While the COVID-19 pandemic gave the commercial real estate industry some challenges, it also served as a catalyst for innovation, forcing property developers, owners, and operators alike to reevaluate decades-old real estate models. Initially, the real estate industry was slow to adopt technology. But the prevalence of working from home changed resident activity, as well as the way in which property management and residents interact. Because of that, real estate technology has become essential in meeting renter needs.
This was one of the topics of discussion at RETCON — a proptech-focused event in New York City — this spring. During a Fireside Chat led by RET Ventures Partner John Helm, LCOR Chief Operating Officer Mike Hogentogler talked about his career journey in multifamily operations and management and how LCOR approaches the selection and implementation of proptech solutions across its 12,000-unit multifamily portfolio.
LCOR was ahead of the curve at proptech adoption. While many real estate companies are just now learning how to integrate technology into their properties, testing the water with a few technologies, Mike talked about the twelve distinct tech solutions LCOR has rolled out across various properties in the past four years. Embracing the shift away from single-stack solutions, LCOR has focused on adopting technologies that play a role in accelerating and easing the renter’s overall experience, as well as those of property management teams. While this shift is universal, Mike noted that it has even greater benefits for small-to-midsize property owners and operators who cannot support dedicated workstreams for all operational activities; integration of technology has been crucial in streamlining operations and ensuring renter satisfaction.
The market is seeing an abundance of proptech solutions being developed, and two of the criteria LCOR uses when deciding which technologies to deploy may not be intuitive: one, the tech company’s leadership, and, two, its financial stability. By considering both of these factors, LCOR has been successful at implementing tech solutions that will deliver tangible benefits for their operations team for years to come.
Mike also talked about the importance of purposeful implementation, including focusing on technologies that integrate with other proptech solutions and being intentional about which properties pilot these technologies. Also critical when rolling out any technology is effective change management to ensure that companies are driving the best possible results that maximize the technology’s impact.
As innovation continues, integrating effective technologies will be crucial not only for operational efficiency but also for meeting the ever-changing expectations of residents. As John noted, RET Ventures has played a major role in moving multifamily technology forward, helping to ensure that future technologies are well-capitalized and perform in a way that is most impactful for the industry. Through its partnership with a large cohort of multifamily operators, RET helps LCOR and others make technology investments that align with their strategic goals and enhance resident experience.
As Mike noted toward the end of the session, the power of technology in multifamily real estate is transformative. By embracing innovation, collaborating with forward-thinking partners, and prioritizing tenant experience, LCOR has set a precedent for implementing innovations that drive operational excellence and future-proof the industry.