Proptech Makes Its Mark in Area Real Estate Industry and Developers Begin Tapping into Technology

By Natasha Nellis Journal of Business | The Spokesman-Review (Spokane, WA), September 1, 2019 | Go to article overview

Proptech Makes Its Mark in Area Real Estate Industry and Developers Begin Tapping into Technology


Natasha Nellis Journal of Business, The Spokesman-Review (Spokane, WA)


Innovations fueled by cloud computing and new technologies collectively known as proptech are disrupting every facet of the real estate industry, and while Spokane lags behind larger markets like Seattle and New York in terms of investment, proptech is still a force to be reckoned with in Spokane's real estate scene.

Proptech, short for property technology, is the use of information technology to research, buy, sell, design, build, and manage real estate. It runs the spectrum from cloud-based data, virtual or augmented reality tools, artificial intelligence, and other software to smart-home technology.

Proptech got its start in the 1980s with the invention of personal computers and companies like CoStar Realty Information Inc., a real estate information database company, but didn't explode onto the scene until the early 2000s, when real estate moved online and companies like Seattle-based Zillow Group changed what it meant to market and sell homes, according to the University of Oxford's PropTech 3.0: the future of real estate study.

Despite its rapid growth globally, however, some developers and property owners have been slow to adopt the newer integrative technologies, such as smart home tech or virtual reality tools.

"Property technology is slow to adopt, mainly because anything around real estate is really expensive and who wants to try out a new product on a $200 million real estate project," said Stay Alfred CEO Jordan Allen. "I think that everyone's sitting back waiting for everyone else to try it and see who emerges at the top."

Since 2000, the market has bloomed with new technology startups dedicated to easing the lives of those involved in the real estate industry, and the amount of investment has taken off since 2012, with the University of Oxford estimating the proptech sector constitutes about 15% of the total venture capital industry.

In 2018, $269 million was invested into such companies in Washington and Oregon, according to data from real estate technology research company CRETech. To date, two known Spokane-area proptech companies, short-term vacation rental company Stay Alfred and real estate appraisal software company Datappraise, have invested millions in the industry.

Stay Alfred alone has invested $62 million to date, according to CRETech. Data wasn't available for Datappraise.

Seattle boasts 11 known proptech companies. Investment amounts weren't available for all companies for an accurate funding comparison.

Allen said, "We have a huge software development team, and we've spent a lot of our resources over the last three years building out our proprietary technology platform."

The platform covers the guest booking experience on the website and the mobile check-in app, as well as the in-unit technology that monitors temperature and humidity, Allen said.

Datappraise President Jeff Roper said he's seen a lot more investment in proptech by prominent Spokane companies, such as Spokane-based Vandervert Developments Inc., and in particular, a trend in investing in artificial intelligence by developers to follow sales and lease trends to assist in pricing future acqusitions.

He postulates that, for Datappraise's niche, demand will spike as the younger generations take over the real estate appraisal industry.

"There'll be more demand, because they're not afraid of technology … they tend to adapt to it more quickly," he said. "A lot of younger appraisers have grown up with technology."

Stay Alfred rocked the short-term rental market when it came on the scene in 2011 with its innovative property rental platform geared toward professionals.

Vice president of technology Roth Fouty said, "With any technology, it's constantly changing. Tech comes out so fast anymore, you can't stop."

Stay Alfred sits somewhere in between the traditional long-term and short-term housing markets, he said.

Fouty said Stay Alfred's technology could be adopted easily in other segments of the market. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

Proptech Makes Its Mark in Area Real Estate Industry and Developers Begin Tapping into Technology
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this article
  • Highlights & Notes
  • Citations
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.