SlideShare une entreprise Scribd logo
1  sur  10
Télécharger pour lire hors ligne
1
Opportunities in PropTech
February 2021
Sidney Kanell & Kapil Desai
2
PropTech Overview
PropTech is broadly defined as the application of technology in the real estate sector in order to improve real estate transactions,
property management and tenant experiences.
Real Estate has been amongst the slowest asset classes to adopt technology and is ripe for disruption
• Real estate is the largest asset class in the world ($280T+ in global asset value, according to Savills) and it touches every aspect of the economy
• PropTech has suffered from a “chicken and egg” problem whereby managers are hesitant to implement technology without a proven ROI
• In a 2020 survey conducted by Deloitte, only 41% of real estate managers felt they were adequately updating business processes to incorporate
technology, and 56% felt the pandemic unveiled digital deficiencies
But while adoption has been historically slow, momentum is finally building
• According to CB Insights, funding into PropTech companies increased from $2.2B in 2015 to $8.9B in 2019 (41.8% CAGR); while the overall pace of
funding slowed in 2020 due to the pandemic, 2021 is expected to be a record year
• As the market continues to mature, we are seeing larger, later-stage rounds
And today’s catalysts position PropTech for accelerated growth
• Human stakeholders increasingly expect digital experiences in real estate as most aspects of our personal and work lives have moved to a digital format
• Property managers are making a concerted effort to engage with tenants in order to maximize their experience
• Proven ROI and an imminent large-scale rollout of 5G both fuel the implementation of portfolio automation and intelligence tools
• New government regulations and tenant demands are pressuring real estate managers to adopt sustainable solutions
3
Total Real Estate Value
Professionally Managed RE Value $9.6T
Vacancy Estimate 7%
Income Generating RE Value $8.9T
Cash Available for Operating Expenses
Est. Average Cap Rate (Yield) 6%
Rental Income $535.7B
Total Spend on SaaS & Tech-enabled Services
Est. Tech Spend (% of Rental Income) 5%
Market Size $26.8B
PropTech is a Massive Market Opportunity
Software and tech-enabled services for professionally
managed real estate alone is a $26B+ opportunity
1
2
3
Technology increasingly impacts every stage of the real
estate asset life cycle
Listing /
Marketplaces
Financing /
Capital
Markets
Broker Tools
Underwriting,
DD, Legal,
Closing
Leasing &
Lease
Management
Building
Automation &
Intelligence
Property
Management
Tenant
Experience
MANAGE TRANSACT
4
An Evolving Landscape
PropTech 1.0 - Digitization
Migration of existing data
and processes to a digital
format
PropTech 2.0 - Innovation
Reimagination of how real
estate is bought & sold,
managed and used
PropTech 3.0 - Disruption
Technology unlocks
insights, efficiencies and
experiences that were
previously not possible in
real estate
PropTech 3.0 brings a new wave of technology that is fundamentally transforming the real estate sector
5
The Future of Real Estate is Digital
Stakeholder Pain Point Technology Impact
Brokers and Agents
Showing properties, screening tenants and processing
paperwork is time-consuming and manual
Virtual leasing tools and SaaS products give agents the tools and
time savings they need to close more deals
Lenders & Investors
Credit underwriting and investment due diligence is manual
and opaque; real estate is an illiquid asset class and physical
distance is a barrier to investing in certain geographies
Digital tools and data insights enable superior underwriting and
break down barriers to lend to or invest into real estate assets
Property Managers
Property managers have valuable data at their fingertips, but
they lack the tools to extract business insights
Smart building technology unlocks efficiency gains and
fundamentally transforms the way that buildings and portfolios
are managed
Tenants
Almost every aspect of our day to day lives has been
enhanced by digital tools but real estate has lagged behind
Building apps allow tenants to communicate with management,
pay rent, submit maintenance requests and engage with their
broader building community
Third Party Diligence and
Maintenance Providers
Real estate due diligence and maintenance are coordinated
ad hoc via email or phone, and poor recordkeeping coupled
with lack of digital tools causes processes to progress very
slowly
SaaS platforms designed for specific real estate service providers
enable more efficient and transparent operations
As part of a broader macro trend, stakeholders across the real estate ecosystem are embracing digital solutions
6
The Future of Real Estate is People-Centric
The challenges brought forth by COVID-19 have established an increased focus on landlord / tenant relationships as building managers attempt to
convey the “we are here for you” message
• As people go back to offices and public spaces, tenant comfort and safety is a top priority; sensors and access control systems are being installed to
monitor occupancy, traffic flow and health and safety risk
• Going forward commercial tenants will demand shorter lease terms, and permanent flexible work arrangements give an already transient population
even more freedom to move around – this presents both commercial and residential building operators with the opportunity to leverage a competitive
advantage via tech-enabled services, amenities and communication tools
As Gen Z enters the leasing market, property managers look to appeal to the most tech-focused generation yet
• Everything from lease signing, to rent payments, to maintenance requests, to building access will be done via mobile
• Younger renters are more comfortable committing to live in places they haven’t visited in person fueling the rise of digital leasing tools
Property managers are increasingly looking to unlock additional revenue streams by selling services to tenants
• Potential supplemental revenue streams include insurance, cleaning services and special deals with retail partners
• B2B SaaS platforms and tech-enabled service companies are building Direct-to-Tenant product lines as they look to capture a portion of the
economics
Real estate is a people business – at the end of the day a successful real estate operation comes down to optimizing the satisfaction
of the people who spend time inside of its buildings
7
The Future of Real Estate is Intelligent
Real estate operators are finally taking the plunge and in doing so are learning that
smart building technology has a positive ROI
• COVID is a catalyst for sensor technology since operators need to monitor
health risks upon reopening
• Beyond health and safety, sensors will deliver long-term value in reducing
energy expenditure, prioritizing maintenance, informing space optimization and
managing access permissions for building guests and hybrid workforces
(including everything from front door access to shared desk access)
• Data is analyzed to screen tenants, predict lease renewals and inform strategies
for tenant retention in order to boost topline
• Digital twins (digital copies of physical buildings) simulate building scenarios and
develop predictive analytics
Building intelligence is a benefit to tenants
• Commercial tenants are making more data-backed decisions in order to engage
with end customers and inform strategy; as a result, real estate managers can
share relevant data with their tenants which could manifest in higher justified
rental rates and / or improved tenant retention
• Access control used to be a security mechanism but now it is an amenity – these
systems allow tenants to provide temporary digital keys to guests and control
access for hybrid workforces
Building Intelligence Today
• Independent sensors and IoT devices collect data and route it
to a centralized building management software system where
it is analyzed in order to inform management’s strategy
• Example: Sensors collect data on building temperature and
space usage and send it to a central system; the system runs
statistical models to put forth a plan for optimizing energy
expenditure without compromising on tenant comfort
Building Intelligence Powered by Ubiquitous 5G Connectivity
• Individual devices within an interconnected network collect
granular building data; the devices talk to one another and
make autonomous building management decisions
• Example: Independent sensors monitor traffic flow and space
usage throughout a large building and communicate with one
another in order to autonomously optimize temperature
controls in real-time
Smart building technology initially struggled to gain traction, but the pandemic is increasing adoption; the underlying 5G connectivity
necessary for smart buildings to achieve their full potential has finally arrived
8
The Future of Real Estate is Sustainable
Residential and commercial tenants alike are pushing for sustainable solutions that align with their personal and brand values
• Individuals increasingly view climate change as a major crisis and younger generations are adamant about minimizing their personal carbon footprint
• Companies including Amazon, Microsoft, Starbucks, Unilever and JetBlue have committed to plans to work toward carbon neutrality
The ethical argument for sustainable solutions in real estate is finally making economic sense
• More owners are charging energy-inclusive rent which incentivizes them to implement efficient lighting and HVAC systems, as well as systems that monitor
and control their tenants’ energy consumption
• Real estate operators became cash constrained during the pandemic due to vacancies, depressed market rent and building reopening costs; many are
therefore looking to reduce energy and maintenance costs via technology going forward
2016
195 countries sign the
Paris Climate Agreement
in order to combat
climate change
2018
California Governor Jerry
Brown signs executive
order calling for carbon
neutrality by 2045
2019
EU commits to carbon
neutrality by 2050
2021
Over 125 countries and
450 cities have joined the
Climate Ambition Alliance
to achieve carbon
neutrality by 2050
The real estate industry is responsible for 30% of all greenhouse gas emissions; tenant demands coupled with new government
regulations are fueling adoption of climate technology in real estate
9
PropTech Market Map
10
Please send any inquiries to sidney@catalyst.com

