PropTech adoption is entering a new era. After years of rapid expansion and vendor proliferation, operators are confronting fatigue driven not by an excess of technology, but by technology that creates friction instead of removing it.The market is shifting away from disruption and toward alignment with real operational workflows. Successful solutions now share common traits: they integrate fully, reduce complexity, and are shaped in partnership with users rather than imposed on them.
This current wave of PropTech is defined by one philosophy: technology should fit the business, not the other way around.
In this Insights by Blueprint report, we examine how CRE operators are navigating PropTech fatigue by adopting a more disciplined approach.
Through structured pilots, rigorous vendor evaluation, and feedback from on-site teams, operators are reducing tech overload and focusing on tools that deliver measurable value. Drawing on new data from our Advisory Council survey, we reveal how leading CRE firms are selecting, deploying, and scaling PropTech today.
From disruption to alignment
In numerous interviews, operators told us they are tired of PropTech that doesn’t reflect how buildings actually run. They say many tools feel like they were designed by software teams who have never worked a day on-site or managed a portfolio.
There’s a growing preference for PropTech vendors who have been operators themselves, or who actively own and manage assets. These companies demonstrate deeper empathy for operational pain points and are better equipped to design tools that fit into real workflows, not theoretical ones.
Mike Hills, VP of Capital Markets at Atlas Real Estate, says the influx of PropTech pitches has tapered off in recent years, but they are still interested in new technologies.
“We’ve already tried just about everything out there,” Hills says. “But there’s a lot of helpful PropTech, especially when it comes to the application process and leasing.”
Hills says the PropTech vendors who stand out are those who get what it really takes to run a real estate business. “We don’t want something that’s just a tech play,” he says. “We want solutions built by people who understand our world.”
Hills may see fewer PropTech pitches landing in his inbox these days, but survey data suggests his experience isn’t universal.
According to a survey of the Insights by Blueprint Advisory Council, 83% report “PropTech fatigue,” saying their teams are overwhelmed by the volume of vendor outreach. Paradoxically, a majority (58%) also believes their existing tech stack lacks the capabilities they need.
So what’s behind the fatigue? For 67% of Advisory Council members, the biggest culprit is PropTech solutions that overpromise and under-deliver. Others point to too many vendor pitches (33%), the ongoing effort required to train new staff (33%), and the frustration of managing data scattered across multiple systems (33%).
Operators and vendors also drew a distinction between the first wave of PropTech companies (roughly 2010–2018) and the second wave operating today.
The first wave was driven largely by tech-first founders who believed real estate was outdated and could be “disrupted,” as other industries had been. The mindset was sometimes dismissive of the real estate industry’s complexity.
As a result, operators were skeptical of newcomers who claimed to “transform the industry” without understanding its operational realities. First-wave PropTech vendors frequently underestimated the decentralization of real estate across regions, workflows, and levels of tech maturity. The tech world expected uniformity. Real estate operates with autonomy. That mismatch led to frustration on both sides.
“The tech companies came in saying, ‘You guys are old, you’re antiquated, you don’t know what you’re doing,” says Josh Feinberg, CEO of Otso, a PropTech company that automates tenant financial underwriting. “And the operators were like, ‘Hold on, we’re actually very successful. Don’t tell us we’re bad at this. If you can make things better, great.’ But most of them couldn’t.”
Feinberg says the second wave of PropTech companies is taking a different approach. Instead of imposing a new workflow, they aim to support and enhance the workflows operators already use. Rather than pushing operators to rip out and replace existing systems, PropTech companies are focused on streamlining processes.
This shift matters because adoption risk and change management fatigue are real. Real estate teams are tired of spending months implementing new tools that never deliver value. Many PropTech companies now acknowledge that reality.
“I think this second wave of PropTech companies is saying, ‘Look, this industry is extremely custom,” Feinberg says. “There’s less of the attitude of, ‘We’re going to replace what you do with one system,’ and more of, ‘We’re going to amplify what you already do and make it better.’”
