The real estate sector continues to develop, and new business models are changing the industry. Innovative entrepreneurs constantly come with new ways to improve the world of real estate, increasing the comfort of their customers, as well as their potential returns.
“In the last few years, we have seen the world of real estate and the world tech and startups merging”, this according to OfirEyal Bar, a real estate investor and digital marketing entrepreneur that refers to the stated fact some might thought of an improbable occurrence a few years back, this in consideration that the real estate sector had been in stagnation for many years and been late to adopt a more ‘digital approach’, “but things have changed”, this according to Ofir Bar, ”and it is important to get more familiar with some of the startups in the field which some real estate experts consider as a game-changer”.
Founded in 2015, Common is a US company based in New York City, acting as a residential brand and operator that designs, leases, and manages multifamily properties to appeal to today’s renters.
Its main goal is to deliver great performance to partners via smart design and tech-enabled operations.
Receiving more than 15,000 applications a month, the brand provides world-class property management and a full range of services that include co-living test fits, community space programming, interior design, furniture procurement, and many others via its TSA (Technical Services Agreement).
Brad Hargreaves is the founder and current CEO of Common, a company with 700 beds and 25 properties across six major US cities: New York, Los Angeles, San Francisco, Chicago, Washington D.C., and Seattle. At the same time, there are plans to expand to other important cities such as Atlanta, San Diego, Philadelphia, and Pittsburgh.
Common succeeds in its objective to rent homes intended to be shared by roommates using Slack channels to communicate with and connect members. It is one of the new companies that still can grow in the upcoming years, as long as property prices will remain elevated and few people will be interested in making a purchase.
Assembly is another real estate company based in Minneapolis, specialized in finding creative, strategic approaches to its clients’ commercial real estate needs. The main goal is to help customers achieve their objectives, whether that means buying, selling, leasing, or developing commercial properties.
The array of services provided by Assembly include:
·Consulting: helping businesses, non-profits and investors analyze locations, development, and financing options to make informed decisions. The company is specialized in assessing multiple options and simplifying complex processes to guide customers in their decision-making.
·Brokers: the company has years of experience in negotiating sales, purchases, or leases. It can get the best deals for customers and manage due diligence, design, and the relocation process.
·Developers: Assembly can manage entitlements, design, finance, and any other details needed to bring a project to fruition.
Katerra is an offsite technology-driven construction company, founded in 2015, and currently headquartered in Menlo Park, California. Michael Marks, former Tesla interim CEO and former CEO of Flextronics is the founder of the brand that had already managed to raise $1.2 billion in venture capital.
The main goal of Katerra is to create a seamless, one-stop-shop for commercial and residential developments. The company manages the entire building process to provide a cheap and affordable alternative in the form of modular, prefab housing. One of the key features is the use of mass timber products like glued laminated timber or cross-laminated timber.
With more than 7,000 employees and operations all around the world, Katerra has multiple pending projects and offers a wide array of services, that include end-to-end new build, construction services, renovation, and others.
Launched in 2017, 4stay represents an online resource for students and interns looking for off-campus housing. It is basically an online marketplace that connects students with local hosts, room providers, and roommates near their destination.
Integrating some of the latest technologies, the company is creating a positive economic ecosystem, sharing a vision to build “a world where everyone has a home away from home”.
Although it had been launched three years ago, it has many strategic partners, such as HomeAway, Nestpick, Housing Anywhere, and many others. The world continues to be interconnected and as a result, there are a lot of students choosing to study abroad.
4stay is a business that wants to solve one of their biggest issues: finding an affordable yet enjoyable place to live.
Aside from Common, Assembly, Katerra, and 4stay, there are other companies as well that aim to revolutionize the world of real estate.
Divvy, Bungalow, StarCity, and Ollie are other names that should be monitored in the years ahead, given they come with innovative business models and address fundamental issues of people when dealing with real estate. Innovation never stops and these companies are proving that even a market with a long history like real estate can change.