SOFTWARE AND

TECHNOLOGY USE IN THE

REAL ESTATE SECTOR
REPORT 3: AGENT CHALLENGES

RESEARCH SPONSORS:

INTRODUCTION

Keeping up
with changes in
legislation and
professional
standards remains
a key priority

Long gone are the days when money was

no object, when occupiers alike would think
nothing of spending astronomical sums
on meeting their property needs. Equally,
investors are now looking for much more
frugal ways of attracting the right type of
tenant.
With a few notable exceptions, everyone
is now keeping a very close eye on the
bottom line. Our survey of the agency
market found cost-cutting was one of
the biggest challenges facing the
industry today.
Of course, this is not the only pressing
issue. Keeping up with changes in
legislation and professional standards
remains a key priority, as does marrying the
competing demands of providing a global
service to clients while keeping abreast of
local knowledge.
But agents are broadly optimistic
about the extent to which technology can
help them cope with these challenges.
The agency world showed similar levels
of optimism as occupiers and was much
more positive about the role of software
and technology than property investors,
particularly in assisting them in a role that
requires being constantly on the move.
Agents are also far more likely to use
technology to measure key performance
indicators (KPIs), with more than 60% of
respondents saying they did so, compared
to around 40% of occupiers and investors.

WHO WE SURVEYED
We received responses from
agents across the property industry
representing a broad spectrum of
job levels. The survey was weighted
towards those in senior positions.
One in five respondents described
themselves as a director, while a
further 12% were either a managing
director or partner. Eight percent
described themselves as managers.
One in 20 respondents were chief
executive, chairman or owner of their
organisation. Just over one in 10
said they were an associate. Other
job titles included general manager,
consultant and senior manager.

Property or
estates manager
was the most
commonly used
job description

19%

11%

36%

8%
7%
19%

GRAPH 1. COMPANY SECTOR

0 - 49

50 - 99

100 - 499

500 - 999

1,000 - 5,000

5,000 +

GRAPH 2. NUMBER OF
EMPLOYEES

40
39%
35

30

27%

25

20

15

10
9%
7%

4%

4%

2%

2%

2%

1%

1%

Consultancy - multidisciplinary
Property agent
Other
Facilities management
Consultancy - building surveying
Legal
Financial
University/education
Local authority
Property developer
Consultancy - QS

In the following pages we examine

the agency worlds view of the role that
technology and software can play in the
property world.
The vast majority of those who took
part in the survey described their firm as a
consultancy or agency, accounting for two
in every three responses. The remaining
respondents worked for companies
involved in various consultancy niches
including facilities management and
surveying and, to a lesser extent, finance
and education (graph 1).
Small businesses accounted for slightly
more than one in three of the companies
that took part. Just over 60% of those
who took part worked for an organisation
with less than 500 employees. One in five
respondents said their firm employed more
than 5,000 people (graph 2).
Property or estates manager was the
most commonly used job description this
group accounted for almost one in four of
those surveyed. Surveyor was the secondmost popular job category and was used by
more than one in seven respondents.
But the survey also included those
involved in many other facets of the agency
world and drew opinions from those
involved in areas such as finance,
law, marketing and project management.

The frustration
felt about what
some see as
bureaucratic and
unnecessary rules
was evident
AGENCY CHALLENGES
We asked respondents to rank four
different agency challenges on a scale
of one to five in relation to the impact
they were perceived to have on business.
A rating of one meant no impact, while
five meant the impact was high. The
options chosen reflect some of the broad
challenges that face those involved in the
property agency world (graph 3).
Compliance with legislation and
professional standards emerged as the
challenge that most affects the industry
today, with an average rating of just under
four out of five. The frustration felt about
what some see as bureaucratic and
unnecessary rules was evident in some
of the responses. Asked what would
help them overcome their top challenge,
one agent said: If the government and
the RICS stopped passing pointless
legislations and added qualification for
the sake of making revenue from us.
Some respondents felt there was a place
for legislation, but called for the current
arrangements to be reassessed. One
agent called for regulatory reform of the
industry so clients know more about what
to look for and who they can trust as well
as stricter controls.
Following closely behind the issue of
regulation was the trend among occupiers
and investors for cost-cutting this
challenge received an average rating of
3.92. In some cases, the issues of cost
cutting and regulation were seen to be
closely linked. One agent said they would

like to see clients better understanding

the risks and lack of regulation in the
industry therefore seeing that additional
cost for a high standard is the safest and
only suitable solution.
It was broadly felt that occupiers and
investors have prioritised cost-cutting
above other business practices, which are
still crucial for success. One agent wished
for a more comprehensive understanding
from clients of the costs involved with
acquisitions and disposals, especially
in central London. Occupiers want to
minimise initial capital costs and are reliant
on landlord incentives, and investors
demand high-profile tenants with limited
fit-out provisions and incentives.
Others cited tenants who cut corners
to minimise costs or wished to find clients
who are not looking for the lowest fees,
but ones who respect true full service and
are prepared to pay for it.
The requirement for local property
knowledge was still seen as a key issue,
gaining a rating of 3.6. And the need to
provide investors and occupiers with global
solutions was ranked the challenge with
least impact on business, receiving a rating
only slightly higher than 2.5. In one case,
an agent ranked all four challenges of
reasonable importance but, in a reminder
that technology can only get you so far,
wished simply for more time.

