter is mostly a matter of finding

your fingertips and all systems work

these challenges is vital for owners

ways to connect these existing systems

seamlessly with each other is suddenly

and operators to gain complete control

and unlock their full potential in real time.

possible. But where do you start?

fragmented nature of the property

of and visibility over their portfolio’s performance.

Data-driven operations

data-driven operations is to have a

Property owners are recognising the

platform-powered architecture that can

context of what’s changed in the last

business value in viewing building data

bring together real-time information

couple of years. The role of operations

as a whole, finding patterns in it and

across disparate sources in one place.

and maintenance (O&M) teams

deriving meaningful insights or KPIs in

This platform should:

has changed. They are now tasked

real time. And the most efficient way to

•

Be built on a cloud architecture;

with keeping spaces comfortable,

accomplish this is through data-driven

•

Use the edge technology and

sustainable, efficient, safe, healthy and

operations.

connect with IP-based, open-standard

Let’s look at these problems in the

well maintained, and the list keeps IMAGE: JAMESTEOHART | SHUTTERSTOCK

The most practical way to power

In most buildings today, this data

protocols to seamlessly access data

growing as buildings are expected to

is dispersed in silos. Some exist in the

from the BAS or any network;

deliver more.

building automation system (BAS),

•

some in the FDD tool and others in the

to turn the consolidated data into

changed: they want workspaces

computer-aided facility management

insights in real time; and

that are industry certified for energy

(CaFM) software. When this data is

•

efficiencies and connectivity and are

centrally available, it can be leveraged

business needs today and scale to

flexible enough to support hybrid work

in so many useful ways: what if all the

power your future operations.

models. This puts increasing pressure

data across your heating, ventilation

This platform can become the

on building owners and operators to

and air-conditioning (HVAC) systems

centralised hub to manage and share

rethink operations.

could be gathered to be viewed and

information that drives all sorts of

The expectations of tenants have

18 | The summer edit 2023

Have built-in analytical capabilities

Most importantly, meet your unique

Sponsored by

operations and maintenance workflows,

use software that lacks real-time context

away in a silo – the BAS, the lighting,

from monitoring HVAC performance to

and/or is disconnected from building

the access control system, maybe a

making informed equipment purchase

information. A glaring example is your

proprietary ‘Internet of Things’ solution

decisions to controlling building

CaFM. Teams use it for service requests,

that only an engineer can access.

automation and systems via the cloud.

asset and maintenance management

Historically, real estate firms were

While the possibilities look

and more. But making the CaFM data-

required to buy, build and maintain

futuristic to us today, the technologies

driven is complex, including painful

their IT infrastructures. While the world

are actually tried and tested, and have

system integration, data extraction from

has shifted to cloud computing and

been revolutionising other industries for

dispersed silos and redundant storage.

is leveraging the power of artificial

Having CaFM capabilities on a

intelligence to unlock efficiencies, a

decades. The Salesforce platform is one of the best examples. Built on a multi-

centralised platform instead of as a

major part of the industry still relies on

tenant cloud architecture, Salesforce

siloed solution allows for optimisations

on-premise legacy software to control

led the on-demand movement across

such as automated work orders from

building operations. Even in the case of

enterprise use cases. It helped business

alarms, proactive service resolution

potentially cloud-based tools, they are

teams focus less on software and more

and optimised maintenance schedules.

either deployed in isolation or with a

on the business. Having a centralised

In most portfolios, switching to a new

single or limited focus.

operations platform can empower your

CaFM software isn’t an easy decision

But it’s the centralised platform

teams to focus less on managing data

approach that can pave the way for

and software and more on creating

an autonomous future. It can facilitate

wholesome and real-time experiences

two-way communication with the

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

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

holistic view allows you to understand,

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

and eventually influence, the why behind

to make – the best case is to integrate

system integration. Imagine being

what’s happening in your properties.

the data-driven operations platform

able to develop, browse and deploy

There is real-time data on the

with your existing CaFM and unlock

applications for your buildings as easily

contextual insights and use cases.

as installing apps on your phone.

function of various systems and equipment, what went wrong and when.

The future is democratising

Using the power of real-time analytics

Simplify data exchange

operations across your portfolio. It’s

on top of these consolidated data sets

Without a common data model, just

gaining the freedom to operate and

can unlock powerful insights for multiple

about any automation or efficiency-based

optimise without limitations. It’s giving

stakeholders. It can provide drilled-down

initiative becomes a huge project with

owners and operators complete control

insights into the root cause of every

too much overhead. With a centralised

of and full visibility into their operations

event, fault or condition trigger so your

platform, you can simplify data exchange

– and neither of these is far from reach

operating teams don’t have to spend the

across your enterprise applications and

as long as you are getting in the

majority of their time putting out fires.

centrally manage third-party integrations.

data-driven loop.

Having centralised data also makes

It can act as a middleware to expand

it much easier to create reports and

future use cases at ease and share a

monitor KPIs. Imagine viewing energy

unified context across your library of

Raj Subramanian is the co-

star benchmarks, peak energy usage

applications – without any additional

founder and CPO of Facilio,

and total utility spend for all your

integration efforts or cost.

a proptech company with a

properties, side by side and in real time,

Let’s take occupancy data as an

global customer base which

without having to scramble across

example. We discover use cases that

offers an AI-driven suite of

multiple systems or spreadsheets.

need occupancy data all the time. In

smart buildings software.

Today, most core O&M functions

most buildings today, this data is locked BEINFORMED | 19

Data sharing is caring 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 ahead and driven outcomes?

Joseph Michael Daniels, founder ELIXR

– yet our measures are based on

I’ll tell you why – the lack of

theoretic equations from a 2D plan and

SDG 17 partnerships. The decision-

our data is input by humans. When we

makers and powers that be still want

apply it to a 3D world, we wonder why

to monopolise the market, and the

things don’t work correctly.

ALAS, here we are, with more than

old boys’ club is still alive and well.

two million houses underbuilt in the

Only now, a decade after I built my

can’t see and the things we simply

last decade, staring down the barrel

first net zero school and stated at the

can’t understand. Why can’t data and

of new legislation, such as the new

RESI Convention that “the world is on

AI provide us with that? The simple

EPC requirements, due to come into

fire” are people starting to have an “oh

answer is that they could – if we band

force in 2025 and 2028, and the Future

shit” moment.

together and give them the right data.

Let’s talk about 4D, the things we

Homes Standard, which becomes

Did you even know that our shores

mandatory in 2025.

are now home to a Construction Data

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

Trust? On its website, it describes itself

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

and I will say it again: we keep throwing

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.”

shit at a wall and hoping it sticks. Let’s

While the energy companies

Ultimately, it may sound twee,

go back to the root problems instead.

make a profit and the powers that be

but sharing really is caring. It doesn’t

For me, there are three key issues:

build standards based on theory rather

mean you need to give away your IP.

We have this insane idea that

than practice, we won’t get anywhere.

But anonymously, who really cares

insulating something excessively will

Why drive innovation when taking risks

who exactly does what, as long

solve our problems;

affects the bottom line? Political fear

as there is enough data to provide

a.

We reject on-land wind and

of doing something different is stifling

a solution and reduce corrupt

nuclear and then cry when bills are

progress. For all the desire in some

processes? What we care about is

high; and

parts of the industry to do something,

enabling government and regulators

there is commercial fear, too, and that

to make the right decisions to mitigate

leads to stagnation.

climate risk and enable social value

b.

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.

Could artificial intelligence (AI) help get things moving? I think it could.

and economic support.

By pooling this data anonymously,

The upshot is that we don’t know

But while it is the tool of the future, it

we can extract incredible information

what works and what doesn’t. Yet we

is only as smart as the information it

pooled across time and location to

keep trying to get a room to 25°C by

receives. It can’t solve issues without

support decision-making. No more

throwing 70°C hot water round the

proper data, and that data needs to

political ‘guestimates’; it won’t matter

place. So, why haven’t we moved

be captured correctly. We live in a 3D

which regulator or politician is in power

on to data? Why haven’t we gone

world – electricity and thermal matter

as the data will remain true.

