The Future Is Now: The State of PropTech Innovation

19/05/2025 32 min Temporada 6 Episodio 20
The Future Is Now: The State of PropTech Innovation

Listen "The Future Is Now: The State of PropTech Innovation"

Episode Synopsis

Fifth Wall’s Brendan Wallace and CBRE’s Connor Hall explore innovation in commercial real estate, from flexible workspaces to AI-driven investment strategies.Share these insights on proptech investing: ·     Investing in PropTech, like all venture capital investments – is high risk and high reward. Investors typically underwrite 40%+ internal rates of return (IRRs), betting that a few transformative companies succeed and compensate for those that fail. ·     Investing in PropTech provides early access to innovations that enhance asset performance, reduce costs and create competitive differentiation. ·     Artificial intelligence is expected to improve underwriting, asset selection and risk modeling for real estate investors. Those that adopt AI-driven tools early may gain a significant edge. ·     The initial public offering (IPO) market has slowed, but standout exits like ServiceTitan show that public capital is still available for top-tier companies. Investors in private companies should be prepared for longer holding periods prior to exits. ·     The most investable PropTech companies are those that solve challenges for  real estate in operations, capital markets, risk management and elsewhere. Deep industry knowledge is key to identifying winners.