CEO survey

Last week PwC published the real estate trends section of its annual CEO survey. The identified trends speak to themes that have been explored in the past year in this blog. I’ll pick out the three that I think are most important, each of which is linked. Firstly, technology is casting a beam of light into one of the most impenetrable types of asset. Data availability and benchmarking has created greater transparency, both in investment decisions and in building performance. This in turn creates a clearer focus on assets which are performing poorly across a range of measures. Secondly, the way in which many investors are achieving innovation is to give more emphasis to differentiation through customer centricity. This can also lead to untapped revenue streams but, as PwC’s survey finds, requires a level of trust in relatively anonymous investment businesses; a quality which 60% of real estate CEOs were concerned was lacking. Thirdly, quickly rising up the agenda of real estate businesses is the subject of sustainability. Positive actions in this area can both ameliorate the increased scrutiny around building performance, and also be a source of differentiation and alignment with one’s tenant brand and values.