As I mentioned in a previous blog, I think 2017 will be the year of M&A in the CRE Tech sector. There are many reasons for this, including the challenges many sites are facing to raise money and scale as well as the consolidation of power in the hands of those with traction and resources. But I think another important trend will be the emergence of the largest industry players as major investors and acquirers in the RE tech scene. As they begin to take notice of what’s happening in the startup world, they will undoubtedly recognize that there are huge opportunities to add to their services arsenal by acquiring sites that can differentiate them in the marketplace.
Did you get that? “…work with our clients.”“Space visualization is something all of us can relate to and it makes it easier for our brokers to work with our clients.” Click To Tweet
That’s the key. They see this acquisition as a way to give them a competitive edge against their competition in the battle to out-service their clients. Brilliant.
In that regard, does it really matter what a global powerhouse like CBRE paid for Floored? It matters more that they have a new tool in their global arsenal to win business. And they see technology as key in that strategy.Therefore, it’s only a matter of time until we read about JLL, Cushman/DTZ, Avison Young, NKF, Transwestern, Colliers etc. jumping in and also getting involved in the M&A tech space! In my opinion, that’s going to be a big trend in the coming years.
Maybe that’s what the CBRE and Floored deal is actually all about?
It’s going to be an interesting year in the CRE tech sector for sure!