06-11-2017

The DiPasqual/Wheaton Quadrant Model for Proptech

The long-lived nature of real estate, and real assets more broadly, massively exposes real estate investors to the emergence of new technologies, such as rideshare and homeshare platforms, and increased transparency through “big data.”

This article discusses the implications of technology on real estate and was recently published in NAREIM Dialogues FALL 2017 (the whole magazine is worth reading). I start the article with a lay-of-the-land of real estate tech, nicely summarized through the DiPasquale/Wheaton Quadrant Model for commercial real estate.

As academic as the framework is, the workings of the real estate market can be boiled down to a combination of the construction market, the market for space (where landlords and tenants interact), and the market for assets (the capital market, where sellers, buyers, and providers of capital interact). As illustrated by the graph above, each part of the market has its own set of disruptive “tech” firms – I listed just a few names, but the list is virtually endless and grows every day.

Read the full blog here.

Author: Nils Kok