New CRETech Survey Finds Brokers Most Likely To Invest In Virtual Reality/Imaging And Transaction Technology
Ten-X and theBrokerList's inaugural "State of CRETech" survey found that 39% of commercial real estate brokers plan to invest in VR/Imaging and 29% in transactions within three years
IRVINE, Calif. and SILICON VALLEY, Calif., Oct. 16, 2019 /PRNewswire/ -- According to a new survey, commercial real estate brokers are not only currently using CRETech, they are planning to make additional technology investments in the next two to three years. The new annual "State of CRETech" survey found that 73% brokers rated technology investment as important to them, with imaging/VR and transactions being the top two technology investment areas.
Ten-X Commercial, the nation's leading transaction platform powering 90% of all online commercial real estate sales, today released findings from its new annual "State of CRETech" survey. Conducted in conjunction with theBrokerList, the survey examined CRE brokers' attitudes towards technology, technology use and investment. The survey found that though brokers are optimistic about CRETech overall, sentiment is mixed across factors such as customization, complexity, cost, and job security. Saving time, increasing productivity and generating more business were identified as the most significant benefits of CRETech.
When asked about implementing CRETech for one specific area of business, the top two choices were marketing (45%) and transactions (20%). Additionally, 28% of brokers currently use four technology solutions for key business activities such as listings, data and analytics, CRM, and financial analysis.
"We are excited to share our inaugural 'State of CRETech" survey data and I was especially pleased to see that the results highlight the continued adoption of CRETech," said Maureen Waters, President of Ten-X. "Brokers' plans to invest in new solutions in the next few years point to increased adoption in the industry. The survey results also underscore an opportunity for the Ten-X platform since brokers identified marketing and lead management as areas where they'd like to implement additional CRETech solutions. Our platform not only offers transaction capabilities, but also includes intelligent marketing, real-time data insights, and lead management."
Globally, venture-backed real estate tech (PropTech) companies raised $14 billion USD in 2019 Q1-Q2, a 309% increase from 2018 Q1-Q2. Despite the 13.7% decline in total companies funded (deal volume), average deal sizes increased by 50%. Reinvestments, or follow on investments, in early stage to mid-stage companies lead the majority of total companies funded with average check sizes increasing to $6.3 million (USD) per deal.
According to CREtech.com's 2019 Mid-Year report, venture-backed real estate technology companies raised $14 billion USD in the first half of 2019, a 309% increase year-over-year. The average deal size also increased by 50% to an average of $6.3 million USD per deal.
"The survey allows us to better understand the pain points for brokers – including marketing, transactions, data analysis, and lead management – and how they're looking to technology to make these areas more seamless and productive," said Linda Day Harrison, founder of the theBrokerList. "The survey demonstrates how much brokers rely on technology, and how its evolution is continuing to reshape their day-to-day work life."
Additional survey findings include:
- 86% of brokers do not feel that CRETech would make them or their job obsolete.
- 76% of respondents believe that CRETech can feel impersonal and 75% believe that it is complex and difficult to learn.
- 73% of brokers rated technology investment as important to them. 67% maintained that it is also important to their firm.
- 45% of brokers would like to use CRETech for marketing purposes:
- 92% are currently using email marketing.
- 79% are currently using a website for marketing purposes.
- 85% of brokers currently use listing sites, 63% use data and analytics, 50% use financial analysis, 49% use CRM and 44% use a transaction platform.
- The most used listing marketplace vendors are Loopnet.com at 72% and CoStar at 62%.
- 75% of brokers use social media to market themselves or their listings. 12% of brokers have also branched out into mobile ads.
- 84% of brokers do not think CRETech solutions will create too many data security issues.
- 8% of brokers are fully mobile, meaning they do the majority of their work on their mobile device.
For a complete look at the survey findings, click here.
Methodology:
This online survey was conducted by The Content Funnel on behalf of Ten-X and theBrokerList during Q2 2019. Because the sample is based on those who agreed to participate, no estimates of sampling error can be calculated.
About theBrokerList
Founded in 2011, theBrokerList is the commercial real estate community's first free online platform for finding brokers, deals, services and vendors. With more than 7,800 members, theBrokerList continues to grow rapidly, offering members pages where they can publicize their listings, property types needed and completed transactions. The website's marketplace lists carefully screened vendors, and its blog is a forum where members and visitors can read some of the latest ideas in commercial real estate.
About Ten-X
Ten-X Commercial is the leading end-to-end transaction platform for commercial real estate that powers more than 90 percent of all online CRE sales. Our platform empowers brokers, sellers and buyers with data-driven technology and comprehensive marketing tools to expand market visibility and decrease time to close. Ten-X Commercial is headquartered in Irvine and Silicon Valley, Calif., with offices in key markets nationwide. Investors in the company include Thomas H. Lee Partners, L.P., CapitalG (formerly Google Capital) and Stone Point Capital.
SOURCE Ten-X Commercial
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