Contenu connexe

Tendances

Pitch Deck Teardown: Ageras's $36M Private Equity deck
Pitch Deck Teardown: Ageras's $36M Private Equity deckPitch Deck Teardown: Ageras's $36M Private Equity deck
Pitch Deck Teardown: Ageras's $36M Private Equity deckHajeJanKamps
 
Pitch Deck Teardown: Nokod Security's $8M Seed deck
Pitch Deck Teardown: Nokod Security's $8M Seed deckPitch Deck Teardown: Nokod Security's $8M Seed deck
Pitch Deck Teardown: Nokod Security's $8M Seed deckHajeJanKamps
 
Thomvest Ventures Real Estate Tech Review, Fall 2019
Thomvest Ventures Real Estate Tech Review, Fall 2019Thomvest Ventures Real Estate Tech Review, Fall 2019
Thomvest Ventures Real Estate Tech Review, Fall 2019Thomvest Ventures
 
Pitch Deck Teardown: Scrintal's $1M Seed deck
Pitch Deck Teardown: Scrintal's $1M Seed deckPitch Deck Teardown: Scrintal's $1M Seed deck
Pitch Deck Teardown: Scrintal's $1M Seed deckHajeJanKamps
 
Pitch Deck Teardown: Unito's $20M Series B deck
Pitch Deck Teardown: Unito's $20M Series B deckPitch Deck Teardown: Unito's $20M Series B deck
Pitch Deck Teardown: Unito's $20M Series B deckHajeJanKamps
 
Proptech - disruptive technologies and their impact on the real estate indust...
Proptech - disruptive technologies and their impact on the real estate indust...Proptech - disruptive technologies and their impact on the real estate indust...
Proptech - disruptive technologies and their impact on the real estate indust...Gyula Bajkai
 
How To Create A Successful Investment Pitch Deck by Piktochart and HighSpark
How To Create A Successful Investment Pitch Deck by Piktochart and HighSparkHow To Create A Successful Investment Pitch Deck by Piktochart and HighSpark
How To Create A Successful Investment Pitch Deck by Piktochart and HighSparkPiktochart
 
Fintech Strategic Roadmap for the UK’s Largest Banks: our MIT Fintech course ...
Fintech Strategic Roadmap for the UK’s Largest Banks: our MIT Fintech course ...Fintech Strategic Roadmap for the UK’s Largest Banks: our MIT Fintech course ...
Fintech Strategic Roadmap for the UK’s Largest Banks: our MIT Fintech course ...Luis Castejon-Martin
 
'This is Bundl' book
'This is Bundl' book'This is Bundl' book
'This is Bundl' bookBundl
 
Pitch Deck Teardown: Gable's $12M Series A deck
Pitch Deck Teardown: Gable's $12M Series A deckPitch Deck Teardown: Gable's $12M Series A deck
Pitch Deck Teardown: Gable's $12M Series A deckHajeJanKamps
 
Aircall - NOAH19 Berlin
Aircall - NOAH19 BerlinAircall - NOAH19 Berlin
Aircall - NOAH19 BerlinNOAH Advisors
 
Mint.com Pre-Launch Pitch Deck
Mint.com Pre-Launch Pitch DeckMint.com Pre-Launch Pitch Deck
Mint.com Pre-Launch Pitch DeckHiten Shah
 
Mint: $325K VC investment turned into $170M. Mint's initial pitch deck
Mint: $325K VC investment turned into $170M. Mint's initial pitch deckMint: $325K VC investment turned into $170M. Mint's initial pitch deck
Mint: $325K VC investment turned into $170M. Mint's initial pitch deckAA BB
 
Elix Incubator Pitch Deck
Elix Incubator Pitch DeckElix Incubator Pitch Deck
Elix Incubator Pitch DeckIsabella Liu
 
Crossing the Chasm - What's New, What's Not
Crossing the Chasm - What's New, What's NotCrossing the Chasm - What's New, What's Not
Crossing the Chasm - What's New, What's NotGeoffrey Moore
 
