Technology and innovation are having profound effects on today’s economy. Real estate is not immune from such changes. As a result, REBNY has decided to partner with MetaProp NYC, New York City’s premier estate technology accelerator.
Each year, MetaProp selects eight technology-driven real estate industry start-ups to participate in a four-month program which culminates in a Demo Day to partners, venture capital investors, and media. This program allows MetaProp NYC to bring together the brightest minds in real estate and technology, and fast-track their promising companies. Each company also receives an equity investment from MetaProp NYC, class-A office space in New York City’s real estate community, accelerated market penetration, and much more.
According to the Federal Reserve and the Bureau of Economic Analysis, respectively, real estate is the largest asset class in the world at $40 trillion, and real estate constitutes 13 percent of U.S. annual Gross Domestic Product (GDP). As the center of the real estate universe, New York’s real estate scene adds $106 billion in total economic output and provides 13 percent of New York’s Gross City Product (GCP), according to our report, “The Invisible Engine.” In addition to these impressive numbers, our industry also accounts for 11 percent of the City’s total jobs.
Real estate must continue to evolve with technology to improve our existing business models (NY-based companies such as SiteCompli, VTS, and Honest Buildings, for example) and create entire new ways of doing business. Venture capital investors have taken note. Since the start of 2015, their investments have placed over $110 million into 41 real estate transactions, involving marketplace and curated web companies. The residential marketplace alone has amassed over $88 million in total investments in 31 deals, with the commercial marketplace totaling $22 million in only 8 deals.
This technological evolution is not just being seen in the real estate industry – it’s happening all around us. Our industry is shaping up to be the driving force behind this revolution in the way that the world does business, and those of us who have a stake in this field have a great opportunity to capitalize on it. REBNY and its members have always been dedicated to embracing whatever is in New York’s best interests, and are therefore excited to embrace this new era of technology-driven business practices.
Our industry has the opportunity to grow and evolve over time, especially here in New York. The smartest minds in our industry acknowledge that this technological evolution is already taking place, and our new partnership demonstrates our commitment to getting the most out of it.
I encourage the entire New York real estate community to continue creating, investing in, and improving new and innovative models. Let us work together to leverage the efforts of organizations such as MetaProp NYC to deploy the best technologies in ways that will support and augment our current businesses, and pave the way for our future business models.
In other REBNY news:
August 27 is REBNY’s Summer Seminar. The seminar is for REBNY members only, and registration is required. Check rebny.com or contact Yesenia Dhanraj at YDhanraj@rebny.com for more details.
REBNY’s next Residential Rental Clinic Seminar in September 11 from 9:30 a.m. to 10:30 a.m in the Mendik Education Center. Presented by Daniel Marrello of Town Fifth Avenue LLC and Douglas Wagner of Bond NY Properties LLC, join fellow REBNY members in this exciting seminar that will teach you more about how to expand and improve your residential real estate business. For more information, contact Yesenia Dhanraj at YDhanraj@rebny.com.
The City has developed a new e-cycleNYC program to assist residential buildings in complying with a new law which makes it illegal for New Yorkers to discard electronics in the trash. Residential buildings wishing to participate in this free program will be required to sign a Site Sponsor Agreement, and REBNY’s Residential Management Council and its legal team have reviewed the Terms of Agreement with the Department of Sanitation and ERI, who have agreed to REBNY’s recommended changes. Special thanks to Ben Kirschenbaum, Eva Talel, and Michael Wolfe for dedicating their time and expertise on behalf of the industry.