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Planning is a critical part of success, even when the plans themselves change. Planning helps us set a course for the future and allocate the resources needed to reach that far-off goal. As Dwight D. Eisenhower put it, “In preparing for battle I have always found that plans are useless, but planning is indispensable.”
Road maps are a company’s most valuable planning tool. Product road maps, IT road maps, application road maps and even digital transformation road maps have become best practices in future-thinking organizations. For commercial real estate companies, it’s time to embrace road maps in pursuit of our industry’s greatest opportunity: proptech.
Real estate has always lagged behind other industries when it comes to adopting technology. That’s started to change in recent years, but our tools for planning technology transformation have not. That’s why every real estate company should create a proptech road map.
The purpose of a proptech road map is threefold:
• Prioritize proptech investments in line with business goals.
• Align key stakeholders, including owners, investors, management and tenants.
• Help your business evolve in a consistent, thoughtful way.
Below are six steps that you can follow to create a proptech road map for your organization.
1. Start with business goals.
Proptech should always be used in service of your larger business goals. Your goals may include cost reduction, increased revenue, larger margins or higher market share. In each case, your road map may look a little different.
For example, if your goal is cost reduction, then energy-efficient solutions like smart lights and smart HVAC systems should be your top priority. If your goal is increased revenue or higher market share, you’ll want to prioritize tenant favorites like mobile access control, Wi-Fi as an amenity and on-demand services.
2. Make a list of potential proptech solutions.
With business goals in place, research and brainstorm all the different proptech capabilities you could use to reach those goals. Think about every stage of your building’s life: planning, investment, construction, property management, facilities management, utilities, safety/security, tenant experience and resale. Create as large a list as possible; you’ll cut it down in the next step.
3. Prioritize.
A road map without prioritization is just a list of dreams. Take your list of potential solutions and map them to your near-, mid-, and long-term business goals. Then split the projects into three categories: must have, nice to have and don’t need.
Your must-have projects go on the road map first. To limit disruptions to your tenants, knock out as many of these top-priority projects at one time as possible. Then add your nice-to-have projects. Finally, cut your don’t-need projects, and archive them to review again in the future.
You can also split your road map into swim lanes based on different aspects of the building: construction, property management, tenant experience, utilities, safety, etc.
4. Get feedback from key stakeholders.
Successful road maps aren’t born in a boardroom. They’re molded and refined by the people executing the plan — and those directly impacted by the projects. Take your first draft, and get feedback from key stakeholders, including property managers, facilities managers and building tenants. Ask what their priorities are and which solutions they think could help.
You’ll be amazed by the variety of feedback you get. These different perspectives will help you create a more complete and effective proptech road map.
5. Set up vendor relationships early.
In our on-demand world, we’re used to clicking a button and getting what we want. That includes technology solutions, for which you can enter your credit card and start your free trial in an instant. That’s not the case with proptech.
Proptech is unique in its deep connection to the built environment. Like other aspects of construction and property management, these solutions take time to implement — days, weeks or even months depending on the project. With that in mind, start connecting with vendors early to evaluate their services and understand their process. This will save you time and headaches in the long run.
6. Plan at least 18 months out.
For large commercial real estate projects (over 400,000 square feet), planning usually starts 18 months before construction begins. Use the 18-month timeline for your proptech road map as well. You’ll have more options and flexibility by thinking about technology from the very beginning.
Some projects are as foundational as utilities. Network infrastructure for Wi-Fi, Bluetooth and cellular data is installed alongside electrical, which means it needs to be in the construction documents from the beginning.
Even if you aren’t building new, you should still plan on the 18-month timeline for building maintenance and upgrades. This forces you to think long-term, but not so far that your plans become outdated by the time you get to them.
Proptech Road Maps Give You An Edge
Despite the explosive growth of proptech, most building owners and developers have not yet evolved their planning process to match. That gives you a competitive advantage … for now. Businesses that are most prepared — that have the clearest and most comprehensive proptech road maps — can gain an edge in the coming years.
Road maps don’t just help you plan and execute; they help you evolve. It’s time CRE execs take a page out of the technology playbook and use road maps to their advantage.