Integration or bust
One of the main drivers of PropTech fatigue isn’t necessarily the sheer volume of technology. It’s the disconnect between systems.
Operators we interviewed said that each new platform often arrives with its own login, dashboard, training, and quirks. Instead of simplifying operations, the tech stack becomes heavier and more fragmented. For on-site teams and residents alike, simple tasks like paying rent and submitting maintenance requests end up spread across multiple applications, creating friction rather than efficiency.
Property managers may feel this pain even more acutely. Tool sprawl has reached a point where managing the tech stack can feel like a full-time job.
For example, Mike Hills of Atlas Real Estate says some of his company’s property managers need 15 different logins to get work done.
When platforms don’t integrate, property teams end up re-entering data manually, emailing screenshots, or exporting spreadsheets just to reconcile basic information. “There’s a ton of fatigue with that,” Hills says.
The Advisory Council survey underscored just how disruptive data fragmentation has become. Roughly 75% of members named the lack of system integration as their top vendor-management challenge. An overwhelming 92% also pointed to integrations and data flow as the PropTech functions most in need of simplification.
As one operator told us, “If I could wave a magic wand, I’d fix how disconnected our systems are. We have so much valuable data sitting across different platforms that don’t talk to each other, making it hard to see the full picture. I wish all that data could flow into one place, easy to access, easy to understand, with AI delivering real insights we can act on right away. No complex dashboards or manual reports, just clear, connected information that helps us make smarter decisions faster.”
Integration with entrenched legacy platforms such as Yardi, MRI, and Salesforce has historically been one of the biggest barriers to PropTech adoption.
These systems serve as the operational backbone for many operators, but they were not originally built with modern interoperability or API-first design in mind. As a result, getting new tools to “speak” to these platforms often required lengthy custom development cycles, specialized middleware, or costly third-party integration work.
That picture is beginning to shift.
In recent years, both Yardi and MRI have expanded and modernized their integration capabilities. Yardi through solutions like Interfaces and Data Connect, and MRI through its open API ecosystem, MIX (MRI Information eXchange), and Partner Connect program. These tools create more standardized ways for external applications to access data, authenticate securely, and move information in and out of core systems.
According to Feinberg of Otso, ongoing modernization efforts combined with emerging AI-driven integration tools are reducing some of the friction that has long defined integrations with legacy platforms.
Instead of wrestling with bespoke data pathways or fully custom integration layers, operators are increasingly able to leverage more structured APIs, cleaner data pipelines, and cloud-based services provided by the major software platforms.
Feinberg says that AI is also beginning to help automate parts of the integration process, such as data mapping or formatting steps that once required manual engineering work. While this shift is still early and varies widely by operator, he notes that some integrations that previously took months can now be completed dramatically faster when modern APIs and AI-assisted tools are in place.
The result is a slow but meaningful reduction in the integration burden. The combination of more open, standardized data frameworks from legacy platforms and early AI-enabled integration capabilities is reshaping what has traditionally been the most stubborn obstacle to PropTech adoption.
Integration may not be fully “plug-and-play” yet, but it is no longer the immovable roadblock it once was. As these improvements continue, they may accelerate the pace and feasibility of digital transformation across commercial real estate.
Partners, not products
Operators repeatedly emphasized that the PropTech vendor’s intent and commitment to the real estate industry matter just as much as the product itself.
Some companies enter the real estate tech market with a tool they are eager to sell, then go searching for a problem to attach it to.
These vendors may present well, deliver polished demos, and showcase attractive interfaces. But their motivation is product-first, not customer-first.
Contrast that with companies that grow out of real operational pain. These vendors enter the space because they understand the customer’s challenges and are committed to solving them.
The difference becomes clear over time. True PropTech partners build with operators, not at them. A strong indicator of partnership is whether operators can influence the product’s development.
Vendors that welcome input allow customers to interact directly with product and engineering teams, shaping features based on real-world needs. This collaboration requires openness and transparency. A partner-minded vendor encourages feedback, requests improvement ideas, and incorporates customer insight into the roadmap.
