One of the most interesting and perhaps valuable trends in the real estate market has been the rise of tech startups that focus on brokerages, real estate analytics, pulling in investments and commercial leasing. Essentially, most of these companies focus on putting the information that was once restricted to separate sources into one place on their site so interested parties can see it for themselves.
Companies such as VTS, Compass and Reonomy have managed to pull in millions of dollars to help fund their efforts which have led to a new ways of using real estate information. Basically, all real estate technology is based on dedicated software that property owners, brokers, investors, buyers and managers use in various ways to see what is happening in the market.
It was not long ago that making purchases in real estate was a complex undertaking involving brokers and agents who knew many things about the industry. However, after online companies such as Zillow, Trulia and even Craigslist became popular, the industry began changing rapidly as renting and purchasing became a lot easier thanks to having more information available.
Today, new tech startups are now leading the boom in real estate information that is revolutionizing the industry as a whole. What follows are eight prominent tech startups in the real estate industry that have made their mark. Each of them contributes in their own way and has raised millions to help expand their efforts across the US. These 8 commercial real estate startups are killing it:
Formally known as “View the Space”, VTS is a commercial real estate management platform that has raised around $21 million to help real estate brokers, investors and owners leverage the right data in order to make the most informed decisions. VTS hopes to bring into the world of real estate investing 21st Century methods that will replace the venerable, but outdated ways that many people manage their properties.
This means that brokers, investors and owners can work together in real time from any device so that they can manage their portfolios, see new market trends and get specifics on their cash flow properties. Basically, by getting information on new trends in a timely manner, a property owner can fashion their commercial space to meet this new need and stay out in front. The result is that owners, brokers and investors anticipate the needs of their potential clients or customers instead of reacting to them after the fact.
Founded in 2013, Hightower makes it simpler for commercial owners and brokers to manage the entire leasing process from the time of the purchase at the time of the sale. A broker can use it to get leasing activity reports and access all history of proposals and marketing items while owners can use it to pull together all of their analytics, deal management and asset intelligence. Today, hundreds of millions of square feet of commercial property is now being managed using this system.
It was the first end to end leasing management platform and replaces bulky spreadsheets and other traditional managing systems with a simple, intuitive online command center that serves as the hub for leasing activities. Essentially, these systems are designed to create an easier to manage, more informative and intuitive to use process that creates a far more efficient process in managing, buying and selling properties. The subscription-based platform is scaled for owners and brokers based on their portfolio or their holdings and there is no upfront cost.
TheSquareFoot is an online CRE listing platform and in-house brokerage that was created in Houston and moved to New York. The company raised $2 million raised in seed funding to create a better office space search. This company serves the space needs of businesses all over the country, but is particularly interested in the NYC area serving many well known startups and larger companies who want an easy end-to-end office leasing process.
A next generation business that operates on the web and has a physical presence, TheSquareFoot uses tech to make the search and leasing process easier
Known as Credifi Corp, they offer aggregated data and analytics on commercial real estate that currently exceeds 10 billion square feet across the US. With $8 million in funding that will expand its cloud service that hedge funds, banks, owners and entrepreneurs use to get information on tenants, property loans, occupancy of buildings, investments along with compliance and other legal issues. Founded in 2014 with the premise of finding new ways for data analytics to all types of industries, Credifi finds, analyzes and digitizes information that otherwise had to be gathered on a local basis by people which can be very costly. Overall, the total funding effort which includes crowdfunding has surpassed $10 million, which has placed Credifi in a unique situation of being able to expand and help all types of commercial real estate owners and brokers in their efforts at getting the most information possible to use for their business.
One of the hottest startups in the commercial market, 42Floors is a Y-Combinator alumni company that has raised over $12 million in Series B round of financing. In November of 2014, 42Floors expanded its services to the New York City area after starting in San Francisco where it helped more than a thousand companies locate over 2 million square feet of office space.
The original directive of 42Floors was to target specific tech startup companies in San Francisco and then New York. However, all types of businesses now use the platform as more than 80% of the traffic has been for office space outside New York and San Francisco. It’s little wonder that the company is now expanding and hopes to include Boston, Chicago and Los Angeles in the near future. 42Floors manages to bring new technology to real estate, an industry that is typically lacking in advancements that bring more efficiency to brokers, renters and owners.
With over $13 million raised in the latest round of fundraising, Reonomy has declared itself a real contender when it comes to startups in the commercial real estate market. Founded in 2013, Reonomy has actually raised around $18 million total for its efforts at finding the best intelligence for real estate ventures.
By pouring through over 200 public databases, Reonomy has managed to bring together formally fragmented elements of information that includes capital expenditures, violations of the Department of Buildings, and outstanding mortgages along with other metrics that provide its customers with all the information needed about particular properties as well as their comparative assets. The data itself is really only the beginning as it is combined with machine learning, data science and hard core tech to produce the type of information that investors, owners and brokers need in the commercial real estate market.
Based in New York, Floored has managed to score a lot of attention for its creative use of 3D to scan office spaces, houses and apartments. The unique 3D camera technology combined with the proprietary software has helped Floored close about $5.26 million in funding for their efforts in the real estate market. The unique approach by Floored in the use of 3D technology allows for what they scan to be viewed and changed to see whether it is a good fit for a particular company.
In this manner, a prospective company can take out a wall, add furniture and make other changes to see if a particular commercial space is right for their needs. Floored has perfected the process so that spaces can be scanned in a short period of time and within a few days has the finished 3D model available on the web.
This real estate data firm has managed to raise around $4.4 million in its latest round of fundraising, which has pushed the company over $10 million in total. CompStak’s approach is to create a large database of leasing activities that has attracted quite a number of clients for their services. The overall amount of revenue raised will help to expand the business so that they can take on new clients. CompStak’s success reflects many tech startups in the real estate industry that provide valuable information on commercial properties.
CompStak has devised a crowd-powered version that lets brokers trade their information about comps for leases, square footage, income, tenants and square footage. The idea is to exchange the information to build a super-database where everyone in the commercial real estate market can benefit. With nearly 40 employees and located in 12 cities, CompStak plans to expand even further to help take advantage of this new section of the real estate industry.
Currently, real estate tech startups have managed to garner more than $700 million in just the past two years alone making them the leaders in helping to pull the real estate industry into using new methods for gathering much needed data.