The growth of the Real Estate/Property Technology (“PropTech”) Industry is rapidly accelerating.
According to Forbes, in 2017, venture capitalists invested over $5 billion in real estate technology, more than 150 times the $33 million invested in 2010. The We Company has raised $13.6 billion since 2010. $6.702 billion — a whopping 52% of the total– was raised in 2018 and the first month of 2019 alone. Given that U.S. real estate is a $35 trillion asset class, and represents a multi-faceted market generating over $1 trillion in revenue annually, according to IBISWorld Industry Reports, the strong interest in companies built to serve, invest in, or compete with the occupants is not surprising.
New Co-Working franchises, Integrated Workplace Management Systems, and even Workplace Analytics (that’s right… your boss may be interested in seeing your everyday moves in the workplace in the near future) are being introduced left and right– and the tremendous growth rates of each of these segments within the Real Estate Technology Industry prove to be very successful. But while these specific technologies are interesting and evolving, they only hit the tip of the iceberg, encompassing one component of our real estate life cycle– asset/property utilization. Consider there to be five other components of the B2B real estate life cycle, with hundreds of companies contributing.
We’ve taken a deep dive into the B2B (not B2C) Real Estate Technology Industry–including all software, technological service, and hardware– with hopes of aggregating a cohesive output on real estate technology for those who are currently involved or those who are interested in getting a broader look.
We’ve simplified the B2B Real Estate Technology Industry into six different stages of the Real Estate life cycle. Within each of these stages are even more segmented areas of high-growth real estate technologies that currently exist in the marketplace. Here is a graphic we’ve created with these prominent technological segments in mind: