PropTech Consulting

🏨 Private clubs are making a comeback. In New York City and throughout the U.S., a select few are gaining access to the exclusive world of private clubs, a trend that has seen a significant rise in the past few years. These clubs have emerged, in part, to fill the voids caused by the pandemic, such as the loss of “third places” and the surplus of empty office space in most cities in the remote work world. 💰 Some of NYC’s most exclusive clubs have staggeringly high membership fees. Take Aman New York, for example, which opened in 2022. It offers a membership with an initiation fee of $200K, plus annual dues. Check out PropTech Consulting’s latest blog post to read more: https://lnkd.in/gRSiZQtf Not all clubs are as upscale. In NYC, Verci has more of a college campus feel, and membership ranges from $200 to $300 monthly with no initiation fees. New York has a long history of private social clubs, dating back to the Union Club, which was founded in 1836 and has included Winston Churchill and William Randolph Hearst among its members over the years. The rise of private social clubs is also happening in other cities, such as Chicago and Miami. While these clubs aim to offer a community in an increasingly isolating digital age, experts say they can’t be labeled “third places.” The business interests of private clubs conflict with the idea of a third place. People join these clubs seeking connection, but the clubs are seeking profitability and increased membership. 💭 What do you think of the rise of private clubs in New York City and elsewhere? Are you a member of one? Let’s discuss this in the comments section!

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📉 While some PropTech firms are experiencing growth in mid-year 2024, many are merely treading water. PropTech is still feeling the economic and social impact of #COVID19 while dealing with high interest rates. The result is a challenging environment for entrepreneurs that will likely continue through 2024. An excellent Midyear 2024 PropTech Outlook report by Philip Russo at Commercial Observer delves into these trends. 👉 Check out the article here:  https://lnkd.in/eFTyhgAV Venture capital investment into PropTech fell 14.3% to $4.47 billion at the end of the first half of 2024. That’s a staggering fall from $13.13 billion in the first half of 2022, according to the CRETI · Center for Real Estate Technology & Innovation. 🤖 It’s not all doom and gloom, though. Artificial intelligence is everywhere in #Proptech these days, and PropTech firms are shifting to more practical strategies to unlock the best value from generative #AI. Some PropTech firms are also experiencing tremendous growth despite the fierce headwinds, including San Francisco-based Dealpath. Dealpath is growing and investing in tech “to supercharge deal sourcing, screening, and comp analysis, helping firms to evaluate more deals and capture more data.” Much of DealPath’s successful strategy also involves practical applications of AI and business process #automation, which are highly relevant to client-facing products, customer support, and software development. 📈 Another PropTech firm doing well is Runwise, which makes intelligent building controls to improve energy efficiency and cut carbon #emissions. Many factors have contributed to Runwise’s success, but President and Co-founder Lee Hoffman says the biggest is providing a service that delivers an immediate net ROI. “If you require huge capital investments and the #ROI is kind of nebulous, it’s a very tough environment,” Hoffman says. 💭 What do you think of the market for PropTech at the midyear mark? What are the keys to success in this challenging market? Let’s discuss this in the comments section below! 👇

The global real estate investment firm Jamestown L.P. is well-known for owning office towers and major mixed-use properties throughout the U.S. 🖥️ Fewer people may know about Jamestown's unique approach to technology and tech partnerships, which is now being implemented across its properties nationwide. A recent Propmodo article delves into how Jamestown has added additional revenue streams through tech partnerships. Tech has been a crucial part of the company’s strategy for years, but Holly Dutton at Propmodo details how Jamestown has leaned heavily into the strategy. Read the Propmodo article here: https://lnkd.in/gjd3ADA4 Some exciting tech strategies at Jamestown include: 💡 Innovation Ideas, an internal program that encourages Jamestown employees to send top-brass tech ideas the company could use in its work. Dutton writes: “Of course, not all of the ideas have been a hit, but the company gets hundreds of submissions yearly, and it helps keep leaders on the pulse with the latest tech and innovations.” 🌎 Another notable example is the sustainability partnership with Nantum AI. This collaboration has enabled Jamestown to run HVAC systems at its buildings more efficiently. In fact, since partnering with Nantum AI, Jamestown has seen a remarkable 260% ROI at one of its San Francisco properties, all thanks to the new AI-powered operational tech. It’s not uncommon for some of Jamestown’s pilot projects to fail. However, the projects that succeed significantly boost tech companies and building owners and drive more use of technology in commercial real estate. 💭 What do you think about Jamestown’s tech partnerships and innovations? Do you know of other top commercial real estate firms with similar success? Let’s discuss this in the comments below! 👇 #proptech #commercialrealestate #technology #realestatetechnology

