analytics tools, and deal flow. Once
fierce competitors, enterprise solutions
VTS and Hightower recently merged,
and will continue to expand their U.S.
and global footprint. LeasePipeline
focuses expressly on lease deal flow
management, while ProposalNet is
designed for tenant reps specifically.
DealPath does the same for asset acquisitions and sales teams.
Throughout hundreds of young, innovative, disruptive RE Tech start-ups, two
broad themes emerge:
Theme 1: It’s All About the
Data (big, small, or specialized) doesn’t
necessarily equate with knowledge or
guarantee smart decisions. As Google
head Eric Schmidt explains, “There
were five exabytes (a billion billion
bytes!) of information created between
the dawn of civilization through 2003,
but that much information is now
created every 2 days.” Yet, a recent
IDC/EMC study reports that “less than
0.5 percent of all data is ever analyzed
and used.” Numerous RE Tech start-ups
have stepped in to solve this problem
and profit from the opportunity.
Data is being unlocked, gathered, and
manipulated in ways never seen before.
Governments at all levels now make vast
sets of public data available to citizens
and businesses—and it’s usually free,
which encourages start-up formation.
For example, Create, UrbanSim, and
others in the visualizer category rely
heavily on public data sources to graphically represent zoning, transit routes,
and demographics. Some tools, such
as (RE)meter and ZoomProspector, also
rely on third-party data, while others
such as Reonomy and Magalytics, process public and private data to create
their own unique proprietary resources.
Companies are beginning to recognize
the value of their own internal data
sources to complex decision-making,
and relying on start-ups like VTS and
Hightower to better visualize, manip-
ulate, and understand the significant
volumes of data generated on a daily
basis at large brokerage firms. Add to
this various public and third party data,
and a firm’s business decision-making
moves to an entirely new level.
In a novel twist on traditional data
gathering, new technology also enables
information to be collected directly from
the public. Perhaps the best example
of crowd-sourcing data for real estate
is Compstak, which allows brokers to
anonymously trade lease comps. After
entering lease data into the Compstak
database about a recent deal in Building
A, a broker can then search the database and view lease data entered by
another broker on a deal in Building B
"The wave of technology start-ups
focused on real estate are gaining
a name as they gain momentum."