Commercial real estate owners have traditionally allowed technology vendors to dictate their digital strategies, but industry experts argue this approach has kept the sector behind other asset classes in digital maturity. According to Bill Douglas, CEO of OpticWise, the most expensive technology mistake isn't purchasing the wrong system but letting vendors decide what properties need. Douglas has been advocating for owners to lead rather than follow for over a decade, emphasizing that those who write the checks should set the direction.
The typical vendor relationship in commercial real estate follows a predictable pattern where owners bring in vendors, review their roadmaps, and sign contracts, only to wait years for products to align with actual property needs. Douglas contends that vendors should solve problems rather than define them, and owners should directly communicate when vendor roadmaps don't address their requirements. This shift requires owners to ask whether vendors can build needed solutions or if it's time to explore alternatives, ending the era of passive waiting for products to fit.
Vendor dependency extends beyond service contracts to data control, creating deeper lock-in issues. When owners don't control their own data and digital infrastructure, they rely on vendors for information about their buildings, limiting their ability to run independent analyses or transfer intelligence if relationships end. OpticWise addresses this by designing and operating owner-controlled data and digital infrastructures, giving owners leverage, visibility, and independence. This approach enables switching vendors, comparing performance across portfolios, and ensuring data travels with assets rather than contracts.
Across multi-asset portfolios, consistent and comparable data is crucial for benchmarking performance, identifying outliers, and making informed capital allocation decisions. Owners who control their data navigate property sales, management transitions, and asset repositioning more efficiently, as operational intelligence stays with the asset. In contrast, scattered information across multiple vendor platforms leaves owners managing blind and at the mercy of system holders when changes are needed.
Douglas recommends owners ask three key questions before vendor renewals or technology purchases: whether they have a written digital strategy for their property or portfolio, if they own and control the data their building generates, and if they are telling vendors what they need or asking what they offer. Most owners struggle to answer these confidently, which is why OpticWise offers the Peak Property Performance (PPP) DDI Review to clarify data control, vendor ownership, and potential financial leaks. Owners can learn more about this approach and access additional resources like the Peak Property Performance book and podcast at peakpropertyperformance.com.
