Our CEO and Co-Founder Riggs Kubiak recently sat down with Carol Massar and Jason Kelly of Bloomberg Markets to talk commercial real estate. We’ve recapped what their listeners were most interested in knowing about Riggs and about Honest Buildings.
Hear the full segment.
Talking Buildings, Real Estate, and Venture Capital
After beginning his career in corporate commercial real estate and gaining more than 10 years experience including for Tishman Speyer, Riggs took an entrepreneurial turn. He recognized that despite bearing the greatest financial risk, principals and owners suffer due to insufficient visibility and insight into the project management costs and liabilities associated with their portfolios.
Each year, they spend $10T on construction around the world, and according to The Economist, 60% of their capital and construction projects are behind schedule and over budget. McKinsey reports that project delays are directly attributable to the late adoption of technology. Real estate owners have surprisingly little insight into their projects. Are ideas “lightning bolts” that strike without warning? Not according to Riggs, who values the collected experiences, perspectives, and opportunities that drive a particular idea in a particular direction, bringing diverse moments together. It is in that spirit that Honest Buildings was born.
How do they do it? Is Honest Buildings a formula or algorithm?
Not an algorithm, Honest Buildings is a highly customizable platform. Not only does it automate the work, giving time back to project teams, but also undertakes the analysis. Ultimately, the platform allows owners and their teams to learn about trends, costs, to refine projects and share learning in a way to preserves institutional knowledge while supporting transparency, in real time.
While applying technology to commercial real estate is not new, providing technology solutions specific to the needs of owners, who manage the capital and bear all the risk, is previously uncharted. Founded in 2012, Honest Buildings is the first of its kind, placing owners at the center of project and asset information management. More than tracking and reporting, which have considerable value, Honest Buildings’ platform also allows for capital planning and long-term analysis.
Do commercial real estate owners care more now than they did 10-30 years ago?
According to Riggs, Commercial Real Estate has much in common with Wall Street from 30 years ago. As Bloomberg Media helped navigate decision makers away from binders and into spreadsheets, Honest Building’s platform offers digital visibility and insights into owner portfolios.
Historically, commercial real estate owners have had access to project data in isolation, siloed in lists, charts, or spreadsheets, or maintained out of their purview by contractors. Honest Buildings provides its users with start-of-the-art technology and business intelligence about asset values in a manner far more robust than any resources available.
Listen to the full interview