During evaluations, operators should look for signals that a vendor is committed to the industry and invested in long-term outcomes. References from other clients are a big part of this. If a vendor can only give you a handful of references, that’s a big red flag, according to Jenna Tuttle, VP of Product Management at Zego. Zego is a property-management automation platform that helps multifamily operators streamline payments, utility billing, and resident experience workflow.
“In some cases, there are deeper issues at play,” Tuttle says. “You also have to look at the age of the company and how it’s evolved. Many newer PropTech firms have built a solution first and are now trying to find a market for it. They haven’t been in the industry long enough to develop strong relationships with ERP providers or with customers they can point to as real-world references.”
Tuttle also recommends asking several pointed questions.
“Ask whether the company has a customer advisory board or any way for you to contribute to their roadmap,” she says. “Can you see what’s coming next? Can you voice the problems you’re trying to solve and see if their solution is a fit?
Tuttle continues, “Having those kinds of conversations with the sales rep and paying closer attention to how they respond can tell you a lot about whether they’re the right partner to work with.”
Test, iterate, optimize
Jay Richard-Yu, VP of Technology and Innovation at Jamestown, says PropTech fatigue is similar to the app fatigue consumers feel on their phones: too many options, too many tools, and not enough clarity on what actually matters.
“We’re just inundated these days with a ton of opportunities,” Richard-Yu says. “There can obviously be an overwhelming amount.”
To prevent tool overload, Jamestown uses a disciplined evaluation model centered on pilots and experimentation. Instead of adopting new technology across the portfolio, the team meticulously tests solutions at individual assets first.
This process forces intentional decision-making. Before anything is selected, Jamestown steps back and asks why the technology is needed, whether it solves a real problem, and how it fits into the existing ecosystem.
“The question we always ask is, have we done an honest evaluation with our key stakeholders to make sure we’re making the best decision possible?” Richard-Yu says. “Our philosophy is to continuously test, iterate, and optimize.”
Jamestown evaluates every pilot using four core criteria, each designed to prevent unnecessary tech stack bloat. First, the tool must have a clear impact on NOI, either by generating new revenue or delivering measurable cost savings.
Second, it must create a frictionless experience, making life easier for internal teams, residents, or tenants rather than adding new steps or complexity. Third, the technology should support consolidation, reducing the number of tools or vendors instead of increasing them. Finally, the solution must provide useful, actionable data.
If a tool doesn’t meet all four criteria, it doesn’t move beyond the pilot phase.
Jamestown piloted Nantum AI (formerly Prescriptive Data) at Waterfront Plaza in the San Francisco Bay Area, where the results were clear and compelling: a 260% return on investment and $71,000 in annual savings. With measurable financial impact and strong on-site adoption, the technology was expanded to additional properties.
Similarly, Jamestown tested Onvation, a platform that streamlines janitorial operations and reduces supply waste, at Atlanta’s Ponce City Market in 2019. After a successful pilot, the company broadened adoption across the metro area and then continued expanding to other regions.
Instead of rolling out technology asset by asset, Jamestown follows a market-by-market expansion model, allowing proven solutions to support broader operational consistency and reducing the burden on individual teams.
Insights by Blueprint Advisory Council members tend to evaluate new PropTech vendors using a similar set of criteria. A third of members (33%) said their top priority is improving operational efficiency. Others emphasized the need for clear ROI backed by case studies and measurable outcomes (25%) and strong integration with existing systems (25%).
When measuring ROI and overall value, Advisory Council members focus on tangible outcomes. Nearly all (92%) look for direct cost savings, while two-thirds cited time savings (67%), improvements in leasing or occupancy (67%), and higher resident or tenant satisfaction (67%) as key performance indicators.
Let the users decide
A recurring theme across interviews was the disconnect between what executives think will work and what front-line users actually need. Real adoption happens at the site level, not in the boardroom. And if the end users, such as residents and on-site property teams don’t like the technology, it probably won’t last.
