Why invention drives reinvention
As automation takes hold in the property and construction industry driverless cars, virtual concierges and bricklaying robots are just the beginning. But DEXUS chief Darren Steinberg says every new invention drives reinvention.
CEDA, the Centre for Economic Development in Australia, argues that there’s a “high probability” that 40 per cent of Australia’s workforce – a massive five million people – could be replaced by automation within the next four decades.
Steinberg isn’t alarmed by this statistic. While he agrees that automation will replace some roles, he is confident that new employment opportunities will spring up to support automation.
“There are many instances where technology has already transformed industries,” he says.
“In the finance sector, for instance, the technology revolution has led to less face-to-face interaction with customers in the banks, but employment in the sector is far greater now than it was 30 years ago, and customer service has improved because that sector has adapted.”
Shopping centres are a great example of an asset class that is reinventing itself due to the impact of technology, Steinberg says.
“As certain retailers, such as photo processors or book shops, move online we are seeing a greater emphasis on food and beverage, medical services and wellness, such as gyms, replacing more traditional mainstream retail.”
While more manual tasks will be phased out over time, many other job types will grow. Service-sector roles, particularly those with “an element of creativity, social intelligence, or a high degree of mobility” are the least likely to be automated, Steinberg says.
These roles are those that tend to be concentrated in our CBDs, which is why Steinberg believes the shopping centres located in major CBD and regional centres will fare well in the future.
“Urbanisation and the gravitation of businesses to CBDs is a global trend, with people now wanting to work, live and play in and around the CBDs. As a result, our cities have a bright future and will continue to be the economic and social hubs that they are today.”
And Steinberg isn’t worried about technology-enabled flexibility ending the era of the office either.
“The office remains central to the generation of ideas,” he says.
“But the choice to come to an office is informed by the surrounding precinct and its connection with the building,” he says.
Steinberg says DEXUS has “long recognised that property companies can offer far more than a bricks-and-mortar solution”.
DEXUS is responding to the shifting world of work with flexible business solutions, such as short-form leases, fitted suites, and pay-as-you-go meeting spaces.
“People-centric design is creating spaces that people want to be in. Employers are investing in spaces that support wellbeing and make people feel connected to their workplace community, which ultimately assists in enhancing productivity and business performance.”
Darren Steinberg, together with Charter Hall’s David Harrison, Mirvac’s Susan Lloyd-Hurwitz, Scentre Group’s Peter Allen and Lendlease’s Kylie Rampa, will share his insights into the challenges and opportunities facing the property sector at The Property Congress in October.