Today's commercial real estate (CRE) tech companies are aiming to reduce traditional barriers to funding, relieve the burden of capturing and catalyzing Big Data, and remove friction points from team collaboration and project management workflows. In the process, CRE tech platforms purpose-built for the industry are eliminating entire layers of cost that were once thought to be unavoidable in traditional real estate operations.
Here are some of the leading CRE technology platforms that are stripping away layers of cost from real estate operations:
Floored helps CRE owners tailor their presentations and tours for individual tenants. The team recently launched a new product called Protofit which is a “smart CAD” solution that trims the test fit process from weeks down to minutes. Using 2D & 3D visualization solutions speeds up the leasing cycle, which unlocks extra days of revenue. According to Floored, one week saved in the leasing cycle pays for the software for an entire building for a full year.
Fundrise is a leading crowdfunding site for real estate, established in 2010. The platform lets project developers access a non-traditional channel of funding in the form of investments from individuals who lay out as little as $1000 to participate. Fundrise disperses the funding in full as soon as a project is approved, and it claims to offer a lower cost of capital than traditional lenders. The platform has deployed more than $46 million to date to project developers.
Honest Buildings is a bid management, project cost tracking and reporting platform for real estate owners and managers. The platform automates many of the administrative tasks that consume project managers' time, like providing real-time status updates to the executive team, managing team communication, distributing documents, and leveling bids. Honest Buildings counts some of the industries biggest firms as customers, including JBG, JLL, Parkway and SL Green. Kushner Companies reports savings $2 million in the first 10 months of using the platform.
CompStak is a massive database of commercial lease comps, providing accurate and searchable information direct from brokers. CompStak gives real estate owners the ability to quickly price space in accordance with the market, and hopefully move it faster. In a market where 20,000 square feet leased for $75 per square foot costs a landlord $30k for every week it sits vacant on the market, leasing it even one week faster pays for the platform.
REscour helps CRE professionals aggregate, visualize and analyze large amounts of relevant data on the multi-family market. Users can focus on specific locations and get news, listings, and transaction information, all of which are regularly updated. REscour has helped users achieve a 10x reduction in hours spent searching listings and an increase in the amount of listings viewed by 25%.
Making the most of the opportunities uncovered by data is necessary for success. Rentlytics provides a dashboard for multifamily owners to retrieve and analyze occupancy, leasing and rent information in very short order. After accounting for organic growth, Rentlytics customers see over a 3% average increase in year-over-year net operating income vs. the national average.
Storefront is an innovative site that helps new retailers test the waters before committing to a market. It connects these businesses with short-term rental space where they can create a “pop-up” business. With the average cost of opening a pop-up through Storefront at $2,000 compared to $98,000 average when opening a traditional brick and mortar store, retailers can afford to test the waters and determine market activity.
OppSites connects real estate investors with city-supported development opportunities. Cities use OppSites to highlight properties that they want to see redeveloped. Real estate investors use OppSites to discover development opportunities and connect with local experts ready to help develop those opportunities. Local experts including planners, construction firms and attorneys use OppSites to connect with new clients and leverage their knowledge to turn development opportunities into successful projects.
SharpLaunch is a full-feature digital marketing platform for commercial properties. The property management component includes document sharing, contact management, and more. This relatively inexpensive service helps streamline work in all areas.