Home Insights The 2018 PropTech Changing Commercial Property
PropTech is disrupting and redefining every established process we accept as the norm in property. According to the Global PropTech Confidence Index in 2018 96% of investors are planning to make either the same number or more PropTech investments in the next 12 months compared to the previous 12 months, up dramatically from 76% a year ago. 36% of PropTech investments are exceeding expectations in terms of customer growth, up from 21% year-end 2017 and from 12% two years ago.
The central focus for PropTech in commercial property is to reduce or eliminate most of the laborious administrative tasks associated with transacting, valuing and leasing. We have witnessed this disruption from online estate agents in the residential market with companies such as PurpleBricks where their market share-gobbling strategies having been well documented. What matters to us, is how much they seek to replace or to enhance the traditional service providers and the impact this will have on property jobs and businesses.
Andrew Baum of Saïd Business School at the University of Oxford, says:
“Real estate by some measure is half the value of the world’s assets, it is an extremely important asset, but also a very clunky, slow moving, lumpy asset”
In the Saïd Business School PropTech report on the future of real estate, they examined the limitations of property as an asset class and how PropTech will bring fluidity through a space sharing economy and, most importantly, Blockchain, which could allow for property transactions to take place at the click of a button.
There is no doubt that tech-led businesses are moving in on the way in which residential and commercial property is transacted and this is already having a significant impact on office agency and property investment jobs and career paths.
In the list below we take a look at some of the latest disrupters in commercial property agency and investment and the impact this will have on commercial property jobs.
Imagine if you combined commercial property transactional data with AI? That’s exactly what the founders of Skyline have done and it’s outperforming real estate investment benchmarks. The AI gives investors the ability to forecast future valuations with a 94% success rate. Having already raised $18m from investors including JLL Spark Global Venture Fund, Sequoia Capital and TLV Partners
the company is planning to grow into new real estate asset classes including office and industrial and expand their global reach. This is definitely one to watch!
What will Skyline disrupt: Skyline is set to disrupt the commercial transactional markets and we predict processes in commercial property valuations, investment due diligence and portfolio management will need to adopt and embrace this technology.
Professions Skyline could impact include: Commercial investment surveyors, valuation surveyors, commercial agency and leasing and commercial property managers.
This global start up is aiming to shake things up for the retail property market by creating a global platform to source, buy and lease prime retail space whilst applying blockchain technology to the transactional process. The founders aim is to not only simplifying the process of transactions in retail property but forecast blockchain will mean considerable cost savings compared to the expensive and lengthy contract management process.
What will ELocations disrupt: As an early adopter of blockchain technology and a global sales platform for retail property, Elocations has the potential to change the way retail property is transacted and the way retail surveyors and agents market and sell retail assets.
Professions Elocations could impact include: Retail surveyors and asset managers.
A powerful online tool that helps developers and estate agents to identify and analyse potential development sites by bringing together all the relevant data into one engine. The service works directly with government agencies and other major bodies, such as Ordnance Survey, Land Registry and Companies House, to collate the myriad existing data about property that has, until now, been difficult to access and held in unconnected databases. Features include identifying the current owner, estimating value, and comparing with other development sites.
What will LandInsight disrupt: LandInsight is here to help make the job land appraisal and acquisition by removing barriers and costs that prevent developers making timely decision on land investment.
Professions LandInsight could impact include: Land agents, land buyers and development surveyors.
Major retail brands looking for short term or pop-up space connect with landlords such as large investment companies and private landlords on short term leases. It is proving popular with brands launching new products and online-only e-commerce retailers, such as Amazon, who wish to access physical high street shoppers but avoid long term contracts. Other similar services include We are Pop Up & Popertee.
What will Appear here disrupt: Appear here is bring fluidity to the market by helping private landlords fill retail space on short terms lets to help overcome costly overheads such business rates. Additionally it allows retail brands to rent space on a trial basis before committing to a long term contract.
Professions Appear here could impact include: Retail surveyors
An online shared workspace management software designed specifically for providers of co-working and flexible office space. Clients include start-up labs, innovation hubs, serviced offices, and shared workspace specialists. The integrated platform manages members, door access, billing, wi-fi, calendars and much more.
What will OfficeRnD disrupt: As a fully integrated platform for office management OfficeRnD will simplify office management processes allowing start up and small to medium businesses cost effective resources and back office support.
Professions OfficeRnD could impact include: Facility managers
The San Francisco-based 3D virtual tour specialists are making waves across the UK. Their cameras and technology create a Streetview like 3D tour of any property in real-time. Unlike CGI tours, panoramic photos or recorded video tours, the user navigates at their own speed from room to room and can see the exact photographic layout of the property and its contents in 3 dimensions, floor by floor. The technology is used for both commercial and residential property.
What will Matterport disrupt: More of an enhancer than a disrupter Matterport’s technology can help set property agents apart by their marketing.
Professions Rialto could impact include: Investment surveyors and leasing agents.
An online commercial lease communication and management system. The platform handles everything from leasing discussions and email threads, to site inspections and coffee meetings, all communicated through their online platform using push messaging and comment uploads.
What will Rialto disrupt: Rialto is a sales, marketing and project management platform to help streamline tasks for property managers and leasing agents.
Professions Rialto could impact include: Commercial agency and leasing agents and commercial property managers.
Described as Airbnb for office space, the platform matches office-hungry small businesses to large companies with spare capacity office space. Following a move away from long term leases and a trend towards more flexible work space, it differentiates itself by concentrating on the small business world, with particular expertise on the needs of startups. The service includes online contracts and payments, charging 10% of the monthly rent for the first 12 months, with a free listing service. The company is now taking on larger corporate clients who also require flexible space.
What will Hubble disrupt: In a nutshell Hubble say they are bringing new-school pricing to an old school industry.
Professions Hubble could impact include: Commercial agency and leasing
Are you a PropTech startup? Or maybe you know of PropTech companies disrupting the way we have traditionally working in property agency? We would love to hear and add to the list! Contact Us Here