Real Estate Investor Magazine South Africa December - January 2014 | Page 15

UPFRONT
The technological advancements that have created
the world we know today – electricity, motorised
vehicles, mechanical production methods, space
exploration, computers and the Internet – are far
from over. We are only just getting started, and like
a snowball, it is getting ever larger – impacting far
more areas of our lives - and gaining momentum
every second.
And while many of us are still getting to grips
with smartphones, tablets, cloud computing
and social media, technology is racing ahead to
produce game-changing new advancements such
as driverless vehicles, 3D-printing, augmented
reality (already available in, for example, Google
Glass), gene replacement therapy, nanotechnology
and crowdfunding.
Property ownership and property investment,
whether directly or via listed or unlisted companies,
and regardless of the specific sector, is not immune
to the rapid technological advancements that are
reshaping the world.
In the building and refurbishing industry, green
technologies are creating a new competitive edge, as
energy efficient and water smart innovations – from
nanotech paint that turns entire buildings into solar
energy collectors and solar panels that can actually
store energy to waterless urinals and super efficient
HVAC systems – create new and refurbished
buildings that are future-proof, sustainable in terms
of operating costs and highly sought after by buyers
and tenants alike. Those who are still building
and buying traditional buildings as utility costs
skyrocket will find themselves stuck with obsolete
buildings that are simply too expensive to operate.
Much has been written about the impact of
the latest technologies on the future of the retail
industry, particularly the growing popularity of
shopping online as consumers are increasingly able
to browse, compare prices and shop online with
delivery to their doorstep.
While it is unlikey that e-commerce will render
traditional bricks-and-mortar shopping centres
obsolete, it will most certainly require this sector
to reinvent itself to survive the many benefits that
online shopping offers – not only to consumers but
also to retailers. Many leading retailers globally
have embraced the technology, opting for smaller
and fewer physical retail outlets and concentrating
on e-commerce. Some experts suggest that retail
space in Europe could decrease by 20%-25% over
the next five years as a result.
www.reimag.co.za

Retailers and shopping malls will have to redefine
their value proposition, focussing increasingly on
providing entertainment and experiences that
are fun and sociable, including providing free,
fast in-house Wi-Fi networks. International
property consultancy Cushman & Wakefield,
in a recent online shopping report, notes that the
role of retail stores will increasingly centre around
“showrooming” and the concept of “click and
collect”, becoming vital channels for socialising,
research, ordering, collection and returns.
The changes in the retail environment will also
ripple through to the industrial property sector,
as distribution of goods bought online will make
well-located, energy-efficient and technologically
-advanced warehouses a prime investment.
Industrial property will also be impacted by
technology advancements such as 3D printing,
which will certainly affect manufacturing in the
near future. Already, prototypes of 3D printers that
can print with plastic, molten metal and even edible
foodstuffs have been tested.
The office market is also being revolutionised by
advancements in technology, as the market adapts
to new trends such as increasingly mobile workers
and Bring-Your-Own-Device, which demands
more flexible workspaces designed around the use
of personal modern technology such as laptops,
tablets and smartphones.
Tapping into this trend, Growthpoint recently
teamed up with Dimension Data to evaluate
the viability of installing open-access highspeed Internet throughout Growthpoint’s 353
commercial and industrial properties. A roll-out
the fibre-optic infrastructure for the last-mile link
to Growthpoint’s buildings will provide tenants
with faster, more reliable Internet connectivity
while they retain the freedom to select their service
provider of choice, since the open-access approach
enables smaller service providers incapable of
deploying their own infrastructure to offer their
services to businesses in Growthpoint buildings.
Of course, the residential property sector is also
being transformed by technology. Adrian Goslett,
chief executive officer of RE/MAX of Southern
Africa, notes that a new generation of buyers are
tech-savvy and environmentally-conscious. As a
result, they are looking for homes energy-saving
eco features such as solar panels and gas appliances
to reduce their carbon footprint, while saving on
utility costs. They are also looking for homes with
an integration of technology designed to allow the

homeowner to control the home at a distance via a
broadband connection, using applications on their
smartphones or tablets. While previously reserved
for the wealthy, advancement in technology and
devices that use Wi-Fi or other wireless connections
has made this home feature increasingly more
accessible.
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