PropTechCanada Insights
PropTech and COVID-19
Source: pixabay.com
Though there has been a lot of uncertainty around real estate and office space PropTech may help paint a picture of what the future will look like.
In the past few months, a number of real estate tech companies have reported an increase in demand for their products/services. Companies that were slow to see demand are now witnessing growth that they are working extremely hard to keep up with.
Lane, a company headquartered in Toronto, recently closed a $10 million round amidst the pandemic (link). Not only does this indicate there is confidence in the PropTech industry, it also signals that real estate owners/operators remain resilient in finding new and efficient ways to operate with the use of technology.
In the past few months, a number of real estate tech companies have reported an increase in demand for their products/services. Companies that were slow to see demand are now witnessing growth that they are working extremely hard to keep up with.
Lane, a company headquartered in Toronto, recently closed a $10 million round amidst the pandemic (link). Not only does this indicate there is confidence in the PropTech industry, it also signals that real estate owners/operators remain resilient in finding new and efficient ways to operate with the use of technology.
What does this mean for real estate owners/operators?
As we begin to see return to work scenarios/protocols landlords have to think about how to make their buildings a safe environment. Additions such as automated entry, package lockers, and workspace retrofits should now be taken into consideration when re-designing office and residential buildings. In an article published by TheRealDeal (Link), Felicite Moorman, founder of Stratis IoT, states that the pandemic is changing the way building staff interact with visitors, delivery people and packages.
Similarly, since operators/owners are seeing a decrease in operating revenue they have to be prudent on how they continue to operate. RE firms will see a number of their tenants not returning back and as a result held with vacant spaces. To operate more efficiently, RE firms will look to technology platforms and automation. Tasks such as optimizing existing space to accommodate for workplace social distancing and operator-tenant communications will be done through technology enabled platforms.
Although it's unclear how the future will look like we can see that things will be a lot different from pre-COVID. In times of uncertainty it's important to come together to find a solution and in real estate that could mean increased collaboration between Real Estate firms and PropTech companies.
Mahinthan Subram
PropTechCanada & ShareStreet
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