Pitch Deck Teardown: Rootine's $10M Series A deck
Pitch Deck Teardown: Rootine's $10M Series A deckPitch Deck Teardown: Rootine's $10M Series A deck
Pitch Deck Teardown: Rootine's $10M Series A deckHajeJanKamps
 
Pitch Deck Teardown: Mint House's $35M Series B deck
Pitch Deck Teardown: Mint House's $35M Series B deckPitch Deck Teardown: Mint House's $35M Series B deck
Pitch Deck Teardown: Mint House's $35M Series B deckHajeJanKamps
 

Tendances (20)

Pitch Deck Teardown: Ageras's $36M Private Equity deck
Pitch Deck Teardown: Ageras's $36M Private Equity deckPitch Deck Teardown: Ageras's $36M Private Equity deck
Pitch Deck Teardown: Ageras's $36M Private Equity deck
 
Pitch Deck Teardown: Nokod Security's $8M Seed deck
Pitch Deck Teardown: Nokod Security's $8M Seed deckPitch Deck Teardown: Nokod Security's $8M Seed deck
Pitch Deck Teardown: Nokod Security's $8M Seed deck
 
Thomvest Ventures Real Estate Tech Review, Fall 2019
Thomvest Ventures Real Estate Tech Review, Fall 2019Thomvest Ventures Real Estate Tech Review, Fall 2019
Thomvest Ventures Real Estate Tech Review, Fall 2019
 
Pitch Deck Teardown: Scrintal's $1M Seed deck
Pitch Deck Teardown: Scrintal's $1M Seed deckPitch Deck Teardown: Scrintal's $1M Seed deck
Pitch Deck Teardown: Scrintal's $1M Seed deck
 
Pitch Deck Teardown: Unito's $20M Series B deck
Pitch Deck Teardown: Unito's $20M Series B deckPitch Deck Teardown: Unito's $20M Series B deck
Pitch Deck Teardown: Unito's $20M Series B deck
 
Proptech - disruptive technologies and their impact on the real estate indust...
Proptech - disruptive technologies and their impact on the real estate indust...Proptech - disruptive technologies and their impact on the real estate indust...
Proptech - disruptive technologies and their impact on the real estate indust...
 
How To Create A Successful Investment Pitch Deck by Piktochart and HighSpark
How To Create A Successful Investment Pitch Deck by Piktochart and HighSparkHow To Create A Successful Investment Pitch Deck by Piktochart and HighSpark
How To Create A Successful Investment Pitch Deck by Piktochart and HighSpark
 
Fintech Strategic Roadmap for the UK’s Largest Banks: our MIT Fintech course ...
Fintech Strategic Roadmap for the UK’s Largest Banks: our MIT Fintech course ...Fintech Strategic Roadmap for the UK’s Largest Banks: our MIT Fintech course ...
Fintech Strategic Roadmap for the UK’s Largest Banks: our MIT Fintech course ...
 
'This is Bundl' book
'This is Bundl' book'This is Bundl' book
'This is Bundl' book
 
Pitch Deck Teardown: Gable's $12M Series A deck
Pitch Deck Teardown: Gable's $12M Series A deckPitch Deck Teardown: Gable's $12M Series A deck
Pitch Deck Teardown: Gable's $12M Series A deck
 
Aircall - NOAH19 Berlin
Aircall - NOAH19 BerlinAircall - NOAH19 Berlin
Aircall - NOAH19 Berlin
 
Mint.com Pre-Launch Pitch Deck
Mint.com Pre-Launch Pitch DeckMint.com Pre-Launch Pitch Deck
Mint.com Pre-Launch Pitch Deck
 
Mint: $325K VC investment turned into $170M. Mint's initial pitch deck
Mint: $325K VC investment turned into $170M. Mint's initial pitch deckMint: $325K VC investment turned into $170M. Mint's initial pitch deck
Mint: $325K VC investment turned into $170M. Mint's initial pitch deck
 
Front Series B Deck
Front Series B DeckFront Series B Deck
Front Series B Deck
 
Lunar
LunarLunar
Lunar
 
Elix Incubator Pitch Deck
Elix Incubator Pitch DeckElix Incubator Pitch Deck
Elix Incubator Pitch Deck
 
Crossing the Chasm - What's New, What's Not
Crossing the Chasm - What's New, What's NotCrossing the Chasm - What's New, What's Not
Crossing the Chasm - What's New, What's Not
 
Pitch Deck Teardown: Rootine's $10M Series A deck
Pitch Deck Teardown: Rootine's $10M Series A deckPitch Deck Teardown: Rootine's $10M Series A deck
Pitch Deck Teardown: Rootine's $10M Series A deck
 
SteadyBudget's Seed Funding Pitch Deck
SteadyBudget's Seed Funding Pitch DeckSteadyBudget's Seed Funding Pitch Deck
SteadyBudget's Seed Funding Pitch Deck
 
Pitch Deck Teardown: Mint House's $35M Series B deck
Pitch Deck Teardown: Mint House's $35M Series B deckPitch Deck Teardown: Mint House's $35M Series B deck
Pitch Deck Teardown: Mint House's $35M Series B deck
 

Similaire à Opportunities in PropTech

Marching towards building healthy dwellings and industry 4.0 based development
Marching towards building healthy dwellings and industry 4.0 based developmentMarching towards building healthy dwellings and industry 4.0 based development
Marching towards building healthy dwellings and industry 4.0 based developmentDr. Prachi Ugle Pimpalkhute
 
Zpryme Report on Asset Monitoring
Zpryme Report on Asset MonitoringZpryme Report on Asset Monitoring
Zpryme Report on Asset MonitoringPaula Smith
 
Real Estate Technology Trends & Solutions for New Opportunities
Real Estate Technology Trends & Solutions for New OpportunitiesReal Estate Technology Trends & Solutions for New Opportunities
Real Estate Technology Trends & Solutions for New OpportunitiesMarie Weaver
 
Field Study - Tech Solutions for Rent Collections - External_FINAL.pdf
Field Study - Tech Solutions for Rent Collections - External_FINAL.pdfField Study - Tech Solutions for Rent Collections - External_FINAL.pdf
Field Study - Tech Solutions for Rent Collections - External_FINAL.pdfDaniel Fetner
 
