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Research demonstrates growing dissatisfaction with digital experiences

Digitization in real estate management, once celebrated for boosting efficiency, now appears to foster dissatisfaction, according to a recent study 'Real Estate Management' by Drees & Sommer. Although 82% of participants recognize the potential of digital solutions, particularly in streamlined...

Research reveals growing disenchantment with digital realms
Research reveals growing disenchantment with digital realms

Research demonstrates growing dissatisfaction with digital experiences

In a recent study conducted by Drees & Sommer, it has been revealed that the majority of companies are leaning towards centralized structures in Corporate Real Estate Management (CREM). The survey, which was conducted among 303 real estate decision-makers from various industries in May of this year, shows that 66% of companies organize their real estate tasks in centrally controlled CREM units.

The study also indicates a trend towards specialization in the industry. Tendering for specific services has increased from 35 to 43 percent, suggesting that companies are aiming to control their services more targeted. This shift towards specialization is accompanied by a decrease in local individual tenders and tendering per object. The proportion of tendering per object has decreased from 58 to 41 percent, while local individual tenders are losing importance.

Regional bundling continues to be prevalent in the industry, with regional tendering of services remaining the dominant model in Facility Management. However, global tendering accounts for only 12 percent, indicating a preference for regional collaborations.

Specialist firms are believed to improve quality, enhance traceability, and make services more adaptable. Central CREM units can reportedly implement strategies uniformly, control costs more transparently, and integrate ESG goals more effectively. The proportion of companies with a consistent ESG strategy has increased from 24 to 39% compared to 2024.

However, the study also highlights some challenges in digitalization. Bernd Fisel, Associate Partner at Drees & Sommer, states that many digital concepts are failing at the proof of concept stage due to a lack of concrete implementation and stringent project planning. Despite 82% of respondents seeing potential in digital solutions, confidence in digitalization has decreased, with only 14% believing it will open new business models (compared to 23% in the previous year).

In conclusion, the study reveals a shift towards centralization, specialization, and digitalization in the CREM industry. While there are opportunities for improvement and growth, challenges such as the implementation of digital concepts and maintaining confidence in digitalization remain areas of concern.

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