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Proptech Pushes Commercial Real Estate Into Digital Space

Published on July 26, 2022

Top commercial real estate companies pair with property technology startups to satisfy demand for high-tech office buildings, real-time leasing information and the needs of digital-savvy tenants.

As CRE firms adopt data services to drive decision-making and management, consulting firm Deloitte finds old technology systems limit their progress. In its 2022 commercial real estate survey, 4 in 5 CRE respondents did not have a modernized core system that could incorporate new technologies, and only 1 in 4 said their companies plan to substantially increase their technology investments to bolster portfolio and asset management capabilities.

To provide tenants with smart and connected buildings, CRE firms are forging strategic proptech partnerships—3 in 4 Deloitte respondents said they were more likely to expand partnerships with or invest in proptech firms. Deloitte envisions this data-oriented “real-estate-as-a-service” model as more sustainable than simply delivering square footage.

What Are Proptech Companies?

While proptech is a niche market, analysts note it’s populated by specialized components serving real estate sub-verticals–residential, commercial office and multifamily. The field includes mortgage tech, construction tech and facilities management and analytics providers. Regardless of their niche, proptech firms are innovators seeking to make the real estate field more efficient.

Residential proptech has expanded far beyond listing websites. Proptech entrants include firms like HomeLight, a technology platform that links buyers and sellers with real estate agents and supports the process of getting a mortgage and closing a sale. The Opendoor platform facilitates buyers and sellers, allowing owners in certain U.S. markets to sell their homes directly to the company and buyers to purchase homes directly.

 

Proptech firms also aid commercial and multifamily developers and asset managers. Purpose Brand client Procore provides global construction management software to carry out its mission to “improve the lives of everyone in construction.” Its cloud-based platform seamlessly connects builders, designers, developers, engineers and tradespeople during throughout a construction project, improving workflows and controls in areas such as preconstruction, project management, financials and safety.

Other companies focused on construction tech include Holobuilder, a digital platform that assists architecture, engineering and construction firms by providing clients and their stakeholders with remote access to construction sites and projects, as well as the ability to see projects from a three-dimensional vantage point.

Land development and acquisition is geotinQ‘s specialization. The geographic land mapping and software visualization site provides stakeholders with information about the topography, flood zones, soils and market value per acre of parcels. The construction industry’s supply chain is the niche for Kojo, which allows contractor’s warehouses, accountants and suppliers to collaborate on one platform.

What Is Proptech Marketing and PR?

Proptech is essentially an arranged marriage between tech and real estate. Informed communications and thought leadership make players in both segments stand out.

Top real estate marketers use proptech firms to develop marketing websites. Attractive web design and virtual assistants speed prospective tenants’ search for information. These sites need content marketing that is informed, data supported and search engine optimized to engage the tenant audience.

In the home buying and selling space, many proptech start-ups are jockeying for position. A recent Opendoor survey found 7 in 10 prospective buyers searched digital sources for homes at least several times a week. Millennials’ online traffic outpaces other generational groups, Opendoor found, with 72% using sources not specific to real estate, such as social media platforms TikTok, Instagram and Facebook.

Real estate PR seeks to build awareness and consideration for both individual properties and service-based products. Tech PR has the additional task of emerging products and services. Nailing down and illustrating a client’s functions, brand story and purpose are crucial in any PR campaign.

Top Proptech PR Agencies

PR firms who represent tech and real estate clients understand the nuances of digital platforms and the evolution of the real estate marketplace. They combine the practices of strategic communication and media relations with sound lead generation practices to close sales.

There are two camps of proptech PR agencies. One has its roots in real estate and the other sees proptech as a natural addition to its tech clients. Purpose Brand sits in both camps, with clients in real estate development, asset management, architecture, construction and engineering and tech-focused startups in various industries.

No matter its client roster, the goal of a PR agency is to provide clients with informative, compelling content and placements. A PR agency can help proptech clients get noticed in a crowded and differentiated field.

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