• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • RCR Wireless News
  • Enterprise IoT
  • Editorial Calendar
  • Advertise
  • Webinars
  • Reports
  • White Papers
  • Subscribe

In-Building Tech

Connecting CRE building technology buyers with CRE tech sellers

720×90

  • Industry
    • Office & Commercial
    • Data Center, Network Hotels
    • Government
    • Healthcare
    • Higher Ed
    • Hospitality
    • K-12
    • Laboratory & Scientific
    • Manufacturing
    • Multi-Family
    • Transportation: Airports, Rail, Ports
    • Smart City
    • Stadiums, Arenas, Venues
  • Tech
    • Drones
    • AI-Machine-Learning
    • Wi-Fi
    • Augmented Reality
    • IoT (platform, gateway)
    • Networks
    • 5G Resources
    • Microcontrollers
    • Microprocessors
    • Data Analytics
    • Wired Networks, Fiber
    • Wireless (Cell, DAS, BDA, Repeaters, Boosters)
    • Positioning, GPS, Navigation
    • Security
    • Sensors
  • Systems
    • Energy
    • Lighting
    • HVAC
    • Security
  • Functions
    • Automation
    • Building Management
    • Construction
    • Asset Management (EAM)
    • Materials
    • Maintenace (MRO)
  • Smart Buildings
  • News & Event Coverage
  • In-Building Wireless
  • About In-Building Tech
  • Qualcomm 5G Insights
You are here: Home / Office & Commercial / Why building owners need to get serious about proptech investments

Why building owners need to get serious about proptech investments

August 21, 2018 by Urvashi Verma

  •  
  •  
  •  
  •  
  •  
CRE

Real estate technology or proptech is quickly becoming its own category in the startup world. Top tier investment firms Softbank and Goldman Sachs are spending hundreds of billions of dollars to invest solely in real estate tech. Real estate landlords Blackstone and Brookfield Asset Management are also pilling money into proptech.

Earlier this year, Brookfield, a Toronto-based global landlord with assets of $285 billion, announced plans to invest $200 million to $300 million over the next three years in startups in its four business lines including real estate.

In the past seven years, total investment in proptech pushed past $5 billion in 2017 from a comparatively meager $33 million in 2010.

Factors driving proptech investment

The real estate sector, unlike others industries, has for the most part been slower to invest in technology.  Legacy brands have been slow to adopt new tech, and while the industry as a whole has been lagging, it offers investors ample space to gain traction in a relatively level playing field with no clear market leader.

Real estate is one of the largest asset classes in the world accounting for more than 13% of the U.S. GDP. The sector’s market size alone justifies massive venture capital investment, and as the costs of technology such as IoT digital sensors decline and savings from platforms developed using predictive analytics and cloud services continue to emerge, it is rapidly becoming a prime area for investment in startups that solve long-standing issues such as energy savings.

Proptech also has a diverse set of applications. Settings range from retail, hospitality, storage, warehousing, and facilities management and advances in data analytics have proven to be successful at reducing energy and costs- making innovation in the marketplace a profitable proposition. As innovations in modular building, construction robotics and security continue to proliferate the diversity of applications make it an attractive area for investment.

Perhaps most importantly the success of startup unicorns like Airbnb, RedFin, and WeWork, which have all reached far beyond billions of dollars in valuations, makes investors confident and comfortable that proptech investment opportunities will result in growth and liquidations over time.

What does proptech investment mean for building owners?

According to 2018 global outlook report by PwC, areas most likely to be affected by technology were design and construction, big data, tenant requirements and property management- investment in these sectors far outnumbered the investments made in real estate leasing, valuation, sales, and finance.

Image courtesy of PwC.

This trend indicates the emergence of an increasingly competitive marketplace which will be soon be defined by technological improvements inside of buildings. In other words, building owners with more technology will better be able to compete as tech-oriented investment flows through funnels to the marketplace.

Today more than ever, building owners have the opportunity to use data to make better decisions and install smart devices to not only increase the value of their buildings but also save burgeoning energy costs by optimizing energy and occupant use through predictive analytics.

The earlier property managers, building owner, and developers adapt to technology the better they will be able to stand out from the competition.

Amping up on fiber-based connectivity, IoT sensors and occupant data analytics will not only enable building owners to attract and retain tenants now but also prepare them for a more competitive, connected future.

 

Related

Filed Under: Office & Commercial, Proptech

Primary Sidebar

Sponsors

Search

300×350

300×100

CommScope forsees CBRS taking shape

Categories

Top Posts & Pages

  • AT&T deploys its 5G+ service at Vivint Arena in Salt Lake City
    AT&T deploys its 5G+ service at Vivint Arena in Salt Lake City
  • In-Building Tech: Technology Insights for Commercial Real Estate Professionals
    In-Building Tech: Technology Insights for Commercial Real Estate Professionals
  • PropTech 101: What is a space-as-a-service (SPaaS) business model?
    PropTech 101: What is a space-as-a-service (SPaaS) business model?

RSS Enterprise IoT Insights

  • For industrial IoT, 5G isn’t enough; Huawei looks to 5.5G
  • French auto-tech firms form Software République to push Europe-made smart mobility
  • ‘The pandemic will not make cities obsolete’

Recent Posts

  • Mobilitie deploys 5G at CURE Insurance Arena
  • AT&T deploys its 5G+ service at Vivint Arena in Salt Lake City
  • Pelion, Johnson Controls partner to target the smart building space

Archives

Tweets by InBuildingTech
  • RCR Wireless News
  • Enterprise IoT
  • Editorial Calendar
  • Advertise
  • Webinars
  • Reports
  • White Papers
  • Subscribe

Copyright © 2021 • Arden Media Company, LLC

This site uses cookies to improve and personalize your experience and to display advertisements. This site may also include cookies from third parties. By using this site you consent to the use of cookies.AcceptPrivacy Policy