This section explores the role of technology in shaping the future of real estate and as a key enabler to the framework’s vision. By examining core business drivers for adoption, key digital trends and strategic areas of action, it provides a comprehensive overview of how technology can enable commercial real estate to evolve and thrive. The real estate industry is at a pivotal moment where technology stands as a transformative force that can significantly enhance the value, efficiency and sustainability of properties. Historically, the sector has been slow to adopt digital solutions due to its capital-intensive nature, conservative approach and fragmented operations. However, a confluence of factors, such as evolving tenant demands, the lingering impact of the COVID-19 pandemic and increased emphasis on sustainability criteria, is accelerating the adoption of technology across the industry. The integration of digital solutions into commercial real estate is no longer merely an option but a necessity for maintaining competitiveness and delivering value to stakeholders. While it remains unclear exactly how new tools such as AI will reshape the industry, the relevance of innovation for the sector has never been more apparent. Core business drivers for technology adoption: As illustrated in the Forum’s Driving Digitalization, Value Creation for Commercial Real Estate 2021 briefing paper, technology adoption in commercial real estate is fuelled by several core business drivers that influence landlords’ decision-making processes. These drivers can broadly be categorized into health and well-being, sustainability, occupant satisfaction, use of space, risk reduction, cost efficiency and data aggregation. Understanding these drivers is essential for commercial real estate firms to align technology investments with business objectives.Health and well-being: Landlords and tenants are increasingly focused on creating environments that support mental and physical health, which includes improved air quality, ventilation systems and touchless technologies. Digital tools such as real-time monitoring of indoor air quality, temperature and lighting can help create safer and healthier spaces, making technology an integral part of the tenant experience. Sustainability: Technologies that enable energy efficiency, carbon emissions tracking and sustainable building practices not only help assets meet performance metrics but can also enhance asset value. For instance, buildings that meet certain sustainability criteria have been shown to achieve rental premiums and lower vacancy rates. Occupant satisfaction: Occupant satisfaction is becoming a key differentiator for properties, especially in the wake of increased flexibility in work models. Digital tenant engagement services, which streamline communication and provide seamless access to building amenities, are increasingly being adopted to enhance the tenant experience. High occupant satisfaction leads to better tenant retention, higher occupancy rates and an enhanced reputation for building owners. Use of space: As hybrid and remote work models become more prevalent, landlords and tenants need a granular understanding of how space is used. Technologies such as occupancy sensors, space management software and AI-driven analytics can provide actionable insights on space use, helping optimize office layouts and reduce unused spaces. This not only improves the efficiency of existing spaces but also aids in strategic decision-making for future developments and lease decisions. Risk reduction: The adoption of technology can help mitigate various risks, including those related to cybersecurity, asset obsolescence, mechanical problems and fluctuating occupancy rates. For instance, digital solutions such as digital twins can automate risk assessments, monitor critical 4.3 Technology The integration of digital solutions into commercial real estate is no longer merely an option but a necessity for maintaining competitiveness and delivering value to stakeholders. Reimagining Real Estate: A Framework for the Future 39

Reimagining Real Estate 2024