Providing value, value and value – that’s all it’s about if you want to make it in the long run. Everything else comes secondary. Epicenter member Victor and his team at Propstreet has taken this mindset and implemented it into the core of their business. And perhaps that’s why they have managed to influence an industry known for being somewhat reluctant to change.
We’re talking about the commercial real estate industry here. An industry that has not exactly been at the forefront of digitalization. However, cash flow and thriving business is rather how it stands out. With this in mind – Victor explains that their approach has never been to be disruptive and turn everything upside down. The idea is rather to create value by making processes more efficient with digitalization.
When talking about commercial real estate, we’re talking about the warehouses, apartment buildings, hospital buildings, office buildings etc. worth between 30 million to 5 billion SEK. Not the 25 sqm 1 roomer on hemnet.com. But did you know that these premium real estates are not listed digitally anywhere for investors? Buying and selling these has always been done 100 % manually. Until now…
If you’re an investor today – let’s say that you’ve just made an exit and sold your tech company. Suddenly you have tons of money and you want to start investing in real estate. The manual selling process means that you have to meet with brokers, as many as possible,to talk about your investment strategies. Here’s where the tricky part starts… Make sure to clear your calendar because there are 40 brokers in Sweden alone you have to meet. Another 30 in Finland, plus 30 in Denmark, and also add 30 in Norway. To summarize – quite a few brokers you have to become friends with.
Maybe you already figured it out – but the team behind Propstreet has invented a digital solution making this selling process a lot more efficient – for all parts involved.
All approved investor members of Propstreet, enter their investment criteria into the platform. And the brokers on their end, add all properties they have up for sale. Investors and properties are then matched depending on the different investment criteria. Victor says:
”On average, we have been able to present 35% new investors per assignment to the brokers.”
Investors just saved themselves a lot of time in terms of relevancy – and not to forget, more than 100 face-to-face meetings. On top of that, brokers are also presented with more possible investors – giving them a chance to choose which investors they want to include in the project.
In just two years, Propstreet have converted properties for SEK 20 billion in Sweden, Denmark and Norway and will also launch in Finland soon. The platforms contain over 1300 members where 60% come from recommendations. They want to be bit of a secret digital place where serious buyers and brokers gather, and that’s definitely where they’re heading!
Well done Victor and the rest of the team – glad to have you as part of the Epicenter family. Looking forward following your growth