The property industry is optimistic about technology’s impact on their businesses but believe office towers that fail to “wire-up” to the latest new economy services risk losing tenants, according to a new survey.
The joint Property Council of Australia/Andersen survey asked more than 400 property industry executives their views on the impact of technology on property.
It forms part of a major research project that examines innovative ways the property industry can capitalise on technology. Called Digital Property, the project will be launched at the Property Council’s annual Congress in Canberra on September 16-18.
Professor Thomas Horan from the Claremont Graduate School in the US, the managing director of Cable and Wireless Optus’s Data and Business Services group, Chris Hancock, and Andersen’s Rodney Timm are the keynote speakers on the digital property subject.
The project’s website, www.digitalproperty.com.au
and the survey results were launched this week ahead of the major Congress presentation.
The survey found the majority of property industry executives were optimistic about the impact on technology on their bottom line. More than half of those surveyed said technology would boost profitability.
But while almost half of the respondents believe tenants will pay more rent for high-tech services such as broadband, they also said tenants will be fussier about which buildings they accommodate.
Three quarters of respondents said technology would increase the value of commercial buildings at the expense of properties that fail to offer tenants new economy services.
Property Council chief executive Peter Verwer said the project was a key plank of the Property Council’s research and development platform under its new three-year Property Powerhouse strategic blueprint.
“The survey showed both tenants and property owners will increasingly place a premium on high-tech buildings,” Mr Verwer said.
“The Digital Property project will help property owners and managers attract and retain tenants and tap into new revenue streams by making technology an integral part of their business operations.
“The project will explore a host of technology enabled business opportunities in development, facilities and asset management, transaction management, equity and debt and research and measurement.
Andersen Real Estate and Hospitality managing partner Andrew Sudholz said the major challenge facing the industry was keeping pace with changes in the accommodation needs of tenants.
Tenants now require greater flexibility, mobility and adaptability in their use of property,” Mr Sudholz said.
“In addition to their property requirements, tenants are also demanding additional business related services and high speed communications infrastructure.
“The focus will be on striving to meet and exceed the expectations of their customers - the tenants in their properties - to build a direct relationship rather than relying on service providers to fulfil this role."
Chris Newlan, Property Council, 02 9336 6947 or 0413 707 140
Wendy Palmer, Andersen, 02 9993 6073