As Mike Hills of Atlas Real Estate told us, “It’s not about what the executives think will work, because often there’s a lot of misalignment between them and end users.”
Fatigue grows when new tools are introduced without considering the workflow impacts on residents and property teams. To protect their teams’ time and attention, Hills said Atlas Real Estate even implemented a six-month temporary freeze on new technology for the property management team this year.
“When our on-site teams get a new piece of tech, their reaction is usually, ‘Oh no, another one?’” Hills said with a laugh.
By treating users as stakeholders, not test subjects, Atlas Real Estate collects frequent feedback and uses it to guide decisions about which technologies stay, which go, and which never make it past evaluation. “We get feedback from users often, and they’re not shy about giving it to us,” Hills says.
Jamestown takes feedback a step further through a structured internal program. This year marks the seventh anniversary of Jamestown’s Innovation Ideas program, a company-wide platform designed to elevate ideas from every corner of the organization. The initiative empowers team members, regardless of role, department, or geography, to share concepts that create value, improve operations, or advance strategic goals.
Each submission is reviewed by Jamestown President Michael Phillips and the appropriate internal teams. Ideas that demonstrate alignment with enterprise priorities and operational feasibility are advanced toward pilot or implementation.
Since its launch in 2018, the Innovation Ideas program has become a measurable driver of Jamestown’s progress. The platform has collected 702 submissions from colleagues across the U.S., South America, and Europe, providing a pipeline of creative solutions informed by on-the-ground experience. These submissions now serve as an influential source of innovation, as 18% of all technology pilots launched at Jamestown originate from employee ideas submitted through the program.
Several concepts illustrate the impact of engagement:
- Meter (turnkey internet infrastructure). Introduced through the program, Meter has accelerated leasing velocity at multiple San Francisco assets by offering tenants high-quality internet connectivity.
- Automation & generative AI enhancements. Colleagues across departments have submitted ideas to deploy automation tools and AI-driven workflows, reducing manual processes and freeing teams to focus on higher-value tasks.
- Vertical farming with Area2Farms. Proposed by a European Asset Manager, this partnership introduced on-site vertical farming at a U.S. property.
To sustain momentum and recognize the creativity, Jamestown awards a $500 quarterly prize to one standout contributor. The recognition program reinforces the belief that meaningful innovation can emerge from any level of the organization.
“It’s always interesting to see where the ideas come from and how they take shape,” says Richard-Yu of Jamestown. “It’s been a wonderful program for us that really shows our commitment to innovation and gives our teams a chance to be part of the process.”
AI changes the build-vs-buy equation
A major shift identified in interviews is how AI is affecting operators’ evaluation and adoption of new technology.
According to Josh Feinberg, CEO of Otso, the biggest change over the past year is that AI now enables operators to build simple internal tools themselves, reducing reliance on vendors for early-stage solutions.
Before AI, many operators rarely attempted custom development. Now, low-code and no-code AI tools enable even non-technical teams to quickly prototype solutions. Operators can create internal versions of workflows and test concepts before involving a vendor.
As a result, operators are beginning to hire for new roles, such as Head of AI or AI Implementation Lead. Feinberg notes that large firms like JLL have already begun this transition. “Head of AI is going to be a growing job title,” he says. “Someone who says, ‘We can build what we need internally without spending millions on development.’”
For example, Jamestown is building its own internal AI platform, ChatJT, using OpenAI technology and training it on company-specific resources. ChatJT is already evolving beyond text generation. Jamestown is testing new functionality, such as lease abstraction and automated report generation, that directly reduce manual labor and repetitive administrative tasks.
With operators able to build more internally, Feinberg says vendors must differentiate on security and compliance, not just features. Real estate firms closely guard financial and leasing data, and operators are concerned that their data may be sent to non-compliant models or used for training. Feinberg also warns that real estate firms are becoming attractive targets for cyberattacks.
