• 1-800-123-789
  • info@webriti.com

Category ArchiveMetaProp NYC

It’s MIPIM Time: Why You Should Be Excited for the Cannes Conference

Once again, it’s that time of the year for real estate professionals across the globe to head to Cannes, France.

Just two months ahead of the invitation-only Cannes Film Festival, where movie stars will take to the sandy city on the French Riviera and no doubt trade Harvey Weinstein horror stories, tens of thousands of men and women in business suits carrying briefcases and card holders will storm the streets of Cannes hunting deals during the annual MIPIM (or Marché International des Professionnels d’Immobilier) conference on March 13 through March 16.

The bulk of the events, which is organized by Reed Exhibitions subsidiary Reed MIDEM, will be held at the Palais des Festivals et des Congrès, a massive conference center on the Cannes waterfront.

MIPIM’s theme for the 29th annual conference is “Mapping World Urbanity,” and the event’s programming will try to address issues like, How will we live in cities in 2030 and 2050? And, what are the best strategies for building future cities in a globalized world?

There are plenty of reasons to be excited for MIPIM, but to approach a conference as big as this (with more than 24,000 people), a roadmap might prove useful. We talked with a few MIPIM-goers from the U.S. to get an idea of what the sophisticated attendant should look out for this year.

Networking (duh)

With approximately 24,200 expected participants from over 100 countries, it’s more than possible to find the right person to talk to at MIPIM, whatever your needs may be.

Of the attendees, there will be 5,000 investors and financial institutions, 4,500 developers, and 3,800 CEOs and chairpeople scrambling around the waterfront and in the Palais des Festivals. And there will be more than 3,100 exhibiting companies.  

And in case the conference center isn’t your scene to swap business cards, networking parties will take over the swanky hotels, luxury yachts and the beach.

pim17 0550 Its MIPIM Time: Why You Should Be Excited for the Cannes Conference
With an array of events and booths, there’s ample opportunities for networking at MIPIM. Photo: MIPIM

“The most important thing for me is the networking,” said Susan Greenfield of Brown Harris Stevens, who has been to the event for 28 consecutive years and has already booked her flight for No. 29. “I go every year because it’s the one place in the entire year where I see almost everyone I know from around the global at the same time.”

She added, “The thing that is so important about this event is you get so many decision-makers. One day I was walking down the street [in Cannes] and who could be facing me walking the other direction? Harry Macklowe. I said, ‘What are you doing here?’ He said, ‘I’m here to look for money, what are you doing here?’ ”

City and country exhibitions

If you’re thinking global and want to know what investment opportunities there are in cities abroad, this is the event for you.

The European cities put on a show at MIPIM, bringing large-scale panoramas of entire cities and models of megaprojects to dedicated pavilions. Last year, London and Istanbul had massive jaw-dropping displays.

“Some of the models and booths are off the charts,” said Jay Olshonsky, the president of NAI Global, who has gone to MIPIM for seven consecutive years and is returning this year. “Some people told me some of the models there are million-dollar [displays]. I always leave two or three hours for myself to walk around because you always see something you’ve never seen before.”  

“Le Grand Paris,” the name for the pavilion dedicated to the City of Lights, will feature 19 exhibitions and events each day. Belgium’s pavilion will feature experts and models of Flanders, Brussels and Wallonia, while Holland’s space will be dedicated to Amsterdam, Rotterdam, Utrecht and The Hague.

pim17 0688 Its MIPIM Time: Why You Should Be Excited for the Cannes Conference
Model displays of cities and large developments are popular in MIPIM, such as this one of London last year. Photo: MIPIM

On top of these, there will be booths dedicated to countries from Asia, Africa and North America. Not that the models and displays of cities are there just to be pretty or promote specific projects and the companies that are developing them; more than 370 political leaders and 500 representatives from cities will be in attendance to talk about development in their cities, attract developers and get investments in their locales. (We’ve already heard from the Moscow delegation!)

“If you go to ICSC in Vegas, which is by far a bigger show [with 37,000 attendees], it’s more about the displays about the companies [not cities],” Olshonsky said. “New York City doesn’t come and display at ICSC like Paris does in MIPIM.”

