Q&A: The Future Of PropTech And Tech In London CRE
The concept of PropTech is no longer a new one. In fact, we think it's fair to say that UK real estate professionals have caught the technology bug. We chatted with Charlie Wade, the UK managing director of VTS, one of the most cutting-edge companies to enter the PropTech scene, to chat about the future of technology in London's commercial real estate market.
Bisnow: You've been working with clients in the UK for a year now. How receptive has the market been to technology and a changing way of doing things?
Charlie Wade: It's certainly been an exciting time to introduce a new technology product to the UK property market. We're definitely seeing that property professionals are very receptive to new technology—they get exposure to tech in their personal lives every day and have been waiting for a real estate offering. I do think that the industry gets a bit of a hard time, unfairly, around the slow pace of adoption. It's not that we've been slow to adopt, it's that—up until the last year or so—there has been a lack of truly productive solutions available. VTS is getting some fantastic traction and we have been pleasantly surprised by the readiness of the market to adopt our technology. To my earlier comment, I think that's because we're offering something that ticks all the boxes and is really focused on driving efficiency in the everyday workflow of our clients.
Bisnow: For those landlords and agents who have adopted PropTech, are you starting to see technology have an impact on how they manage their day to day?
Charlie: Absolutely. It's the little things—we're changing conversations and the way people communicate and pass information around. People have told us, "I'm not a massive fan of new technology and I was sceptical, but VTS is truly bringing efficiency to client reporting and as a result has changed my workflow for the better." We're still in the early days of mass market adoption, but clients who rolled out VTS at the start of the year are already starting to track valuable trends across their portfolio or leasing campaigns. It's incredibly exciting to see people get on board and hear that it's working.
Bisnow: How has technology made the office leasing process more efficient?
Charlie: Real-time data flow is what really changes the process—it allows people to make decisions faster, and is changing the conversation around what that data really means to help move forward in the pipeline. Agents are coming up to us and saying, "We did this deal because of this technology." What is the overall outcome going to look like? If we look at our customers in the US who have been using VTS technology for a few years now, they have completely shifted the way they think about information. Initially, the focus was more on streamlining the collection of data and having access to it in real time. Now that they have the information, they want the tools to be able to make that data actionable, and then put it to work to truly drive bottom-line revenue. I think we'll see a similar mindset take form in the UK.
Bisnow: London's commercial property is some of the priciest in the world, and booming more than ever. Theoretically, this should equate to even less reason for the industry to incorporate technological advances into their practices (if it ain't broke, don't fix it!). Where do companies like VTS fit into the London market?
Charlie: Interesting question...I don't think market success dictates the need for software of technology, rather that need stems from the process, the current way of doing things. For commercial property, the process has common pain points no matter where you are in the world, and that's why VTS resonates —we're fixing problems with workflow that are inherent to real estate and not one specific market. London is a brilliant place to work in property but we still have our fair share of challenges. There will always be people who don't want to embrace tech, whether we are operating in a good or bad market, but I strongly believe they are in the minority. Most people want to move forward and are excited about what companies like VTS have to offer.
Bisnow: What would you say has been instrumental to VTS's success in London thus far?
Charlie: Before we launched in the UK, we made the distinct decision to work with local experts to ensure the platform had the nuances and data integrations necessary for it to work for our users in the UK and Europe. This partnership and initial effort proved to the market that we were committed to getting it right from the outset, which from my perspective, has definitely paid off in terms of adoption. Our clients understand we are working closely with them to build a platform for the future and being part of that journey is hugely exciting for everyone involved.
Charlie will be speaking alongside guests from Cushman & Wakefield, WeWork, Brookfield, and Derwent London at Bisnow's London State of the Market on Nov. 17. Sign up here.
To learn more about Bisnow partner VTS, click here.
