CRETech Mid-Year Report: What It Means

I’ve been waiting. I’ve been asking. Frankly, I wasn’t that patient. Finally, CRETech released its 2018 Mid-Year Report earlier this week.

I look forward to each CRETech report because it’s a comprehensive look at where we are and the companies I should be paying attention to, but it’s also shows how far we’ve come. I have read each report and tracking the progress of the industry is exciting.

My first impression? It’s HUGE and it’s AWESOME! It’s 64 pages and includes some great insight on the industry overall as well as profiles of some of the most exciting companies in the space.

While I suggest reading the entire report, here are some of the key takeaways:

-          The game is the same, but the players have changed. If you look at the CRETech Leadership Board, it’s an impressive list. However, if you really dig deep and look at the names of the companies that these people represent, it’s overwhelming. Even as recently as two years ago, you could never have assembled a group to focus on tech that included major landlords, large service providers, and some of the leading venture capitalists. The big-time players have arrived.

-          The logos look like an eye chart, and that’s a good thing. There are so many companies in and entering the space that including all of them is impossible. That said, this report breaks them down by specialty and does a great job of including so many of the key players.

-          Over $3b invested in the first half of 2018! Are you kidding?? While half of that total comes from Katerra and WeWork, the list of investments is long and impressive. The investments range from seed and convertible notes all the way to Series E (OpenDoor) and debt financing. While most companies are based in New York or California, there are some outliers in Arizona, Texas, Louisiana, Ohio, Tennessee, Virginia, Georgia, and Kansas, showing that the movement is spreading throughout the country.

-          Coworking is still hot. The largest and most active fundraising has occurred within this segment of the market, and it doesn’t appear to be slowing down any time soon. WeWork, Convene, Knotel and Industrious are all in major growth modes, but it remains to be seen how they will handle a down market.

-          Data is what’s next. Companies that can gather and interpret large amounts of data in short periods of time are growing. For example, Reonomy raised $30m to grow their business which boasts a database of over 49 million commercial assets. Skyline AI has raised over $20m with a goal of using artificial intelligence to exploit market anomalies and identify superior investment opportunities.

A few of my favorite tech companies are also featured in the report, including:

-          Honest Buildings

-          Bixby

-          CommissionTrac

-          HqO

-          NavigatorRE

-          VirtualAPT

-          WiredScore

If you don’t know them, check out their profiles in the report.

Michael Beckerman, the CEO of CRETech, calls it a movement. He speaks to people every day about their start up ideas, he has countless pitch decks sent to him, and he finally sees some of the adoption within the industry that’s long overdue. If you are reading this, you are clearly paying attention. I highly recommend downloading the report and digging in for yourself.

The movement is real. Don’t get left behind.