Panel events and keynote speeches

It’s not all deal-making and networking—MIPIM is also a place to learn about development trends across the globe. The event will feature more than 360 keynote speeches and well over 120 panels, sessions, workshops and networking socials covering a wide variety of topics—from Asia and Europe to sustainability and logistics.

And those events will also serve to gather experts across the globe and offer opportunities to get someone’s ear.

“[After networking,] the second thing that I find very valuable is attending these program and panels because I learn so much,” Greenfield said. “You never stop learning and real estate is always changing. If you don’t stay ahead, if you don’t stay involved, if you don’t stay knowledgeable, then you are going to miss out.”

Some panels to look out for include “Self-Driving Cars: Bringing a New Face to our Cities,” “Smart Housing: What Millennials Expect,” “Belt and Road Initiative: Capturing Opportunities Through Hong Kong” and “Urban Logistics: the Next Challenge for Cities.”

pim17 0360 Its MIPIM Time: Why You Should Be Excited for the Cannes Conference
The comprehensive panels with world-class experts are plentiful at MIPIM. Photo: MIPIM

And even Commercial Observer is getting in on the action, co-organizing the U.S.-focused two-panel event entitled “Developing and Investing in the United States: Where, What & How?” on the morning of March 14 at The Ruby Room in Palais des Festivals.

Ric Clark, Brookfield Property Group’s senior managing director and chairman, will deliver the keynote address and Jonathan Mechanic, the chairman of Fried Frank Harris Shriver & Jacobson’s real estate department, will moderate the panels. Cushman & Wakefield’s Bruce Mosler, SL Green Realty Corp.’s Isaac Zion, Hines’ Christopher Hughes, Hap Investments’ Eran Polack and Allianz’ Christoph Donner are just some of the panelists. (You can find us there!)

Tech

Come for the drinks and deals, but stay for the tech!

For the past couple of years, the presence of property technology companies has grown at MIPIM. As the sector is becoming a force in the industry—making more investors curious about what’s next to come—MIPIM has stepped up to provide some answers.

There will be a PropTech Lab event at MIPIM for the first time on March 15, where  invite-only real estate executives and tech leaders will meet and talk about the increased impact of technology on real estate.  

“MIPIM events and conferences will be great opportunities for members of the REBNYTech team to meet with industry leaders of tomorrow,” Ryan Baxter, a Real Estate Board of New York vice president for management services and government affairs, who is heading to MIPIM this year again and is a member of the advisory board of MIPIM PropTech, said in a statement. “We’re looking forward to learning more about smart cities and human-centric innovation efforts from around the world.”  

MIPIM also serves as the final leg of the third-annual MIPIM Startup Competition, an international tech competition in partnership with MetaProp NYC, a real estate tech accelerator. Nine finalists at the nexus of tech and real estate were selected from three previous events, MIPIM U.K., MIPIM Asia and MIPIM PropTech (in Manhattan), and those companies will face off in Cannes to determine the best of the lot on March 14.

The competitors from New York City’s MIPIM PropTech that are heading to Cannes are Real Atom, the first online marketplace for commercial real estate debt financing; PlanRadar, a digital software that facilitates project management for construction companies; and Acasa, an app that helps individuals manage household bills.

The winner will receive three passes to both MIPIM U.K. and MIPIM Asia 2018, four passes to MIPIM 2019 (again in Cannes), an automatic selection as a finalist for MetaProp NYC’s 2018 accelerator program as well as brand exposure and coaching at this year’s MIPIM.

And take in Cannes, for goodness sake!

“If you think about it, if you have got to go somewhere 6,000 miles away—for you and I, it’s not too shabby to go to the south of France,” Olshonsky said.  

Cannes is packed with bars, restaurants, hotels and historic buildings all within walking distance of the beach. For those looking to notch Michelin stars on their belts, there are plenty of options. La Palme d’Or, Villa Archange, Paloma and L’Oasis all hold multiple stars.

There are luxury hotels all around the beach area of Cannes. Some leading contenders are Hotel Barrière Le Majestic Cannes, InterContinental Carlton Cannes Hotel and Grand Hyatt Cannes Hôtel Martinez thanks to their astounding architecture and rich history.

And speaking of history, while you’re in town for a real estate expo, why not do a little sightseeing? Cannes is home to Eglise Notre Dame d’Espérance, a 17th century gothic church set atop a hill that overlooks the port area and it provides some amazing views. And there is also the Musée de la Castre, a museum that is set in a castle built by 11th-century monks.

