Insights from Mipim: Artificial Intelligence set to transform property businesses.

• Lots of AI, and retrofitting for ESG (we also discovered where the best place in the world is if you’re a dog.)

The Mipim conference, held in Cannes in March, once again shed light on the transformative power of technology in the property sector, and at this year’s four-day event, it was Artificial Intelligence (AI) that everybody seemed to be talking about.

It was not a surprise to us that AI was the topic at the heart of conversations about innovation within real estate, and we arrived in Cannes well-prepared with the findings of our new “AI in Property” report.

Its findings on the adoption of AI within the industry and its eagerness to embrace this transformative and disruptive technology were presented by Andrew Waller at the BPF’s technology event in the JLL Pavilion. It didn't go unnoticed, and both Mipim News and Costar featured the launch prominently.

The survey revealed a varied degree of AI integration across large enterprises, questioning the common belief that larger organisations are always pioneers in embracing new technologies. It underscored the difficulty of not only implementing cutting-edge technology but also the importance of making certain that employees are well-versed and proficient in its application. This highlighted that a significant number of employees at bigger firms remain unacquainted with the technology and confirming the intricate change management challenges involved in assimilating AI into the workplace.

One of the questions in the survey asked respondents to give their expectations for the areas of use of AI. As the real estate sector races towards Net Zero, it was no surprise to find that ESG and topics such as the monitoring and management of energy consumption using AI were high on the list.

ESG was also a hot topic at Mipim and there was an emphasis on retro-fitting as a sustainable solution, with delegates underscoring that it has never been more critical to the industry and society. However, there was a word of caution from one speaker, who pointed out that, without the careful management of HVAC systems in retro-fitted properties (and others), these efforts risk inefficiency. Thankfully, digital innovation and AI offer a smart solution.

Other things we learnt about AI at Mipim:

• In a notable shift, industry professionals are gravitating back to ChatGPT over Google's Gemini, seeking a more user-driven experience rather than one dictated by algorithms.

• Anton Newton of Pinsent Masons likened AI to a Sat Nav—a tool that aids but doesn't override human judgment.

• Yalda Gerami from Salesforce highlighted a startling gap, with only 4% of companies possessing AI-ready data.

• Matthias Hallwich of HWKN Architecture provocatively stated that AI has overturned traditional architectural value models, a sentiment echoed by HWKN's use of AI to produce thousands of architectural models overnight.

• In response to a public consultation on a new development, HKWN used AI to produce 5,000 architectural models in one day, based on comments, suggestions, ideas, likes and dislikes, etc.

• A tech company from Israel, called Swapp, has innovated the production of construction drawings, accelerating the process from weeks to hours, exemplifying the efficiency AI has brought to the sector.

Things we learnt about the Investment markets:

• Pinsent Masons's debt specialist predicted numerous transactions in the market later this year. However, others in the Debt Market disagree that there will be lots of deals this year, as capital flows still have the handbrake on due to interest rates.

• The Fund Administration market is undergoing a major transformation because of technology according to at least one commentator.

• There was a general agreement at Mipim that a recovery in the Capital Markets is coming, but there are limited opportunities for investors at the current time.

Odds & ends and our favourite quotes from Mipim:

• On the topic of the Return to the Office, a top-five building surveying firm in the UK is insisting that its graduates are in the office five days a week.

• Our favourite name for a Proptech Startup we came across at Mipim is Gropius.

• "Miami is the best place on Earth to be a dog." Chair of Miami Realtors Association

• “Annually, 3,150 million tons of C02 was produced by real estate in Europe in 2023.” This is the equivalent to the weight of the Great Barrier Reef.

• "Spaces with corners make you more aroused.”

“So, you want to be a management consultant?”

Assuming you have the why, let’s talk about the where, when and how. Here’s what we think you might want to know about joining Remit Consulting:

1. Bring your skills with you – we don’t expect you to have sector experience. Bring your transferable skills and a curiosity to understand real estate and our clients' issues. We generally promote from within, and the Assistant Consultant is our entry-level role. We welcome degree and masters qualified candidates with or without a real estate specialism.

2. As a small independent firm, our advantage for you is that you are visible - you get to know our people, our clients, projects and activities from day one.

3. You will be at the table working with our senior-level clients. These companies could be; owners and investors, occupiers, or third-party service providers.

4. Our tight-knit core team has a wealth of industry and consultancy experience. Beyond that, our extensive network of external associate consultants holds deep industry and subject matter expertise which is vital to the successful delivery of our client’s projects.

5. We have always worked in an agile and flexible environment. Where you are each day will depend on what the task is. You might work from a shared office a few days a week, a client office, or from home for quieter head-down tasks.

6. We are in this together and we want to be transparent in how we deal with each other. Assuming you have the skill set and personal drive to succeed we will work together to get the best out of each other.

7. Your advancement will depend on the consolidation of your skills, acquired industry knowledge and networking, as well as your own identification of business growth opportunities.

If you think you have something to bring to the table, please send your CV and a covering email, outlining why you are interested in talking to us. Send to recruitment@remitconsulting.com

If you are a little further along your career path and want to be introduced to us, get in touch using the email address above and let us know your area of specialism.

Integration of AI in real estate: a mixed reality despite high expectations

The results of a survey, by Remit Consulting, on the adoption of artificial intelligence (AI) within the real estate sector show a mixed level of integration among large firms, challenging the prevailing assumption that bigger companies are at the forefront of technology adoption.