GRAPH 3. THERE ARE A

NUMBER OF CHALLENGES
ASSOCIATED WITH THE
AGENCY INDUSTRY.
PLEASE RATE THE
CHALLENGES BASED ON
HOW MUCH THEY IMPACT
YOUR BUSINESS.
4.0
3.99

3.92
3.5

3.6

3.0

2.5

2.54

2.0

1.5

1.0

0.5

0.0

Investors and occupiers wanting global solution providers

Investors and occupiers cutting costs
The requirement for local property knowledge
Compliance to legislation and professional standards

Responses were rated on a scale of 1-5. 5 = high impact, and 1 = no

impact. The above graph shows the average rating for each topic.

GRAPH 4. DO YOU
BELIEVE SOFTWARE OR
TECHNOLOGY COULD
HELP YOU OVERCOME
YOUR MAIN CHALLENGE?

But largely, agents

were optimistic
about the role
technology can play

65%

35%

Yes

THE ROLE OF SOFTWARE

AND TECHNOLOGY
Regardless of the particular issue, two out
of three agents said they believed software
and technology could help them overcome
their biggest challenge (graph 4). Of
course, there were those who expressed
scepticism. Software and technology
can in some cases make matters worse;
everyone becomes so wrapped up in the
high-tech reports that style takes over from
substance, and the actual meaning behind
the report can be lost, said one.
But largely, agents were optimistic
about the role technology can play. When
asked specifically about compliance with
legislation and professional standards, more
than 86% of agents said they
believed software could help in this
regard (graph 5).

PROPERTY AGENCY AND

MOBILE TECHNOLOGY
Coping with a rapidly changing regulatory
environment, while dealing with the dayto-day demands of business, emerged
as a key theme. Many agents wished
for software that could track legislative
updates. Forty-two percent of agents said
increased use of mobile tools would be
an advantage.

One respondent summed up the

challenge and the way, in which technology
could help: As agents are constantly
on the move, having mobile access to
information would be massively helpful.
Among the suggestions were apps on
our phones giving updates on legislation
and professional standards.
Nowadays, services like online banking
are the norm, and why should property
management be any different?
Another agent wanted diary reminders
with full legislative requirements.
Many respondents pointed out that
the use of technology on the move was
becoming a business necessity rather than
something desirable, with one agent noting
the need to keep up with competitors and
market expectations.
The need to introduce mobile
technology was seen as both an
opportunity and a challenge. One agent
said: All staff should have tablets, allowing
surveyors to log inspections, meetings and
so on while on the go, with a constant link
to the shared drives. This will obviously
be expensive, and there will be security
issues.
Others pointed to the issue of training
staff whenever new business practices
are introduced.

No

GRAPH 5. DOES YOUR

SOFTWARE AND
TECHNOLOGY HELP YOU
COMPLY WITH LEGISLATION
AND PROFESSIONAL
STANDARDS?

14%

86%

Yes

No

One agent noted

that technology
provided the ease
of producing data
and reporting,
which helps to
ensure current KPI
figures, so negative
results can be
identified quickly

TECHNOLOGY AND
MEASURING KPIS
More than 60% of those surveyed said
they used technology to measure KPIs at
their firm (graph 6). Responses showed
that software and technology is playing an
increasingly important role in assessing
how well a firm is doing but also that
adoption of technology can be crucial
to improving performance in the first
place. One agent noted that business
is often won on the basis of our current
technological advances over other firms
and this is constantly improving.
The biggest way, in which technology
was seen to help, was in providing an easy
way of quickly and accurately assessing
large amount of data, then communicating
this across the firm. One agent noted that
technology provided the ease of producing
data and reporting, which helps to ensure
current KPI figures, so negative results can
be identified quickly while another said
technology provided ease of collation for
ready comparisons and presentation of
data that can be taken in at a glance and
readily understood across departments.

GRAPH 6. DOES NEW

TECHNOLOGY AND
SOFTWARE INFLUENCE
THE SUCCESS
OF MEASURING
PERFORMANCE AGAINST
YOUR KPIS?
80

70

63%

60

50

40
37%
30

20

10

Yes

No

Only 42% of
respondents
who managed
a property
portfolio said they
had systems in
place to monitor
sustainability
GRAPH 7. HOW IMPORTANT IS ENVIRONMENTAL
SUSTAINABILITY CONSIDERED WITHIN YOUR BUSINESS?
20

16%

15
15%

15%

10
10%
9%

9%

9%
8%

5
6%

3%

0
1

Rating

Responses were rated on a scale of 1-10. 10 = high impact, and 1 = no impact.

