The Proptech investment has hit record highs in 2019 and soared over the past two years, as the commercial real estate market of $3.5 trillion undergoes its much needed digital transformation.
Fremont, CA: Understanding the substantial opportunities, multi and single-family rental owners and operators are swiftly adopting technologies at frantic rates to streamline operations, enhance resident experience, and ultimately differentiate themselves in an ultra-competitive environment. At this juncture, proptech has captivated strategic investors from early-stage venture firms concentrating on real estate technology or large owner/operators and REITs. But because of the depth, successful exits, and diversity within proptech, mainstream investors are entering the game, and this merger of new capital will have a net-positive effect which will keep driving innovation in the real estate technology and establish new market leaders.
Smart Apartment Tech Extends Beyond Apartments
The operations and cost savings that mature smart apartment technology provides is allowing the owners to deploy portfolio-wide contrary to unit-by-unit. With implementation and IRR becoming more accessible and more affordable, smart apartments are emerging to be popular throughout the rental properties. An apartment complex providing smart features such as thermostats, locks, and light switches to their customers is a common phenomenon these days. The utilization of smart technology for asset protection is also becoming common, with leak sensors virtually excluding major water damage incidents.
‘Hotelification’ Evolves Into a full AirBnB Experience
In the past few years, hotilification of rental properties have been noticed, and apartments are now offering high-end amenities such as dog walking, cleaning, and fitness services similar to the experience of a hotel. In 2020, vast numbers of rental properties are to take hotelification to the next level by extracting a page out of the Airbnb playbook and offering units to the tourists or tenant’s friends and family to avoid the short-term rental issue. Consumer preference is the most important as it allows such hotelification.
Verticalization of Markets
The entrepreneurs are likely to take more advantage of the increasing verticals within the rental market with the rise of smart tech and hotelification in 2020. Various start-ups handle aspects of the moving process, starting from providing boxes and other packing materials to hiring movers, and managing residents’ schedules.
See also: Top Proptech Solution Companies