The survey highlighted the challenge of not just adopting new technology, but also ensuring that staff are familiar with it and adequately trained in its use, with a notable proportion of those working for larger firms in the sector remaining unfamiliar with the technology, underscoring the complexities of integrating AI.

On a more positive note, the research uncovered that a significant majority, 64% of firms, are either experimenting with AI on a trial basis or using it ad hoc. This trend is largely driven by the accessibility of Large Language Models (LLMs), which have opened new avenues for creative and experimental uses of AI in real estate.

Andrew Waller of Remit Consulting commented: “This mixed reality of AI adoption within the real estate sector serves as a wake-up call to firms, underlining the importance of a holistic approach to technology integration beyond mere investment. As the industry looks to the future, the successful incorporation of AI will depend not just on the technology itself, but on the people behind it and the policies that guide its use.

“The findings from the survey underscore the urgent need for real estate firms to not only understand and embrace AI technology but also to invest in the training and development of their staff.”

The survey also highlighted a concerning gap in the sector's readiness, with only about a third of firms having established policies to navigate the challenges posed by the technology, including issues of confidentiality, intellectual property, and the credibility of AI-generated outputs. This lack of preparedness suggests that the real estate industry may be underestimating the importance of comprehensive policies in the era of AI.

“As the sector navigates the complexities of AI integration, the development of robust policies will be crucial in addressing the challenges and unlocking the full potential of the technology in real estate,” added Waller.

Remit Consulting presented the findings of its survey at Mipim 2024 during the BPF’s “Top Tech Trends in Real Estate: A global & UK perspective” at the JLL Marquee.

Download your free copy of the AI in Property report.

Lorna's Logic: Beer Goggles

I live on a main road. This is not always as bad as it sounds, but recently its interminable roadworks have been pushing me toward the edge. That might be why I haven’t written one of these blogs for a little while.

Anyway, back to the storyline. Why oh why are roads constantly being dug up, replaced, dug up, replaced, does anyone know? There was an advertisement back in 1998 (yes, we had television then too) for Heineken and if you get a chance, watch it as it plays on the idea that once a hole is dug, why not make full use of it for all utilities?

I should point out too that in the whole week of temporary traffic lights and enraged drivers, I saw not one worker doing anything. A colleague of mine came up with the amusing theory that perhaps it is modern-day vandalism; the vandals have a store of temporary lights and cones and just swoop in to cause chaos and disruption before clearing out to raise blood pressure in the next street.

A recent survey we did at Remit highlighted the biggest obstacle to people returning to the office is commuting. What better way to cause anarchy amongst the workers than to disrupt the already tortuous trek? Moreover, a study in 2017 (Samra et al) found a significant rise in systolic and diastolic blood pressure correlated to the duration spent exposed to traffic congestion; another reason to stay at home.

For some inexplicable reason, there appears to be no co-ordination between the utility services, and the reality for a large proportion of the working population is that you often need to get from A to B. We can’t all walk or cycle, and even if we could, we would be breathing in the air of all those stationary vehicles. The utopia of all-electric vehicles is still a long way distant, so could someone, please, think about joining up the dots?

In looking into the background for this latest rant, I discovered Alastair Lenczner had hit on exactly the same point as me as long ago as 2015, even to the point of the beer advertisement. (I am so disappointed to find myself unoriginal). Mr Lenczner went on, in his article, to point out that way back in the 19th Century the UK was managing to co-ordinate public works, specifically exampling the Victoria Embankment project where a river wall, major sewer, railway, roadway, pipes of all types, and even a park were created in harmony and efficiently. He goes on to suggest that red tape and regulatory frameworks are probably preventing us from saving money, saving time, and saving our already-overstressed hearts.

With a shameless regurgitation of its slogan, “Heineken refreshes the parts other beers cannot reach”, maybe someone in government will read this while downing a pint and have it reach the relevant part.

International Women's Day

To mark International Women's Day 2024, we decided to celebrate the achievements of those women our team considers to be inspirational but underappreciated or unrecognised and collectively have created short posts on why these women we would like to be honoured.

Some of those on our list of inspiring women are from the past, some are from the current day.

Who would you add to the list?

Julie d’Aubigny

Julie d’Aubigny, who lived from 1670 until 1707 in Paris was a shocking woman for her time. Not only was she adored as an opera singer, but she became known for cross-dressing so that she could participate in exclusively male activities, such as fencing. In one wild evening, she interrupted a ball when she attended in men's clothes and kissed a young woman, for which she was challenged to a duel by three different noblemen. She fought all three at once and won, but had to go on the run as duelling was outlawed.

Renee Hector

Renee, a former Watford FC Women defender, is known for her remarkable football talent and resilience. Following an ACL injury in 2020, she shifted her focus towards coaching, earning UEFA B accreditation by late 2022. Now leading Watford FC Women's U23s and contributing to The England U17s elite coaching program, her dedication showcases her potential to become a leading football manager and coach, inspiring many with her journey from player to mentor.

Anne Hidalgo

Anne Hidalgo, marking history as the first female Mayor of Paris, has led the city with visionary policies, especially during her second term amidst the pandemic. Her initiatives, including the introduction of 50 kilometres of pop-up cycle lanes and ambitious plans to transform over half of Paris's parking spaces into green areas, alongside reimagining the Champs-Élysées as a 'fantastic garden', underscore her commitment to sustainable urban development and public health.

