When Tech Meets Tradition: Bridging the Gap in Real Estate

Discussion with Lauren Alpeyrie

Lauren Alpeyrie, former VP of Global Innovation at PGIM Real Estate, has a distinguished career spanning a decade in technology, consulting, and real estate. Known for her strategic acumen and passion for technology-driven change, she has been instrumental in shaping the way the real estate industry adapts to new technologies. Lauren’s career has been defined by her ability to drive innovation and build products for a traditionally conservative sector, helping to bridge the gap between technology and real estate operations.

The Evolution of Real Estate Innovation: From Skepticism to Transformation

Real estate is often seen as a laggard in technological adoption, but Alpeyrie sees this perception changing rapidly. She emphasizes that while the industry has historically been slow to innovate through tech adoption, venture capital (VC) investments have mirrored a dramatic shift in this landscape. “If you look at VC investment over the last 10 years, it went from near nothing in 2013 to US $30 billion in 2021, and still shows a tremendous growth rate despite two down years in 2022 and 2023”, she points out, highlighting the sector’s growing appetite for technological advancement. This influx of capital reflects the rising confidence in proptech and its potential to drive significant business outcomes.

Alpeyrie categorizes the innovations reshaping the sector into three main areas: investment, operations, and environmental impact. On the investment side, there is a drive to reduce friction in the acquisitions process and to offer differentiated experiences to investors through advanced platforms that leverage blockchain, artificial intelligence (AI), and novel data analytics. “There’s a push towards leveraging new data sets to enhance decision-making in real estate transactions”, she explains, noting that these tools enable investors to access more precise, efficient, and responsive strategies. The adoption of technology in real estate investment not only enhances decision-making but also opens new asset classes like single-family homes, which were once considered unconventional but are now mainstream investment opportunities.

In operations, the focus has shifted to enhancing the tenant experience and creating great data and efficiencies through adoption of new technology. Among the many possible examples, she points to AI-driven lease processing, IoT sensors that help to optimize energy use and maintenance schedules, or tenant experience apps to better engage with your building. Alpeyrie remarks on how these advancements are making buildings smarter and more efficient for landlords, but also stating, “The digital experience for tenants has evolved dramatically”, emphasizing how tech innovations are creating more seamless and engaging environments to enhance the tenant experience. These digital solutions are helping property managers not only streamline operations but also create value for tenants, pushing the industry towards a more tech-integrated future.

Operational Transformation: The Role of Digital Tools in Property Management

The operational side of real estate has seen some of the most transformative changes, with digital tools enhancing efficiency and tenant experiences across the board. Alpeyrie highlights that property management is no longer just about maintaining physical spaces but also about integrating technologies that can provide better service and operational insights. “There are a lot of applications now that help you interact with your office building”, she says, referring to platforms that allow tenants to access building services via apps, request maintenance, and even control their office environment remotely. These tools are making property management more agile, responsive, and user-friendly.

A key area of operational innovation is the use of AI and automation to improve lease processing and tenant communications. For example, AI bots are now commonly used to handle basic tenant queries, freeing up property managers to focus on more complex tasks. Alpeyrie mentions the success of companies like Elise AI, which has deployed AI bots widely within the United States multifamily sector to assist with tenant inquiries and lease management. “The bot you talk to when trying to get in touch with your property manager is real, and it works”, she notes, emphasizing how these innovations are addressing real operational pain points, such as staffing shortages and cost pressures in property management.

In addition to tenant interactions, digital tools are also being deployed to modernize construction management, an area traditionally resistant to change. Alpeyrie points out that the use of digital platforms to coordinate construction projects is transforming the industry, allowing for faster material acquisition, better project oversight, and greater coordination among dozens of parties. “Construction technologies are having a huge moment”, she observes, highlighting how these advancements are moving the industry away from analog processes towards a more connected, data-driven approach. By adopting digital solutions, construction firms are not only improving efficiency but also reducing costs and mitigating the risks associated with complex building projects.

Environmental Sustainability: Net Zero Goals and Green Innovation

Sustainability is another major focus area for real estate, driven by both regulatory pressures and market demand for greener, more energy-efficient properties. Alpeyrie emphasizes that the industry is increasingly adopting clean technologies and sustainable practices to meet these expectations. Regions like Europe, Australia, and New Zealand are leading the charge due to stricter environmental regulations, setting an example for the rest of the world. “I always look towards regions like Europe and Australia to see what’s coming around the corner for environmental initiatives in real estate”, she says, reflecting on how different regulatory landscapes can drive innovation.

To achieve net-zero emissions, real estate firms are investing in a variety of green technologies, from sustainable construction materials to advanced energy management systems. Alpeyrie notes that solar panels, energy-efficient building designs, and smart environmental controls are becoming standard in new developments as companies strive to reduce their carbon footprints. “There’s a huge drive to go to Net Zero and be a less polluting industry from construction through to operations”, she points out, highlighting the broader market trend towards sustainability. This shift not only meets regulatory demands but also aligns with the growing expectations of tenants and investors who themselves are increasingly prioritizing sustainability in their leasing and investment decisions.

Alpeyrie also emphasizes the role of technology in helping companies track and manage their environmental impact. Platforms that monitor energy usage, track carbon emissions, and optimize building performance are now integral to achieving sustainability goals. “We’re seeing more platforms designed to measure and reduce consumption, aligning with the industry’s push towards greener practices”, she explains. By integrating these technologies, real estate firms can better meet their sustainability targets, improve operational efficiency, and enhance the overall tenant experience.

Challenges of Driving Innovation in a Conservative Industry

Despite the progress, Alpeyrie acknowledges that driving innovation in real estate is fraught with challenges, particularly due to the sector’s conservative nature. Real estate has long been viewed as a stable and profitable investment, attracting a risk-averse mindset that can hinder the adoption of new technologies. “The biggest challenge is a reluctance to approach things differently”, she notes, emphasizing how deeply entrenched traditions and legacy systems can act as barriers to change. This resistance is often compounded by a fear of disrupting established business models, especially when those models have historically delivered consistent profits.

To overcome these challenges, Alpeyrie stresses the importance of establishing the right innovation structures within companies. This means empowering teams with the authority and resources to experiment with new technologies and approaches. “You need to have the right innovation structure – people with the mandate, authority, and budget to drive change”, she explains. Clear communication and strong leadership are also critical, as they help foster a culture where experimentation is encouraged, and failure is seen as a learning opportunity rather than a setback.

Measuring success is another crucial element in overcoming resistance to innovation. Alpeyrie advocates for a disciplined approach to evaluating the impact of new technologies, ensuring that every pilot project is carefully monitored and assessed against predefined success criteria. “Innovation needs to be treated like any other business function, with clear metrics and accountability”, she advises. By demonstrating tangible benefits, whether through cost savings, efficiency gains, or improved tenant satisfaction, real estate firms can build a stronger case for continued investment in technology and innovation.

Future Trends: Personalization, Data, and Platform Integration

Looking ahead, Alpeyrie identifies several trends that will shape the future of real estate technology, including the increasing demand for personalized tenant experiences, the growing role of data, and the trend towards platform consolidation. She highlights how the industry is beginning to adopt consumer-centric approaches, borrowing ideas from other sectors like tech and retail to create more tailored and engaging environments. “The personalization of the tenant experience is a major trend, driven by influences from the tech industry”, she says, emphasizing the shift towards creating differentiated experiences that cater to individual needs and preferences, driven in no small part through a challenging leasing environment today.

Data is another area where real estate is undergoing significant transformation. The traditional reliance on static, analog data sources is being replaced by more dynamic, digital datasets that provide deeper insights into market trends, property performance, and tenant behaviors. Alpeyrie points to the use of external data sets such as geospatial or parking data, but also to the trend of turning internal analog information into structured data as examples of how the industry is evolving. “We’re seeing new data sets that are enhancing the way transactions and investments are conducted”, she notes, underscoring the growing importance of data-driven decision-making in real estate. And of course, the outside-in impact of AI and LLMs from the tech sector is having its moment in real estate as well.

Finally, Alpeyrie highlights a long-term trend towards platform integration and consolidation, where real estate technology companies and start-ups are partneringor being acquired to provide more platform-oriented solutions. Still, today, there are an army of point solutions available, challenging for real estate customers to integrate themselves. She cautions that real estate companies must be strategic in their approach, as the rate of change and building their own technology capabilities internally can be fraught with challenges. With notable exceptions especially among large service providers like JLL and CBRE, most “real estate firms are not tech companies, and they need to be wary of trying to develop technology solutions in-house”, she warns, advising firms to focus on partnerships and collaborations that leverage the expertise of dedicated engineering resources at technology companies, focused entirely on solving particular challenges. This approach not only accelerates innovation but also ensures that real estate companies can remain agile and competitive in a rapidly changing market landscape with new tech solutions coming to market every day.