The challenges and threats to property Net Operating Income
While digital transformation is one thing, creating a collection of point solutions that are used only in a vacuum or aren’t even visible to the wider business, is another. When point solutions pop up to solve one particular problem, it’s hard to measure their overall value to the asset or portfolio.
More often than not, multiple stakeholders within commercial properties have similar goals that could be achieved with a solution built for everyone, but point solutions are often focused on one particular fix. What does this mean? Eventually, once a much-needed tech audit is conducted and after the apathy towards inevitable change wears off, these point solutions are retired for true end-to-end solutions. Those that remain can then be easily integrated into a centralised system.
It’s important not to ignore the fact that in the commercial real estate sector, micro-economic challenges are intensifying as stagnant budgets collide with escalating costs of energy, staff and consumables. Property managers and owners face increasingly tough decisions, balancing the need to maintain high-quality services and tenant satisfaction against the backdrop of rising operational expenses. This has a trickle-down effect on tech decision-making.