Aitana Bonmati

A professional footballer who plays in midfield. Bonmati has won the Champions League twice and the Spanish top league four times with Barcelona. She also won the 2023 World Cup with Spain. Individually, she has won Fifa’s and UEFA’s Women’s Player of the Year, the Ballon d’Or Feminine and many other awards.

Mary Wortley Montagu

Mary Wortley Montagu (1689-1752) was an English aristocrat and writer, who played a pivotal role in the fight against smallpox by introducing variolation to Britain after observing its practice in the Ottoman Empire. Despite surviving smallpox and losing her brother to the disease, she faced resistance in promoting this early form of inoculation. However, she successfully demonstrated its effectiveness, including inoculating her daughter, and persuaded the Princess of Wales of its merits, thus laying the groundwork for future vaccination efforts.

Walatta Petros

Walatta Petros is one of thirty women saints in the Ethiopian Orthodox Täwaḥədo Church and one of only six of these women saints with hagiographies. She is heralded particularly for her instrumental involvement in the defence against Roman Catholicism in Ethiopia in the early 1600s, demonstrated by King Susənyos reversing the conversion to Catholicism in 1632.

Many aspects of her life, and influence, are heavily debated due to misinformation in historical records and the delay in an accurate translation of her hagiography written by Gälawdewos’ in 1672.

Grace Darling

In 1838, a passenger ship was wrecked off the coast of the Farne Islands. Grace, who at 22 was supporting her father in running the nearest lighthouse, spotted the wreck and determined that the weather was too stormy for the local lifeboat to launch. She and her father risked their lives to rescue the survivors, taking two trips to the wreck in their small row boat. In total, 18 of the 60 on board were saved, and Grace was heralded as a hero.

Melinda Gates

Melinda Gates has been a transformative force in philanthropy, tirelessly championing gender equality and spearheading global health initiatives. Her work through the Bill & Melinda Gates Foundation has brought critical issues to the forefront, making substantial impacts on the lives of women and girls worldwide.

Assita Kanko

Assita Kanko, since 2019 a Belgian MEP, has made her mark as a vocal human rights activist, politician, and journalist. Known for her outspoken advocacy on behalf of hostages, Kanko brings critical attention to human rights abuses, championing the voiceless and striving for justice in the European Parliament.

The top three reasons to meet with Remit Consulting at MIPIM

As the global real estate industry gears up for MIPIM, in Cannes, between March 12 and 15, 2024, you might be thinking, whom do I need to see while I am there?

Here’s why arranging a meeting with Remit Consulting at MIPIM could be the best strategic decision you make at the conference.

1. Unveiling AI’s role in real estate

The real estate industry is standing on the brink of a transformative era, with Artificial Intelligence (AI) at its core. Remit Consulting will be presenting and sharing the findings of the firm’s recent survey on AI adoption and will also provide invaluable insights into how these technologies are reshaping the industry. Whether you’re a technology enthusiast or a real estate professional keen to leverage AI, our findings will equip you with the knowledge to help you stay ahead. AI will save money for your business– or will it?

2. Insights into the future of the office and economic resilience

The future of office spaces and the resilience of landlords and investors against economic shocks have never been more pertinent. Leveraging the comprehensive benchmarking research of our "Return" and "Remark" surveys, Remit Consulting offers a deep dive into the post-pandemic ‘return to the office’ (or not) and the intricacies of rent collection across the UK's commercial sectors. Our analysis provides a clear picture of occupancy levels and financial health, offering strategic foresight into navigating future challenges. Can you afford to ignore the data?

3. Guiding business transformation for real estate professionals across Europe

The path to business transformation for real estate companies in Europe is complex and multifaceted. Remit Consulting is in its 21st year of advising property teams across Europe and is ready to guide you through this journey, offering expert advice on restructuring strategies to enhance efficiency, adaptability, and growth. Our experience across the European markets positions us to advise on best practices, innovative technology solutions, and strategic planning to ensure your business thrives in the ever-changing real estate landscape.

Connect with us at MIPIM

To arrange a meeting with our team at MIPIM, please email sarah.rade@remitconsulting.com with your preferred time.

We look forward to connecting with you in Cannes.

Remit Consulting's "Artificial Intelligence in Property" survey

Help us to understand the digital transformation of real estate and the future of the property industry

PLEASE NOTE: THE SURVEY IS NOW CLOSED

Remit Consulting is looking to help the property industry understand the next wave of innovation within the UK property market with a survey of property professionals regarding the use of Artificial Intelligence (AI) in the sector. The survey is a chance for the industry to share its collective thoughts on how AI is shaping, enhancing, or challenging the real estate landscape.

All insights are crucial for unveiling the true potential and hurdles of AI adoption across the industry, and everyone from the property market is invited to participate and contribute to a report that will provide insights into the adoption of this technology.

Additionally, for every 200 responses the survey receives, Remit Consulting will be donating £100 to JDRF, supporting Type 1 Diabetes research.

Lorna's Logic: FOBI..A

It’s been a long time since I invented a word; I think ‘wugahumfdamup’ was the last one. However, in this frantic age of online meetings meetings meetings I realised there was a word, or really an acronym which definitely did not apply to me and which could be replaced by one that was not only easy to say, but came pretty close to its namesake, “phobia”.

