Throughout history, innovation has shaped the world—spurring economic growth and improving the human condition. Many of the conveniences we take for granted today were fairly recent breakthroughs. Fiber-optic technology became usable for telecommunications in the 1970s. In 1983, Motorola introduced the first handheld mobile phone. But consider something as simple as wheels on suitcases—these first debuted at Macy’s in 1970. It’s easy to forget how today’s realities began as yesterday’s dreams, and today’s visionaries (in some cases) were once viewed in less flattering light.

Now the pace of change is faster than ever. Zoom is ubiquitous, allowing anyone across the globe to pitch to Silicon Valley without the hassle and expense of travel. Video conferencing has dramatically increased efficiency (right?). Democratized access to education (Google for Education, YouTube Learning) has leveled the playing field for learning, reducing barriers to entry for what was costly, elite knowledge. Real estate is also shifting: Post-COVID, we saw an acceleration of change with evolving supply chains and convergence of product types for hybrid, live-work-play use, and adaptive re-use projects.

There are countless examples of individuals outpacing corporations with novel ideas, and these are always followed by money. Seed funding for early-stage ideas in all categories has exploded in the last decade. Fewer than 3,200 companies received this funding in totality between 2006 and 2010. For the five-year period 10 years later, this figure jumped by more than 715 percent.

Adopt a startup mindset to solve modern problems.

So how does this impact real estate? Global forces cannot help but drive long-term structural shifts in the built environment—across real estate, infrastructure, and energy. The rapid, decentralized pace of change, combined with the funneling of capital, will lead to more innovation. Of course, it also leads to rapid obsolescence for those companies unwilling to change their playbook. Over the past decade, rising tides lifted the entire fleet, but it seems future success will require a bigger boat. The scale of our current problems is just too large to solve in a garage.

So, what can a slow, uninspired corporation do to combat the change exploding around it? The same thing you or I would do—get to the gym and get serious. Build new muscles. Follow a clear routine. Adopt a startup mindset to solve modern problems.

Obviously, this starts at the top. The willingness (eagerness) to take calculated risks will accelerate change and reduce complacency and fear. Consider the Fortune 500—only 10 percent have remained on this list over the last 50 years. Simply put, incumbents have a difficult time thinking like a startup.

Listen up corporations—why not pick the brains of startups? The relationships can be very symbiotic. According to McKinsey, large companies want knowledge brought in-house, while their smaller brethren seek access to bigger markets. With both having skin in the game, combining forces can create formidable, surprisingly successful partnerships. We see industries like real estate, energy, data, and knowledge having opportunities to form unique collaborations to bring innovative solutions to our changing world.

Let’s take real estate as an example. This industry represents the nexus of the future—serving as a bazaar for talent, resources, and ideas to be presented, vetted, funded, and executed. When you consider only 15 percent of the planet’s land area has been modified by humans, it becomes clear the next act of our play is not yet written. Fortunately, the real estate industry is ideally positioned to innovate as the architects of the future. Playing the long game is a byproduct of an entrepreneurial culture, especially for challenges like energy transition that require a long-term approach. By virtue of its footprint, the real estate industry will need to assume a lead role.

Change, like the passing of time, is inevitable and relentless. Yet our strides in real estate innovation need not be bound by the likes of Moore’s law or any other. How far we can lean in and harness this fusion of thoughts and minds is the key differentiator between visionaries and those of us just seeing things.