SCF - Accelerating Densification Worldwide
SCF - Accelerating Densification WorldwideSCF - Accelerating Densification Worldwide
SCF - Accelerating Densification WorldwideElizabeth Carter
 
SCF - Accelerating Densification Worldwide
SCF - Accelerating Densification WorldwideSCF - Accelerating Densification Worldwide
SCF - Accelerating Densification WorldwideSmall Cell Forum
 
A BluePrint for the Future of Smart Building Retrofits
A BluePrint for the Future of Smart Building RetrofitsA BluePrint for the Future of Smart Building Retrofits
A BluePrint for the Future of Smart Building RetrofitsMemoori
 
Discover - Emerging Cloud Technologies
Discover - Emerging Cloud TechnologiesDiscover - Emerging Cloud Technologies
Discover - Emerging Cloud TechnologiesLaurenWendler
 
Programmable Money and Business Process Management on Blockchain
Programmable Money and Business Process Management on BlockchainProgrammable Money and Business Process Management on Blockchain
Programmable Money and Business Process Management on BlockchainIngo Weber
 
Making Spaces Smart: Four Steps to Move from Vision to Reality
Making Spaces Smart: Four Steps to Move from Vision to RealityMaking Spaces Smart: Four Steps to Move from Vision to Reality
Making Spaces Smart: Four Steps to Move from Vision to RealityCognizant
 
Blockchain in supply chain conference Jul19 - Christina Patsioura
Blockchain in supply chain conference Jul19 - Christina Patsioura Blockchain in supply chain conference Jul19 - Christina Patsioura
Blockchain in supply chain conference Jul19 - Christina Patsioura Christina Patsioura
 
ERES2023_H_130723_1130_100.pptx
ERES2023_H_130723_1130_100.pptxERES2023_H_130723_1130_100.pptx
ERES2023_H_130723_1130_100.pptxProfAKashyap
 
PRG Symposium From Idea to Scale vF
PRG Symposium From Idea to Scale vFPRG Symposium From Idea to Scale vF
PRG Symposium From Idea to Scale vFAlex Blanter
 
Key Takeaways and Calls to Action from 2019 Apartmentalize
Key Takeaways and Calls to Action from 2019 ApartmentalizeKey Takeaways and Calls to Action from 2019 Apartmentalize
Key Takeaways and Calls to Action from 2019 ApartmentalizePayLease
 
Cloud computing metrics for successful business architecture and strategy cap...
Cloud computing metrics for successful business architecture and strategy cap...Cloud computing metrics for successful business architecture and strategy cap...
Cloud computing metrics for successful business architecture and strategy cap...Mark Skilton
 
Break Through in Financial Services with Digital Transformation
Break Through in Financial Services with Digital TransformationBreak Through in Financial Services with Digital Transformation
Break Through in Financial Services with Digital TransformationApttus
 
The state of real estate on Blockchain Nov 18
The state of real estate on Blockchain   Nov 18The state of real estate on Blockchain   Nov 18
The state of real estate on Blockchain Nov 18Anil Nayak
 

Similaire à Opportunities in PropTech (20)

Marching towards building healthy dwellings and industry 4.0 based development
Marching towards building healthy dwellings and industry 4.0 based developmentMarching towards building healthy dwellings and industry 4.0 based development
Marching towards building healthy dwellings and industry 4.0 based development
 
Zpryme Report on Asset Monitoring
Zpryme Report on Asset MonitoringZpryme Report on Asset Monitoring
Zpryme Report on Asset Monitoring
 
Real Estate Technology Trends & Solutions for New Opportunities
Real Estate Technology Trends & Solutions for New OpportunitiesReal Estate Technology Trends & Solutions for New Opportunities
Real Estate Technology Trends & Solutions for New Opportunities
 
Field Study - Tech Solutions for Rent Collections - External_FINAL.pdf
Field Study - Tech Solutions for Rent Collections - External_FINAL.pdfField Study - Tech Solutions for Rent Collections - External_FINAL.pdf
Field Study - Tech Solutions for Rent Collections - External_FINAL.pdf
 
SCF - Accelerating Densification Worldwide
SCF - Accelerating Densification WorldwideSCF - Accelerating Densification Worldwide
SCF - Accelerating Densification Worldwide
 
SCF - Accelerating Densification Worldwide
SCF - Accelerating Densification WorldwideSCF - Accelerating Densification Worldwide
SCF - Accelerating Densification Worldwide
 
CTO_Yaounde_17Oct23.pdf
CTO_Yaounde_17Oct23.pdfCTO_Yaounde_17Oct23.pdf
CTO_Yaounde_17Oct23.pdf
 
A BluePrint for the Future of Smart Building Retrofits
A BluePrint for the Future of Smart Building RetrofitsA BluePrint for the Future of Smart Building Retrofits
A BluePrint for the Future of Smart Building Retrofits
 
Discover - Emerging Cloud Technologies
Discover - Emerging Cloud TechnologiesDiscover - Emerging Cloud Technologies
Discover - Emerging Cloud Technologies
 
Programmable Money and Business Process Management on Blockchain
Programmable Money and Business Process Management on BlockchainProgrammable Money and Business Process Management on Blockchain
Programmable Money and Business Process Management on Blockchain
 
Making Spaces Smart: Four Steps to Move from Vision to Reality
Making Spaces Smart: Four Steps to Move from Vision to RealityMaking Spaces Smart: Four Steps to Move from Vision to Reality
Making Spaces Smart: Four Steps to Move from Vision to Reality
 
Blockchain in Utilities
Blockchain in UtilitiesBlockchain in Utilities
Blockchain in Utilities
 
Blockchain in supply chain conference Jul19 - Christina Patsioura
Blockchain in supply chain conference Jul19 - Christina Patsioura Blockchain in supply chain conference Jul19 - Christina Patsioura
Blockchain in supply chain conference Jul19 - Christina Patsioura
 
ERES2023_H_130723_1130_100.pptx
ERES2023_H_130723_1130_100.pptxERES2023_H_130723_1130_100.pptx
ERES2023_H_130723_1130_100.pptx
 
A Smart Cloud Makes Cities Smarter
A Smart Cloud Makes Cities SmarterA Smart Cloud Makes Cities Smarter
A Smart Cloud Makes Cities Smarter
 
PRG Symposium From Idea to Scale vF
PRG Symposium From Idea to Scale vFPRG Symposium From Idea to Scale vF
PRG Symposium From Idea to Scale vF
 
Key Takeaways and Calls to Action from 2019 Apartmentalize
Key Takeaways and Calls to Action from 2019 ApartmentalizeKey Takeaways and Calls to Action from 2019 Apartmentalize
Key Takeaways and Calls to Action from 2019 Apartmentalize
 
Cloud computing metrics for successful business architecture and strategy cap...
Cloud computing metrics for successful business architecture and strategy cap...Cloud computing metrics for successful business architecture and strategy cap...
Cloud computing metrics for successful business architecture and strategy cap...
 
