Property Technology in New York Real Estate
Technology is changing how the world works. That is especially true in real estate, where technology is impacting the very way that the business operates. Technology can significantly help to create workplace that is not only attractive, but customized, for an employee base, while at the same time, enhances the efficiency of the building. It has the potential to help tenants get the most out of their space, while cutting costs and meeting sustainability goals. Over the past few years, new organizations that aim to bring technology to the real estate world have been flocking to New York, making it home to a real estate technology renaissance.
Technology is reshaping the real estate sector, and specifically how organizations go about finding space. Think about how Uber disrupted the transportation sector and Airbnb changed the lodging market. Shared workspace providers like New York-based WeWork are offering organizations workspaces without the headache of logistics. The firm offers fully-customizable space that is furnished and ready to be used at a moment’s notice. This allows small companies and startups to have access to office space, without needing to make long term financial commitment of a lease.
Tenants aren’t the only ones benefiting from technology and real estate blending. It is also making it easier on building managers. Companies such as New York-based Enertive build and install sensors to track the performance of the buildings. Elevators, boilers and other equipment can be hooked up and provide data such as real-time readings and maintenance history. It can also assign performance ratings to equipment and recommend if maintenance is needed. This provides building managers with insight into equipment operation and help identify problems before they become a breakdown. This helps landlords cut costs by avoiding costly repairs and over-use of certain equipment, and in turn, they can drive more profit out of their asset.
Another New York-based organization focusing on smart building technology, Blueprint Power, is focusing on efficiency and helping owners bring in new revenue from their portfolios. Deregulation in the energy market allowed building owners to sell off excess power as if they were a powerplant themselves. Blueprint helps owners manage their energy assets across the entire portfolio and sell their surplus power. They are brining automation and data-driven behavior to real estate, and helping landlords profit.
Organizations across the world have some ties in to New York real estate, so it should come as no surprise that New York has become the home of the property tech revolution. Venture capital investments in real estate technology in New York rose by 133 percent in the last year totaling around $2 Billion. Most of that has been pumped into residential real estate, but recently, the commercial sector began to heat up. Considering such a wide variety of organizations need real estate in New York City and growing interests from real estate firms to partner with young startups, it is a very optimistic time in real estate technology in New York.
