‘It was the best of times, it was the worst of times’: The paradox of the impact of PropTech on corporate and investment real estate operating models and results

This paper details the impact of property technology (PropTech) on the corporate real estate (CRE) industry and explores how the rapid technological innovations in the contemporary market must be appropriately planned for and effectively implemented through the use of a target operating model (TOM) to ensure minimal disruption and resiliency for the business. It first offers a historical survey of the emergence and uptake of technology tools in the late twentieth century in order to establish the often-strained relationship between CRE and technological development. This paper then turns to the 21st century to explore contemporary issues, primarily the continued reticence organisations display in the uptake and implementation of emerging technologies. The concerns that prevent the unwavering embrace of property technology emerge primarily from the complex task of determining how technology will meld with, and bridge the gaps within, current business models. This paper proposes that the most effective guarantee to a harmonious relationship between an organisation and its technological toolbox is one founded on the solid foundations of a technologically literate and relevant TOM and offers a set of key factors that should be at the forefront of an organisation’s mind during the selection and planning process to ensure a resilient and sustainable provision of value for the future.