Break Through in Financial Services with Digital Transformation
Break Through in Financial Services with Digital TransformationBreak Through in Financial Services with Digital Transformation
Break Through in Financial Services with Digital Transformation
 
The state of real estate on Blockchain Nov 18
The state of real estate on Blockchain   Nov 18The state of real estate on Blockchain   Nov 18
The state of real estate on Blockchain Nov 18
 

Plus de Catalyst Investors

Provider Perspectives Research
Provider Perspectives ResearchProvider Perspectives Research
Provider Perspectives ResearchCatalyst Investors
 
Market Opportunities Post-COVID-19: "The Aftermath"
Market Opportunities Post-COVID-19: "The Aftermath"Market Opportunities Post-COVID-19: "The Aftermath"
Market Opportunities Post-COVID-19: "The Aftermath"Catalyst Investors
 
Evolution of the Software Development Lifecycle and DevOps Tools
Evolution of the Software Development Lifecycle and DevOps ToolsEvolution of the Software Development Lifecycle and DevOps Tools
Evolution of the Software Development Lifecycle and DevOps ToolsCatalyst Investors
 
Market Opportunities Post-COVID-19
Market Opportunities Post-COVID-19Market Opportunities Post-COVID-19
Market Opportunities Post-COVID-19Catalyst Investors
 
Contextual Communications Overview
Contextual Communications Overview Contextual Communications Overview
Contextual Communications Overview Catalyst Investors
 
AI Enablement of Business Services
AI Enablement of Business ServicesAI Enablement of Business Services
AI Enablement of Business ServicesCatalyst Investors
 
Vertical Payments Software Overview
Vertical Payments Software OverviewVertical Payments Software Overview
Vertical Payments Software OverviewCatalyst Investors
 
Enterprise Financial Management: Solutions for the Office of the CFO
Enterprise Financial Management: Solutions for the Office of the CFOEnterprise Financial Management: Solutions for the Office of the CFO
Enterprise Financial Management: Solutions for the Office of the CFOCatalyst Investors
 
Defining the B2B On-Demand and Outsourced Talent Market
Defining the B2B On-Demand and Outsourced Talent MarketDefining the B2B On-Demand and Outsourced Talent Market
Defining the B2B On-Demand and Outsourced Talent MarketCatalyst Investors
 

Plus de Catalyst Investors (18)

Tech Stack Training
Tech Stack TrainingTech Stack Training
Tech Stack Training
 
Customer Support & Success
Customer Support & SuccessCustomer Support & Success
Customer Support & Success
 
Provider Perspectives Research
Provider Perspectives ResearchProvider Perspectives Research
Provider Perspectives Research
 
Supply Chain Management
Supply Chain ManagementSupply Chain Management
Supply Chain Management
 
Market Opportunities Post-COVID-19: "The Aftermath"
Market Opportunities Post-COVID-19: "The Aftermath"Market Opportunities Post-COVID-19: "The Aftermath"
Market Opportunities Post-COVID-19: "The Aftermath"
 
Evolution of the Software Development Lifecycle and DevOps Tools
Evolution of the Software Development Lifecycle and DevOps ToolsEvolution of the Software Development Lifecycle and DevOps Tools
Evolution of the Software Development Lifecycle and DevOps Tools
 
Industry 4.0 Overview
Industry 4.0 OverviewIndustry 4.0 Overview
Industry 4.0 Overview
 
Market Opportunities Post-COVID-19
Market Opportunities Post-COVID-19Market Opportunities Post-COVID-19
Market Opportunities Post-COVID-19
 
Contextual Communications Overview
Contextual Communications Overview Contextual Communications Overview
Contextual Communications Overview
 
AI Enablement of Business Services
AI Enablement of Business ServicesAI Enablement of Business Services
AI Enablement of Business Services
 
Vertical Payments Software Overview
Vertical Payments Software OverviewVertical Payments Software Overview
Vertical Payments Software Overview
 
Construction Tech
Construction TechConstruction Tech
Construction Tech
 
Auto Tech Market Overview
Auto Tech Market Overview Auto Tech Market Overview
Auto Tech Market Overview
 
GovTech Market Overview
GovTech Market Overview GovTech Market Overview
GovTech Market Overview
 
The API Economy
The API EconomyThe API Economy
The API Economy
 
Enterprise Financial Management: Solutions for the Office of the CFO
Enterprise Financial Management: Solutions for the Office of the CFOEnterprise Financial Management: Solutions for the Office of the CFO
Enterprise Financial Management: Solutions for the Office of the CFO
 
FinTech Market Overview
FinTech Market OverviewFinTech Market Overview
FinTech Market Overview
 
Defining the B2B On-Demand and Outsourced Talent Market
Defining the B2B On-Demand and Outsourced Talent MarketDefining the B2B On-Demand and Outsourced Talent Market
Defining the B2B On-Demand and Outsourced Talent Market
 

Dernier

Anypoint Code Builder , Google Pub sub connector and MuleSoft RPA
Anypoint Code Builder , Google Pub sub connector and MuleSoft RPAAnypoint Code Builder , Google Pub sub connector and MuleSoft RPA
Anypoint Code Builder , Google Pub sub connector and MuleSoft RPAshyamraj55
 
UiPath Community: AI for UiPath Automation Developers
UiPath Community: AI for UiPath Automation DevelopersUiPath Community: AI for UiPath Automation Developers
UiPath Community: AI for UiPath Automation DevelopersUiPathCommunity
 
UWB Technology for Enhanced Indoor and Outdoor Positioning in Physiological M...
UWB Technology for Enhanced Indoor and Outdoor Positioning in Physiological M...UWB Technology for Enhanced Indoor and Outdoor Positioning in Physiological M...
UWB Technology for Enhanced Indoor and Outdoor Positioning in Physiological M...UbiTrack UK
 