10

TECHNOLOGY AND
SUSTAINABILITY
There remains a broad spectrum of opinion
about the importance of environmental
sustainability in the property business.
We asked agents to provide a mark out
of 10 to indicate its importance within
their firm. Only 3% gave it the minimum
score, while one in 10 said it was of
maximum importance (graph 7). The most
popular answer was eight, but one in six
respondents ranked it midway with a mark
of five. Such varied opinions reflect the
range of views, which also exist among the
agency worlds clients.
The mean average of the responses by
agents, investors and occupiers suggests
overall perceptions of sustainabilitys
importance are largely similar. Agents
emerge as the group to rank it of highest
importance by a small margin with an
average rating of 6.07 compared to 5.95
among investors and 5.7 among occupiers.
As with these other groups, small
agency firms were less likely to see
sustainability as an issue of high

50

More than one

in four agents
said they felt
their software or
technology was so
unique that they
had trouble finding
others who were
familiar with it

43%

40

32%

30

25%
20

10

Yes

importance than bigger companies. The

mean average of responses from firms
with less than 50 employees was 4.72
out of 10. Respondents from firms that
employed more than 50 people ranked
environmental sustainability an average of
nearly seven out of 10 in importance.
Among agents, surveyors were likely to
rank sustainability as of higher importance
than their colleagues in the property
management sector. Surveyors gave an
average rating of 6.6 compared to property
managers who gave an average rating
of 5.4.
Of those respondents who managed a
property portfolio, only 42% said they had
systems in place to monitor environmental
sustainability (graph 8). However, half
of those surveyed said they had plans to
invest in such a system within the next
five years.

SOFTWARE
COMPATIBILITY
Software compatibility and the transfer of
data, whether taking place within firms or
across the wider industry, was a key issue
with nearly 60% of respondents. More

than one in four agents said they felt their

software or technology was so unique
that they had trouble finding others in the
industry who were familiar with it.
Some respondents wanted greater
consistency across the market to transfer
of information easier. One agent called for
a consistent global management system
which is recognised by all.
Others recognised the appeal of such a
system, but flagged up perceived problems
with implementation. One agent suggested
they would like to see uniform platforms,
but that takes away the USP [unique
selling proposition] we and
others offer.
Difficulties encountered when property
management responsibilities transfer from
one firm to another were reported more
than once. Compatibility between various
estate management software programmes
would assist with management handovers,
said one respondent.
Whether it be improved software or
a better understanding of what existing
technology is capable of, it is clear that
software compatibility will be an ongoing
challenge for the agency market.

No

n/a

GRAPH 8. IF YOU MANAGE

A PORTFOLIO, DO YOU
HAVE SYSTEMS IN PLACE
TO MONITOR AND STORE
INFORMATION ON YOUR
PORTFOLIOS IMPACT ON
THE ENVIRONMENT?

30
29%

Careful
consideration
should be given
to what results
this investment is
expected to yield

25

20
20%
18%
15

17%
15%

10

CONCLUSION
Four out of five agents we surveyed said
they had plans to invest in new technology
or software in the next five years (graph
9). This reflects the fact that the agency
market appears tuned in to the ways in
which technology and software can help
tackle business challenges old and new.
For example, many respondents were
particularly optimistic about the way
in which mobile technology could help
property professionals adapt to a job that
is increasingly done on the move.
However, while largely optimistic about
the role technology can play, our survey
highlighted that not everyone finds using
it straightforward. Agents reported that
the biggest challenge facing the industry
was compliance with regulation and
professional standards. A large proportion
of respondents appeared to be struggling
to make software work for them in
this regard.
John Cuppello, chief executive of
Qube Global Software, says: This is

something that all software should support

as standard. However, it may be that
these companies do not realise that this
functionality is already in place in their
existing systems or have not invested in
training to fully utilise these solutions.
We encourage the industry to engage
with their suppliers to utilise more of the
solution that they have already invested in.
While software has the capacity to
make our lives much easier, it often
requires more than just a capital
investment. Our survey suggests that
the agency worlds optimism about
future developments in technology is
yet to be matched by the willingness to
invest time to explore the full potential of
existing solutions. At a time when many
in the industry are preparing to invest in
technology, careful consideration should
be given to what results this investment is
expected to yield and what other steps
will be required to get there.

Trusted by real estate people.

www.qubeglobal.com

We have recently made a significant investment

Within the next year
1-2 years
2-5 years
We are not planning to make a significant investment in new
technology or software

GRAPH 9. OVER WHAT

PERIOD OF TIME DO YOU
THINK YOUR COMPANY
WILL BE MAKING A
SIGNIFICANT INVESTMENT
WITHIN NEW TECHNOLOGY
OR SOFTWARE?