Hong Kong has a reputation as an international centre of finance – a fast-paced metropolis with a globally-renowned, constantly changing skyline of some of the most eye-catching buildings in the world. Amid the gleaming skyscrapers jostling for space in the parcels of land available, another wave of development is happening – a digital revolution that is changing the way developers and owners operate , leading to a greater focus on people and responsibly-built environments. For those who are driving it, this digital revolution is transforming customer experiences, and building efficiency, sustainability and value. The most conspicuous aspect of this revolution is in the delivery of better, more comprehensive experiences for tenants and consumers. Augmenting quality physical assets with digital offerings to create an “ecosystem” within your portfolio means that tenants and retail customers can experience the immediate benefits of digitalisation in the palm of their hand. While office tenants, for example, see the continuing value of physical spaces in promoting collaboration, digital services have great potential to enhance the in-office experience and well-being of tenants’ employees. Increasing numbers of building owners are therefore developing a range of exclusive apps aimed at the experiential, placemaking aspects that can be enjoyed by a tenant or customer. These apps, such as the Hongkong Land Centricity app, are not just focused on exclusive offers, but also wellness, safety, services and developing “omnichannels” to create digital communities by joining the physical and virtual world. Digitalisation and PropTech are also playing a more important role in supporting asset and facility management, from design to life-cycle maintenance planning, and day-to-day operations. Behind the scenes, developers and managers are analysing data through the entire property management life cycle, cutting costs both at the development stage, by streamlining processes, and building management, by enhancing efficiencies throughout the portfolio. IoT (internet of things) technology and AI machine-learning systems have shown rapid return on investment for developers, playing an important role in cutting energy consumption, enhancing supply chain management and creating efficiencies which directly impact on the bottom line. Applications have been built for estate agents, for instance. Hongkong Land has developed an app enabling commercial brokers to arrange viewings online and let potential tenants “view” office spaces through augmented reality, no matter where they are located in the world. Digitalisation drives efficiency, which also drives sustainability efforts. According to a McKinsey report, existing buildings account for around 7 per cent of global CO2 emissions. In Hong Kong, a recent study found that because of its unique, high-density, built environment, activities in buildings account for more than 90 per cent of electricity consumption and 60 per cent of all greenhouse gas emissions . Using digital technology to leverage big data and AI will have the biggest impact in measuring a building owner’s journey to reduce their carbon footprint. Landlords are redefining facility management with a mixture of “hard” and “soft” technologies, such as IoT infrastructure, intelligent security systems, in-app personal thermal control and AI optimisation. Absorbing all the data collected using these technologies into a single platform can lead to valuable and actionable insights in real time, by leveraging AI machine learning for predictive maintenance and systems optimisation among other measures. Finally, digitalisation plays a part in preserving a building’s value. By deploying digital technology to extend a building’s life cycle through constant programmes of modernisation and retrofitting, as well as developing the efficiencies described earlier, owners can also avoid the need for costly new developments. This is another example of the marriage of quality physical assets and digitalisation; buildings designed to last while deploying the latest technologies to extend their lifespan even further – a truly sustainable solution. Digital technology can help to ensure that the highest sustainability standards are met even with some of the oldest commercial buildings in Central, for instance Prince’s Building, built in 1965. Tenants are ascribing greater importance to digitally-empowered, environmentally-friendly office space, and will pay a premium to have access to the best-in-class offering. Landlords are increasingly collaborating with tenants to support them to meet their sustainability targets. Property owners should invest more capital every year in their portfolio to ensure that they stay at the cutting edge, as well as at the forefront of sustainability. All of the Hongkong Land portfolio in Central for instance is certified BEAM Plus Platinum, the highest rating available, and this is only made possible by continuous investments in the buildings. AI, big data and digital technology advances through the entire value chain are changing the face of property development and reshaping the landlord-tenant relationship around the world. Being a property developer and owner used to be about physical assets, tenant relationships and the amenities you can offer. Today there is a fourth pillar, digital technology, which is becoming ever more intertwined with the other three. Building owners and developers of every size must deploy the best technology available if they are to stay ahead of the curve in an increasingly fast-changing industry. Neil Anderson is director and head of office, commercial property at Hongkong Land