The Real Estate Tech Revolution Creating Your Competitive Advantage
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NAIOP Commercial Real Estate Conference October 13‐15, 2015 Toronto, Ontario, Canada The Real Estate Tech Revolution Creating Your Competitive Advantage Moderator: Ashkán Zandieh, Founder, RE:Tech Speakers: Nicholas Romito, Co-Founder and CEO, VTS Arie Barendrecht, CEO and Co-Founder, Wired Score Michael Mandel, CEO, CompStak #crec15 Ashkán Zandieh RE:Tech › Pioneer the Future of Real Estate • CEO & Founder, RE:Tech • MS Real Estate Finance, New York University • BBA Business Mgmt, Hofstra University • Featured In: • Forbes • Wall Street Journal • New York Times RE:Tech is a research marketing firm focused on quantitative & qualitative trends and pioneering innovation in real estate. 1 NAIOP Commercial Real Estate Conference October 13‐15, 2015 Toronto, Ontario, Canada Creating Your Competitive Advantage › Tech’s Impact on Real Estate ›› Real Estate’s Impact on Tech Tech’s Impact on Real Estate 1. Increase in Asset Performance 1. Diversification of Tenant Type 1. Coworking 2 NAIOP Commercial Real Estate Conference October 13‐15, 2015 Toronto, Ontario, Canada The WeWork Effect 51 MELCHER STREET, BOSTON WeWork Square Footage: 44% Property Value: • 2012: $17.5M • 2015: $52.8M 202% Increase In Property Value The WeWork Effect 210 N. GREEN STREET, CHICAGO WeWork Square Footage: 89% Property Value: • 2013: $18.5M • 2015: $35M 89% Increase In Property Value 3 NAIOP Commercial Real Estate Conference October 13‐15, 2015 Toronto, Ontario, Canada The WeWork Effect 222 BROADWAY, NYC WeWork Square Footage: 17% Property Value: • 2012: $350M • 2015: $502M 43% Increase In Property Value The WeWork Effect 25 TAYLOR STREET, SAN FRANCISCO WeWork Square Footage: 100% Property Value: • 2012: $18M • 2015: $27M 50% Increase In Property Value 4 NAIOP Commercial Real Estate Conference October 13‐15, 2015 Toronto, Ontario, Canada Creating Your Competitive Advantage › Tech’s Impact on Real Estate ›› Real Estate’s Impact on Tech Real Estate’s Impact on Tech 1. Infrastructure as a Service (IaaS) • Better Internal Real Estate Tech Infrastructure 1. Mobile Technology Software as a Service (SaaS) • Do Business From Anywhere at Anytime 1. Emerging CRE Tech Startups • Real Estate’s Innovative Future 5 NAIOP Commercial Real Estate Conference October 13‐15, 2015 Toronto, Ontario, Canada Real Estate’s Impact on Tech Emerging CRE Tech Startups Floored.com VTS.com CompStak.com WiredScore.com Technology is Changing Everything, the Catalyst is You. Nick Romito Founder & CEO VTS #crec15 6 NAIOP Commercial Real Estate Conference October 13‐15, 2015 Toronto, Ontario, Canada 7 NAIOP Commercial Real Estate Conference October 13‐15, 2015 Toronto, Ontario, Canada Ti t l e of Page WE MANAGEA launchOUR plan TIdesigned ME to br EFFI ing your portfolio, CIENTLY marketing materials, and team online with ease & speed. WE NO LONGER WAIT FOR ANYTHI NG, INCLUDI NG CABS WE MANAGE OUR HEALTH Exercise, diet, it’s all managed using technology 8 NAIOP Commercial Real Estate Conference October 13‐15, 2015 Toronto, Ontario, Canada MANAGE RELATI ONSHI PS WE NEED TO STAY CONNECTED 9 NAIOP Commercial Real Estate Conference October 13‐15, 2015 Toronto, Ontario, Canada 10 NAIOP Commercial Real Estate Conference October 13‐15, 2015 Toronto, Ontario, Canada 11 NAIOP Commercial Real Estate Conference October 13‐15, 2015 Toronto, Ontario, Canada 12 NAIOP Commercial Real Estate Conference October 13‐15, 2015 Toronto, Ontario, Canada WiredScore Leveraging Connectivity to Drive Leasing #crec15 13 NAIOP Commercial Real Estate Conference October 13‐15, 2015 Toronto, Ontario, Canada Arie Barendrecht [email protected] WiredScore • Grew up in Los Angeles, now live in NYC • Formerly a management consultant with BCG • First time in Toronto! • Undefeated in fantasy football • Passionate about helping occupiers and landlords get “better connected” LET’S TALK ABOUT THE INTERNET 14 NAIOP Commercial Real Estate Conference October 13‐15, 2015 Toronto, Ontario, Canada OCCUPIERS CANNOT FIND THE CONNECTIVITY THEY NEED The problem: Connectivity is the 50% COST third most important 36% LOCATION It is incredibly influencing factor 36% LOCATION challenging for when searching for 33% CONNECTIVITY businesses looking for office space- behind 33% CONNECTIVITY office space to get Cost and Location. information about the 31% TRANSPORTATION quality of internet connectivity 21% LEASING OPTIONS 11% MANAGEMENT 5% AMENITIES Source: The State of Office Connectivity. Survey (US). WiredScore; Robust Insight Limited, June 2015. Source Details: Survey consisted of 444 respondents - 35% 5% VIEWS Decision Makers (Managers), and 65% Office Workers (Employees). Companies represented firms between 1-250 ENVIRONMENTAL employees, primarily from the Marketing, Advertising, 2% SUSTAINABILITY Consulting, Finance and Real Estate industries. 