Survey by Clifford Chance and Concrete VC

Coronavirus has changed how real estate transactions are undertaken with everyone learning to adapt to new tools and practices. Some of the changes will be temporary, and traditional approaches will resume, but much of the new will be retained. This survey seeks to understand what a commercial real estate transaction might look like in the near future. 
 
To thank you for completing this survey Clifford Chance will make a donation to Oasis UK to help them provide technology to disadvantaged children. These children have no access to a device and so are isolated, unable to attend online classes and becoming more marginalised. Our aim is to help provide them with technology so that they too have a chance to learn. This is part of our programme #chance2learn.
Background information (Questions 1-4)

Question Title

* 1. Which of the following options best describes your level of seniority?

Question Title

* 2. Organisation type – select your primary function.

Question Title

* 3. Please indicate which category your organisation falls into:

Question Title

* 4. Which of the following options best describes your organisation’s adoption of technology in the commercial real estate transaction process?

Transaction process (Questions 5-10)

This part of the survey considers the transaction process in four parts: origination, underwriting, due diligence and transaction execution.

Question Title

* 5. Origination:

Please rank each item based on: 
"How important will this be in commercial real estate transactions in the next few years (following the pandemic) compared to the “pre-pandemic” period?"

  Not sure Less Same More Significantly more
Relationship Management (intros to transactions through personal/professional networks)
Real estate investment listing portals (online discovery & matching)
Alternative data sets (eg taxi pickups, people movement tracking, consumer payments)

Question Title

* 6. Underwriting:

Please rank each item based on:
"How important will this be in commercial real estate transactions in the next few years (following the pandemic) compared to the “pre-pandemic” period?"

  Not sure Less Same More Significantly more
Excel based models
Automated Valuation Modelling ( valuations using mathematical modelling and data)
Tech-enabled rent roll processing  (e.g. AI-based)
Scenario planning tools  (macro/micro economic risk analysis)
Digital Twin Technology (digital replica of the physical asset)

Question Title

* 7. Due Diligence:

Please rank each item based on:
"How important will this be in commercial real estate transactions in the next few years (following the pandemic) compared to the “pre-pandemic” period?"

  Not sure Less Same More Significantly more
Site visits and inspections (in person)
Virtual reality/video fly throughs
Drone-based inspections
AI/ML for building documents (artificial intelligence, machine learning)
Automated legal risk analysis (assigning risk weightings based on automatic review and pre-set rules)

Question Title

* 8. Transaction:

Please rank each item based on:
"How important will this be in commercial real estate transactions in the next few years (following the pandemic) compared to the “pre-pandemic” period?"

  Not sure Less Same More Significantly more
Exchange of paper contracts between lawyers
Digital Signatures
Virtual Meeting Rooms
Platform-based online transaction workflows
Blockchain for automatic updating of title / share registers
Automated legal document assembly tools (e.g. creating simple documents from questionnaire without expert legal input)
AI/ML assisted drafting tools (e.g. machine learning suggesting amendments to drafting for lawyers)
Smart contracts e.g. for automated payments

Question Title

* 9. Please order the following key concerns in terms of how much they are stopping the wider adoption of digital technology in real estate (#1 being largest concern):

Question Title

* 10. If there are any other key aspects you feel are holding back adoption, please enter them below.

Future by Asset Class (last question)

Please indicate whether you believe the transaction volume, in terms of the number of investment deals, in the next few years will be lower, the same, or higher than pre-pandemic times for the following asset classes?

Question Title

* 11. Please rank below

  Lower than before Same Higher than before
Logistics
Industrial
Senior Living
Healthcare
Retail (High Street)
Retail (Shopping Centres)
Hotel & Leisure
Office
Residential
Student Housing

Question Title

* 12. If you would like to be provided with research and insights from Clifford Chance or Concrete VC on the above topics, please provide your contact details and email address below.

T