We recently attended the CRE // Tech Intersect event in New York, a leading symposium on emerging and innovative technologies in the commercial real estate industry. WealthForge was one of 63 vendors to sponsor the event, which highlighted the emergence of technology in the commercial real estate industry and the innovative technologies changing the way business is done.
The Commercial Real Estate technology movement is in full swing and more growth is expected. According to the Wall Street Journal, more than $1.4 billion is expected to be invested in real estate technology companies this year. A list of notable capital raises by CRE technology companies can be found by downloading the CRE Tech Mid Year Report.
The companies at the event serviced all aspects of the real estate industry: brokerage, property management, asset management, CRM, investment sales, and many more. The technology boom is occurring across all segments, showing that there is a broad level movement in the industry.
There are many overarching themes that are driving the boom in CRE technology. First, people are tired of what’s become the status quo of available technology resources. The industry has long been dominated by a few technology providers such as CoStar and Argus. Secondly, people are seeking to increase efficiencies in all aspects of the industry. All the companies at the event helped improve efficiencies in the industry—whether it's more effectively utilizing market data with RealMassive or creating a more robust CRM with APTO. Lastly, the commercial real estate industry is definitely hot and investors want to cash in. It seems the industry today is where the FinTech movement was three years ago. Venture capitalist and investors are all looking for the newest Uber, and some hope to find that in commercial real estate.
The key takeaway from the CRE // Tech intersect symposium is that the technology is quickly evolving. The industry seems to be on fire, and it should continue to grow as long as there isn't a major shift in the cycle. Make sure to check out the CRE // Tech Intersect website for more information about past and future events.
Disclaimer: WealthForge provides this information to our clients and other friends for educational purposes only. It should not be construed or relied upon as legal advice.