From Smart Homes to Sustainable Buildings: The Dynamic Landscape of PropTech and Employment

Whilst still a relatively new industry, over the last 5 years PropTech has evolved into a more complex space with many segments, each with its unique set of technologies and solutions to address the ongoing challenges the industry faces. PropTech’s rapid adoption and expansion across broader sectors within real estate have meant that there is a huge opportunity to join the space and help drive the transformation of real estate.  

Residential/ Multifamily Real Estate 

Residential Property technology is shaking up the most well-known space of Real Estate, with smart home automation, online property management platforms, and digital tenant screening processes enhancing operational workflows, improved tenant experiences, and streamlined property management. The demand for residential and multifamily properties continues to rise, as young professionals, families, and retirees are seeking housing options that provide convenience, amenities, and a sense of community, driving the demand for well-designed residential and multifamily properties. 

As the new ‘tech-savvy’ generation begins to rent and buy properties, residential and multifamily organisations that provide software and technology platforms designed to improve how buildings are bought, sold, operated, and managed will drive innovation in the sector.  Adopting these technologies can provide a competitive edge and attract tenants or buyers.  

Want to join this sector?We are currently recruiting for a Marketing Campaign Specialist role in the UK.  

Commercial Real Estate 

The demand for commercial real estate continues to rise as businesses expand and adapt to changing market dynamics. This demand creates job opportunities in areas such as leasing, sales, property management, and development. COVID-19 accelerated e-commerce and the need for digital solutions within commercial real estate, paired with fewer people being in the office has driven the need for more co-working spaces that accommodate video calls and online conferences. Due to both the urbanisation and revitalisation of urban areas, job opportunities have arisen in urban planning, project management, and real estate consulting as cities focus on creating vibrant business districts and mixed-use developments. 

A 2020 report from JLL found four main factors are impacting the change in the need for office space: remote work, office design, commuting patterns, and technology. The integration of technology in commercial real estate has opened up opportunities in fields such as data analytics, cybersecurity, and smart building management. Professionals skilled in leveraging technology to enhance operational efficiency and tenant experiences are sought after in the industry. 

Want to join this sector?We are currently recruiting for a VP of Sales role in the US.

Smart Buildings 

Different segments of the PropTech market use tech in diverse ways but one constant always holds true: the more sophisticated the tech, the more crucial data is to it. The real estate industry is embracing smart building technologies to improve operational efficiency, enhance tenant experiences, and optimize energy management. This trend creates job opportunities for professionals skilled in smart building systems, Internet of Things (IoT) integration, automation, and data analytics. 

The smart building market is projected to grow from USD 80.62 billion in 2022 to USD 328.62 billion by 2029.  With the rise of residential smart homes and smart apartment buildings, job opportunities exist for professionals who can integrate smart home technologies and create seamless and user-friendly tenant experiences. Roles may involve designing and implementing connected living solutions, managing mobile apps or platforms, and providing technical support. 

Want to join this sector? We are currently recruiting for a Senior Account Executive in the US.

Construction Technology 

Though the construction industry is lagging in its digitalisation and adoption of technology compared to other industries, it remains one of the largest industries in the world, generating 13% of the world’s GDP and with a predicted global growth of 35% in the next 10 years. The construction industry is increasingly adopting digital tools and technologies to improve productivity, efficiency, and project outcomes. As construction technology experts begin to see the value in technology, this is creating more job opportunities for professionals skilled in construction software, Building Information Modeling (BIM), virtual design and construction (VDC), and project management platforms. 

Some of the main challenges that the construction industry faces are around product, time, and cost efficiency. Prefabrication and modular construction methods are gaining popularity due to their ability to reduce construction time, improve quality, and enhance safety. With the vast amounts of data that the industry generates, there is a growing need for people with skills in data analytics, machine learning, and artificial intelligence to analyse construction data for cost estimation, resource optimisation, predictive maintenance, and project performance evaluation.  

Want to join this sector?We are currently recruiting for a Enterprise Account Executive role based in New York or Boston. 

Sustainability & ESG 

It is no secret that the real estate industry has one of the largest carbon footprints, currently consuming 40% of global energy and having a projected increase of over 50% in building CO2 emissions by 2030. The real estate industry is placing a greater emphasis on sustainability, driven by the need to reduce environmental impact, address climate change concerns, and meet regulatory requirements. This increased focus creates job opportunities for professionals with expertise in sustainable building design, green certifications, energy efficiency, and renewable energy integration. 

The push for energy-efficient buildings and the integration of renewable energy sources has also created job opportunities in areas such as energy auditing, energy management, solar power installation, and sustainable infrastructure development. Professionals with knowledge of energy-saving technologies and renewable energy systems are in high demand. 

Want to join this sector?We are currently recruiting for Senior Consultant/ Associate role in the UK.  

Investment, Asset Management & Venture Capital 

Advancements in technologies such as artificial intelligence, big data analytics, blockchain, Internet of Things (IoT), and virtual reality have revolutionized the way properties are managed, transacted, and experienced, which has, in turn, attracted significant investments and fuelled the sector’s growth. VC investment in the sector reached $1.69 billion during the first quarter of 2023, with investment managers showing a particular interest in candidates who can interface with their systems, meaning that roles like technology analytics and application specialists are sought after within this sector. 

The growing M&A trend within PropTech provides ample opportunity for investors and entrepreneurs alike. Equiem, an Australian-based global leader in commercial tenant experience technology announced the acquisition of SpaceOS, a European company for workplace management software. This merger will offer customers of both companies a more extensive set of features, a larger team and greater global benchmarking.  

Want to join this sector?We are currently recruiting for a Sales Director role based in the US.

If you are looking for a new job, market advice or just to speak with experts in the space, get in touch with one of our consultants and they will help you in your search! 

At LMRE, we pride ourselves on training our consultants to be 360-degree PropTech recruiters, whilst also being experts in Residential / Multifamily Real Estate Innovation, Commercial Real Estate Innovation, Smart Buildings / Smart Homes, Investment, Asset Management & Venture Capital, Construction Technology, and Sustainability & ESG. If you are looking for a new job, market advice or just to speak with experts in the space, get in touch with one of our consultants and they will help you in your search! 

References 

Commercial Observer, Philip Russo; PropTech VC Funding Down 77 Percent Annually. (4th April 2023) 

Forbes; ‘The Construction Industry Is Getting Greener: Why, How, And What’s Changing?’ 25th August 2021. 

Fortune Business Insights; Smart Building Market Size, Share & COVID-19 Impact Analysis, By Component (Solution, and Services), By Application (Residential, and Commercial), and Regional Forecast, 2022-2029. March 2022.  

Helen Clark, LMRE; Unlocking the Power of ConTech: Season 11 of The Propcast’. 13th June 2023. 

Jack Skelley, Urban Land; How Proptech Could Transform Multifamily Real Estate. 30th May 2023.  

JLL; The future of global office demand. 23rd June 2020. 

Reuters, Herbert Lash; Equiem acquires SpaceOS as tenant demand grows for ‘flex’ space. 24th May 2023.  

Viola; ‘ConTech – Building the Future of the World’s Largest Industry’. 20th October 2022.