The future of proptech in the UK – MIPIM roadshow London report

What’s the future of proptech in the UK? At the MIPIM Proptech Europe roadshow, that’s the question on the agenda. We’re at WeWork Waterloo to hear views on that subject from a panel of proptech companies and Simon Allison from the London Mayor’s office. And as long as we’re in a co-working space, it’s worth highlighting one of the soundbites from the evening which is that London leads the world by a mile on co-working, at least in terms of penetration.

The general consensus is that proptech has come of age. Next year, 2020, will be the year of adoption. It’s only three years ago when bright start-ups couldn’t get a look-in with the corporate purse holders but today the tech agenda is so prominent among corporates, they have senior people whose remit is not to say no to pitches from those bright young things. And there are more proptech/tech insiders in corporates now – a new generation with a different outlook.

What’s next?

So what’s next in proptech in the UK?

Simon Allinson, representing the Mayor of London, says the capital’s commitment to tech won’t change even if and when there is a change of Mayor. Energy efficiency is a huge driver for proptech, he reckons. It makes sense, and as if to reiterate the commercial potential, he appears to be wearing golden boots (even if the streets aren’t always literally paved with it).

He sees take-up happening now among corporates buying into the technology that may deliver smart buidlings. There have been early adopters, of course, but after a slow start, Simon says almost everyone of a certain size in London is in the proptech game now.

Crunch time

The crunch for SMEs is to make things easier for corporates. Provide core value, and your technology will be adopted. You need to think like corporates think, rather than barging in and predicting you’re going to change the world.

The panel see London, Hong Kong and Shanghai on a par when it comes to proptech adoption and market opportunities, but when it comes to proptech companies, one city is (gold-paved) streets ahead. London has more of them than the next two contenders, New York and San Fransisco, combined.

So back to the future. Long term, cities are thinking less about winning big bids like The Olympics and more about adapting to climate and demographic change. And there is something about changing attitudes. Most of us think of real estate in terms of buying and selling property rather than experiencing it. Yet the new generation is focused on experiences. So how do we turn real estate into a service? How can proptech enable wellbeing, physical and mental?

Disruptive

Think of buildings as platforms with the human at the centre. Why? Well, what do you provide to your customers if not your people?

As with many disruptive ideas, there are philosophical questions. If your technology lets people manage their environment, to what extent should you trust them to make the right decision? If you truly have their and your best interests at heart, is there a case for you overruling their input at some point?

Much of the talk in HR and management is of soft issues such as wellbeing. But turn that around for a moment. If you focus on optimising rent per square foot – really optimising it taking into account all the factors – you’ll get increased productivity and wellbeing as a side effect.

Not perfect yet

Nothing is perfect, though, and an audience member highlights the lack of innovation in property and FM contracts, something that routinely confounds the successful deployment of technology. This can be because of archaic contracts with outsourced FM companies who have neither the interest nor the desire to take on a tech product. Similar stresses on in-house real estate managers, struggling to manage their day-to-day responsibilities, make it likely that new initiatives will not necessarily be greeted with unbridled enthusiasm.

It’s a huge problem, one of our speakers confesses. It’s why tech companies are struggling to get their products into thousands of buildings. No two buildings are the same, even ones in the same portfolio, so each potential instance of a tech rollout meets different attitudes and challenges. It’s crucial with joint in-house/outsourced operations that both sides are incentivised to embrace new opportunities.

All that said, 2020 is a different year for the proptech world, one where its ideas and technologies are better able than ever to make it onto the top of the corporate agenda and beyond into deployment.

 

#MIPIMPropTechEU @MIPIMPropTech

 

 

Flexible working in the news

Flexible working, desk sensors and office utilisation monitoring in the media

What is flexible working? That’s a question we come across often here at Abintra. Most people think it’s about being able to work flexible hours, allowing employees to have a better work-life balance.

But there is more to it, as recent media articles demonstrate.

In the first, Legal Futures, a UK website for forward-thinking law firms, asks if flexible working can save the environment. Now that’s an idea!

Read it here

It points out that despite the rise in flexible working, the daily commute is still very much a key feature of the working day. The right to request flexible working was rolled out in 2014 but five years on, less than one in ten jobs paying more than £20k are advertised as flexible.

It says the main drivers for flexible working are cost cutting by reducing real estate costs and social benefits (family friendliness), but it says reduced impact on the environment should be another, as fewer commutes would cut pollution. It points to a report from the Carbon Trust claiming that homeworking could save around 3 million tons of carbon emissions in the UK.

In a second article, Workplace Insight, another UK online resource looks at the vogue theme of agile working.

Read it here

It’s a hot concept for progressive managers looking to break away from traditional working models in pursuit of more creativity and productivity. We should say here that in our experience, workplaces redesigned for agility are also popular with employees, and they go hand in hand with flexible working, of course.