FOMO (or Fear of Missing Out for the cave-dwellers) seems all too prevalent in our society and people view their success in life by how many followers they have, by being included in anything and everything. Do they not get exhausted by the constant barrage of contact and detail being thrown at them? Relevant and important information is always welcome, but how often is it missed amongst the fluff or, worse, the trolling?

Back to meetings of the online variety. A recent study (1) of over 630 workers found that they, and by extension probably “we”, spend over a third of our working week in meetings. If you assume even a modest amount of those are irrelevant and multiply by the salary cost, then we are looking at a very expensive pastime. Moreover, apparently, those of us who manage up to four team members spend as much as 22 hours a week in meetings, more than half a standard week!

Some of these meetings are obviously vital, but I like to think a show of hands for those who feel all are vital would be a tad sparse. It seems that despite the majority believing many of their meetings are unnecessary, 83% of us still accept the invitations!

We need to connect with each other and, as many of us are working remotely now, online meetings are a key way to do this. However, why don’t we have a 2024 resolution to have an absolute maximum of ten hours spent in meetings a week? At least then we would have time to perform the actions which arose from the few relevant meetings, and also time to decompress from the gallery of faces and PowerPoint slides.

Here's an idea: if everyone had to state two benefits they had gained at the end of each meeting, it might weed out some of the unnecessary ones (and also identify who was watching TikTok at the same time).

Clearly, I have a self-diagnosed FOBI..A, a Fear Of Being Included..Again.

(1) Dr. Steven G. Rogelberg, 2022

Remit Consulting’s Elijah Lewis selected as a MIPIM Challenger for his vision on urban development and climate change.

Remit Consulting’s Elijah Lewis has been selected by an international jury as one of the 16 MIPIM Challengers, a prestigious acknowledgement for professionals under 30, and will be participating in the three-day conference at MIPIM, the global real estate conference being held in Cannes, France, this Spring.

His selection came following a recent essay in which Elijah outlined a compelling argument for addressing the climate crisis through urban development strategies.

Highlighting the dire consequences of climate change on urban environments, noting the increasing frequency of extreme weather events, rising sea levels, and heat waves, Elijah’s essay stressed the urgency of action.

Central to Elijah's thesis was the role of young professionals in shaping the future of urban environments. The essay advocated for a strong focus on data literacy, a skill he deems essential for making informed, evidence-based decisions as, according to Elijah, such an approach will be critical in identifying and implementing the most effective solutions to the climate crisis. He argued that young professionals, with their digital acumen and fresh perspectives, are uniquely positioned to drive positive change in urban development.

His essay also outlined a strategic framework for urban development in the face of climate change, including the tracking of greenhouse emissions, assessing vulnerabilities, developing mitigation strategies, and monitoring progress.

This March Elijah will join the other MIPIM Challengers, in a series of conference sessions, presentations and workshops at MIPIM, where they will focus on tackling the climate crisis by building sustainable, vibrant, and inclusive urban environments for future generations.

Artificial Intelligence (AI) in property

Artificial Intelligence (AI) is not just a futuristic concept, but a present-day reality that is reshaping the global property industry. It is a transformative and disruptive force, that is already driving advancements from property valuation to sustainable development.

Below you will find links to articles that will assist your understanding of how AI is revolutionising the way we interact with, manage, and conceptualise real estate and help you to discover how AI's predictive analytics, data-driven decision-making, and automated processes are setting new benchmarks in efficiency and innovation.

You will also find details of Remit Consulting’s 90-minute team workshops that have been specifically designed for real estate professionals and firms to identify and leverage the potential digital transformation opportunities that AI can offer.

Why not join us in exploring the potential of AI to redefine the property sector, offering unprecedented opportunities for growth, sustainability, and advancement?

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Around the world, the real estate industry is being transformed by the integration of artificial intelligence and advanced data analysis.
Remit Consulting believes that AI will prove to be a game-changer in the real estate industry, providing invaluable insights and efficiencies across various aspects of the business.

Learn more about how artificial intelligence is reshaping property markets.

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AI's growth in real estate isn’t just about automating tasks; it's a paradigm shift in business operations. As we navigate the post-pandemic economy, the integration of AI tools to complement traditional methods is not just advisable; it's imperative.

Learn more about navigating the AI odyssey in real estate along with the challenges and opportunities, of the future that were discussed by Remit Consulting’s Associates.

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The Realcomm CIO Forum 2023, held in London, showcased the integration of AI within the global real estate industry. By exploring its applications, panellists, speakers and delegates highlighted how it is transforming property management, building operations, and decision-making processes across the industry.

Learn more about the links between Formula One pit stops, warehousing roofs, and sustainability data sets?

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If you are confused by AI in property, Remit Consulting can help by providing expert assistance through the firm's Artificial Intelligence workshop. The 90-minute workshops are aimed at helping property businesses to identify the potential digital transformation opportunities that AI offers.

Remit Consulting has five free workshops that are available to the first to enquire.

Learn more about our AI Workshops.

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What links Formula One pit stops, warehousing roofs, and sustainability data sets? The answer is the Realcomm CIO Forum London.

Artificial Intelligence is making humans rethink the global property market.

Amidst a rapidly evolving technological landscape, the Realcomm CIO Forum 2023, held in London, showcased the integration of artificial intelligence (AI) within the real estate industry. The forum highlighted how AI is transforming property management, building operations, and decision-making processes across the industry, exploring its applications, challenges, and the potential future it holds for the global property market.