Nanopower In Semiconductor Industry.pdf
Nanopower  In Semiconductor Industry.pdfNanopower  In Semiconductor Industry.pdf
Nanopower In Semiconductor Industry.pdfPedro Manuel
 
IaC & GitOps in a Nutshell - a FridayInANuthshell Episode.pdf
IaC & GitOps in a Nutshell - a FridayInANuthshell Episode.pdfIaC & GitOps in a Nutshell - a FridayInANuthshell Episode.pdf
IaC & GitOps in a Nutshell - a FridayInANuthshell Episode.pdfDaniel Santiago Silva Capera
 
Crea il tuo assistente AI con lo Stregatto (open source python framework)
Crea il tuo assistente AI con lo Stregatto (open source python framework)Crea il tuo assistente AI con lo Stregatto (open source python framework)
Crea il tuo assistente AI con lo Stregatto (open source python framework)Commit University
 
ADOPTING WEB 3 FOR YOUR BUSINESS: A STEP-BY-STEP GUIDE
ADOPTING WEB 3 FOR YOUR BUSINESS: A STEP-BY-STEP GUIDEADOPTING WEB 3 FOR YOUR BUSINESS: A STEP-BY-STEP GUIDE
ADOPTING WEB 3 FOR YOUR BUSINESS: A STEP-BY-STEP GUIDELiveplex
 
COMPUTER 10 Lesson 8 - Building a Website
COMPUTER 10 Lesson 8 - Building a WebsiteCOMPUTER 10 Lesson 8 - Building a Website
COMPUTER 10 Lesson 8 - Building a Websitedgelyza
 
Introduction to Matsuo Laboratory (ENG).pptx
Introduction to Matsuo Laboratory (ENG).pptxIntroduction to Matsuo Laboratory (ENG).pptx
Introduction to Matsuo Laboratory (ENG).pptxMatsuo Lab
 
UiPath Studio Web workshop series - Day 6
UiPath Studio Web workshop series - Day 6UiPath Studio Web workshop series - Day 6
UiPath Studio Web workshop series - Day 6DianaGray10
 
UiPath Solutions Management Preview - Northern CA Chapter - March 22.pdf
UiPath Solutions Management Preview - Northern CA Chapter - March 22.pdfUiPath Solutions Management Preview - Northern CA Chapter - March 22.pdf
UiPath Solutions Management Preview - Northern CA Chapter - March 22.pdfDianaGray10
 
AI You Can Trust - Ensuring Success with Data Integrity Webinar
AI You Can Trust - Ensuring Success with Data Integrity WebinarAI You Can Trust - Ensuring Success with Data Integrity Webinar
AI You Can Trust - Ensuring Success with Data Integrity WebinarPrecisely
 
IESVE Software for Florida Code Compliance Using ASHRAE 90.1-2019
IESVE Software for Florida Code Compliance Using ASHRAE 90.1-2019IESVE Software for Florida Code Compliance Using ASHRAE 90.1-2019
IESVE Software for Florida Code Compliance Using ASHRAE 90.1-2019IES VE
 
VoIP Service and Marketing using Odoo and Asterisk PBX
VoIP Service and Marketing using Odoo and Asterisk PBXVoIP Service and Marketing using Odoo and Asterisk PBX
VoIP Service and Marketing using Odoo and Asterisk PBXTarek Kalaji
 
Comparing Sidecar-less Service Mesh from Cilium and Istio
Comparing Sidecar-less Service Mesh from Cilium and IstioComparing Sidecar-less Service Mesh from Cilium and Istio
Comparing Sidecar-less Service Mesh from Cilium and IstioChristian Posta
 
OpenShift Commons Paris - Choose Your Own Observability Adventure
OpenShift Commons Paris - Choose Your Own Observability AdventureOpenShift Commons Paris - Choose Your Own Observability Adventure
OpenShift Commons Paris - Choose Your Own Observability AdventureEric D. Schabell
 
Basic Building Blocks of Internet of Things.
Basic Building Blocks of Internet of Things.Basic Building Blocks of Internet of Things.
Basic Building Blocks of Internet of Things.YounusS2
 
Computer 10: Lesson 10 - Online Crimes and Hazards
Computer 10: Lesson 10 - Online Crimes and HazardsComputer 10: Lesson 10 - Online Crimes and Hazards
Computer 10: Lesson 10 - Online Crimes and HazardsSeth Reyes
 
UiPath Platform: The Backend Engine Powering Your Automation - Session 1
UiPath Platform: The Backend Engine Powering Your Automation - Session 1UiPath Platform: The Backend Engine Powering Your Automation - Session 1
UiPath Platform: The Backend Engine Powering Your Automation - Session 1DianaGray10
 
Secure your environment with UiPath and CyberArk technologies - Session 1
Secure your environment with UiPath and CyberArk technologies - Session 1Secure your environment with UiPath and CyberArk technologies - Session 1
Secure your environment with UiPath and CyberArk technologies - Session 1DianaGray10
 

Dernier (20)

Anypoint Code Builder , Google Pub sub connector and MuleSoft RPA
Anypoint Code Builder , Google Pub sub connector and MuleSoft RPAAnypoint Code Builder , Google Pub sub connector and MuleSoft RPA
Anypoint Code Builder , Google Pub sub connector and MuleSoft RPA
 
UiPath Community: AI for UiPath Automation Developers
UiPath Community: AI for UiPath Automation DevelopersUiPath Community: AI for UiPath Automation Developers
UiPath Community: AI for UiPath Automation Developers
 
UWB Technology for Enhanced Indoor and Outdoor Positioning in Physiological M...
UWB Technology for Enhanced Indoor and Outdoor Positioning in Physiological M...UWB Technology for Enhanced Indoor and Outdoor Positioning in Physiological M...
UWB Technology for Enhanced Indoor and Outdoor Positioning in Physiological M...
 
