'The Promises Of Today Have To Be Delivered Going Forward'

Ronan O’Neil is an associate in the capital markets group at Hines, where he is responsible for raising money from European and Israeli investors for its funds in the U.S., Europe and Asia. He is currently on the ULI European Young Leaders Executive Committee and was responsible for launching the European ULI Hines Student Competition in 2020 along with the ULI Real Estate Vanguard, an initiative that recognized 10 rising stars in the built environment.

Bisnow: Do you believe that we are in a unique period of transformation for the built environment, or has there always been a steady state of change? 

O’Neil: I believe that both statements hold weight. While there has always been a steady state of change across the built environment, there are characteristics of the current period we’re in which are unique in nature.

For example, as technology and construction methods have improved, the way buildings are planned and constructed has continued to change. We are seeing the rise of smart, digitally connected buildings, as well as those constructed from nontraditional materials. It must be noted the speed and nature of this change continues to vary by geographic region, often dictated by planning laws and financial viability.

We’re also now seeing an ever-increasing emphasis on ESG, with investors seeking both financial and sustainability-related performance. Previously, financial performance alone was generally the winner here. This trend is also being noted on the occupier side where ESG is now at the front and centre of future planning, to create healthy buildings and socially connected environments that are sustainable for the long term.

While the built environment has previously focused on facilitating housing, leisure and places of work, technology is facilitating new types of building such as data centres, which previously was a much smaller part of the industry.

Bisnow: What skills will be essential to succeed in the real estate industry in the future?

O’Neil: Given the breadth of the real estate industry, the skills required will vary significantly depending on the area of real estate in which one works. While the core skills currently required will no doubt remain important, one key skill which will likely underscore most of the sector in the future is the ability to interpret and sense check significant amounts of data, particularly as technology plays an increasingly important role. To facilitate this, those working in the industry will need to stay abreast of industry trends and be acutely aware of local market dynamics.

The industry is rightly adapting to an increased focus on environmental factors and will need to ensure that the promises of today are delivered going forward. This will likely require technical knowledge that may not be readily ubiquitous at present but will also tie into the need for interpersonal skills as the industry works alongside experts in associated fields.

Bisnow: Will new roles exist in real estate in 2035 that don't exist now; and conversely will any current roles disappear by then? 

O’Neil: While it is very difficult to predict how certain roles will be impacted by future change, if we assume at least an equal rate of change in the next 13 years comparable to the last 13 years, we must expect more evolution in the roles required for our industry, though much of this may be new skills for existing roles rather than new roles altogether.

Using this timeframe, with Airbnb as an example, the company was founded in 2008 and the impact on our industry has been significant. This is just one example of a firm which has changed the property landscape and affected the roles required as a result.

Finally, as proptech grows in prominence, and new building methodologies and materials are utilised to meet environmental targets, our industry will be further impacted. That said, much of the change in recent years has been absorbed by existing professionals learning new skills, and this trend will likely continue, complemented by the addition and, perhaps, removal of some roles altogether.

Bisnow: How does technology support your current role, and what additional tech do you envisage for the future?

O’Neil: Technology perhaps plays less of a significant part in my role of capital raising than it does across other aspects of the industry, but even this has changed substantially since the onset of the pandemic. Prior to Covid-19, my role predominantly consisted of travelling to meet with investors and facilitating their ongoing queries into Hines’ products, but once the pandemic restricted global travel, we integrated technology to support investors’ due diligence. This was a significant undertaking, including the use of drone videos for assets; virtual reality of what buildings look like from the inside; and online "asset tours," among other methods used to give investors the comfort they would usually obtain through in-person site visits. At Hines, we were able to onboard a significant number of new investors during the pandemic, suggesting they are becoming increasingly comfortable with technology-enhanced methods of due diligence.

Going forward, as the ability to travel and meet in person hopefully improves, it will be interesting to see what balance is struck between the time and environmental benefits of virtual property tours, which do not require days of heavily polluting international travel, versus the requirement for some investors to physically see the buildings in which they invest, and to get comfort from meeting the team in person.