Pandemic created A lifeline for Internet shopping, earning a living and maintaining personal relationships. Now, as the lockdown begins to take off, the real estate industry has to find out what it means.
Seeking answers, I surveyed those betting on the biggest and most surprising changes in the sector – PropTech Investors. Although landlords and their lenders may expect return in the past, future investors tend to focus on where the perception of place is going in the future. I have several excerpts on Tech-Crunch and an in-depth writing with my thoughts, including the revival of neighborhood retail, the rebirth of cities and more.
I couldn’t get into all the great topics, though, including the recent recent development of the residential sales and rental market, construction technology, related climate-tech topics, and other issues.
So here are the thousands of complete words of answers, given below. Additional Crunch Membership Required If you are the founder, employee, investor, etc. of a startup, you can also enjoy previous versions of this survey, from the fall of 2020, the spring of 2020, and the fall of 2019.
Investors we talked to:
- Clelia Warburg Peters, Venture Partner, Bain Capital Ventures
- Christopher Yip, Partner and Managing Director, RET Ventures
- Zach Aarons, co-founder and general partner, MetaProp
- Casey Burman, General Partner, Camber Creek
- Vik Chawla, Partner, Fifth Wall
- Adam Demuyakor, Co-Founder and Managing Partner, Wilshear Lane Partners
- Robin Godenrath and Julian Roio, Partners, Picus Capital
- Stonley Baptiste, founding partner, and Sean Abrahamson, managing partner, Urban Us
- Andrew Ackerman, Managing Director, Dreamit
Clelia Warburg Peters, Venture Partner, Bain Capital Ventures
As the epidemic enters its final stages of expectation, how are changes from this period affecting your real estate and PropTech investment strategy? Are current trends, such as high nationwide housing demand and large-scale commercial vacancies, reinvigorating your investment strategy?
Above all, I think COVID will prove to be a boon to current trends in both residential and commercial locations. I like to think of it as a decade of innovation acceleration in 24 months.
The epidemic has certainly focused on life at home, and that combined with low interest rates is an incredible period for companies touching the housing market. Given that I joined Proctech through work at a family residential brokerage, this market has always been a big area of interest for me, and I will see that we can see some of the major changes in pre-COVID in this market. Were among Residential transaction divestment is now settling into three main categories: iBuyers (who buy homes directly from sellers and eventually expect to own a sell-by-market), neobrokers (who typically employ their agents and secondary Services such as title mortgages and insurance use) increase their revenue) and elite agent equipment (platform or equipment focused on top agents). Additionally, consumers are increasingly open to alternative financing instruments, including a home-equity-based financing model (where you sell a stake in your home, or you buy a home in full ownership over time). Consolidating the entire residential market so that commissions from brokerage sales commissions and mortgage, title and home insurance sales are now functionally a large and intertwined disruptive market. In this context, while some of the evaluations we are seeing may be a bit pointless. I think there is no doubt that we are into massive and sustainable innovation in how we buy and hold our homes and I think these trends are going to be sustainable.
In the commercial sector, we were also in the midst of a meaningful shift in how companies were envisioning office space, in many ways thanks to the innovations that Wawarks brought to the market. But the epidemic has taken this much further, basically to the relationship between the landlord / manager (who has been largely in power since the 1950s) and the tenant (who is now in a position of much greater power). Is transferring) a consumer of a luxury product). As a result of this, I think the best landlords will recognize that they are going under pressure to provide a physical location, to help provide tenants with a multichannel work experience. This may mean having a physical / digital hybrid system with access control, physical space management (both in the hub location and at potential locations), and a digital space for meetings and collaboration. These assets have to be provided in the context of much human relations, which is focused on meeting the needs of tenants. As the terms of the lease are essentially shortened, tenants will need to be supported and supported in a much more active way than they have been in the past.
How do you see big cities for life after the epidemic – or will it? Which solutions are you specifically focused on for the future of urban life (co-living, ADU, business to residential transformation, etc.)?
I think the experience of cities after the epidemic would be highly variable – for example, the trajectories for Austin and New York would likely look different. I am personally unsure how a co-life or even commercial to residential conversion will occur, but I believe there will be some consistent areas of interest.
First, small-scale urban living will continue to be an important trend. I think we will continue to see the proliferation of bike lanes, a focus on living in moveable neighborhoods, and reliance on devices (such as App Nextoor) which reinforces our sense of connection to our neighbors.
Second, I think we will continue to see a reliance on some sort of outsourced services – rapid provision of groceries or groceries and other essentials – and technology and spaces that facilitate them, a growth area. Will happen.
Finally, I believe ADU will be an area of growth in some more urban environments, especially with seniors looking for an additional income stream so they can stay at home. One caveat is that I think it would be a winner-take-all space with a limited number of geographically effective winners.
The demand for suburban-style living is back – for now. What are you focusing on in this category for the next year or two (new residential services and facilities, build-to-rent housing development, etc.)?
The current change in urban environments and in suburban environments is playing out with some broad changes in the way the American public is exposed to homeownership. Over the past decade, there has been a net decline in homeownership and a net increase in rents. Some of it is by necessity, and some by choice. I think a component of the technology-related opportunity in the migration we are seeing now will be around the rental platform and multimily amanization. There is still no data aggregator like MLS on the rental side, and many portals (including Zillow Rentals, Apartment List, Zumper, RentalBeast and others) are competing to provide listing information to consumers. On the multilateral side, many multifunctional operators are realizing that the integration of work / life / sports is creating a new need for amenitization and more and more services in their offerings. I think we will continue to put more and more emphasis on building hospitality-style brands in multilateral space, and many of them will be equipped with a variety of technology-enabled facilities.
It is important to focus on the influx of both institutional and private investor money coming into the single-family rental space. (It may be that a certain percentage of the population is renting out their primary home in the future, but is exposed to the property market through the ownership of this type of real estate.) This growth is attributed to property management services such as Mind is being facilitated by the marketplace. Like Roofstock, and innovative products like Zibo or Knox Financial.