Nanopower In Semiconductor Industry.pdf
Nanopower  In Semiconductor Industry.pdfNanopower  In Semiconductor Industry.pdf
Nanopower In Semiconductor Industry.pdf
 
IaC & GitOps in a Nutshell - a FridayInANuthshell Episode.pdf
IaC & GitOps in a Nutshell - a FridayInANuthshell Episode.pdfIaC & GitOps in a Nutshell - a FridayInANuthshell Episode.pdf
IaC & GitOps in a Nutshell - a FridayInANuthshell Episode.pdf
 
Crea il tuo assistente AI con lo Stregatto (open source python framework)
Crea il tuo assistente AI con lo Stregatto (open source python framework)Crea il tuo assistente AI con lo Stregatto (open source python framework)
Crea il tuo assistente AI con lo Stregatto (open source python framework)
 
ADOPTING WEB 3 FOR YOUR BUSINESS: A STEP-BY-STEP GUIDE
ADOPTING WEB 3 FOR YOUR BUSINESS: A STEP-BY-STEP GUIDEADOPTING WEB 3 FOR YOUR BUSINESS: A STEP-BY-STEP GUIDE
ADOPTING WEB 3 FOR YOUR BUSINESS: A STEP-BY-STEP GUIDE
 
COMPUTER 10 Lesson 8 - Building a Website
COMPUTER 10 Lesson 8 - Building a WebsiteCOMPUTER 10 Lesson 8 - Building a Website
COMPUTER 10 Lesson 8 - Building a Website
 
Introduction to Matsuo Laboratory (ENG).pptx
Introduction to Matsuo Laboratory (ENG).pptxIntroduction to Matsuo Laboratory (ENG).pptx
Introduction to Matsuo Laboratory (ENG).pptx
 
UiPath Studio Web workshop series - Day 6
UiPath Studio Web workshop series - Day 6UiPath Studio Web workshop series - Day 6
UiPath Studio Web workshop series - Day 6
 
UiPath Solutions Management Preview - Northern CA Chapter - March 22.pdf
UiPath Solutions Management Preview - Northern CA Chapter - March 22.pdfUiPath Solutions Management Preview - Northern CA Chapter - March 22.pdf
UiPath Solutions Management Preview - Northern CA Chapter - March 22.pdf
 
AI You Can Trust - Ensuring Success with Data Integrity Webinar
AI You Can Trust - Ensuring Success with Data Integrity WebinarAI You Can Trust - Ensuring Success with Data Integrity Webinar
AI You Can Trust - Ensuring Success with Data Integrity Webinar
 
IESVE Software for Florida Code Compliance Using ASHRAE 90.1-2019
IESVE Software for Florida Code Compliance Using ASHRAE 90.1-2019IESVE Software for Florida Code Compliance Using ASHRAE 90.1-2019
IESVE Software for Florida Code Compliance Using ASHRAE 90.1-2019
 
VoIP Service and Marketing using Odoo and Asterisk PBX
VoIP Service and Marketing using Odoo and Asterisk PBXVoIP Service and Marketing using Odoo and Asterisk PBX
VoIP Service and Marketing using Odoo and Asterisk PBX
 
Comparing Sidecar-less Service Mesh from Cilium and Istio
Comparing Sidecar-less Service Mesh from Cilium and IstioComparing Sidecar-less Service Mesh from Cilium and Istio
Comparing Sidecar-less Service Mesh from Cilium and Istio
 
OpenShift Commons Paris - Choose Your Own Observability Adventure
OpenShift Commons Paris - Choose Your Own Observability AdventureOpenShift Commons Paris - Choose Your Own Observability Adventure
OpenShift Commons Paris - Choose Your Own Observability Adventure
 
Basic Building Blocks of Internet of Things.
Basic Building Blocks of Internet of Things.Basic Building Blocks of Internet of Things.
Basic Building Blocks of Internet of Things.
 
Computer 10: Lesson 10 - Online Crimes and Hazards
Computer 10: Lesson 10 - Online Crimes and HazardsComputer 10: Lesson 10 - Online Crimes and Hazards
Computer 10: Lesson 10 - Online Crimes and Hazards
 
UiPath Platform: The Backend Engine Powering Your Automation - Session 1
UiPath Platform: The Backend Engine Powering Your Automation - Session 1UiPath Platform: The Backend Engine Powering Your Automation - Session 1
UiPath Platform: The Backend Engine Powering Your Automation - Session 1
 
Secure your environment with UiPath and CyberArk technologies - Session 1
Secure your environment with UiPath and CyberArk technologies - Session 1Secure your environment with UiPath and CyberArk technologies - Session 1
Secure your environment with UiPath and CyberArk technologies - Session 1
 