🛩️ Drones have become an essential tech tool in commercial real estate. That’s why real estate professionals may want to pay close attention to a piece of pending legislation in the U.S. Congress. The Countering CCP Drones Act (HR 2864) would prohibit new DJI drones in America from being sold. If FCC authorizations are revoked, it may even bar Americans from using existing DJI drone fleets. If signed into law, the measure would impact all #drone operators, whether recreational, commercial, or governmental. Check out PropTech Consulting’s new blog post here that delves deeper into the potential impact of the DJI drone ban: https://bit.ly/3RL033E 🇨🇳 Like the recent TikTok ban, U.S. lawmakers believe the Chinese-owned DJI presents an unacceptable national security risk. While some say the security risk is debatable, the impact of a DJI ban on the U.S. drone market is more apparent. DJI is the world’s leading drone manufacturer, controlling more than 70% of the global drone market. Many believe DJI drones are the most superior products on the market, and they’re loved by those who use them. The real estate industry will continue to deploy drones, with or without DJI. But if President #Biden signs the bill into law, real estate professionals might have to plan for a future without DJI drones. 💭 What do you think of #Congress’ proposed ban on DJI drones? Let’s discuss in the comments section. Leave your thoughts below 👇

In this edition of our newsletter, we're rounding up 10 need-to-know stories on the state of PropTech and real estate. The Power 100 List from Commercial Observer ... LVMH and its global retail real estate strategy ... News about Blueprint 2024 ... The PropTech Pitch Battle at the iOi Summit in Chicago ... And more. Catch everything here.

⚖️ By now, everyone in the real estate industry knows about the legal mess that property management software firm RealPage is facing. A 2022 ProPublica expose unleashed a tsunami of class-action lawsuits and federal investigations alleging RealPage created a price-fixing cartel that kept housing prices in many U.S. markets artificially inflated. The lawsuits against RealPage center on the company’s YieldStar product, one of its three essential revenue management tools. RealPage says that YieldStar can help landlords increase revenues between 2% and 7%. RealPage may have already lost the cases in the court of public opinion, mainly due to the rapid rental price hikes in 2021 and 2022. However, RealPage has vigorously defended itself and looks poised to continue. The cases haven’t been proven in a court of law yet. A new article on Propmodo argues that the RealPage scrutiny is part of a broader campaign against dynamic pricing, which has become ubiquitous in the business world over the past few years. 👉 Check out the Propmodo article here: https://lnkd.in/gNutpgrG Dynamic pricing has always existed to some extent. The difference now is that the algorithms used in dynamic pricing are more sophisticated than ever. Algorithmic pricing may not be inherently illegal, but Americans are more sensitive to it during a time of stubborn inflation. The idea that competitors are sharing sensitive pricing data and keeping prices artificially high is where allegations of price-fixing come in. The FTC and the DOJ have taken a hardline stance against algorithmic pricing. So have many lawmakers who are introducing bills that would close antitrust law ‘loopholes’ that don’t consider algorithmic pricing powered by AI. Despite all the scrutiny, proving RealPage and its landlord co-defendants guilty of price-fixing with decades-old U.S. antitrust laws could be difficult. The outcome of RealPage’s lawsuits could set legal precedents that affect how other antitrust cases involving algorithmic pricing are decided. The real estate industry may be at the center of the fight over algorithmic pricing, but they are far from the only sector facing scrutiny. Stay tuned to the RealPage legal saga because the outcome will have a considerable impact on real estate and many other U.S. industries. 💭 What do you think about the lawsuits against RealPage? Let’s discuss it! Leave your thoughts in the comments section below. #commercialrealestate #propetech #realpage #lawsuits #dynamicpricing

