The latest London property breakfast held on 8th November 2019, discussed technology’s impact on property, and whether the real estate marketplace is capable of realising its technological potential.
The breakfast was chaired by Susan Freeman, Partner at Mishcon de Reya, and featured an impressive group of panelists, including: Guy Grainger, Chief Executive EMEA at JLL; Emma Long, Head of Corporate Strategy at Legal & General Real Assets; Roelof Opperman, Principal and Co-Lead at Fifth Wall; Andrew Thompson, CTO at Appear Here” and Dr. Rick Robinson, Digital Property and Cities Leader at Arup.
The breakfast opened with an excellent keynote from Dr. Rick Robinson, titled ‘From Concrete to Telepathy - Building Smart Places’. Robinson cited the tremendous and unexpected impact of technology on the built environment, before acknowledging the changes in consumer habits that have contributed to this shift. Devices have enabled us to do anything we want to, when we want to, and where we want to. Robinson urged attendees to design through these changes, and imagine the experiences of potential consumers and design for them. We’ve got to think differently about using the available space, or suffer the consequences.
Guy Grainger began the discussion with a frank assessment of the property industry and strategies for making technology more accessible and efficient. Grainger commented that JLL was a legacy business, and as such, had plenty of contact with proptech firms. He remarked that the issue with large businesses is adapting to the new technology. JLL has the scale to dramatically impact the industry, but sometimes some of those within it lack the agility and the mindset to really make things work.
For panelist Emma Long, working together is key. Long stressed the importance of collaboration as technology moves into the future, and urged tech suppliers and industry leaders alike to push through the “noise”. According to Long, there is just so much going on in the proptech space, but many of these ‘disruptors’ are deaf to real problems facing the industry.
According to Roloef Opperman, much of the UK’s failure to adopt technology within the property industry stems from “herd psychology”. He argues that big businesses must commit to change, and smaller businesses will follow. However, he acknowledged the issues that many companies face. Funds raised to deliver new technologies have not matched the asset value, leaving companies with a difficult decision: overpay, or find an edge. Opperman remains hopeful, saying that there are plenty of small things that people and businesses can do that will have real impact, and that proptech should focus on solving existing problems.
Andrew Thompson echoed Opperman’s claims. According to Thompson, tech needs to start with the customer, and find out what problems they truly need to solve, before producing a ‘first copy’ and innovating. Thompson also spoke about some of the changes he has seen in retail, most notably, short leases at very high rents that are going to niche clients. He cited that experimentation and willingness to fail were crucial to moving into the future. Is technology driving a more agile and fluid real estate market? The short answer is no, but it is inspiring industry leaders to innovate, and through that innovation we can hope for real success.
