Real Estate Tech Budgets Grow, CREtech London and Cold Storage Properties 

Hi folks! Welcome to our next edition of Proptech Friday! I’m Wes Snow, and I’m here again to guide you through the recent changes in real estate and proptech . Let’s not waste a minute and dive into the latest news. 

#1: OnlineMarketplaces Fuels the Property Portal Polemics 

You say ‘tomato,’ I say ‘tomato.’ It seems I’m not the only one stuck in some proptech pondering.  

The authors conducted a survey before a property portal conference, aiming to gather anonymous opinions from industry insiders. For instance, should we call real estate platforms “portals” or “marketplaces”? Should portals (yeap, I stick with ‘portals’ in this conversation) own CRM, and many-many more questions that seem simple at first glance but cause conversations hotter than election debates. 

Here are some survey statistics for you:  

• Only 35% of the respondents considered virtual tours to be great;  
• 30% agreed that iBuying will fall into history books soon;  
• 43% think that portals and mortgages can’t go hand in hand;  
• 40% consider real estate businesses should own CRM; 
• 63% say that ‘portal’ equals ‘tech company’ and not a ‘newspaper in disguise.’  

#2: ‘Related’ Expands Into Cold Storage Properties 

Moving from hot proptech polemics to … refrigerators? The Related Company, a prominent commercial real estate brand and the largest landlord in New York City, is diversifying its portfolio by venturing into cold storage facilities. Their $1 billion new venture, RealCold, aims to create a network of cold storage distribution centers and dive deep into the development of energy-saving methods.  

Will it be a more profitable investment compared to traditional offices and luxury condos? Well, time will tell, but the move is truly original, so my applause to the Related! 

 #3: Community Solar Initiatives Are on the Rise 

GreenTech has experienced substantial growth in the past decade, boasting an average annual growth rate of 24 percent, as indicated by recent research.  

Yes, investing in GreenTech sounds like a smart idea, but if you’re a property owner, you don’t have to install a solar panel because there is a new community solar model to embrace. In a community solar setup, a solar farm is built, and individuals and businesses can subscribe to a shared solar facility, earning credits on their electric bills for the energy produced. 

With the help of Renewable Properties, such initiatives have been already implemented in 23 (!) states, and the company is expanding for more. Other players like Prologis and Public Storage are contributing to the cause by partnering with GreenTech companies like Clean Power Alliance and Solar Landscape. Sounds like we can finally solve global warming, doesn’t it? 

#4: Propertizer is Expanding to the US in Two Weeks 

No, this is not a GreenTech startup, as you might have thought, but a promising one anyway. Propertizer, a Hungarian proptech startup, is set to make its mark in the US with a New York launch in two weeks, followed by a nationwide rollout by the end of November.  

The company, which won the Pitch Club competition at the Property Portal Watch conference in Madrid, offers a profitability calculator (an API for property portals), helping users assess potential earnings from renting, flipping, or long-term investments. 

Like Ascendix, Propertizer is a bootstrapped company but is planning to fundraise next year. Well, good luck, Propertizer!  

#5: JLL Conducts Research on Technology Budgets and AI 

… and the research says that 80% of real estate businesses are boosting their tech budgets.  

The research was conducted among 1,006 decision-makers globally, including over 600 corporate real estate leaders and 400 real estate investors, landlords, and developers, representing diverse industry sectors in 10 global markets. And that’s what JLL found: 

• 91% of occupier respondents are willing to pay extra for tech-enabled spaces; 
• 45% of occupiers are planning to adopt energy/emissions management tech (yeap, GreenTech again); 
• 44% of the companies plan to embrace VR and augmented reality solutions (well, this one was pretty surprising). 

As research shows, AI will stay a buzzword for years, and all we can do is adapt to the ever-evolving landscape. 

#6: CREtech London Returns in 2024 to Reignite the Sustainability Discussion in Real Estate 

CREtech, the prominent international community dedicated to technological and sustainable advancements in real estate, has announced the return of CREtech London 2024.  

Following the success of their 2023 conferences with over 5,000 attendees, CREtech London 2024 is set to take place at Magazine London, a premier event venue, on 8th-9th May.  

CREtech London 2024 will focus on impactful speakers, TED talks, and presentations to inspire innovation and promote sustainability initiatives.  

Don’t miss the event! You can secure tickets on the community’s site and browse for sponsorship and partnership programs. 

#7: JLL Capital Markets Completes Another Successful Property Sale 

JLL represented the seller, Bridge Investment Group, and facilitated the transaction with a foreign private investor. 

The property (a 199,532-square-foot office building at 1400 Union Meeting Road in Blue Bell, Pennsylvania), situated on 18.6 acres in Montgomery County, offers a significant redevelopment opportunity and is zoned for scientific, agricultural, or industrial research and development.   

The property's prime location near major highways and affluent neighborhoods enhances its appeal for potential repositioning and redevelopment projects. 

Great job, JLL! 

And that’s all for today.  

If you want to learn more about how to automate your business with proptech solutions (including AI), upgrade the existing tech stack, or build a new proptech tool from scratch – don't hesitate to contact us or book a free proptech call.  

Stay tuned!