Technology: New York City Real Estate
This is the age of fast, readily available information. Technologies influence over industry is seemingly endless. A city like New York, which attracts the best and brightest individuals of their industries, deserves just that: the most innovative and efficient real estate technology.
In the realm of real estate, the potential to make management and building data readily accessible is overwhelming with the use of technological advancements. For real estate professionals, both on the commercial and residential scale, online platforms can assist in efficiently and intelligently completing work. Analyzing trends become simpler, market changes are easier to detect, resulting in more concrete advice derived from solid information from data which is accessed more efficiently.
The marriage of real estate and technology is expanding to all facets of the industry, with New York real estate investors surging approximately $62 million into platforms aimed to enhance the system for both residential and commercial real estate.
That $62 million is almost 20 percent of the $322.5 million that has been invested in tech companies globally in 2015, the majority of that money–$221.8 million–has gone towards tech companies focusing exclusively on commercial real estate. The remaining $100.7 million went towards companies dealing with residential real estate.
Of the five-hundred commercial and residential real estate professionals polled for the RE:Tech report, about 85 percent of those working in commercial real estate said they were taking the time to understand how these new platforms have potential impact on their business. Overall, 45 percent of those polled believe their brokerage is interested in folding new real estate technology into their business strategy.
And it’s a smart decision to make: NYC-based real estate tech companies raked in $28 million in the first quarter of 2015, and $34 million in the second. One of those companies, VTS, a platform for asset management and leasing, recently announced its fundraising of $21 million. Honest Buildings, a management platform for building owners, raised $5 million in fundraising this past summer.
Real estate investment is seeing a surge in the induction of crowdfunding platforms into the industry since the federal JOBS Act passed in 2012. Sharestates, a crowdfunding marketplace, has raised over $30 million since January of this year, and Cadre, an online investment platform, raised $18.5 million. This is a distinctive indication that the business is evolving and adapting to be as responsive as possible to client needs.
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