May 25, 2023
May 25, 2023
A little round-up of some of the learning of SVB and how that relates to the Proptech sector. Where in the world do we see interesting developments, what are the trends and what technologies are being adopted, and why?
The PTC is a global advisory firm which specializes in helping companies understand key trends, technologies and companies that are changing real estate and help our clients on how best to work with these solutions given the strategic objectives.
This week we wanted to share some of our insights regarding the learnings of the SVB debacle for the Real Estate x Technology ecosystem (see image).
1) Enron and its accounting scandal took two months to go bankrupt after announcing mass corporate fraud.
2) The Olympus Tobashi scandal where they concealed $1.5bn of losses took over 9 months to crush Olympus’s sale price + it survived.
3) JP Morgan has just booked a $2bn profit on their First regional bank acquisition (!)
4) Consolidation in banking space – will we see this in Real Estate (accelerating).
5) If you look at CMBS lending YoY – lending is down 80% to Feb 23.
6) Hospitality – average NPS is 37. Professional services is 43, this suggests there must be some bad audits, the impact of 1 bad review is the equivalent of 40 good reviews.
7) Average lease fell from 5 to 4 years. In Hongkong, it's 3 years.
Our team has a lot more depth behind this + where the opportunities lie in the market, in a regional context. With RE/construction markets under increasing pressure, the companies that are able to transform their assets via tech will have the capability to manage these testing times.
With offices in the US, Europe and our HQ in Sydney, we have a very unique lens into:
- Macro trends
- How trends are impacting portfolios
- How companies are pivoting to meet these new trends
- The technology offerings that are aiming to help with these changes
- And the leading techs companies meeting each of these needs
Our approach, in difference, is to understand the economic drivers that underpin any technology evaluation. We assess a client’s needs as an economic objective first, then we match their needs-criteria to over 18,000 global Proptechs.
Our approach saves cost, time, and frustration and greatly increases the likelihood of successful technology onboarding.
And, what are clients really appreciate is that we are entirely agnostic/independent of all technology decisions.
At The Proptech Connection, we are constantly reviewing and benchmarking new and innovative technologies, that deliver value to our clients.