With real estate being the largest asset class and the largest lending category in the United States, with valuations coming in at $40 trillion and $12 trillion respectively, one would think there would be a plethora of services catering to the real estate segment of the American economy. However, there is much room for development in this area, especially in regards to commercial real estate. The areas seen as having the greatest opportunity for improvement are technologies involving property management, research and analytics, listing services and tech-enabled brokerages, mobile applications, and residential and commercial lending. Venture capitalists have taken notice and are beginning to send money in large quantities to companies trying to develop new services for the industry. In 2014, $605 million was put toward real estate technology funding. This number was over 2.5 times greater than the amount invested in 2013, leading people involved in the industry to believe that the money will continue to flow in that direction.
Half of all of the sector’s funding in the United States is taking place in New York City, which is host to many up-and-coming real estate technology businesses. It makes sense that New York City has seen the greatest influx of capital; according to research done by Cushman and Wakefield, NYC has been the world’s largest commercial real estate market every year since 2010. With that being said, the market for real estate technology is not limited to New York City or the United States for that matter. Demand for improvements in this area are global; half of the top 12 commercial real estate markets in the world are located outside the United States.