The Future Is Now: The State of PropTech Innovation

Fifth Wall’s Brendan Wallace and CBRE’s Connor Hall explore innovation in commercial real estate, from flexible workspaces to AI-driven investment strategies. Share these insights on proptech investing:   ·     Investing in PropTech, like all venture capital investments – is high risk and high reward. Investors typically underwrite 40%+ internal rates of return (IRRs), betting that a few transformative companies succeed and compensate for those that fail.   ·     Investing in PropTech provides early access to innovations that enhance asset performance, reduce costs and create competitive differentiation.   ·     Artificial intelligence is expected to improve underwriting, asset selection and risk modeling for real estate investors. Those that adopt AI-driven tools early may gain a significant edge.   ·     The initial public offering (IPO) market has slowed, but standout exits like ServiceTitan show that public capital is still available for top-tier companies. Investors in private companies should be prepared for longer holding periods prior to exits.   ·     The most investable PropTech companies are those that solve challenges for  real estate in operations, capital markets, risk management and elsewhere. Deep industry knowledge is key to identifying winners. Fifth Wall’s Brendan Wallace and CBRE’s Connor Hall explore innovation in commercial real estate, from flexible workspaces to AI-driven investment strategies. Share these insights on proptech investing:   ·     Investing in PropTech, like all venture capital investments – is high risk and high reward. Investors typically underwrite 40%+ internal rates of return (IRRs), betting that a few transformative companies succeed and compensate for those that fail.   ·     Investing in PropTech provides early access to innovations that enhance asset performance, reduce costs and create competitive differentiation.   ·     Artificial intelligence is expected to improve underwriting, asset selection and risk modeling for real estate investors. Those that adopt AI-driven tools early may gain a significant edge.   ·     The initial public offering (IPO) market has slowed, but standout exits like ServiceTitan show that public capital is still available for top-tier companies. Investors in private companies should be prepared for longer holding periods prior to exits.   ·     The most investable PropTech companies are those that solve challenges for  real estate in operations, capital markets, risk management and elsewhere. Deep industry knowledge is key to identifying winners.