29 WIRED CERTIFICATION RECOGNIZES BEST-IN-CLASS CONNECTIVITY Today’s tenants and brokers demand reliable, high quality Internet connectivity, but not all buildings are created equal WiredScore evaluates and Wired Certified buildings are rates the quality of internet positioned as cutting-edge and connectivity in office buildings tech-forward and are through the Wired Certification prioritized in tenant and broker platform searches 30 15 NAIOP Commercial Real Estate Conference October 13‐15, 2015 Toronto, Ontario, Canada TOP OWNERS AND OPERATORS HAVE ADOPTED WIRED CERTIFICATION Many of the nation’s owners are already certified, including: Empire State Building Google Building NYC NYC Chicago Board of Trade Columbia Center Chicago Seattle 31 TRANSPARENCY DRIVES VALUE ACROSS THE ECOSYSTEM Landlords Tenants Carriers City Govts. Landlords get Wired Wired Certification Wired Certification Wired Certification can Certified to: allows tenants to highlights where serve as an economic make more informed Carriers are present development tool • Benchmark their leasing decisions by and identifies potential connectivity quality providing information future building • to highlight the importance of • Attract tenants that is critical to demand businesses today connectivity • Enhance value of • to promote cities / properties neighborhoods as tech-friendly 16 NAIOP Commercial Real Estate Conference October 13‐15, 2015 Toronto, Ontario, Canada SO WHAT MAKES A WIRED CERTIFIED BUILDING? 1. Choice + Quality of providers FUTURE-PROOFING BUILDINGS ALSO REQUIRES: 2. Access to providers • Distributed Antenna Systems 3. Redundant infrastructure + • Public Wi-Fi • Backup power 4. Resilient infrastructure • Above grade telecom storage 5. Room for growth • Building Management Systems We Deliver Insights from Crowdsourced Commercial Real Estate Data Compstak 17 NAIOP Commercial Real Estate Conference October 13‐15, 2015 Toronto, Ontario, Canada * 52,350SF 144,000SF $36.00/SF $70.00/SF 13,300SF $64.00/SF 32,030SF $72.00/SF 24,500SF $76.00/SF 152,232SF $85.00/SF 128,693SF $30.00/SF * 24,500 SF 143,836 SF $77.46/SF $60.69/SF Expansion New Lease Office Office Q2 2015 Q2 2015 Partial 2 Entire 4-8 $76/5Y, $90/6Y $84/5Y, $89/5Y $55/SF $66/SF Jamestown Minskoff 18 NAIOP Commercial Real Estate Conference October 13‐15, 2015 Toronto, Ontario, Canada * Building Information 51 Astor Place, New York NY Tenants * Building Information 51 Astor Place, New York NY 19 NAIOP Commercial Real Estate Conference October 13‐15, 2015 Toronto, Ontario, Canada THE OLD WAY BROKERS GOT COMPS BROKER A BROKER B BROKER C 20 NAIOP Commercial Real Estate Conference October 13‐15, 2015 Toronto, Ontario, Canada Exchange Free lease comp trading platform for brokers, appraisers, and researchers Exchange Search for comps with the Submarket tool in your desired market 21 NAIOP Commercial Real Estate Conference October 13‐15, 2015 Toronto, Ontario, Canada Exchange Zero in on the comp you need Exchange Find the averages of the comps in your comp set and export them to Excel or PDF 22 NAIOP Commercial Real Estate Conference October 13‐15, 2015 Toronto, Ontario, Canada Exchange Send us your comps in any format: Excel, PDF, etc. to earn credits Private Equity Funds Banks Asset Managers Investment Trusts Hedge Funds Accounting Firms 23 NAIOP Commercial Real Estate Conference October 13‐15, 2015 Toronto, Ontario, Canada Select COMPSTAK CUSTOMERS OnDemand Free fair-market value analysis and verified lease data sold on an a la carte basis 24 NAIOP Commercial Real Estate Conference October 13‐15, 2015 Toronto, Ontario, Canada OnDemand Build Instant Competitive sets for over 80,000 properties OnDemand Analyze the starting rent trends across your competitive set 25 NAIOP Commercial Real Estate Conference October 13‐15, 2015 Toronto, Ontario, Canada OnDemand Find the lease comps for your target property and its competitive set OnDemand Drill down to specific deals to find the information you need 26 NAIOP Commercial Real Estate Conference October 13‐15, 2015 Toronto, Ontario, Canada Master Comps by Market New York… 24,013 35,657 Los Angeles 28,708 21,791 Chicago 21,741 1,850 Dallas 12,526 7,297 Houston 3,785 8,487 Sac / Cntrl… 7,839 4,844 Denver 3,816 9,257 San Antonio 7,170 5,564 Just Getting Started London Orlando Shanghai Salt Lake City Detroit Beijing Phoenix Raleigh/Durham Mumbai Las Vegas Nashville Tokyo Seattle Indianapolis Frankfurt Philly Columbus Singapore Portland Toronto Amsterdam Baltimore Montreal Zurich Miami Paris Sydney Charlotte Berlin Stockholm Ft. Lauderdale Hong Kong Johannesberg Jacksonville Seoul Madrid Seeded by Pioneers 27 NAIOP Commercial Real Estate Conference October 13‐15, 2015 Toronto, Ontario, Canada • [email protected] The Real Estate Tech Revolution Creating Your Competitive Advantage Moderator: Ashkán Zandieh, Founder, RE:Tech Speakers: Nicholas Romito, Co-Founder and CEO, VTS Arie Barendrecht, CEO and Co-Founder, Wired Score Michael Mandel, CEO, CompStak #crec15 28.