“Many operators are still behind the ball on collecting and storing data safely, and those issues are only going to become more important,” Feinberg says. “Because the other side of AI is that it makes the bad actors better, too.”
He adds, “Real estate companies are major targets, especially the mid-market players. They might own 40 properties, but they don’t have software development teams or a strong cybersecurity infrastructure. That makes them attractive targets for bad actors overseas. If I were sitting in those seats, I’d be very concerned.”
Beware the AI wrapper
The rapid rise of artificial intelligence has also fueled a wave of new PropTech startups built around AI-driven solutions. And in many cases, CRE operators are eager customers, actively investing in and adopting the tools these companies are creating.
According to JLL’s Future of Work Survey 2024, 90% of companies plan to run their corporate real estate functions with AI technology supporting human expertise. While understanding of the technology remains limited, adoption is accelerating, with 61% of companies already piloting AI use cases within their CRE operations.
AI is becoming a major area of investment across the global PropTech landscape. JLL reports that of roughly 7,000 PropTech companies worldwide, about 10% now offer AI-powered solutions, spanning both AI-native platforms and AI-enhanced products.
While AI can feel overwhelming in concept, CRE operators are seeing value in practical, contained use cases. Mike Hills of Atlas Real Estate notes that their earliest and most successful adoption of AI has been in handling and routing incoming calls, reducing the load on on-site staff.
Rather than replacing staff, AI screens routine inquiries, handles simple questions, and directs more complex issues to the appropriate team member. This shifts time back to property managers, allowing them to focus on resident interactions and problem-solving instead of answering repetitive requests.
Hills acknowledges that, while the market is saturated with AI pitches, usefulness—not novelty—is the determining factor. “There is a lot of new AI stuff out there, but there are uses for it, and we’re not necessarily sick of hearing about them,” he says.
In the Advisory Council survey, one operator noted strong results from using EliseAI, an AI-driven automation platform built for multifamily operations. EliseAI streamlines leasing, resident communication, maintenance workflows, and portfolio-wide data integration, helping teams reduce manual tasks, boost lead conversion, and centralize operations across thousands of units.
“EliseAI has transformed how we lease apartments,” the operator says. “Having an AI that can engage prospects 24/7, answer complex questions instantly, schedule tours, and even follow up consistently has changed the game.
“Beyond efficiency, EliseAI delivers a better customer experience with faster responses, more personalization, and less frustration for renters. It is one of the few technologies that delivers measurable ROI,” the operator continues.
Still, there’s concern about the proliferation of “AI wrappers.” These are tools that present themselves as proprietary AI solutions but, in reality, simply pass user inputs to platforms like ChatGPT or Gemini and return the output through a branded interface.
“A lot of those ‘wrapper’ companies are going to disappear over the next five years,” says Feinberg, CEO of Otso. “That makes our customers—who are large, experienced, and successful—rightfully cautious. They’re thinking, ‘We’re not going to sign a long-term agreement with a company that might not be around or that won’t meaningfully impact our process for the long term.’”
A more disciplined, user-driven era of PropTech
Commercial real estate operators have reached a breaking point with disconnected tools, redundant platforms, and technology that complicates work instead of simplifying it. The most successful firms have shifted to a new model: adopt slowly, test deliberately, and only scale when the value is proven.
Across interviews and survey responses, one trend was constant: technology adoption succeeds when it reduces friction and empowers the people who actually use it.
PropTech adoption is being shaped by new rules:
- If it doesn’t integrate, it doesn’t get adopted.
- If end users don’t want it, it won’t last.
- If it doesn’t prove ROI, it doesn’t scale.
Operators are demanding partnerships over flashy pitches, workflow fit over features, and measurable outcomes over theoretical benefits. AI is accelerating that shift, giving operators new internal capabilities and raising the bar for vendors.
The next stage of PropTech growth will reward companies that build alongside operators, listen closely to on-site teams, and deliver real, operational impact.
– Nick Pipitone
