The Proptech Revolution Is Coming. How Can Developers Know They’re Investing In The Right Tools?

While many aspects of the future of the commercial real estate industry are shrouded in uncertainty, one thing is clear: Proptech will play a major role. 

The global proptech market, valued at more than $25B in 2022, is expected to expand at a compound annual growth rate of 15.8% from 2022 to 2030 as more building owners adopt virtual reality, artificial intelligence and Internet of Things technologies. 

Sean Edwards, president of Rittenhouse Communications Group, said he believes the major proptech trends driving innovation in CRE this year, particularly in the multifamily and hospitality sectors RCG specializes in, are access control and IoT features, including the ability to regulate thermostats, leak sensors, shades, lights and locks from connected devices. Edwards said the main issues that will hold developers back from adopting these technologies are a lack of proper budget and education, both of which can be solved with the right partner. 

“Understanding how much all this will cost, from the initial setup to ongoing operation costs, can be a major roadblock if you don’t contact a technology partner ahead of time,” Edwards said. “Similarly, people are not educating developers on what’s out there.” 

Edwards said that while mechanical, electrical and plumbing salespeople are out in the field meeting with builders and developers every day, they're not necessarily basing their designs on the big picture to provide integrated and future-ready solutions in the best interest of the end user. 

RCG, on the other hand, is a design-build integrator. The company works with building owners, vendors and the architect to create an integrated technology package with proptech tools that suit their unique needs while guiding them through the installation process from discovery to design, proposal and implementation.

“Instead of betting off someone else's spec, we design the project as part of our deliverable for free,” Edwards said. “We’re listening to the owner, the builder and the day-to-day operations team. This way, we’re not only working with construction teams but all project stakeholders to create a system and software that works right away. The entire team is working off of the same set of plans and the critical systems are not an afterthought.”

Edwards calls RCG’s system “single pane of glass” management. When the company works with a new client, the team assesses what the company currently uses, what systems it likes, what it doesn't like and what its pain points are. From there, they help it standardize both hardware and software platforms to provide one central management platform for all of its connected systems. 

“If you listen to the client’s needs as well as their budget and past pain points, you can marry hardware and software solutions to the individual client to provide a truly bespoke solution,” he said.

RCG does not stop once the solution has been designed and technology has been procured and installed, Edwards said. The team offers training for on-site staff so that employees feel confident that they understand the system and the best way to access it. RCG also provides support to the management team.

For developers and owners who are looking to invest in new technology this year, Edwards said their first step should be to demo all the tools they can. By going to trade shows, talking with other owners about their technology, touring other buildings and getting feedback from their community, they can learn what will work best for their properties. 

“In real estate communities, everyone knows everyone and is invested in everyone,” Edwards said. “Developers should leverage these relationships to ensure they are getting the best technology and work with a partner who can help guide them through the process.” 

This article was produced in collaboration between RCG and Studio B. Bisnow news staff was not involved in the production of this content.

Studio B is Bisnow’s in-house content and design studio. To learn more about how Studio B can help your team, reach out to studio@bisnow.com.