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Digital Transformation in Multifamily Real Estate: A Strategic Imperative
Embracing change for success in the multifamily industry
It’s widely known that legacy systems are how 61% of real estate still operate, with multifamily lagging even further behind.
Recently, there has been an acceleration of technologies to transform this sector. From smart building technologies to property management platforms, the tools to operate for greater efficiency, sustainability, and enhanced tenant experience are now readily available.
Yet despite this progress and a clear desire from C-Suite to adopt it, action is lagging behind desire, showing a hesitancy to fully embrace change and integrate solutions in the right way.
So what’s holding multifamily back?
An industry primed for caution
Multifamily has traditionally been a risk-averse industry. Property owners and managers are often cautious with new investments, especially when operating on tight margins. This mindset, while understandable, has become a barrier to long-term growth, resilience and transformation. In today’s fast-evolving landscape, standing still can be more costly than moving forward.
Growing pressure
The multifamily industry is facing mounting pressure, from energy costs to expectations for better, more connected tenant experience as well as tighter regulations. Investors are increasingly interested in the long-term value and sustainability of smart, connected and functional homes.
The multifamily industry can no longer ignore these pressures. Owners and operators that continue to delay embracing a connected approach to digital transformation risk falling behind both in terms of operational ability and competitiveness.
The technology adoption gap
The good news is that the tools already exist, there are a plethora of solutions available to meet the diverse challenges of the multifamily industry. Smart building platforms can optimise HVAC systems, reduce energy usage, cut costs and enhance tenant experience. Sensor and data platforms can provide powerful insights to help owners and operators make better decisions about the future of their buildings and enhance efficiency.
Crucially, Master System’s Integrators (MSIs) exist to connect all of a building’s systems and data into one easy-to-use platform, giving clear, actionable insights to help owners and operators make smarter decisions. Without this, data is siloed, insights are missed and investment in technology is wasted.
The question isn’t whether these tools work. It’s whether the industry is ready to adopt and integrate them.
Making the shift
Digital transformation doesn’t have to be disruptive. Many technologies can seamlessly integrate with existing operations and solutions, and start providing returns fast.
The cost of properly deploying and integrating technologies is also sometimes seen as prohibitive. However, the real cost is ignoring the need to adopt and integrate the right technologies. Embracing integration and innovation is no longer just an advantage, it’s a necessity to stay relevant and competitive. Those who embrace digital transformation and change will be best poised to thrive and weather future challenges.