20 | The summer edit 2023

Sponsored

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 3RDTIMELUCKYSTUDIO | SHUTTERSTOCK

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

Eco-entrepreneur Joseph Michael Daniels founded sustainable

truly work. Is living in monthly fear of

affordable housing business Etopia, which he stepped down from

bills acceptable as long as you have

recently. This July, he founded ELIXR, a purpose-driven venture builder

money? The simple answer is ‘no’. And

focused on supporting ESG entrepreneurs, and appointed Catalina

if it isn’t, ask yourself why is humanity

Valentino as chief executive.

less important than your capital.

BEINFORMED | 21

Stay competitive Automating data collection and processing helps fast-paced industries such as property to reduce human error and speed up transactions this data to prioritise outcomes Robin Rivaton, chief executive, Stonal

This is a lot of information for an

within the real estate market, and

individual or organisation to collect

automation makes this process faster

manually. To get all this information

and more accurate.

into a comprehensive format, you

At Stonal, the leading artificial

need well-organised data. Data aids

GENERATIVE artificial intelligence

general intelligence platform for

you in the analysis of property’s

(AI) applications such as ChatGPT,

multi-class real estate asset owners

performance and helps make

GitHub Copilot and Stable Diffusion

and asset managers, we have

informed decisions.

have captured the attention of

proprietary algorithms powered by

people across the world. Their

the latest technology to automatically

Time-consuming process

ability to write poetry, carry out

comb through documents and

In the cases where it is collected

human-like conversations and

categorise the data pulled from

manually, it is incredibly time-

provide insightful information has

them. This allows asset managers to

consuming. Within real estate, this is

propelled them to the forefront of

make data-driven decisions, without

an even more exaggerated issue, as

the conversation.

sacrificing their time.

portfolio managers are required to

AI’s broad utility means these

pull this data from a large volume of

tools can be integrated across a

long but crucial documents. There

variety of industries. As we grapple

is added pressure to this because

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,

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

but we are heading towards even

analysis and collection takes time, but in such a fast-paced industry, decisions need to be made quickly.

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

greater automated support for

Automation is the future for

back-end functions. There are

successful organisations. As AI makes

recording data points, massively

already various applications of AI

the processing and digestion of real

influencing our decision-making

and automation within real estate,

estate data more efficient, those

capabilities.

providing everything from market

who do not adopt will struggle to

analysis to ESG reporting.

remain competitive.

Despite the diverse applications,

If you want to have a thorough

quickly, we run the risk of incorrectly

Buildings generate a lot of data.

Information regarding these portfolios is critical to decision-making, but it is

the use across them all is quite

exploration into the strength of

difficult for asset managers to obtain

simple: AI helps asset managers

your portfolio, you need a strong

data regarding their portfolios when

acquire and process more information

understanding of the asset’s details

attempting to do it manually. That’s

in a shorter amount of time.

in it. This means you need information

where AI comes in.

In an industry where speed

on its structure, its equipment, the

As mentioned previously, manual

and efficiency can be the difference

tenant situation, the costs, the energy

data collection and processing is

maker for successful transactions,

consumption, lots of financial data

incredibly time-consuming. Scanning

automation is key. Companies use

and extra financial data, and more.

through various lengthy documents

22 | The summer edit 2023

Presented by

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.

