Property operations in 2024: Navigating a Transformative Landscape with Automation and Purposeful Innovation
In 2023, we saw the consolidation that happened in the property operations space and the significant shift towards integrated solutions, marking a departure from point solutions. Looking ahead into 2024, it's evident that the demand for platform-driven models will persist, but the winners will be those purpose-built and impact-driven solutions.
Cost optimization remains a paramount concern for property operators. In a recent survey of 500 facility managers, the top KPI tracked was maintenance spend and cost savings. In response to this, we foresee an increasing reliance on automation for cost optimization, particularly in the areas of energy efficiency and business process automation.
We also expect software buying decisions to become more strategic; a piecemeal approach to software buying will be replaced by portfolio level priorities. Despite tech spend reductions in various industries, there is a considerable uptick in demand for AI-driven tools that directly impact revenue by lowering operational and energy costs. For real estate owners and operators, the focus in 2024 will be on improving workforce efficiencies and enhancing tenant experiences. These priorities align with the industry's evolution towards purposeful and impactful proptech solutions.
At the recently concluded COP28 meetings, the Buildings Breakthrough was launched with the support of 27 countries. The partnership aims to make ‘near-zero and resilient buildings’ the new normal by 2030, addressing the fact that the building sector alone accounts for nearly 40 percent of global energy-related CO2 emissions, 50 percent of extracted materials, and one-third of global waste. Hence decarbonisation will continue to be a top priority.
Yet many building owners and operators don’t know where to start or how to navigate the path to net zero. IoT-led building operations software will play a critical part in fast-tracking this journey, and we advocate the “crawl, walk, run” approach - first monitor, then predict and finally optimize/control.
In summary, the year ahead will be marked by a continued embrace of platform solutions - an increased reliance on automation for cost optimization, the integration of AI to enhance workforce efficiencies and tenant experiences, and the pivotal role of IoT in achieving net zero and energy optimization.