Technologies that matter
Today, disasters, whether man-made or natural, are just so prevalent and dominating. For one, the destructions inflicted by Russia in Ukraine lead all man-made disasters to this day. On the other hand, typhoons and earthquakes and the consequential landslides and floods that are blamed on climate change have become so frequent and seemed the new normal. Though totally different, both disasters destroy lives and properties.
However, while the effects of climate change may take some time to address and nature’s wrath will definitely stay for the time being, man-made disasters (like the war in Ukraine), can definitely be stopped at once. Sadly, however, it seems that this war has been used by advanced nations to showcase their military technologies so that other wealthy countries may buy their weapons of mass destructions. Undeniably, serving the business interests of these powerful countries’ defense contractors.
There are some technologies though that are truly helping us and are making our lives easier. In fact, as the pandemic subsides, we might be able to enjoy the benefits again. One of them is proptech (or property technology). Proptech is defined “as the usage of technology and software to assist in today’s real estate needs.” To owners and possible users of office spaces, “this could mean everything from digitally facilitating unique workplace experiences, to offering advanced data and analytics capabilities for real-time feedback, to even helping them purchase, sell, and manage their assets.” Plainly, proptech’s main goal is “to make everything about owning, leasing, or working in a building unique, easier, and more efficient.” Simply put, it also means that “it’s not just for those who own and manage real estate, but the people who lease and work inside the buildings.”
One of the most popular proptechs is a household name, Airbnb. It is an “online marketplace for lodging, primarily homestays for vacation rentals, and tourism activities.” Apart from Airbnb (which is so prevalent in the country already), however, there is one proptech that is also worth replicating, the San Francisco (USA) based Pacaso. A unicorn, it is into an innovative second home co-ownership. So impressive that, despite not being a hi-tech company, it attained unicorn status in just five months from its launch. Probably, the timing helped them a lot as it targeted people who were looking for a second home for refuge. At the time that most people were trying to retreat to vacation homes, especially in the countryside, amid the crippling pandemic.
In Pacaso’s business model, it “helps people co-own vacation homes by sharing ownership with others. Pacaso buys the homes, forms a company, and then sells shares in the property, with a minimum investment of one-eighth.” The “percentage size of ownership determines the length of time people get to stay at the property.” Then, it “acts as the agent on behalf of the group and handles maintenance, financing, legalities and more.”
Another proptech that is worth replicating is Withco. An emerging startup, Withco is helping small businesses own their rented spaces or properties. Knowing fully well that rent is usually a huge operating expense for proprietors, Withco “programmatically identifies and buys commercial real estate that houses existing tenants deemed to be high-quality small businesses.” Then, they “negotiate and buy the property, while placing the tenants on equity-building, lease-to-own plans.”
This business model addresses situations wherein lessors are selling their properties and tenants are left to fend for themselves. Whether to stay or leave. Yet, there are instances, say, if the location is really ideal for the tenant’s business, where leaving is not an option. Taken advantaged to by the new owner/lessor, the tenant might just bear the brunt of increased rental fees than lose the business.
This is where Withco comes in. On the buying side, it “approaches local landlords with data-driven offers that promise both speed and liquidity in the closing process.” On the tenant side, “small businesses open up their books and undergo comprehensive evaluations to determine if they are a healthy company suitable for the path to ownership.” Then, Withco also “sticks with the small businesses over the entire lease-to-own cycle as a financial business consultant.” Ultimately, therefore, the tenant becomes the building owner.
Indeed, unlike military technology (that destroys lives and properties), proptech is one that helps make lives special and optimizes properties’ potentials. Truly, a technology that matters.
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