Stonal is an AI-powered platform that enables asset owners and

What now?

managers to make informed decisions based on trustworthy data,

Stonal’s customers have found that

helping to preserve and enhance the value of portfolios and ensuring

integrating AI into their property

the ongoing liquidity of assets.

management has allowed teams to

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

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

and finding the correct data points

Another key benefit of automating

integrates further into organisations,

takes time out of asset managers’

data collection and processing within

we have a drive to continue to collect

busy days. It also drastically slows

real estate is the reduction of human

increasingly diverse data points.

down the decision-making process,

errors. When manually extracting

Integration of various devices that

making you less competitive.

and interpreting data, we cannot help

allow us to understand trends that

but make mistakes, especially when

were previously inaccessible will drive

under tight deadlines.

a rise of data-driven decision-making.

predictor of performance. Automation

Automation also reduces human

This will likely be coupled with

clears this issue up. Stonal’s AI tool,

error by ensuring consistency.

the rapid advancement and adoption

for example, automates document

Humans can apply inconsistent

of AI. The improvements we have

classifications, pulls key information

methodologies, but automation

seen from automation in the last year

from documents, detects signatures

ensures a standardised approach.

will continue, and for real estate this

and benchmarks residences and

means more efficient data collection

assets to make it easy to compare

Minimising errors

them. This only scrapes the surface of

By using data collection tools such as

As portfolios continue to

the software’s capabilities.

Stonal’s, asset managers can reduce

integrate automation, and see vast

data errors. Stonal’s AI has a 95%

improvements in efficiency and

can have invaluable insights, but only

success rate in reading, processing

outcomes, AI will become a necessary

take a fraction of the time obtaining

and filing documents automatically,

component of asset managers’

and processing them.

without human intervention. When

strategies.

This means that asset managers

and processing.

BEINFORMED | 23

IMAGE: IURII MOTOV | SHUTTERSTOCK

In a fast-paced industry such as real estate, speed is an essential

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

– and AI in general – will not lead to

obsolete. Rather, we will see a vast

mass redundancies across real estate.

reduction in the number of small,

Instead, we believe that a good-

repetitive and time-consuming tasks

quality, safe and reliable AI product

that slow progress and distract from

“EVERY revolutionary idea seems to

will enhance every job it supports,

the more serious and challenging

evoke three stages of reaction. They

improve the quality of work life and

parts of the job. In addition, those

may be summed up by the phrases:

create more profitable businesses.

tasks that require the least thought

(1) it’s completely impossible; (2) it’s

In brief, askporter’s AI property

can often cause the most amount of

Till Eichenauer, managing director, askporter

possible, but it’s not worth doing; and

carelessness and mistakes, which will

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

be eradicated with AI.

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

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

Clarke wasn’t talking about the

Transparency is key 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

transformative possibilities of artificial

management system uses automation

traditional professional service sectors,

intelligence (AI) within real estate,

to respond to customer queries;

and has been slower to integrate

there is a case to be made that his

it is a digital assistant that can

technology as a whole into the sector,

quote can be reflected in the slow

handle customer conversations

even before AI became an integral

integration of tech within the industry.

autonomously and capture, sort and

part of proptech.

It’s fair to say there is considerable

handle complex issues and processes

Firstly, we are fully transparent

cynicism around the role of AI across

from raise to resolution, creating

with potential clients about how much

society, perhaps not helped by evil

actual operational efficiency. Askporter

it will cost and how the technology

sentience imagined by Clarke in

specifically integrates AI into the

will transform their business. We

his dystopian creation. Although

facilities management sector. With

have perhaps become cynical at a

an apocalyptic AI is a remote and

time freed up for facilities managers

consumer level about technology that

distant possibility, a more immediate

to complete more complex, technical

promises to transform our lives, only

and realistic issue for real estate

and skilled tasks, no longer will we

to either come at a hefty price or to

professionals is: will AI take my job?

hear managers tell customers: “I’m

be presented as cheap/free but with

Realistically? Yes – partly.

sorry – I’m afraid I can’t do that.”

expensive (yet vital) add-ons. Only

Before you dust off your CV and

The tasks that AI will make

if we and other companies are truly

Google “careers immune to AI”, we at

obsolete for facilities managers are

honest about financial cost/benefit

askporter believe that our technology

not those that will render their jobs

will we win the trust of the sector.

