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Commercial Real Estate Tech Predictions

February 23, 2016 Leave a comment

 

The second wave of CRE tech is barely three years old. In that time, the landscape has evolved astonishingly fast, with dozens of new companies formed and hundreds of millions of dollars of venture capital invested in the space. Given how quickly things are moving, it’s tough to predict what’s in store for 2016. Here are 5 things I expect to happen with CRE tech:

Prediction #1: CRE tech goes mainstream

After a decade of stubborn resistance, 2016 is the tipping year where the CRE industry fully embraces cloud technology and mobility to drive efficiency and create competitive advantage. Those still married to their Excel spreadsheets will start to feel the FOMO (that’s Fear Of Missing Out, for you traditionalists) of not having data at their fingertips, as they see leading commercial landlords and brokerage firms adopt ahead of them. That list already includes the likes of CBRE, Vornado, Kilroy, Shorenstein, Beacon Capital, Starwood, Rudin, Silverstein, CREIT, Newmark Knight Frank and hundreds of other leading brands who’ve adopted the Hightower platform.

More specifically, 1-2 of the new software categories will rise above the noise to become industry standard. Leasing management will lead this charge, and could be joined by test fit automation, and bid management. Hightower stands as a good barometer of this shift, with our business  growing by 68% in Q4 alone.

Prediction #2: We see the first major wave of CRE tech M&A

With over 100 companies trying to “disrupt” commercial real real estate, the second half of 2016 will bring with it a shakeout in CRE tech. I expect to see 2-3 M&A deals, as new CRE tech firms merge due to product/market overlap, or as larger technology incumbents try to catch up by acquiring newer technologies.

Prediction #3: There will be a flight to quality in venture financing

For the past 3 years, CRE tech has grown in a favorable fundraising environment, with investors spreading small bets across many players. That will change in 2016 as the largest market opportunities (and leaders) for CRE tech solidify and the financing markets tighten. The result will be far fewer early stage financings (Seed and Series A), and a flight to quality as investors look to line up behind companies they believe can win those transformative opportunities. The companies below the cusp are the likely candidates for the M&A activity discussed above.

Prediction #4: A major partnership between old guard and new guard CRE tech companies

2016 will bring the first of several blockbuster partnerships between a new wave CRE tech startup and major CRE technology incumbent that drives significant value to a broad audience of customers. This success will push other incumbents to integrate with new players who show demonstrated traction in the market, kicking off a dramatic industry shift from technology silos to an ecosystem of platforms communicating through API’s.

Prediction #5: CRE tech goes global, and fast

The last of my CRE tech predictions is that the leading companies will expand internationally and do so much faster than expected. The drivers will be demand from an increasingly global audience of CRE owners and brokerages who expect their technology to cross borders with them, and the inherent scalability of cloud technology enabling rapid expansion into international markets.

The story originally appeared on the Hightower website.

About The Sundance Company
Established in 1976, The Sundance Company has the experience to help you with your commercial real estate needs throughout the Boise Valley. If your requirements include property management, leasing, real estate development, project planning, construction or space planning then look to us. The Sundance Company has more than 1.5 million square feet of office and industrial space available in prime locations in the Boise metropolitan area. More information is available at www.sundanceco.com or 208.322.7300.

 

 

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The Social Media Effect on Commercial Real Estate

February 16, 2016 Leave a comment

Social networking functions as the primary utility for one of the most important aspects of real business growth: relationship management. The commercial real estate industry is making strides embracing digital relationship management and transparent access to information. However, compared to other industries who have established strong social media best practices, the commercial real estate industry is in an early adoption stage.  The big question is how important is social media to the future of facilitating real estate deals? Let’s examine three recent CRE market trends to see where and if these social media waves are driving real business growth.

CRE tech catching up to cutting edge tech.

The Counselors of Real Estate, an 1,100 member real estate advisory community, recently held a panel discussion in Charlotte North Carolina. Two of the seven takeaways pertained specifically to the Internet’s rapid effect on the commercial real estate space:

  • With the right infrastructure, the center of the world can be anywhere Much of the internet’s effect starts with interconnectedness and transparency. In CRE, the availability of capital, the access to listings, and information sources to vet deals are at an all time high.
  • Without a social media presence your network effect is limited and the ability to pass a vetting is diminished. Every firm in of itself is a community of contacts, customers, employees, and all their contacts customers, and employees. Without a community, who will you do business with? In CRE, you must open the online doors so your offerings can be found.

Where you can share an image, you can show a property.

“You can tell a good story with a visual,” said Paige Steers, a Jones Lang LaSalle (JLL) spokeswoman. “If I’m selling a building or leasing space and I have a beautiful photo that says it’s the first time on the market and it’s eye-catching, it will be shared and it will be spotted.”

