The Edge - Volume One

WHAT'S NEXT

PROPTECH AND CRE FIRMS Cushman & Wakefield believes it is critical for leaders in the CRE industry to be involved with both incubators that are purely focused on PropTech as well more general technology accelerators. A diversity of partnerships has allowed Cushman & Wakefield to access tremendous opportunities to find innovation in other industries that will apply to our clients and their real estate needs. As CRE owners and investors are getting more involved with PropTech investments, different models of engagement have emerged and real estate firms have chosen different strategies. In some cases, firms have attempted to develop PropTech solutions in-house from scratch. In other cases, already-developed technologies have been purchased outright. Increasingly, real estate firms are looking to invest in PropTech funds to obtain access to early-stage PropTech companies. For example, Cushman & Wakefield has recently invested in PropTech funds created by MetaProp and other VC firms. While building solutions in-house or purchasing tech companies outright provides control of the technology, both strategies have downsides. Access to outside ideas and third-party financial investment can be limited. Additionally, the opportunity to engage with broader customer and user bases in a way that spurs innovation can be stunted. A broad strategy that includes both in-house development and investment in outside companies maximizes the opportunity to find and build upon great ideas no matter where they come from. By placing diverse bets with early-stage PropTech companies, later-stage technology investments and thought leaders in both CRE and technology, firms can position themselves to capitalize on PropTech developments and anticipate impactful trends as they start. Cushman & Wakefield's distinct approach is integrating PropTech investments and partnerships with our business and client needs, not adding independent bolt-ons. We believe in partnerships and an open innovation system that includes universities, VCs, our teams and our clients. We can accomplish more by working with multiple $100 million funds than by managing our own, since no CRE company is built to be an expert VC firm. A recent example of this strategy at work is Cushman & Wakefield’s partnership with Bowery Valuation, which was generated through the firm’s relationship with MetaProp. Looking to serve clients in a better way, Cushman & Wakefield integrated Bowery’s comprehensive appraisal platform into their valuation teams’ operations. The partnership resulted in reduction of manual processes, increased data accuracy and shorter delivery times, all of which give valuation professionals more time and energy to provide improved service to clients.

Technology is rapidly impacting the real estate industry. It’s changing how investors, occupiers and service providers do their work, serve their customers and develop strategic business plans. Firms should focus on the following when developing strategies and implementing PropTech solutions:

CONNECTIVITY Leveraging technologies

that help sales teams better connect with their colleagues and clients in a dynamic fashion. This includes 3D visualization, interactive displays, sales enablement and artificial intelligence. INSIGHT Using technology tools that support strong decisionmaking through the use of data and analytics.

PARTNERSHIPS Identifying opportunities to collaborate with other

organizations that are focused on relevant technology solutions. This can include working with

existing data companies, incubators, accelerators or visualization tools.

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