Seeking opportunities for survival and development amidst strong uncertainty may be the core proposition of the current commercial real estate industry.
On December 10th, the “2020inPropTech Future Real Estate Technology Summit” co-sponsored by Crane and inPropTech was held in Shanghai. Various roles in the commercial real estate sector, such as owners, intermediaries, investors, and platform parties, have all participated in it to discuss the turning points and opportunities of the commercial office market.
2020 inPropTech Future Real Estate Technology Summit Site
Under the superimposed influence of the economic situation, market changes and the epidemic, this turning point has come particularly quickly. The data shows that the vacancy rate of office buildings in Beijing, Shanghai, and Shenzhen has risen to over 20% and continues to rise.
In the face of the unstoppable downward trend, the “2020inPropTech Future Real Estate Technology Summit” brings together practitioners of commercial real estate to ask questions, solve problems, discuss puzzles, and talk about opportunities.
Throughout the conference, “uncertainty” and “change” are the two most frequently mentioned words by the guests. After entering the stock market, commercial real estate has fallen into a rapidly changing wave of times. But it is also the change that urges the industry to abandon traditional thinking and burst out a trend of innovation and change. Practitioners who are keenly aware of changes put forward many solutions at the conference site in order to realize the innovation of the entire industry chain for commercial real estate. Regardless of where they are in the industrial chain, practitioners have given a consistent answer-to stabilize the tide in the wave of change, technology is the most solid grasp.
Get out without changing
The general trend of the real estate industry’s transformation is an indisputable fact. The real estate companies entering the era of stock are using technological means to seek new profit margins in refined management. In the residential sector, platforms or tools such as VR viewing, online transactions, and digital management are relatively mature, while the commercial office sector is relatively lagging, and has not yet ushered in a complete digital transformation.
In the sluggish market response, practitioners have a strong sense of crisis. Most of the guests at the meeting held the same view on the changes in the state of the office market, that is, office buildings have changed from a seller’s market to a house-buying market. Yang Song, senior director and head of office leasing at Tishman Speyer Investment Consulting (Shanghai) Co., Ltd., said that in the next few years, office buildings will be a market with oversupply, and there will be a large amount of new supply and high vacancy rate. . Facing the office vacancy rate of more than 20% in first-tier cities, office owners are facing tremendous pressure to eliminate them.
“As landlords, we have to make price cuts, give longer rent-free periods, give agencies higher commissions, and fight all kinds of’hand-to-hand combat’ in the market.” In the eyes of office owners, the office market has reached a new level. The era of “owners will be out without change”.
Sign-in site for 2020 inPropTech Future Real Estate Technology Summit
Besides letting out the owner’s own interests, can commercial real estate have a more benign channel for change?
“This industry is actively seeking new empowerment methods to improve its ability to respond to changes and resist risks. Because of this, real estate technology has accelerated into everyone’s vision.” Du Jian, assistant general manager of CBN, director of the operation center at the summit Talked on.
In Du Jian’s view, actively embracing new technologies and advancing digital transformation is a natural choice for real estate companies to reshape their growth, and other real estate fields have given high hopes of leveraging and reshaping the industrial chain. At the key point of the reshaping of this industry, real estate technology as a “new drug” is still in the embryonic stage of development, full of unknowns and also represents opportunities.
According to Liu Wenchao, CEO of E-House Enterprise Group Crane, the overall penetration rate of technology in the commercial and office market is not high, but it also represents a very large market in the future. Once a good digital scenario application product is produced, this field will Will have a huge effect.
Liu Wenchao, Executive President of E-House Enterprise Group
At present, owners have begun to focus on improving the efficiency of sales and operation management, and embrace change with a more positive perspective. Luo Lingjie, general manager of inSolution, said at the summit that in the past five years and the next five years, the huge new supply of the entire office building market will force office owners to make better operations, market management and refined actions. We must embrace change with a more positive attitude and better meet customer needs.”
Based on the consensus that technology improves sales and operational efficiency, owners are eagerly seeking new technologies and new tools that can truly bring about changes, and a brand new innovation space for commercial real estate is being opened.