industry spotlight

Commercial Real Estate

Discover the commercial real estate industry, where real estate tech investors and developers shape the environment where we work, shop, and socialize.

Engineering the workplace of tomorrow

The commercial real estate tech industry sees pockets of strength despite the economic headwinds. Proptech and e-commerce boost warehouse demand, while high office vacancies globally create multiple opportunities for developers and real estate tech VCs.

Why it matters:

Commercial real estate tech startups should keep an eye on market and investor sentiment if they want to capitalize on:

  • Vertical warehousing
  • Subscription-based workspaces
  • PropTech and IoT
  • Multifamily units

Between the lines:

Don’t get hit by challenges. Be ready to meet capital limitations, evolving tenant needs, and the impact of tech on the commercial real estate market.

We’ve assisted multiple commercial real estate startups and know how to build successful businesses that grab investor attention

$3B+
Funding attracted
600+
Startups supported
80+
Sectors encompassed

What we do:

We streamline fundraising, handle M&A transactions, and conduct robust go-to-market strategies and compelling pitch decks.

Go deeper:

Check out our commercial real estate market research to learn more about the current market situation and what it takes to attract funding.

1.5x growth
The commercial real estate market is expected to be 1.5 times larger by 2032.

 

7/10
Consumers use online platforms to research and compare commercial spaces.

Fueled by the demand for sustainable workplaces, economic conditions, and evolving tenant preferences
60%

Consumers are more likely to choose businesses housed in sustainable buildings.

9/10

Tenants consider sustainability when leasing office space.

55%

The world’s population lives in urban areas.

VENTURE LANDSCAPE

In 2023, VC funds injected $314M into the commercial real estate startups

With major deals covered in:

  • Real estate investment trusts
  • Commercial real estate listing services
  • Real estate networking events
  • Private equity real estate firms

Leading commercial real estate VC firms:

Write to us to know more

Commercial real estate startup pitfalls

Arm yourself with strategies to navigate these challenges and keep your fundraising efforts moving forward.

Sustainability and ESG considerations:

The shift to sustainability and social equity drives investors and renters towards eco-friendly and socially responsible properties. However, compliance with energy efficiency regulations and building standards puts pressure on startups.

Why it matters

ESG difficulties lead to:

  • Loss of competitive advantage
  • Fines and penalties

What it takes:

  • Track and report on key metrics like energy use, water consumption, and waste generation, as transparency builds trust with investors and tenants
  • Partner with architects, engineers, and sustainability consultants to get access to resources, networking opportunities, and updates on best sustainable practices

Brand awareness and credibility:

Newcomers in the CRE space must establish themselves as credible players and build brand awareness to compete with established firms.

Why it matters

No brand awareness means:

  • Long sales cycle
  • Lack of track record
  • Hindered talent acquisition
  • No investors’ trust

What it takes:

  • Create informative content, such as blog posts, webinars, or industry reports, to establish yourself as a thought leader
  • Showcase success stories and client testimonials to demonstrate your capabilities and build trust

High operating costs:

Rising material and energy costs put pressure on the operational budgets of every commercial real estate startup.

Why it matters:

Too high operation costs may lead to:

  • Low margins
  • No tech advancement
  • Limited scalability
  • Slower customer acquisition

What it takes:

  • Utilize PropTech for automation, streamlining processes, and reducing manual labor costs
  • Utilize data analytics to optimize marketing, identify cost inefficiencies, and improve resource allocation
  • Communicate the unique value you offer clients to justify premium fees if applicable
  • Partner with complementary businesses to share resources, leverage expertise, and potentially reduce costs

Fundraising quest:

Real estate generally requires significant upfront capital for land, development, and construction.

Why it matters:

Limited financing can:

  • Limit growth potential
  • Lead to dilution of ownership
  • Cause debt burden

What it takes:

  • Partner with experienced developers and investors to access resources and expertise and reduce the need for independent investment in these areas
  • Craft a solid business model to establish clear strategies for sustainable growth and success
  • Prepare an investor-appealing deck to communicate your product/solution to investors
  • Implement an effective investor outreach to connect with the investors who are interested in your type of business

FAQs

What are the biggest real estate tech conferences?

MIPIM, held annually in Cannes, France, brings together international property professionals to discuss industry trends, sustainability, and the latest tech innovations. CREtech Events, held worldwide, connect real estate professionals from all sectors to explore how technology changes the built environment. Finally, Proptech Connect, Europe’s largest event, gathers industry leaders to discuss cutting-edge real estate technology and how to use it for digital transformation.

How attractive is the industry to potential commercial real estate investors?

Despite the high investor interest, raising funds can be tough. Investors scrutinize property type, location, and market conditions before channeling real estate tech venture capital.

If you are a commercial real estate startup, how easy is it to raise funds today?

It is not easy due to the competitive market and high capital requirements. However, strong business plans and innovative approaches can help you attract the necessary real estate tech VCs.

How long does it take to create a pitch deck and financial model for a commercial real estate startup?

On average, we handle documentation in 2-3 weeks. But sometimes it might take around a month. Feel free to ask for more information.

What are the key mistakes in pitch decks in commercial real estate startups?

The absence of an investment narrative, a solid competitive moat, and a clear path to profitability—are the top mistakes we’ve observed in many startup decks. These shortcomings may lead investors to overlook your pitch, even if your solution is really disruptive.

How competitive is the commercial real estate market?

The commercial real estate market is highly competitive. Established players on the market and low vacancy rates make it tough to find and lease properties.

What services do you provide for investors looking to invest or already investing in the commercial real estate sector?

We help commercial real estate venture capital firms conduct thorough due diligence on potential commercial real estate projects to determine their investment viability. We also offer full-fledged fundraising assistance to the portfolio companies of our partner funds.

Do you provide commercial real estate startup M&A support?

Absolutely! We can help with your M&A goals, whether in commercial real estate or beyond. We take care of everything, from finding potential deals to evaluating them and ensuring smooth collaborations after the deal is sealed.

Do you make intros to commercial real estate startup VCs?

Of course! We help link you up with the right venture capitalists in the commercial real estate space. By assessing your project’s team setup, round size, and product, we’ll make your fundraising journey more successful.

Do you have data or research available to purchase on the commercial real estate market?

Yes, we do! Our commercial real estate market research includes industry reports, competition analysis, etc. We use only reliable data sources to collect the most relevant information for you, such as the industry’s challenges, market trends, and competitive dynamics.

Which growth stage of companies have you worked with in the past?

We support commercial real estate startups in growth and fundraising from Pre-Seed to Series C and beyond.

Diverse industries we work with

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Looking to get into commercial real estate? Reach out, and let's talk!

Whether you're looking for fundraising support, outsourced M&A advisory, growth strategy consulting, and presentation design, Waveup is your one-stop shop for that and more. Leave your email, and let's discuss your project!

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