Opportunities in PropTech

  • 1. 1 Opportunities in PropTech February 2021 Sidney Kanell & Kapil Desai
  • 2. 2 PropTech Overview PropTech is broadly defined as the application of technology in the real estate sector in order to improve real estate transactions, property management and tenant experiences. Real Estate has been amongst the slowest asset classes to adopt technology and is ripe for disruption • Real estate is the largest asset class in the world ($280T+ in global asset value, according to Savills) and it touches every aspect of the economy • PropTech has suffered from a “chicken and egg” problem whereby managers are hesitant to implement technology without a proven ROI • In a 2020 survey conducted by Deloitte, only 41% of real estate managers felt they were adequately updating business processes to incorporate technology, and 56% felt the pandemic unveiled digital deficiencies But while adoption has been historically slow, momentum is finally building • According to CB Insights, funding into PropTech companies increased from $2.2B in 2015 to $8.9B in 2019 (41.8% CAGR); while the overall pace of funding slowed in 2020 due to the pandemic, 2021 is expected to be a record year • As the market continues to mature, we are seeing larger, later-stage rounds And today’s catalysts position PropTech for accelerated growth • Human stakeholders increasingly expect digital experiences in real estate as most aspects of our personal and work lives have moved to a digital format • Property managers are making a concerted effort to engage with tenants in order to maximize their experience • Proven ROI and an imminent large-scale rollout of 5G both fuel the implementation of portfolio automation and intelligence tools • New government regulations and tenant demands are pressuring real estate managers to adopt sustainable solutions
  • 3. 3 Total Real Estate Value Professionally Managed RE Value $9.6T Vacancy Estimate 7% Income Generating RE Value $8.9T Cash Available for Operating Expenses Est. Average Cap Rate (Yield) 6% Rental Income $535.7B Total Spend on SaaS & Tech-enabled Services Est. Tech Spend (% of Rental Income) 5% Market Size $26.8B PropTech is a Massive Market Opportunity Software and tech-enabled services for professionally managed real estate alone is a $26B+ opportunity 1 2 3 Technology increasingly impacts every stage of the real estate asset life cycle Listing / Marketplaces Financing / Capital Markets Broker Tools Underwriting, DD, Legal, Closing Leasing & Lease Management Building Automation & Intelligence Property Management Tenant Experience MANAGE TRANSACT
  • 4. 4 An Evolving Landscape PropTech 1.0 - Digitization Migration of existing data and processes to a digital format PropTech 2.0 - Innovation Reimagination of how real estate is bought & sold, managed and used PropTech 3.0 - Disruption Technology unlocks insights, efficiencies and experiences that were previously not possible in real estate PropTech 3.0 brings a new wave of technology that is fundamentally transforming the real estate sector
  • 5. 5 The Future of Real Estate is Digital Stakeholder Pain Point Technology Impact Brokers and Agents Showing properties, screening tenants and processing paperwork is time-consuming and manual Virtual leasing tools and SaaS products give agents the tools and time savings they need to close more deals Lenders & Investors Credit underwriting and investment due diligence is manual and opaque; real estate is an illiquid asset class and physical distance is a barrier to investing in certain geographies Digital tools and data insights enable superior underwriting and break down barriers to lend to or invest into real estate assets Property Managers Property managers have valuable data at their fingertips, but they lack the tools to extract business insights Smart building technology unlocks efficiency gains and fundamentally transforms the way that buildings and portfolios are managed Tenants Almost every aspect of our day to day lives has been enhanced by digital tools but real estate has lagged behind Building apps allow tenants to communicate with management, pay rent, submit maintenance requests and engage with their broader building community Third Party Diligence and Maintenance Providers Real estate due diligence and maintenance are coordinated ad hoc via email or phone, and poor recordkeeping coupled with lack of digital tools causes processes to progress very slowly SaaS platforms designed for specific real estate service providers enable more efficient and transparent operations As part of a broader macro trend, stakeholders across the real estate ecosystem are embracing digital solutions
  • 6. 6 The Future of Real Estate is People-Centric The challenges brought forth by COVID-19 have established an increased focus on landlord / tenant relationships as building managers attempt to convey the “we are here for you” message • As people go back to offices and public spaces, tenant comfort and safety is a top priority; sensors and access control systems are being installed to monitor occupancy, traffic flow and health and safety risk • Going forward commercial tenants will demand shorter lease terms, and permanent flexible work arrangements give an already transient population even more freedom to move around – this presents both commercial and residential building operators with the opportunity to leverage a competitive advantage via tech-enabled services, amenities and communication tools As Gen Z enters the leasing market, property managers look to appeal to the most tech-focused generation yet • Everything from lease signing, to rent payments, to maintenance requests, to building access will be done via mobile • Younger renters are more comfortable committing to live in places they haven’t visited in person fueling the rise of digital leasing tools Property managers are increasingly looking to unlock additional revenue streams by selling services to tenants • Potential supplemental revenue streams include insurance, cleaning services and special deals with retail partners • B2B SaaS platforms and tech-enabled service companies are building Direct-to-Tenant product lines as they look to capture a portion of the economics Real estate is a people business – at the end of the day a successful real estate operation comes down to optimizing the satisfaction of the people who spend time inside of its buildings
  • 7. 7 The Future of Real Estate is Intelligent Real estate operators are finally taking the plunge and in doing so are learning that smart building technology has a positive ROI • COVID is a catalyst for sensor technology since operators need to monitor health risks upon reopening • Beyond health and safety, sensors will deliver long-term value in reducing energy expenditure, prioritizing maintenance, informing space optimization and managing access permissions for building guests and hybrid workforces (including everything from front door access to shared desk access) • Data is analyzed to screen tenants, predict lease renewals and inform strategies for tenant retention in order to boost topline • Digital twins (digital copies of physical buildings) simulate building scenarios and develop predictive analytics Building intelligence is a benefit to tenants • Commercial tenants are making more data-backed decisions in order to engage with end customers and inform strategy; as a result, real estate managers can share relevant data with their tenants which could manifest in higher justified rental rates and / or improved tenant retention • Access control used to be a security mechanism but now it is an amenity – these systems allow tenants to provide temporary digital keys to guests and control access for hybrid workforces Building Intelligence Today • Independent sensors and IoT devices collect data and route it to a centralized building management software system where it is analyzed in order to inform management’s strategy • Example: Sensors collect data on building temperature and space usage and send it to a central system; the system runs statistical models to put forth a plan for optimizing energy expenditure without compromising on tenant comfort Building Intelligence Powered by Ubiquitous 5G Connectivity • Individual devices within an interconnected network collect granular building data; the devices talk to one another and make autonomous building management decisions • Example: Independent sensors monitor traffic flow and space usage throughout a large building and communicate with one another in order to autonomously optimize temperature controls in real-time Smart building technology initially struggled to gain traction, but the pandemic is increasing adoption; the underlying 5G connectivity necessary for smart buildings to achieve their full potential has finally arrived
  • 8. 8 The Future of Real Estate is Sustainable Residential and commercial tenants alike are pushing for sustainable solutions that align with their personal and brand values • Individuals increasingly view climate change as a major crisis and younger generations are adamant about minimizing their personal carbon footprint • Companies including Amazon, Microsoft, Starbucks, Unilever and JetBlue have committed to plans to work toward carbon neutrality The ethical argument for sustainable solutions in real estate is finally making economic sense • More owners are charging energy-inclusive rent which incentivizes them to implement efficient lighting and HVAC systems, as well as systems that monitor and control their tenants’ energy consumption • Real estate operators became cash constrained during the pandemic due to vacancies, depressed market rent and building reopening costs; many are therefore looking to reduce energy and maintenance costs via technology going forward 2016 195 countries sign the Paris Climate Agreement in order to combat climate change 2018 California Governor Jerry Brown signs executive order calling for carbon neutrality by 2045 2019 EU commits to carbon neutrality by 2050 2021 Over 125 countries and 450 cities have joined the Climate Ambition Alliance to achieve carbon neutrality by 2050 The real estate industry is responsible for 30% of all greenhouse gas emissions; tenant demands coupled with new government regulations are fueling adoption of climate technology in real estate
  • 10. 10 Please send any inquiries to sidney@catalyst.com