Helping customers get the right answers in Property Management

AI's profound impact on property management was vividly illustrated by Neal Gemassmer of YARDI and Paul Reid of Carrier who discussed the use of AI-driven chatbots in North America, that are reshaping tenant-landlord communication, improving efficiency and tenant services and IoT innovations allowing real time management and automation of HVAC systems.

These tools not only automate tasks and invoice processing but also analyse complex documents, streamlining property management. This technological fusion is redefining building management, emphasising responsive and sustainable environments that go beyond cost savings, and are helping to create intelligent ecosystems, adaptively responding to occupants needs and environmental conditions.

Cloud Computing's role in real estate: lessons from Formula One

The potential of cloud computing in real estate, as demonstrated by AWS's partnership with Formula One, offered a striking insight into the future use of advanced technology within the sector. AWS's work in F1, involving the analysis of up to one million data points per second in real-time to predict race strategies, showcased the immense capabilities of cloud computing in handling vast data sets.

This technology is relevant in the real estate sector, which is increasingly capturing and analysing large quantities of building data. The applications range from optimising energy use to revolutionising design and construction processes, echoing the intricate data handling seen in F1. The integration of cloud computing and AI in real estate not only promises enhanced efficiency, but also aligns operations with sustainable practices. This convergence suggests a future where real estate management is not just about efficiency, but also about sustainable development.

And the downside to AI? Just be careful out there!

While the advantages of AI in real estate are clear, the forum also brought to light the inherent challenges in its adoption. Tailoring AI solutions to diverse property needs and safeguarding data integrity are paramount concerns.

The discussions at the forum, particularly the panel with experts from Cushman & Wakefield, LGIM, Argent, and MAPP, underscored the critical need for AI strategies that resonate with occupant needs. For example, employees everywhere are now experimenting with AI tools that do not keep information private. New rules need to be put in place and all the panellists’ companies are struggling to keep up with this.

This approach is not just about technology deployment; it's as much about cultivating a culture that understands the risks and rewards and acts appropriately.

How will logistics change your life?

The insightful dialogue between Andrew Waller and Paul Weston of Prologis, highlighted during the Realcomm CIO Forum, served as a compelling case study on the strategic role of AI in logistics real estate. Reflecting broader market trends based on the movement of goods, the sector is often seen as a barometer of wider economic health.

AI's integration into logistics operations is revolutionising how these economic indicators can be analysed and interpreted. For example, logistics sites now use automatic number plate recognition (ANPR) to analyse traffic flows and future requirements much more accurately than previous methods. This earlier detection of market shifts, providing real estate stakeholders with advanced insights for proactive decision-making.

In this context, AI is not just a tool for operational efficiency but a critical component for economic forecasting.

AI - Something to be scared of? ... or embraced?

As we stand at the precipice of a digital revolution in the industry, AI stands out as a precursor of innovation, sustainability, and efficiency. The Realcomm event not only mapped out the current trajectory of AI in property markets around the world but also painted a picture of a future where AI is not just a part of the real estate landscape – but its backbone, that will drive its growth and evolution.

About Realcomm and its London CIO Forum

Realcomm's London edition of its CIO Forum, was held recently at Amazon's UK Headquarters in the City of London, is one of many annual conferences, webinars, workshops, and forums, that allow real estate executives to examine the convergence of technology and real estate. The events, including the annual conference [LINK], provide educational, networking and collaboration opportunities.

To have been a participant in the CIO Forum as Realcomm’s Education Partner, Remit Consulting is very privileged to have been able to gain insights into how the global property markets are being rapidly transformed by the integration of AI into real estate businesses. We are pleased to be able to share the day's key points with you: From compliance to competitiveness: ESG in real estate and the role of building certifications.

From compliance to competitiveness: ESG in real estate and the role of building certifications

In the complex world of real estate, building certifications are more than mere compliance markers; they are integral components in the evolving narrative of sustainable real estate. They guide investment decisions, influence design and construction practices, and shape the marketability of properties. The significance of such certifications has never been more pronounced.

This trend is not just a UK phenomenon but a global one, reflecting a growing awareness of environmental impacts and a shifting regulatory landscape. At Realcomm’s London CIO forum, Neil Pennel from Landsec; Helena Rivers from AECOM and Rob MacWhannell from Better Buildings gave us some key considerations when seeking out certification.

Diversity of Certifications

The landscape of possible certifications is vast and complex to navigate, with certifications from overall building performance (e.g. LEED or BREEAM) to specific components like timber, steel, HVAC (Heating, Ventilation, and Air Conditioning) systems, (e.g. ENERGYSTAR, EPDs and HPDs) to governance and reporting (e.g. GRI, CDP, ISO 14001). A quick Google produces tens of options for the UK alone, all with a slightly different angle. In some instances, certifications are seen as essential for construction compliance and building integrity. However, certain certifications are pursued primarily for marketing purposes, to enhance the attractiveness of a building to potential buyers or tenants.

This makes it hard to know which to prioritise, and that is before you consider the challenges posed by the varying international standards and regulations. Across different regions and countries, there are distinct sets of rules and criteria, which can create a complicated scenario for multinational companies and investors looking to maintain consistent standards in their portfolios.