Also just like the Hollywood Walk of Fame, Cannes is known for Allée des Étoiles du Cinéma, where stars leave their handprints. Finally, don’t forget to talk a stroll along the Promenade de la Croisette if you didn’t already do so on your way to and from the convention center.

Source: commercial

How a Rivalry Between VTS’ Romito and Hightower’s Weber Turned Into a Bromance

It was over a beer in the summer of 2016 that Nick Romito and Brandon Weber knew that they were meant to be together.

From there, the pair did a series of double dates—a brunch and two dinners—with their respective partners, and those meetings were just as positive.

It shouldn’t have worked: Romito and Weber had a rivalry going as strong as that of Coke and Pepsi, or the Red Sox and Yankees, or DC and Marvel.

Romito had founded VTS (formerly called View the Space), a leasing and asset management platform, in 2012. Weber’s Hightower came on the scene a year later doing a lot of the same stuff. But whatever bad feelings they might have had evaporated.

“We’re all like, ‘This is unbelievable how similar we all are,’ but even where we’re different, those are actually filling gaps that both companies have, so it was a super synergistic thing,” Romito said during an interview along with Weber at their offices last week. “We got along, the visions lined up, and we just said, ‘Alright, this is something worth further pursuing.’ ”

So Romito and Weber merged their commercial leasing and asset management platform startups in a $300 million all-stock deal on Nov. 29, 2016.

They retained Romito’s company’s name, VTS, and its New York City offices at 114 West 41st Street. Romito kept his CEO title and Weber, the CEO of Hightower, became VTS’ chief product officer.

In the year since, the bromance has bloomed with Romito and Weber singing each other’s praises—a far cry from the premerger days when they were trying to one-up each other to win business.

As a combined commercial real estate tech platform, VTS has expanded its reach with more than 180 new clients last year (three quarters of which are landlords and one quarter of which is brokerages). The number of customers jumped by 87 percent to 28,000 in 28 countries, and VTS saw a 112 percent increase to 7 billion square feet (in over 49,000 buildings) in office, retail and industrial space managed on the platform. Office properties comprise 50 percent of the platform—retail makes up about 10 percent, and industrial constitutes the rest, according to Weber.

“We’re averaging almost 300 million square feet a month,” Weber said. “The entire New York office market is 450 million square feet, so on a monthly basis, we’re adding two-thirds of the entire Manhattan office market. It’s been great. We’re now really hitting this tipping point where I think the broader industry kind of recognizes and buys into our vision.”

While the 200-person VTS has managed to grow in the year since the merger, the executives committed a lot of time to the integration of two very different work environments.

“[VTS had] a really, really strong sales organization [and] a strong methodology,” Weber said. “I think Hightower brought more seniority around the technology side.”

Zach Aarons, a co-founder and partner at real estate tech accelerator MetaProp NYC, said Romito and Weber “were dogmatically hyperfocused on integration in 2017.” That meant establishing a climate that would combine VTS’ old-school broker culture with Hightower’s more product-focused Silicon Valley ethos all while blending employees (and cutting 35 to 50 jobs, Romito said) and technologies.

The merging of the two companies has cleared the playing field, except for some competition from technology like Yardi’s Commercial Leasing Pad, billed as a mobile leasing and tenant support solution, and RealPage, which provides property management software solutions.

Meanwhile, it is not any one technology company or platform that presents the biggest hurdle for VTS in the marketplace.

“The No. 1 competitor factually is still Excel—it’s spreadsheets without a doubt,” Romito said.

Weber added, “When you’re talking about who we’re selling into—and we’re having conversations with landlords of all sizes, brokerages of all sizes—85 percent of the time still to this day…they just have nothing. So we’re taking them from this kind of really shitty world where they’ve got 1,000 spreadsheets, and a CEO asks a question, and it takes them two weeks to get the answer to the question. We’re their platform that they buy to better manage acquiring, converting and retaining their tenants.”

The commercial real estate world has long been considered slow to embrace new technology, but in recent years landlords, who make up the bulk of the VTS customer base, are investing their venture capital funds directly and indirectly into new real estate tech companies. Some are even developing their own in-house technology. VTS, for example got a big plug when real estate private equity funds managed by Blackstone invested $3.3 million in the company in January 2015.