24 | The summer edit 2023

POPTIKA | SHUTTERSTOCK

Presented by

Security and trust

But we do know that cybercrime

introducing AI integration to

Secondly, and perhaps the most

is the single most dangerous threat

customers, in the real estate market

crucial aspect of integrating AI into

to the security of most companies

and beyond, to provide bulletproof

the industry, is security and trust. All

in 2023.

products and the highest-quality

joking aside, we are not expecting

It is not enough for askporter to

security measures. Only then will

askporter’s product to gain sentience

just provide a strong level of

we, as an AI technology community,

and begin trash-talking your

cybersecurity with our product,

earn the full trust of the industries

customers and setting off fire alarms.

however; we need every company

we support.

BEINFORMED | 25

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

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

AS attention turns from landlords

a portfolio of alpha-class buildings in prime global locations. The

and investors’ net zero targets toward

software is currently in 26 countries and growing, it scales with your

the progress made against their

organisation’s needs and is compatible with all major languages.

carbon reduction roadmaps, focus will sharpen on each and every small detail contributing to individual

of desk and meeting room

digital twin streamlines building

assets’ ESG credentials. This has been

booking, amenity access and visitor

maintenance and provides a minute-

accelerated by recent changes to the

management in one platform,

by-minute readout of a building’s

MEES regulations, which set short

and often one app, is expected as

operational performance.

deadlines for landlords to upgrade the

standard by many modern occupiers.

EPC ratings of their assets.

Too few, however, are leveraging the

digital twin is in the data points it

power of smart building technology

exposes. A good example of this is a

Despite the most sustainable

However, the true value of the

assets unlocking rental uplifts,

London client that has implemented

which can offset the cost of ESG

a Smart Spaces solution aggregating

upgrades, it is not always financially

more than 134,000 individual data

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,

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

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.

although many landlords are overlooking its potential to deliver

to reduce occupational emissions

Reducing wasted energy

meaningful progress toward

and drive efficiencies, which can

The Smart Spaces digital twin adjusts

sustainability targets.

meaningfully accelerate net zero

indoor airflows to prioritise densely

roadmaps.

populated portions of the building,

The adoption of smart building technology is increasingly

The digital twin exemplifies this.

commonplace among sophisticated

This is a detailed virtual representation

diverting clean air to less populated

office landlords who recognise

of an asset that allows landlords to

areas. It also provides live occupancy

its value in creating a frictionless

monitor the health of every building

readouts, allowing an adjustment of

occupier experience. The unification

system in operation in real time. The

future airflow, lighting and climate

26 | The summer edit 2023

reducing wasted energy spent

ANDREY SUSLOV | SHUTTERSTOCK

Sponsored by

controls based on weekly occupancy

by automated programmes rather

proportion of the UK’s office stock,

patterns, all of which can significantly

than manual monitoring, reduce the

although often more in response to

reduce wasted energy when taken

cost of keeping Smart Spaces clients

occupiers’ post-pandemic workplace

together.

on track for best-in-class sustainability

demands than as a measure designed

performance.

to lower energy use.

The digital twin can also link indoor and outdoor air temperatures

More nuanced rules can also

Wider implementation of

and set automated thresholds at

be established through the digital

proptech solutions is the natural

which air conditioning units can be

twin to respond to less common

corollary of an increasingly

switched off in favour of less energy-

events, ensuring the building is

sophisticated built environment

intensive alternatives, such as bringing

‘alive’ to changing circumstances

sector, but awareness of their carbon

in the cool air from outside. Perhaps

and continues to perform at its best

reduction potential lags behind

most importantly, the Smart Spaces

without routine human intervention.

adoption. Wider education of the

digital twin can issue automated alerts

This is the new frontier of

sustainable applications of new

if the building’s energy performance

sustainable building management:

building technologies is vital if

drops below the BREEAM or NABERS

frictionless, cost effective and tech

landlords are to unlock the ESG gains

threshold, prompting corrective action.

driven. These technologies have

that already lie at many of their

already been rolled out across a large

fingertips.