Evolving Criteria and Retrospective Adaptations

Future developments are expected to focus heavily on integrating smart building technologies, emphasising net-zero carbon emissions, and enhancing occupant well-being. These trends not only reflect a shift towards more sustainable practices but also indicate a growing alignment of certifications with digital transformation and climate change objectives.

As standards change over time, maintaining certifications can become a moving target, particularly for older buildings that may require significant retrofitting to meet new standards. Paul Weston of Prologis and Andrew Waller of Remit Consulting examined the potential for sustainable retrofits or adaptations in the logistics sector. By fitting solar panels to warehouses, up to 15 GWh of electricity can be generated. This not only can power the buildings but can contribute excess power to the national grid. These efforts can make Prologis’ offer more competitive to occupiers than others, illustrating again the duality of sustainable adaptation’s benefits – environmental protection and marketing power.

Certification Market Maturity and Effectiveness

While the growing number of certifications promotes competitiveness, it does not always drive desired changes in sustainability and efficiency. The panel agreed on the need for fewer, more focused certifications that align closely with the industry's sustainability goals and practical realities.

There is also a critical gap in ongoing monitoring post-certification. More continuous and rigorous assessment is needed to ensure sustained compliance and performance, made harder by the ever-changing landscape. From an investor’s perspective, this is problematic as it becomes harder to justify or benchmark your investments in certifications.

Where to start

As this field continues to evolve, embracing these certifications is not just a regulatory necessity but a cornerstone of sustainable development and proof to a commitment to a greener, more efficient future. The panel at Realcomm’s London CIO forum gave the following pointers to help property companies achieve appropriate ESG certification:

• A strategic approach is key, and the advice is to start by identifying certifications that align closely with your project's goals and values, particularly those focusing on sustainability and energy efficiency.

• You do not need to secure every available certification. Prioritise certifications that offer clear benefits in terms of compliance, marketability, and operational cost savings.

• Consider the long-term implications of certification choices, especially in terms of maintenance and potential retrofitting needs.

• Engaging with a consultant who specialises in this area can provide invaluable guidance.

About Realcomm and its London CIO Forum

Realcomm's London edition of its CIO Forum, was held recently at Amazon's UK Headquarters in the City of London, is one of many annual conferences, webinars, workshops, and forums, that allow real estate executives to examine the convergence of technology and real estate. The events, including the annual conference [LINK], provide educational, networking and collaboration opportunities.

To have been a participant in the CIO Forum as Realcomm’s Education Partner, Remit Consulting is very privileged to have been able to gain insights into how the global property markets are being rapidly transformed by the integration of AI into real estate businesses. We are pleased to be able to share the day's key points with you: What links Formula One pit stops, warehousing roofs, and sustainability data sets? The answer is the Realcomm CIO Forum London.

Internetworking

No, I haven’t forgotten where the space bar is. I wanted to soap-box about networking and it occurred to me that there could be a play on words here, or at least maybe just on the kerning.

There remains a lively debate on remote versus in-person working and it seems that one of the many casualties of the former is our ability to network effectively.

In our Thursday Associate call, last week, we at Remit Consulting discussed the need for, and potential diminishing of, networking in the traditional sense. The pro-online-networking voices lauded the wider audience online meetings could reach, and the obvious benefits to that. The more traditional (luddite?) of us promoted the view that networking is not just collecting numbers on LinkedIn or suchlike, never to be remembered or viewed again, but is about forming a real connection to others, sharing knowledge not only about our work but a preview into our personal lives and experiences. Call me old-fashioned, but surely that is how true relationships start?

An article last week in BBC Worklife reports on the surprising increase in business travel. Stay with me on this, it is relevant. The big difference in the upsurge here is the motive. Whereas airlines and public alike expected a plummet in numbers travelling due to hybrid working, it seems that the need to connect with colleagues is stronger than ever now that we see each other less frequently, and so travel to meet each other is on the up (no pun intended).

We are a social species currently spending more time in our respective lairs than venturing forth to meet others. In a previous blog (“Smoking causes Coughing”) I mentioned research around the wellbeing benefits of interacting with strangers, so maybe the rise in business travel could be a sign of the few brave ones taking the first cautious steps. Amex GBT data suggests 70% of survey respondents (sample of 425 business workers) feel disconnected when primarily working remotely and 88% of them feel meeting in-person is vital for networking (ah, she’s back).

Networking is not only good for us, it is a human and business imperative. Scuttling out of your lair to reluctantly attend the office, an event, or whatever, and then hurtling back as soon as possible is not going to enhance your life, is not going to bring you that wonderful support network and, critically, is not going to bring in future business.

Networks are everywhere, join one or start one – let’s be human again.

Confused by AI in property? Access expert assistance with Remit Consulting's Artificial Intelligence workshops

• AI in real estate: free guidance on where to start.

In an era where Artificial Intelligence (AI) is becoming increasingly intertwined with our work lives, the property industry stands at the cusp of a significant shift. With many real estate professionals grappling with the integration of AI into their daily operations, we have identified that the key questions revolve around how to effectively embrace and incorporate these advancements into existing systems and workflows.

Recognising the crucial role of digital transformation, the firm is offering 90-minute team workshops specifically designed for property industry professionals. These workshops are intended to help firms identify and leverage the potential digital transformation opportunities that AI can offer.

Typically available to clients at a cost, Remit Consulting is extending these informative sessions to non-clients as well. In a move that underscores the firm’s commitment to fostering industry-wide adaptation of AI, the firm has announced a special offer for early 2024. Five of these AI workshops will be available free of charge, presenting an invaluable opportunity for professionals to understand and engage with AI technologies without any financial commitment.