A lot of landlords and office and retail brokers still don’t know what VTS is or don’t use it.

“We have an old (electronic) system that we created,” said Chris Conlon, COO of Acadia Realty Trust in an email. “We are reinventing it now. I have never found that canned software serves us effectively.”

Another landlord, who requested anonymity, said his “asset managers have a system that generates reports, and they have lease abstracts on file. The leasing team keeps up to date via Excel.”

A retail broker at a prominent firm said in an email, “Owners we deal with use it. Never had the patience to learn it.”

But then there was developer, mall owner and property manager Time Equities, which decided to sign on with VTS last May, putting 5.5 million square feet of retail space in the U.S. on the platform. The company, said Ami Ziff, the director of national retail at Time Equities, was “looking for transparency on our retail portfolio.”

Specifically, Ziff said, Time Equities “wanted to be able to understand at different points in time who are largest tenants are, who’s growing, who’s shrinking. You want when you are on the phone to pull up where else a tenant is. I’d have to remember or our broker would have to look it up. There’s human error and immediacy issues with that. For sales, it has a functional sales tracking interface so you can track, summarize, view, estimate and average different sales numbers.”

It also allows users to track “salient lease clause provisions,” Ziff said. For example, he said, “it’ll prompt you if you are going to lease a space that has a neighbor with a right of first refusal or a restriction against a certain use.”

two guys How a Rivalry Between VTS Romito and Hightowers Weber Turned Into a Bromance
A BIGGER PLATFORM: Nick Romito, top, and Brandon Weber, bottom, have joined forces with a combined VTS after years of competing for clients in the commercial leasing and asset management business. Photo: Sasha Maslov/ for Commercial Observer

Another notable company that signed on with VTS post-merger was Brookfield Property Partners, which put its North American office space on the VTS platform in the last quarter of 2017. That amounts to 84 million square feet of office space in the U.S., Canada, London (excluding Canary Wharf) and Dubai. Now Brookfield’s industrial group is looking at adapting the technology, Kevin Danehy, the global head of corporate development for Brookfield, said.

Brookfield had been looking for a “centralized database to manage our portfolio of tenants both at the local level and across the portfolio,” Danehy said. And the landlord wanted to automate its internal approval systems, which VTS does.

The merger between VTS and Hightower ended up being a boon for Brookfield as it faced the conundrum of which firm to select.

“We felt it was one plus one equals three when they combined,” Danehy said.

So far the younger Brookfield employees have been quicker to embrace the technology than the old guard, he said.

One feature that Brookfield hope VTS will build out is its customer relationship management system, or CRM. That is an area where VTS faces more competition from the likes of Apto, Salesforce and MRI.

“Apto is built just for brokers, so our software is focused entirely on streamlining their workflows so they can find new business and work their deals,” said Tanner McGraw, the founder and chief strategy officer for Apto. “Think CRM but without the hassle.”

Indiana shopping center owner and operator Regency Properties is relying on VTS to track the performance of its entire 6-million-square-foot retail portfolio since September 2016. Prior, the leasing team relied on anecdotal information, emails, status meetings and Microsoft Dynamics CRM to do their job. (The property management arm at Regency still uses the Microsoft software package.)

The first thing Dan Brandon, the director of leasing at Regency Properties, does when he gets into the office is pull up Microsoft Outlook and VTS. Those two applications remain on his two computer monitors all day.

VTS has saved the company time communicating within the organization and allows company executives to view a portfolio in real time.

VTS’ strength is on the supply side of the market with more than a dozen countries represented on the platform, Weber said, including one of Australia’s biggest landlords, AMP. It serves its clients from offices in New York, Boston, Chicago, San Francisco, Los Angeles, Dallas and London, and the U.K. is its fastest growing market, Romito noted. (Hightower and VTS both had London offices in the same WeWork space but on different floors.) VTS even lists property for the Crown Estate, which manages real estate that is passed from British monatch to monarch on accession.

Down the line, Romito and Weber hope to provide market analytics to their clients and establish a way for all parties in a deal to communicate via VTS.

“Today, you’re emailing each other for weeks at a time, actual Word documents. You are then going into VTS and putting in the information and figuring out what the actual numbers mean. Then, you go back into a Word document and put in your response, emailing it,” Romito said.