📈 While Magic Leap never took off as some in Silicon Valley imagined, a newer company, Trace 3D, is taking a more modest approach. Founded in 2021, Trace’s trio of co-founders all formerly worked at Magic Leap. Their company is a product of some of Magic Leap’s early content struggles. Magic Leap’s funding now tops $4 billion, while Trace recently announced a $2 million pre-seed. While Trace is much smaller, they’ve partnered with high-profile companies, such as T-Mobile and Qualcomm. Trace’s offering centers around an app that easily adds AR content to real-world spaces. It has been likened to Squarespace for AR. Once the app is in place, users can access the digital content through Trace’s app or a web browser. Trace is also a PropTech consulting portfolio startup that we at PropTech Consulting is very bullish on. Read more about Trace 3D here: https://lnkd.in/gEVeHBgJ The Trace creator experience has been limited to private beta but should be open to the public soon. Once that happens, companies will be able to produce AR experiences as part of a subscription-based package. Trace may be taking a different approach than Magic Leap, but one key similarity is its focus on enterprise clients. “This is a consumer-facing product, in a way, but we see there is more opportunity in the enterprise space right now,” Trace co-founder Greg Tran told TechCrunch. There are many reasons why Magic Leap’s Leap 1 VR headsets never took off, including overhype, an expensive price tag, and, in many users’ opinions, a flawed product. As much as some folks get excited about AR/VR, the tech has struggled to compete with more conventional entertainment, which is typically far less expensive. Trace’s scaled-back approach, as does its focus on enterprise clients, makes sense in this regard. Average consumers may not be ready to dive into AR/VR, but business uses for the tech are more practical, especially in real estate. Real Estate uses for AR include virtual property showings and 3D visualizations of property blueprints. Virtual and augmented reality is bound to catch on eventually, but perhaps Trace’s approach of turning the hype down a notch and scaling its product offerings more gradually makes better sense. What do you think about Magic Leap, Trace, and AR content experiences? Will AR finally become more mainstream soon? Let’s discuss this in the comments section below! 👇 #proptech #augmentedreality #virtualreality #technology #startups

🚨 You’ve heard the big news by now … CoStar Group has reached a definitive agreement to acquire all outstanding shares of Matterport in a cash and stock transaction valued at $5.50 per share, reflecting an estimated $1.6 billion in enterprise value. Matterport’s 3D virtual tours are already used on CoStar’s online property marketplaces, with nearly 300K digital twins available. Last month, Apartments-dot-com users viewed Matterport 3D Tours over 7.4 million times. Overall, Matterport has captured more than 12 million spaces in 177 countries. Read more about the acquisition here: https://lnkd.in/eve4fw5X ❓What does this massive acquisition mean? CoStar plans to use Matterport to enhance its Homes.com platform. However, the acquisition means much more to the real estate industry. CoStar has the scale to aggressively market Matterport’s digital twins. In 2023, its gross revenue ($2.46B) was 16 times that of Matterport’s ($157.7M). Matterport has pumped the brakes in the past year, laying off 30% of its workforce, but CoStar will step on the gas pedal. 🖥️ CoStar’s acquisition of Matterport also makes sense because, well, 3D tours really work. MLS real estate listings used to be just text, but now, all listings include photos, and some have digital twins. With CoStar stepping into the fray, the future of real estate listings looks heavily titled toward digital twins. As CoStar Group founder and CEO Andy Florance said in a statement announcing the acquisition, “The world has changed, and today, a Matterport is the new open house or property tour. People now select their next home, apartment, office, store, hotel, or warehouse on their mobile devices, often without ever visiting the property. There is no better way to remotely experience space than via Matterport.” What do you think about CoStar’s acquisition of Matterport? What does it mean for the future of digital twins and virtual property tours? Leave a comment below, and let’s discuss! 👇 #costar #matterport #digitaltwins #virtualtours #realestate #proptech

🌊 Is a tidal wave of office-to-residential conversions coming to New York City? SL Green Realty Corp. CEO Marc Holliday thinks so. Bisnow reports that Holliday made the comments in a recent call with investors, saying SL Green played an “instrumental role” in a NY state office-to-resi conversion bill. The legislation incentivizes office owners to move quickly on residential conversions. Office owners must file for permits sometime in 2026 to get the maximum benefits, according to Holliday. 🏣 Holliday estimates that between 25M SF and 40M SF of NYC offices will be converted under the proposed program. The subsequent reduction in office supply will lead to higher absorption in New York City’s remaining office buildings. You can read more about Holliday’s insights here: https://bit.ly/3w3GhIL NY lawmakers approved the legislative package over the weekend to address the state’s housing crisis. The $237 billion state budget includes several new policies to address a statewide housing shortage, encompassing areas beyond office conversions. 🏚️ PropTech Consulting's blog in 2023 covered office conversions as a solution to the housing shortage. The comments section below has a link to the post. As NY and other states advance policies for office conversions, we’d love to hear your thoughts. Do you think a ‘tidal wave’ of office conversions is coming? Let’s discuss this in the comments section! 👇 #commercialrealestate #officeconversions #SLGreen #housingcrisis #newyorkcity #newyorkcityrealestate #housingmarket