For more information or to take advantage of this limited offer, interested parties are encouraged to contact Emily Bates.

Ems'Gems: Challenges, opportunities, and the future: navigating the AI odyssey in real estate

As I was reminded, at the Remit Consulting Associates’ Meeting in December, it's a brave new world in real estate.

The theme of the day was Artificial Intelligence (AI) - the proverbial genie that, from property and asset management to valuation and ESG, is rapidly reshaping our industry. The insights from Andrew Knight of The RICS, Karl Limbert from Equans, and Joel Suissa of Cushman & Wakefield got the cogs turning for those in attendance.

The art of the possible and the pitfalls

While AI, with its predictive prowess, is revolutionising the property lifecycle, it comes with a set of challenges. Data privacy, ethical considerations, and the reliability of AI are not just footnotes; they are significant hurdles. Andrew Knight's reminder that AI, much like a keen-to-please apprentice, might conjure up 'truths' to align with our expectations was particularly striking. Imagine an AI-designed office floor plan featuring no doors – a quirky yet cautionary example of how AI's eagerness to please could misfire.

Climate crisis: can AI be our knight in shining armour?

Karl Limbert's perspective was a stark reminder of our times. The built environment faces its nemesis in ‘old fashioned’ climate change, Karl explained, and despite our best efforts, the net-zero goal seems like a distant mirage.

AI could be a beacon of hope, capable of predicting risks and aiding in the construction of buildings resilient to various climate extremes. However, it is the crucial role of big tech companies we should focus on. When the top six tech companies combined equate to the third largest economic entity globally, it is no surprise that the influence of ‘big tech’ in the global economy is shaping our approach to environmental sustainability.

Data dilemmas and legal labyrinths

Data ownership in property circles has always been a complex puzzle. AI complicates this further, intertwining mass data sharing with intricate legal frameworks and privacy concerns. Joel Suissa's insight that lawyers are some of the most wary of AI's inconsistent performance was a notable highlight. The tension between the potential benefits of AI-enabled data sharing - enhanced market analysis, better predictive models for property valuation, and more efficient property management systems - and the risks of data breaches and misuse is a tightrope which we need to walk with care. The requirement for data to be universally ‘good’ makes this tightrope even more fragile.

AI: a tool, not a replacement

The Associates’ Meeting’s discussions underscored a crucial point: AI's growth in real estate isn’t just about automating tasks; it's a paradigm shift in business operations. As we navigate the post-pandemic economy, the integration of AI tools to complement traditional methods is not just advisable; it's imperative. The adage that resonated with me was: "You won’t lose your job to AI, but you may lose it to someone who uses AI."

The challenge for us is to harness this technology responsibly, balancing its potential with its pitfalls, to steer the real estate industry towards a sustainable, efficient, and equitable future.

To learn more about our Associates’ Meetings, other Remit Consulting events or how we are helping clients navigate AI challenges in their business, please contact Emily Bates.

Lorna’s Logic: Only the poor die young?

Whilst I am not an all-out, fanatical about Christmas person, I still don’t usually like to put a damper on the festivities. Bah Humbug, I hear you mutter. However, I am going to put a tiny nail in the wheel of celebration; who knows, it might make you pause.

The average life expectancy of the Western World is steadily rising and has been increasing by about 16 weeks a year since the year 2000, but whilst the average continues to climb, the maximum age (recorded) has not shifted one bit since the beginning of time. In case any of you out there are particularly ambitious, it is 120. Those with boundless funds are financing the drive to find the secret of longer life. I have bad news for them, evolution is against the idea.

So, even if we can’t pass it, we can, apparently, edge closer to that ridiculous number, but can everyone? Anyone who has a fascination with statistics (yes, we do exist), will guess that the average life expectancy quoted by the WHO is the ‘mean’ and sadly there are wild variations within that figure. For example, in Chicago, there is a 30-year difference in life expectancy between being born in Streeterville (prosperous) and being born in Englewood (deprived). In case you are appalled by that, try this: in the UK the life expectancy of a homeless man is just 45, and just 43 for a woman.

Incidentally, if you really want to depress yourself, check out the “Life Expectancy Calculator” on the ONS site – nothing like experiencing a Logan’s Run moment…

An obscene amount of money is spent in trying to stop or turn back the clock, just look at all the premium beauty products which will be inevitably under the tree next week. There are also billions and billions being poured into the research of biological suppressants to stem the ageing process by targeting some gene alleles (no, I can’t say it properly either) which have been shown to increase lifespan.

Living longer, and hopefully healthier, should not just be an option for the rich. Even a small portion of that investment would go a long way toward increasing the lifespan of the poor, just by helping them get off the street.

It’s Christmas time, the time of caring and giving. Let’s work out how to give some of those extra years to those who could really do with them. We, in the property sector, may not be in the clique of the super-rich, but we are in a unique position to help the homeless.

Follow this link to LandAid, and offer a gift that’s actually going to be wanted!

The Dutch team is on the move!

Due to recent company growth, Remit Consulting’s team in the Netherlands is moving to a larger office.

The team is looking forward to our new office space, which is ready for further expansion and development of our Dutch team and will be moving into the new space on January 1st, 2024.

This new office is centrally located and can be easily reached by public transport, car or bicycle.

