Finally, and perhaps the most interesting way these companies are using technology, is to create new customer value. This can mean using technology to increase employee productivity in commercial real estate, identify new revenue streams in shopping centers, or ensure a better customer experience in hotels.
Take, for example, a real estate company that has identified a way to structure their space, services, and amenities so that employees are 20% more excited about coming to work each day, 15% more collaborative on the job, and 10% more productive with their time. What would that be worth?
Technology-enabled real estate companies on the forefront in this space are constantly developing new ideas, tracking billions of data point and leveraging some of the best minds in the country to create new value for “customers”. Further, many of these companies are identifying ways to monetise these breakthroughs as a service for building owners and tenants that they can’t provide on own. Being able to leverage this data at scale and distribute these valuable services and insights at a low cost with high recurring margins is a very attractive economic opportunity (which is part of the thinking behind WeWork’s recent valuation mentioned at the beginning of the post).