All of these measures, triggered

BEINFORMED | 27

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 nuanced than a headline-grabber with

Build nearby

lots of zeroes, and requires a bespoke

It all starts with local people. The vast

approach within different regions, and

majority only move short distances

sometimes at an even more granular

when relocating home – typically less

IN the last five years, approximately

level than that. We want to empower

than two miles – so if a developer

1.2 million new homes have been

housebuilders by providing the tools

wants to know who will live in the

delivered, 300,000 fewer than were

to make a compelling and considered

homes they plan to build, the answer

deemed necessary in that time. The

argument for why a particular

is usually nearby. There will of course

challenge now should be to better

development is required, based on a

be regional variances – the more rural

understand how we build the right

clearly identifiable demand.

the location, the larger the sphere

Tolga Necar, principal consultant, CACI

homes in the right places. Follow the data; follow the demand.

The shortfall in housing supply

Demand should be an

of influence – but this is something

indisputable part of the equation,

we account for when looking at a

answering the question: if this

particular site.

is spoken about a lot, but not a huge

development is built, will it be fully

amount of direction is given to the

occupied? Ultimately, that’s all that

these people are. My word-count

where, what and who. Start with the

matters: providing homes that people

limit prevents detailing just how

where. There has, for a long time,

will live in.

vast our data is in this regard, but

Next up is a deep dive into who

been a distinct disparity between

using our consumer base, Ocean,

parts of the UK in terms of delivery

we can access an understanding of

– Welsh and Scottish growth rates,

society that cannot be matched at

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.

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

The way forward is about more

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

than just meeting demand – it is

We want to arm developers with

about building the right homes in

clarity – a complete picture of what

the right places. To achieve that, we

surrounds a particular development

Understand demand

have to be more forensic about our

site, and what they need to deliver

That is achieved through affordability

understanding of demand.

to serve its future inhabitants. There

and suitability considerations, and

are complex calculations at play

this is where we can help developers

Bespoke approach needed

here, and while I’m not in the game of

in a more bespoke way. All schemes

The number of homes the country

giving away trade secrets, there are a

up and down the country, large or

actually needs is so much more

few key elements I can talk about.

small, ultimately need to create a

28 | The summer edit 2023

move into.

FREEDOMZ | SHUTTERSTOCK

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.

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

community, and that can only happen

second assume that if you build it,

going to be big enough to deliver

if the right types of homes are built. It

they will come. New communities

amenity en masse, so when your

takes us back to the question: will this

have an identity that extends beyond

space and finances are limited,

development be fully occupied? Yes

new bricks and mortar; it’s also crucial

knowing what your future residents

it will, if you understand demand and

to understand what will motivate

want prevents guessing and

can tailor the plans accordingly.

them to move.

assumptions that can eat into time

There’s no point in filling a site

The rational “I need to upsize” or

and budgets.

with three-bed family houses for

“I want to move out of my parents’

sale if there is evidenced demand for

house” must be matched by “and that

if it isn’t communicated to the right

predominantly one-bed rental flats, or

area will have all the facilities I need

people. The final stage is ensuring

if local people simply don’t have the

and want”. We’ve seen over the past

your future residents are being

cash or equity to afford large homes.

few years how much people value

effectively engaged and know that

Having that picture at the outset

where they live, with some areas

your development is being shaped by

is critical to financial viability and

seeing the return of the 15-minute

what they need.

creating a scheme that truly delivers

community, and that only puts more

That, from start to finish, is how

for its local community.

pressure on those responsible for

housing developers can tackle a more

placemaking in more residential areas.

challenging market effectively by

So you’ve found a great site, you understand the local people and you

This is all meaningless, though,

using objectively assessed demand.

have a perfectly optimised plan for

Deliver approximate amenity

With supply targets falling away, it is

a mix of housing types and tenures.

New schemes must deliver

time for demand-led development to

All set? Well, not quite. Don’t for one

appropriate amenity. Don’t make

finally come into its own.

BEINFORMED | 29

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30 | The summer edit 2023