The new address is:

Remit Consulting
Office 1.08
Diana & Vesta Building
Herikerbergweg 292
1101 CT Amsterdam
The Netherlands

Telephone: +31 6 4612 4113

Lorna's Logic: A candidate from Manchuria?

“Thought Leadership” is a much bandied-about term which, personally speaking as a confirmed jargon hater, drives me nuts. It seems such a buzzword for a self-aggrandising activity.

We recently covered the topic of thought leadership at one of our Remit Consulting team discussions and the commonly held view was that not only are you, allegedly, required to write a “thought leadership piece” to advance in business, but that it is even rarer for the limelight-seeker to be the one who actually composes it. Just ask a PR consultant or press team how often they are asked to create a compelling piece of groundbreaking prose to propel someone’s career.

A recent Forbes article suggested you don’t need to be a genuine expert or master of your field, just a chancer who can spot the opening to exploit. To avoid any kind of legal backlash, I must point out I am paraphrasing here! Now that we have time-saving, thought-saving, imagination-saving AI to come to our aid, well, surely we will all be leaders of thought in no time.

So, onto Leadership vs Management – two topics eternally circling the world of business: one the more desirable (allegedly), the other the more mundane but arguably more pervasively powerful. Ergo, if we have thought leadership, surely, we have also thought management, the scarier counterpart?

In an ideal world, ‘leading’ people’s thoughts would take us all to an intellectual nirvana, encouraging us to branch even further afield in the relevant topic and find us breaking new ground in business, technology…life even. But, as with all leadership, there must also be management and having our thoughts ‘managed’ seems infinitely more sinister. Yet, that is what is happening to us: “Think the way I think, or you will be cancelled”.

Why should our thoughts be led in the first place? Here’s to creative, unfettered, and lateral thinking. Oh, and for you, dear reader, random musing.

Lorna's Logic: IT Blues – The colour of failure

AI AI AI – this is not a high-pitched cry for help, nor the chorus of Love Plus One*, but rather the acknowledgement that there seem to be only two topics on the news at present.

Let's skirt one of them.

So, technology is once again my beef. It has occurred to me that pretty much everyone I know is experiencing more and more IT irritations insofar as the basics are concerned.

Who has not recently had a Teams failure? Whose camera has stopped working randomly? Who else finds 5G a big disappointment or is suffering from all the computing power focussing on this rather than supporting 4G any more? Is every techno-bod focussing on the bright new shiny things…like AI?

When outsourcing property management, you expect ‘brilliant basics’, moreover you deserve them. There is a reasonably high baseline of services which have to be reached before anyone starts thinking about innovation. Yet it seems that in the world of technology, this rule does not apply; we are at the mercy of the whims of the software companies.

This sentiment isn't just a solitary grumble in the wilderness; it's echoed loudly in the corridors of our workplaces. Remit Consulting's own 'Office Worker Survey' (to be published soon!) throws a spotlight on this issue, revealing a telling statistic: Good IT facilities are not just a nicety but a necessity, with our research revealing that a staggering 71.3% of respondents rank them as essential.

Sure, the allure of dual monitors might tickle one's fancy, but let's cut to the chase – if the IT isn't up to scratch, it's more than just an annoyance; it's a deal-breaker. It's the kind of deterrent that makes even the most dedicated office-goer think twice about leaving their home setup. And who could blame them?

I have a mental image of all the geeks clustered around the desk of the “Co-Pilot” designer, the “Bard” or “ChatGPT” designer, whilst everything else slowly whirrs to a standstill.
Come on, guys, help us to walk before technology runs!

Since I am on a rant now, a further IT issue relates to laptop longevity (or shortgevity?). Not only does the software fail us constantly, but a two-year hardware lifespan is hardly environmentally friendly.

Someone, maybe all of us, should be holding the tech world to account.

Where do we go from here?

*For those too young to get this cultural reference, here’s a link: Love Plus One.

Ems' Gems: Above us, only sky

I was lucky enough to attend this year’s EG Future Leaders Summit, an event which explores new talent in the industry and gets you thinking about how the industry could be a better place.

So, in true form, I have been thinking. What if the issues we are grappling with now, didn’t exist? Maybe they’d have been resolved…or maybe we avoided them all together? Let us imagine a perfect world.

As John Lennon so eloquently put it, it’s easy if you try.

1 in 6 households live in social housing, so imagine these places being built to live, not just built to rent. Nationwide social mobility will be a given, not a goal, in turn benefiting education and employment prospects. Unlocking this whole new host of talent would bring more creative and diverse thinking into our businesses.

With more creative thinking in real estate, we would enable better workplaces and deliver flexible working options. It wouldn’t just mean the hours someone works in the office, but how people work best to provide the greatest value to our companies. With more options for working styles, the boxes we put people in to define them (or really confine them) would not be needed. In short, flexibility would be easy and assumed.

In my utopia, our industry would see a new generation of thinkers, topically Gen Z, as an opportunity for growth. The potential for innovative thinking and improved ways of working would be at the forefront of application processes, allowing anyone, from any background, to throw their hat in the real estate ring.

More talent, more options, more industry improvement.

These sorts of scenarios are not just a distant dream but, I believe, feasible. Yes, pragmatic approaches will be needed to usher the real estate industry into an era that realises the full benefits, but these approaches are not as farfetched as we may think.

You may say I'm a dreamer - but I'm not the only one.