Workplace Insight, whose readers include HR, IT and facilities managers, looks back to The Agile Manifesto, which way back in 2001 signalled a shift in approach to workplace design. One of a dozen principles in the manifesto is that you should build projects around motivated individuals and give them the environment they need to get the job done.

According to the piece, flexible working, activity-based working, remote working, and unassigned seating are all manifestations of this idea. Work is changing, and workplaces need to reflect this, it notes, listing three primary drivers behind the shift to agile working in the UK.
1. Reducing costs: Switching to flexible working reduces the need for expensive real estate.
2. Growth: Activity-based designs allow companies to flex as occupancy rates fluctuate.
3. Employee experience: Insight points out that organisations are fighting a “war for talent, so offices need to be appealing. Three out of four employees cite flexibility as one of their top two reasons to stay with an employer.

The third media piece comes from Open Access Government, an international forum on public policy, and it focuses on a subject close to our hearts, smart buildings. This piece says smart technologies can improve the sustainability of commercial buildings alongside other “soft” benefits such as health and wellbeing.

Read it here

It reckons firms’ sustainability strategies have been a major driver for the technology which gives facilities managers more efficient controls over energy usage with significant reductions in consumption.

Smart systems allow lighting, heating, air conditioning and ventilation to be monitored and adjusted according to a building’s usage and occupation, even down to an individual employee’s preferences when connected to individual desk sensors.

Moving on to the subject of wellbeing, the article says smart tech has an important role in health and wellbeing by creating an environment that helps people to stay alert and energised.

Abintra’s WiseNet sensors can monitor air quality, light, temperature and noise levels among other factors that affect employees’ concentration levels.

One of the main points we make to our customers is that offering employees the opportunity to work flexibly is – or should be – just one direction of a two-way street. In return, our experience is that employees are much better disposed to accepting desk sharing and new agile working systems.

This argument is even stronger when the environmental improvements are added in to the mix, with many employees concerned about wider environmental issues and reducing their own carbon footprint. The environmental theme is also especially compelling when employees are given the power to adapt their individual desk environment to their personal taste.

Time for businesses to future proof office real estate

News Release

Businesses should be investing in future-proofing their office real estate for smart building technology or pay the price down the line, warns a leading specialist.

Workspace flexibility specialist Abintra says it is seeing a drift among some corporations towards buying low-cost, basic sensors to monitor desk usage when they could be investing in technology with greater capabilities and future-proofing systems for advances in smart buildings and the Internet of Things (IoT).

Big businesses are increasingly using sensors to look at how their office real estate is being used and to make decisions about downsizing or moving, but Abintra warns that some inferior tech is not only not up to the job but will be unable to plug into the smart buildings of the future. The firm forecasts that corporations which don’t think about the big picture will be faced with a stark choice: Scrap their existing space management technology and reinvest with all the associated disruption to operations or lose out to competitors on the technological advantages in HR and facilities management, such as improved productivity and energy efficiency.

Tony Booty, a Director of Abintra, which has offices in London, UK, and Boston, USA, said: “We would like to see more businesses asking themselves: Where are we going with this investment? Our advice would be don’t just buy the cheapest sensor that you think can do the job. Look to future proof yourself for IoT and smart building technology.”

He explained: “For most office-based businesses, real estate is their second biggest overhead after their people, so naturally they are looking at space utilisation. When it comes to technology to monitor usage, management should be thinking about going one better. Advanced space utilisation monitors and the software behind them naturally lend themselves to connecting with the building’s environmental systems. Bringing together data and automated control of lighting, air quality and heating in one system joins up the information.”

Rather than mount a myriad of sensors and wiring throughout an office space, Abintra has developed a wireless sensor with multiple capabilities. It can be mounted in ceiling voids or flush with ceiling, and can even serve as a warning light outside a meeting room to show that it is occupied or not, based on information it gets from sensors inside the room.

“It is about using a component that has to be there and leveraging it,” said Mr Booty, who sees a future where desks, chairs and office components each have their own IP address and can identify themselves for digital building design and management, systems that will be increasingly powerful as buildings become ever smarter.

“There is an environmental benefit as well as a cost one,” said Mr Booty. “I think many facilities managers probably think there aren’t any further savings to be made in lighting after the introduction of LED, but there are, and although they are relatively small, taken together with all of the other environmental efficiencies that are possible, it is definitely worth investigating.”

Mr Booty is a passionate advocate for thinking beyond using the technology for cost savings, however: “Understanding how space is used and being able to monitor and respond to that in real-time creates a better working environment, not just in the traditional desk space, but by freeing up space to create new kinds of individual and collaborative areas, essential for flexible working and flexible environments. That creates a competitive advantage when it comes to recruitment and retention, and since people are an even larger overhead than real estate, it is an opportunity that businesses should be seizing.”