Building better: Key takeaways from BOMA Canada’s 2024 Digital Transformation Report

Companies across most sectors recognize the value of data — and have been collecting and analyzing it to improve business outcomes for years. While the real estate industry hasn’t evolved as quickly as others, a growing number of businesses are realizing the value of data and are creating strategies to get the most from their buildings and operations.

BOMA Canadai's second digital transformation report discusses what it means to become a data-enabled organization in the real estate space and analyzes current trends. This includes the driving factors behind digital transformation, stages of the data journey, and moving from plan to practice.

These are the key takeaways from the report:

The importance of data analytics

While pandemic lockdowns are over, COVID-19 made people reconsider what they want out of office and retail spaces — and the impact is still being felt years later. However, real estate companies have realized the potential that Internet of Things (IoT) technology offers to help them meet these evolving expectations.

Data-collecting sensors and cloud technology make it easier to gather and analyze large amounts of information. This helps real estate businesses understand how buildings are being used and make the necessary adjustments to improve performance.

Driving factors for digital transformation

Real estate companies cite improving operations, decision-making, and the tenant experience as the driving factors for digital transformation. Companies that have developed a data strategy are able to make decisions more efficiently, identify and assign metrics to manage performance, and improve operations.

Additionally, companies are using data to meet the shifting expectations of tenants. Sensors can identify how a property’s amenities are being used, and data analytics can help define which tenants are most likely to use which types of spaces. This enhances the tenant experience while also laying a solid data foundation to help businesses leverage the potential of AI.

Aligning data collection with business goals

Real estate businesses must collect the right data, ensure the data is of good quality, and determine how to leverage that data. This involves understanding what data you are collecting, and how it aligns with your tactical and strategic business objectives.

To continue the previous example, data-collecting sensors must be installed in the right location and correctly calibrated to ensure data quality and provide accurate insights. This helps businesses make informed decisions to improve energy consumption or space utilization.

The rise of data strategies

Real estate businesses are developing data strategies play to help them achieve their goals. These strategies typically include defining business objectives, assessing the current state of data maturity, identifying the data needs of the business, and establishing a data governance program.

Additionally, defining data architecture, selecting the right tools, and ensuring data security and compliance are key areas of focus. Rolling out the strategy in prioritized phases, fostering a data culture within the business, and scaling and adapting the strategy as needed are also identified as vital elements to achieve success.

Stages of the data journey

Data becomes more mature as businesses progress further along the data journey. During the beginning stage, businesses generally focus on wrangling new data — or ensuring data is captured, usable, and clean.

Companies increase analytics during the second stage, where the split between wrangling new data and analyzing data is divided equally. At the final stage of the data journey, organizations report spending around 80 percent of their time making data-informed decisions and just 20 percent of their time wrangling new data.

Teamwork as a key factor to success

Businesses identified teamwork as a critical element of achieving their data-focused goals. Those building an in-house data strategy must ensure that key roles, such as chief data officer, are filled to achieve their objectives. Additionally, encouraging ownership and accountability across departments further helps ensure the strategy spans all aspects of the organization.

Real estate companies that don’t have the resources to build an in-house data strategy often consider working with strategic data consultants. Some companies opt for a hybrid model that allows them to maintain control over sensitive data while outsourcing specific projects.

Moving from plan to practice

Real estate companies that have successfully moved their data strategy into action shared several key elements that supported their success, including assessing their current data estate and standardizing the data they already had on hand. Forming a data governance committee and creating data stewards to ensure the quality of data also helped put these plans into practice.

Selecting which metrics to focus on based on business objectives can also help ensure the strategy is successful — such as operational or performance metrics. Additionally, creating a classification system that reflects the processing stages of data can help indicate when data is ready to be used in reporting.

Change management

Real estate businesses identify change management as a crucial element of implementing a successful data strategy. This involves getting directors and others in the organization to embrace and champion the new standards. Companies stress the importance of making people feel involved in the process to increase the probability of success.

Creating a change management program and sharing data with key stakeholders and the wider business can help employees feel involved. Developing a steering committee that meets regularly with executives and measuring progress with key performance indicators (KPIs) are cited as key pillars to help businesses achieve their data strategy objectives.

For more information about how data analytics can help support the success of your real estate business, contact MNP’s Dean Leesui at 416.462.4200 or dean.leesui@mnp.ca