Q+A
What is proptech and why it matters
A
ny evolving industry needs its advocates and the Proptech Collective was formed to help advance the industry’s progress and raise its profile. The group’s 2021 report delved into the evolution of the industry, which has been rapidly expanding as venture capital flows to it and interest increases. The OBJ spoke to the report’s co-author Courtney Cooper to find out more. Let’s start simple - what is proptech and why does it matter? Proptech typically refers to any technology that impacts the real estate industry, from tech that helps automate HVAC and reduce energy use in commercial buildings, to platforms that make it easier for people to buy and finance homes. You’ll see it overlap with other areas, like fintech, smart city tech and construction tech. One of the challenges with the term “proptech” is that there isn’t a consistent definition and it’s often used pretty loosely to refer to anything in real estate related to tech, innovation, and new business models or mindsets. That said, there is real change happening. In the past, the real estate industry has lagged
18 BOMA Ottawa Commercial Space Directory 2021-22
behind other industries when it came to tech adoption. In the last 10 years, and especially in the last five, we’ve seen investment and use of real estate technology take off and an increase in top entrepreneurs choosing to found tech companies focused on this asset class. For commercial owners and managers, the applications of these technologies can increase net operating income, improve efficiency across the value chain, and drive new revenue streams and business models. We’re also increasingly seeing opportunities for tech to help the industry decarbonize and reach net zero goals. For individuals, we’re seeing proptech impact the way we live and work by making our everyday experience more convenient, frictionless and accessible.
What is the Proptech Collective and why was it formed? Proptech Collective is a not-for-profit, volunteerrun organization. It was created as a platform for people across real estate, city building and technology to collaborate, learn from one another and, ultimately, advance the adoption of technology that solves real problems for the industry. There are wonderful industry organizations in real estate and technology, respectively, but we found there was an opportunity to bring both sides together and help highlight the depth of the talent and activity occurring in the Canadian ecosystem.
Who is this report for and what was the purpose of writing it? We’ve had thousands of people download the report, from real estate leaders to investors and tech innovators. Before our report, there was no aggregate data on the Canadian proptech ecosystem, so it’s been a helpful resource for people to understand the scale of what’s happening in Canada, who the leading companies are, and where innovation is happening. Based on the feedback we got, we’re planning to release an update to the report this year.
You say Canada is an emerging hub for proptech companies. What is the country’s global influence like in the space? Canada has all the ingredients to be a global proptech hub. We are home to some of the largest real estate and construction companies in the world. Canada has a strong and growing tech community, friendly immigration policies and
