The Sunday PropTech Review: 11th February, 2018
Well an interesting week. Great to be in a position to see how PropTech is evolving country by country. Below you will see two photos of my speaking. One in Ireland for an Irish PropTech meet up. 30 people in a room, above a pub (such a tricky thing to do!). The second in Vilnius, the capital of Lithuania. 350 people in a conference venue.
What links them? The passion and interest in the subject of how the real estate market is evolving. It doesn’t matter how many people who come to your conferences, there is still the underlying passion.
Before I go on, if you feel this review is worth a friend of yours to read please fill out this form so i can send it to them
Samantha McClary & Emily Wright talk to Alex Hill and Joe Warren of energy management system ZTP about the power real time data, the challenges of hiring a team and building a business and much,much more.
Do you know the fundamentals of commercial real estate brokerage? Do you understand the risks that it takes to be successful? Do you want some real-world tips on how to build your commercial real estate brand? All this and so much more!
Most Shared: NAB Ventures Invests In PropTech Start-Up
The world’s most shared PropTech story this week comes from Australia, where the National Australian Bank (NAB) have invested in automated communications platform, ActivePipe.
ActivePipe helps real estate agencies and brokers in identifying and converting potential buyers and sellers, already working with more than 50 brands and 1150 offices.
Although ActivePipe have their HQ in Melbourne, they have a strong presence in the UK. It’s interesting, I think, that the NAB has explicitly expressed that they are not investing in order to add strength to their financial portfolio, but rather in the hope of taking ActivePipe’s technology and using it to attract more business to the bank itself.
“We’re looking forward to the insights we can gain from working with Ash and his team and exploring how we can potentially leverage this capability for NAB and customers in the future.”
This is Dan’s Hughes’s (RICS) great PropTech infographic. Designed to help people find their way around a busy industry, it’s an evergreen project so, if you think there’s anything missing, Dan invites you to get in touch via Twitter.
PropTech Figure of the Week:
Sometimes you have to applaud those that just give it a go for everyone else. Complete respect to Tom Courtney of start up Property Basecamp who has started up the Irish PropTech movement. Get to know him.
Influencer Quote of the Week:
– Anthony Slumbers
The only published story I can find on this right now is behind a pay-wall, but it’s an important story so I’m including it.
Realla have joined up with Coyote to “share data and increase clients access to the market”. I love this: collaboration, shared data, consolidation…all the words that I really support and suspect to hear more of this year.
Ah, co-working. I’ve already made my opinions on the industry’s leader, WeWork, pretty clear,so I’ll put that to one side and just express my astonishment at the projected 16% annual growth in co-working spaces up to 2022!
If this figure is to be mirrored in London, where are they even going to find the space?
These projections, from GCUC, also suggest that co-working members will grow from 1.74 million in 2017 to 5.1 million in 2022. This great roundup of the data also offers some practical explanations for the growth which are well worth a read, and also provides a link to download the full data set.
What does Anthony actually do from day-to-day? Has he ever had a mentor? What does he think is the most important PropTech innovation today?
And what does he have in common with Steve Jobs?
The great analytical mind Mike DelPrete has written an interesting analysis of Opendoor and other ‘iBuyer’ companies, those who buy houses direct from the owners and then sell them on.
Along the way he identifies three key obstacles for the industry: an undifferentiated product; it’s resource intensive; and no repeat customers.
Another part of the paradox is, as Mike says; “the more successful Opendoor becomes, the more of a threat they become to industry incumbents, which forces them to respond. The most logical response from a major player such as Realogy or Keller Williams would be to launch their own iBuyer program.”
This is a long and comprehensive piece of research and analysis and an important read for anyone wanting to understand the intricate challenges of the PropTech industry and its seemingly endless friction with today’s incumbents. And it’s packed with a tonne of great stats.
Mixed feedback though from some I know and respect.
“The Opendoor article completely misses the arbitrage intelligence that underpins every dollar of investment capital in the model… Opendoor raises capital in the premise that it’s better able to pick which properties to buy and at what price as I understand – incumbents cannot do this” Taylor Westcoatt, Concrete
“Struggling a bit with this one. I’m a big fan of Mike’s articles but these dynamics affect hundreds of proptech businesses, so I don’t quite follow what makes Opendoor any different” Eddie Holmes, PropTech Consult
This Week’s Fundraising and New Arrivals Round-Up
“Since the ancients, few things have delivered higher land values with more certainty than advances in transport, from roads to canals, railways to highways.”
So starts this analysis of autonomous vehicles and their impact of the property industry. And today, that remains the truth; properties with good transport links always perform best on both commercial and residential markets. However, it seems that might be about to change.
When nobody is driving anymore, what happens to all that land in cities and retail outlets currently reserved for parking? What happens to the infrastructure of our cities if the roads are being used less and less? And now that companies such as Amazon will no longer have to deal with the restrictions on hours that drivers are allowed to spend behind the wheel, what happens to all that land in the UK’s Golden Triangle currently housing distribution centres?
Driverless cars are on their way, but still a few years off. When they arrive however, the impact on property will be huge; for some it will be a good thing, bringing with it buckets of profit, but for others, it could signify a very difficult period of time.
The Best of the Rest:
1. Mon 12th – #PropTechDen Manchester
2. Wed 14th – PropTechNL: Bricks, Bits & Future Affairs
3. Thu 15th – PropTeq Europe
4. Thu 15th – CRE Investment Briefing London
5. Thu 15th – RICS Summit Series, San-Francisco
That’s all for now, folks…I’m going to enjoy a nice relaxing Sunday. A trip to the Allotment beckons as it all gets going again.
See my progress here from where it was several months back – crazy how the nettles have started to disappear…..
Have a great Sunday.