In recent weeks we've been examining some changes to technology adoption through the COVID-dominated months of 2020. Curb-to-couch access control and self-show are obvious examples of innovations that have become a necessity as communities have grappled with social distancing. But as we discussed last week, we still need to understand the numbers when considering technology investments.
Most of the time, proptech investment decisions turn on whether or not the cost can be justified through rent increases. But rent growth is a complicated thing, particularly when it is influencing an investment decision. Correlation is not causation, and given the typically broad range of factors that influence rent growth, it is never easy to isolate the role of a single factor in driving it.
The challenge is to find evidence of the impact of the technology on rent growth. That means getting comfortable with estimates of future rent increases and, assuming they justify moving forward with implementation, conducting tests to prove revenue lift.Read More