Approximately 97% of contractors lack real-time asset visibility (most don’t know it’s costing them)

Why this matters

The disconnect between contractors’ perceived and actual asset visibility underscores a critical inefficiency in US commercial real estate construction and development. For institutional investors and capital providers, this gap signals potential cost overruns, project delays, and operational risks that may not be fully accounted for in underwriting or portfolio management. Real-time asset tracking is increasingly a baseline expectation in CRE development, enabling tighter control over timelines and budgets—key drivers of value preservation and risk mitigation. That nearly all contractors lack this visibility suggests persistent fragmentation and technological lag in the construction supply chain, which could dampen sector fundamentals by inflating costs and reducing predictability. For lenders and allocators, this raises questions about the reliability of project-level data and the robustness of risk assessments tied to construction-phase exposures. It also highlights an opportunity for capital to flow into technology adoption and process improvements that enhance transparency and efficiency. In a market where capital discipline and operational precision are paramount, the widespread underestimation of asset visibility gaps may exacerbate volatility in returns and complicate capital deployment decisions. This dynamic merits close attention as institutional players seek to calibrate risk premia and identify value in a complex development environment.

Editorial analysis · AI-assisted

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