Weber added, “We’re a long ways down the road of modernizing the experience, the analytics, the tools that the landlord and the listing agent and the property manager have for their side of the business. We haven’t yet embarked on creating a really awesome experience for the tenant rep and the tenant side, so those two sides can connect in the VTS platform.”

MetaProp NYC’s Aarons anticipated this year VTS could expand into another asset type like multifamily (although he said, “That’d be a heavy technological lift”), buy a technology company or launch in Asia or other parts of Continental Europe.

Romito told CO that VTS has “no plans to go into multifamily this year,” but “in terms of acquisitions, M&A is a real part of our go-forward strategy, and we’re constantly looking at interesting products we could possibly deploy.” As for geography, he added, “We’re more focused on Continental Europe than we are on Asia at the moment. However, we do think there are significant opportunities in Asia in the future. Our focus continues to be on building our business in North America and the U.K.”

How about an initial public offering for VTS?

“There are a lot of variables you have to take into consideration when exploring the possibility of going public including market conditions, growth strategy, reporting transparency, etc.,” Romito said. “We’re probably a few years out from making that decision.”

Source: commercial

Fifth Wall, Rudin Raise $4.3M in Seed Funding for PropTech Company

Fifth Wall Ventures led a $4.25 million seed funding round for Enertiv, a property tech company that creates hardware and software to track the performance and energy usage of building systems, Commercial Observer has learned.

Rudin Ventures, the Rudin family’s investing arm, also joined the funding round as well as New York Angels, Cerium Technology and MetaProp NYC. Enertiv, a seven-year-old company with 15 employees, is currently using its technology in 200 buildings across 30 states. The funding will help Enertiv expand its products and hire up to 10 more employees, such as product engineers and data scientists, within the year.

“We know we have a great team, we know we are solving a problem that often gets overlooked, we know we are really far ahead in the [industry], it’s nice that that was finally acknowledged by some key players like Rudin and Fifth Wall,” Connell McGill, a co-founder of Enertiv, told CO.

Enertiv builds meters, “Internet of things” sensors and software applications that allow it to capture data from building systems, such as energy usage from boilers, elevators, pumps, chillers and exhaust fans. This gives landlords knowledge about the intricate workings of their structures.

Furthermore, through Enertiv’s system one can digitally check on any specific equipment in their property, allowing building managers to quickly identify and repair problems, and even predict equipment failures ahead of time. Also if an equipment breakdowns the system will alert the building manager automatically. Ultimately, this technology can help owners reduce energy consumption and save money, McGill said. The company’s technology can also integrate with energy meters built by other companies.

Fifth Wall’s partners, which include major real estate owners and developers like Hines, Lennar, Macerich, and Rudin Management Company, invested in Enertiv because they are concerned about “energy consumption and energy savings,” said Adam Demuyakor, a senior associate at Fifth Wall.

“In older office buildings, there is no management system or brain there, so it’s a ‘dumber building,’” Demuyakor said. “Plugging Enertiv’s smart meter in, will turn them into ‘smart buildings.’ The potential for Enertiv is quite large.”

McGill declined to share the total amount of funding the company had to date.

Enertiv’s products have helped property owners reduce total operating expenses on average by about five percent, according to McGill. Another significant benefit for landlords is having buildings that operate smoothly.

“This is what helps differentiate one real estate company’s services and the experiences that they provide from others,” McGill said. “If they are able to preempt some of these issues—it’s too hot in this space, it’s too cold, there are odors, there is no hot water or the elevator is not working—if they are able to get ahead with our data that’s potentially 50 to 100 tenant complaints that aren’t coming in.”

Rudin was interested in Enertiv because it had been working on a similar concept. The landlord created tech company Prescriptive Data, which has a product called Nantum that collects building data like occupancy and electricity usage to help maintain optimal indoor temperatures and efficient energy use. Rudin executives hope there comes a time when they can find ways to partner Enertiv tech and Nantum.

“We were really impressed by [them] and think they have built and grown a really great company with a great product,” said Michael Rudin, a senior vice president of Rudin Management. “There are obviously a lot of buildings that are the right fit for what Enertiv is doing and that’s why we found it to be attractive. And maybe there is a way down the road that the technical teams [of Nantum and Enertiv] will collaborate.”

