MIPIM Proptech NYC: Why fear will be the catalyst for innovation

“We are on a slow gradient to doom,” was one of the most arresting comments made at this year’s MIPIM Proptech New York event, held in partnership with MetaProp. Said with only a hint of jest by Sidewalk Labs’ head of sustainability Charlotte Matthews, this was one of many warnings made around just how bad things need to get before the real estate sector, and the world at large, actively embraces any widespread, significant change. And while Matthews’ comment was made in relation to climate change, it was by no means a standalone sentiment. What was marked at this year’s event was that many of the panellists and keynote speakers alike did not simply refer to the need to embrace failure in the quest for ultimate success – a well-known mantra when it comes to innovation. Rather, they flagged the colossal impact that a plethora of current and potential future threats could have on the entire sector. Time for a revolution As to whether this was a positive or a negative message depends on your perspective. For those truly championing change, desperately hoping for a significant departure from the norm, chances are this was an inspiring indication that the time has come for a revolution. For those who have always done things a certain way and have consistently enjoyed returns as a result, perhaps it wasn’t quite such a comfortable message. But a message it was – one that was repeated in sessions covering everything from data management and cyber security to the future of skills and lessons to be learnt from WeWork. Different sessions, different speakers, different agendas, but many anchored by the same warning: where change doesn’t occur naturally, it will be forced by threat or fear. When people have made a lot of money via the way they have always done things, it’s really hard to instigate change without fear or threat fuelling that change Lisa Picard | EQ Office “It is very hard to unlearn something that has brought success in the past,” said Lisa Picard, chief executive of real state investment company EQ Office, in her opening keynote. “When people have made a lot of money via the way they have always done things, it’s really hard to instigate change without fear or threat fuelling that change.” Speaking on a panel about how the property sector needs to better protect itself against cyber attacks, Min Kyriannis, head of cybersecurity at engineering practice Jaros, Baum & Bolles, added: “There hasn’t been a real, true threat or incident around cyber security in real estate yet.” She went on to say that in the physical world there have been very real, high-profile security breaches over the years worldwide that mean we now take the physical security of buildings extremely seriously. But she warned that until there is a major cyber breach that catches the attention of the sector at large, change and progress on this issue is likely to be slow. Legislation needed Over the course of the two-day event there were also examples of how threats and fears have already started to fuel major change, with data management and privacy being a prime example. In his keynote speech, Sidewalk Labs’ chief development officer Josh Sirefman (pictured) said that “robust public dialogue” and widespread concerns over data use around the group’s Waterfront Toronto scheme has resulted in Sidewalk Labs responding with a “world-leading construct” to protect privacy. “We have evolved to a position now as a result of this increasing focus on data and privacy where government will set the guidelines for use of data on this project. There is no other model like this as far as I am aware for a policy around data capture in the public realm. “And while a lot of conversation around this issue specifically has been hyperbole, and often irrelevant in terms of our development, there has been a lot of very relevant discussion about how you manage data in this context.” The inclusion of a panel discussion entitled “A Data Bill of Rights” in the programme, where panellists debated the urgent need for clear legislation and guidance on data usage in real estate to protect both the owner and the end user, was equally reassuring. See also: MIPIM Proptech NYC: Collaborate, don’t recklessly innovate   The overarching message was characterised by a bark far worse than its bite. Threat-induced evolution certainly sounds dramatic, scary and intrinsically uncomfortable. In reality, there are plenty of examples where changes for the better have been successfully implemented on the back of a threat. The real issue is around how important these threats actually are and the crucial role they will inevitably play as the sector continues to undergo a massive digital transformation. As Picard said, few people will actively choose to “learn, unlearn and relearn” if they don’t have to. We will need to rely on those threats and fears to really push the sector to change for the better, and be more efficient and more productive. It helps to have a vocal community giving fair warning, and this is exactly what delegates at MIPIM Proptech New York had access to at this year’s event. Whether they choose to listen or not is another matter, but there can be no question that we have been warned. To send feedback, e-mail emily.wright@egi.co.uk or tweet @EmilyW_9 or @estatesgazette