Now that more than half the year is behind us, we wanted to check in on the state of the CRE Tech sector. At the start of the year, we found several sources that predicted continued growth in real estate technology investment and deployment, and a few sources that saw some trouble on the horizon.
As it happens, leaders from across the industry spent the summer looking closely at activity from Q1/Q2 and assessing what that means for the remainder of the year and beyond. Overall, analysis indicates that CRE technology will continue to gain traction, but widespread adoption still poses the biggest challenge.
#1: Funding To Real Estate Tech Startups Skyrockets In First Half Of 2016
"In the first half of 2016, real estate tech startups raised more than $1.8B across more than 100 deals. The funding total for the first six months of this year represents an 85% increase when compared to the same period in 2015. Q2’16 saw a series of $50M+ financings including startups like Homelink and Buildium raising large rounds."
#2: COrenet sees a strong Future for Corporate Real Estate Technology
"Technology in the workplace has been on a steady path of platform progression for the past several decades. The first platform emerged in the 1950s with the mainframe computer. The next major step came in the 1990s with programmable software and the personal computer. The third and current platform began in 2007 with the advent of cloud computing, mobile devices, more sophisticated analytics, social media and artificial intelligence."
'These technology advances will have tremendous impact as to how digital and physical infrastructure will be organized and how smart workplaces and smart buildings will be designed, built and managed,' says Peter Miscovich, Managing Director, Strategy + Innovation, JLL Consulting in New York.
#3: CIT Commercial Real Estate Outlook observes mixed messages
According to CIT's survey of 200 senior level industry executives, “The benefits of CRE technology are clear, with most executives agreeing that these advancements are revolutionizing the industry." Additionally, 86% of the respondents declared that they are either keeping pace with the adoption of CRE tech or at the leading edge.
#4: PwC Report Identifies Eight Tech Trends That Could Impact CRE
The recent PwC report Tech Breakthrough Megatrends shows that 77% of CEOs interviewed believe technology advances will be the most impactful global trend on their business over the next five years, even over demographic shifts, resource scarcity and urbanisation.
#5: JLL's CEO of MARKETS talks about How Technology Is Shaping CRE
John Gates, CEO, Markets for JLL in the Americas states, “Gone are the days when the CRE sector saw technology as a cost center. Now we are creating platforms that directly contribute to achieving our clients’ investment and corporate business objectives. More CRE tech companies are introducing more new platforms and tools than ever before, and even the most “old school” real estate professionals are realizing how critical technology is to every phase of the real estate lifecycle.”