Source: commercial

As PropTech Industry Grows, Seed Funding Is Drying Up

Efforts to get seed funding for real estate technology companies looks like it might be going to seed.

Recently, investors such as venture capital firms or traditional real estate development companies are looking for companies past the series A funding round and towards later rounds, according to real estate tech accelerator MetaProp NYC’s bi-annual Global PropTech Confidence Index.

The fourth quarter report, which was provided first to Commercial Observer, highlighted that 31 percent of investors are making investments past the series A level, which is up from just 19 percent of respondents for the second quarter 2017 version of the bi-annual survey. (There were 185 startup chief executive officers and venture capital firms that responded to the fourth quarter survey.)

“PropTech growth is escalating rapidly around the world, particularly in Europe, with Asia not far behind,” MetaProp NYC co-Founder and Managing Director Aaron Block said in prepared remarks. “Despite the overall continued confidence, enthusiasm and growth in real estate technology, we are seeing startups having greater difficulty in obtaining early stage funding.”

This might be a problem, but it no doubt speaks to the overall strength of the amount of money in the industry. In the past four years property tech companies have raised about $6.2 billion in funding worldwide, according to a recent report by Altus Group, an advisory services and software provider for real estate companies that has invested in real estate tech companies. Last year there was a record of nearly $2.7 billion invested in property tech companies. And the report expects there to be even more funding next year.

The field of real estate tech companies has ballooned in the last four years, and real estate tech incubators—such as MetaProp NYC—have spawned a new generation of innovative companies. For 2018, 86 percent of startups expect there to be more competition in the real estate tech industry compared with 2017, according to MetaProp’s survey.

As investors have become savvier about real estate tech the entrepreneurs building the software have become more realistic about the competition; only 29 percent of startups expect raising venture capital will be easier next year than this year, which is a decline from 41 percent during the second quarter of 2017.

“I think it’s the classic evolution of venture capital. Because of the success of [property technology incubators] there is so much demand at the seed level for funding that it naturally creates tension for the available capital,” said Robert Courteau, chief executive officer of Altus Group. “Two or three years ago, you could show up with a good idea and you’ll get funding. Now your idea better be strong and the [management team] better be good, because there is so much competition for that funding.”

The other reason why seed funding will be difficult to obtain is because today there are clear stars in the field, such as project management resource Honest Buildings, property management platform VTS and real estate investment firm Cadre. And most investors want to get on board with winning companies that will clearly become profitable, rather than take a chance with a smaller startup.

In addition, much larger venture firms and traditional real estate players, such as Brookfield Property Partners and Rudin Management Company (via Rudin Ventures), are getting in on the action, as CO recently reported.

Some of the more notable recent later funding round transactions in real estate tech includes a $65 million series C round in Cadre led by venture capital firm Andreessen Horowitz; Brookfield and Rudin were part of a $13 million series B funding round in Honest Buildings; VTS scored a $55 million series C led by Insight Venture Partners; self-storage tech startup Clutter gained $64 million in series C funding led by venture capital company Atomico.

“If you are an institutional investor with hundreds of millions to invest, putting half a million into seed funding is not a whole lot of money to deploy,” said Mike Sroka, co-founder and CEO of deal management platform Dealpath. “There are bigger investors that have to deploy more capital and [they’ll fund] bigger and more mature companies.”

This doesn’t necessarily mean that wide-eyed entrepreneurs won’t have a chance; at least one expert thinks the slowdown in seed funding won’t change much of anything for the techies looking to disrupt real estate norms.

“It’s always been hard for early stage real estate tech startups to get capital in this industry, because the stakeholders are notoriously slow-moving adopters,” said Susannah Vila, co-founder and CEO of leasing marketplace Flip, which completed a seed funding round of $2.2 million in June led by Union Square Ventures. It’s has always been and will always be harder for early stage tech companies trying to disrupt the industry.”

And there are a number early funding investment firms, such as New York Angels, Soundboard Angels and Empire Angels, that could lead seed funding rounds.

“Early-stage startups shouldn’t be too discouraged,” said Connell McGill, co-founder of Enertiv. “Several family-owned real estate portfolios have recently launched venture arms as well as syndicates to invest in earlier stage companies as well.”


Source: commercial

Robin Fisher Has a Multimillion-Dollar Dream of What to Do With Raw, Unused Space


Source: commercial