Budgeting best practices
Wondering how the best-performing Fortune 500 companies structure their real estate tech budget? To help you build your CRE spend based on proven practice, our Tech Advisory experts designed the X-Ray framework. Typically, F500s divvy up their tech spend into four key areas:
1. The Digital Workhorse: Software
• 52% of budget
• Usually costs around $7 million annually
• Think of this as the brain of your tech stack
• Includes tools for tracking leases, monitoring safety and assessing workplace experience
2. The Physical Backbone: Hardware
• 15% of budget
• Annual spend is around $2 million
• This is the muscle behind your tech strategy
• Covers things like rented hardware, occupancy sensors, interactive kiosks and security equipment
3. Keeping the Lights On: Sustainment activities
• 27% of budget
• About $3.6 million per year
• The ongoing maintenance that keeps everything running smoothly
• Includes bug fixes, data updates, and tweaking analytics to match business changes
4. Powering Up Your Tech: Enhancement
• 6% of budget
• Roughly $800,000 annually
• This is where innovation happens
• Funds new capabilities to meet emerging business needs
• Pro Tip: Keep an eye on that enhancement budget. It might seem small, but it’s crucial for staying ahead in the fast-changing world of real estate tech.
Key Takeaway: A CRE tech budget isn’t just about buying software. It’s a balanced investment in tools, hardware, maintenance and innovation to keep your real estate operations running at peak efficiency.
To get custom insights on your CRE tech budget or the X-Ray framework, send us a message.
