Alliance Companies - advanced asset sourcing, underwriting, divesting and monetizing focus driven practices for FO | FOA, Corporate and Institutional Clients for 30+ years. Expanding Nationally and Internationally With 181 Offices

Look at the smartphone in your hand. Think about the car you drove this morning, they are nowhere near the phone or car that you used a decade or even a few years ago.

Companies are known to spend billions of dollars on research and development aimed at cutting a niche above competitors and satisfying their consumers and clients by producing sought-after products. R&D is, however, more than just competition. It is the way companies move forward and genuflect toward change based on customer needs and other market dynamics.

cre research and developmentMost firms have research and development departments. Whilst progressive companies have visions, the R&D department magnifies and extends that very vision, and furthermore, it creates a solid platform for the company’s growth. This is because R&D maximizes the company’s awareness levels enabling it to work towards a secure and planned expansion path. In India for example, due to the growing population and limited land, real estate researchers are flaunting solutions like artificial islands and green homes as a panacea. In Dubai, Palm islands are a result of innovative R&D.

Increased market participation, cost management benefits, advancements in marketing abilities and trend-matching – these are all reasons companies invest in R&D. R&D can help a company follow or stay ahead of market trends and keep the company relevant. Although resources must be allocated to R&D, the innovations gained through this research can reduce costs through more efficient production processes or more efficient products. R&D efforts can also reduce corporate income tax, thanks to the deductions and credits they generate.

Importance of Research and Development in Commercial Real Estate

However, why is it necessary or relevant in a field such as commercial real estate you might ask? It is based on the scope and its expediency towards sustainable corporate growth in real estate development. Most of the buildings you see around sprouting even in the CBD might look new, but what is different from others that have been there for the past 15 or more save for more high tech glass or AC unit?  

CRE is a multi-million dollar investment sector and thus requires thorough R&D and innovative thinking. It would make sense that such an investment that spans at least 30 years should be backed by substantial research and innovation. The sad reality is that there is minimal R&D in the real estate industry.

Management teams in real estate are in a perilous turmoil in their constant struggle to manage innovation, yet many lack the essential aspect of experience in planning and executing technology-driven strategies. Real estate innovation and novel technologies’ potentials are yet to be maximized by real estate firms. Although the industry perceives innovation as significant, the reality is that innovation has not yet directly and significantly affected the functions and operations of most real estate firms.

There is no gainsaying that innovation will continue to impact every aspect of commercial real estate, from design, leasing, construction, acquisition, and disposition.

We at Alliance International believe that Research & Development is an integral part of the business process, contact us today to learn how we can leverage our assets to help you reach your greatest CRE potential!   


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