This social network’s supreme reliance on images yields itself nicely to understanding what a building offers in a short period of time. Peter Grant describes Instagram as “the preferred social-media tool for many New York residential real-estate brokers.“

It’s no surprise to see more real estate activity on the site. While Instagram can no doubt help with a firm’s branding and community development, will we see it emerge as a primary lead generation channel? Are commercial real estate brokers ready to say, ‘I can’t do my next deal without Instagram?’ And before you go head over heels thinking that Instagram is the top social media platform in CRE, know that JLL still doesn’t list Instagram as one of the company’s primary social networks on its own homepage.

The influx of ardent Gen-Y brokers

Author Stand Bullard tells a story of how this monthly young broker’s happy hour grew from 3 to 25 people, serving as a microcosm for the increased demand of 20-somethings becoming commercial real estate brokers in the Cleveland area. For what the piece is lacking in hard data, it is surfacing in anecdotes. The happy hour is officially called, “No Old Dudes or Dudettes.”  The article also implies that twenty-somethings brokers are outnumbering thirty-somethings brokers in the Cleveland area.

To get a deal done – from marketing a property to evaluating a property to building the right team – brokers are banking on social media. While the core of real estate is quite literally brick and mortar, the commercial development of new business demands a more modern approach.

The story originally appeared on the Capstak website.

About The Sundance Company
Established in 1976, The Sundance Company has the experience to help you with your commercial real estate needs throughout the Boise Valley. If your requirements include property management, leasing, real estate development, project planning, construction or space planning then look to us. The Sundance Company has more than 1.5 million square feet of office and industrial space available in prime locations in the Boise metropolitan area. More information is available at www.sundanceco.com or 208.322.7300.

 

 

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What to expect in workplace design in 2016

February 9, 2016 Leave a comment

 

Knoll Inspiration sat down with Tracy Wymer, Vice President of Workplace Research & Strategy at Knoll, to review 2015 and look forward to the year ahead. Read on to learn how co-working culture will influence more traditional workspaces, why what’s good for people is good for organizations, and why there is no such thing as one-size-fits-all.

What trends will have the most impact on workplaces in 2016? Hospitality, technology and great design.

  1. Hospitality

Workplaces are being positioned almost as hotels with really good concierge service. So many businesses have such distributed workforces, and with flex work expanding around the globe, people and content are flowing in and out and through a building at new rates. How do you manage that flow, and how do we attract people to stay? All of a sudden, we see inspiring design and programmatic elements that welcome and keep people in a space, everything from cafes and lounges to company versions of the Ace Hotel lobby. Corporate facilities are exploring how to bring co-working culture in. How do we make the workplace more hospitable, and how do we foster an organization’s culture?

  1. Technology Networks

We’re just scratching the surface of technology’s potential in the workplace’s social network. We can start to understand individual preferences: where you like to sit, if it’s a free address model, and that you like a flat white coffee. And we can start to communicate these preferences, these networks. So how can visual display show an active network of the workplace, allowing other people to know if you’re present and may be available? This information and its communication can help to bring people together who can benefit from being in the same place. It’s this kind of ‘serendipity’ that is so crucial to innovation and creativity.

  1. Great Design

Design is taking a more and more central role in the workplace. I come from the Bay Area, where it’s almost a mandate to provide high quality workspace; it’s seen as a key support for the kind of creativity, innovation and collaboration that are so critical to Bay Area industries. The value of good design for productivity and innovation is being picked up around the globe and adopted by more and more companies, not just the tech or obviously creative ones. We really need to provide more compelling workspaces, especially as everyone is competing for the same talent. And this means supporting a variety of work styles within the same office.

The story originally appeared on the Knoll website.

About The Sundance Company
Established in 1976, The Sundance Company has the experience to help you with your commercial real estate needs throughout the Boise Valley. If your requirements include property management, leasing, real estate development, project planning, construction or space planning then look to us. The Sundance Company has more than 1.5 million square feet of office and industrial space available in prime locations in the Boise metropolitan area. More information is available at www.sundanceco.com or 208.322.7300.

 

 

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What Happens In An Internet Minute?

February 2, 2016 Leave a comment

 

About The Sundance Company
Established in 1976, The Sundance Company has the experience to help you with your commercial real estate needs throughout the Boise Valley. If your requirements include property management, leasing, real estate development, project planning, construction or space planning then look to us. The Sundance Company has more than 1.5 million square feet of office and industrial space available in prime locations in the Boise metropolitan area. More information is available at www.sundanceco.com or 208.322.7300.

Categories: Uncategorized