We’ve all seen the headlines of companies calling employees back into the office, but a record percentage of office space remains unused. That’s bad news for the commercial real estate industry—and, by extension, for the startups that cater to it.
As the real estate market contends with factors like soaring interest rates and high vacancies, "there is one factor that every startup has to think about," argues Jeffrey Berman, general partner at real estate tech-focused VC firm Camber Creek, and “it’s actually in two parts: One, their pricing, and two, their internal spending control.” He explains that “when you have dislocation in the real estate markets, the owners and operators of real estate very quickly look at their bottom lines and say, 'Okay, this is our bottom line today, let's look into the expense column, and what can we get rid of?'”
