Eric Brody: How do you see proptech in ten years?

Olivia Ramos: I hope that every building and data point in every building is on the blockchain and visualized, and the incentive is liquidity and transparency. 

Brody: People can trade-in and trade out, and there's just so much more liquidity in the real estate world.

Ramos: Exactly, and you’ll be able to see how much a building is wasting in resources, how efficient it is, and then those buildings would get more funding and therefore contribute to the progress of our cities…

Brody: Fascinating, right, cause when the dollars are moving faster towards specific buildings and you are wondering why, you can see what the market is interested in.

Turning Buildings into Stocks: A Tradable Future

Imagine a scenario where every building operates like a stock in the financial market. Buildings that effectively reduce operating costs and improve energy efficiency are not just physical structures but high-performing assets with tangible economic value. This shift means a building’s value can be directly influenced by its operational margins. Buildings with higher efficiencies and lower costs would see their value appreciated, making them highly attractive to investors.

This concept introduces unprecedented liquidity into the real estate market. Investors can easily buy and sell shares in individual buildings, responding swiftly to market changes and capitalizing on efficient management. This opens up real estate to a broader range of investors and incentivizes building owners to adopt sustainable practices and innovative technologies to enhance asset value.

Investing in Cities Like REITs: Policy-Driven Value Creation

Expanding this concept to the urban scale, cities themselves could become tradable entities akin to Real Estate Investment Trusts (REITs). By aggregating data on the performance and health of all buildings within a city, investors can assess a city’s overall economic health and potential for growth. Investment can then be directed towards cities demonstrating effective governance, sustainable policies, and robust economic performance.

Policies that enhance infrastructure, improve public services, or foster environmental sustainability could increase a city’s asset value. This creates a cycle where policy improvements lead to increased investment, which funds further enhancements. Investors would have the unique opportunity to invest in the development of entire cities, betting on their potential for growth and improvement.

Conclusion: A Vision for the Future of Real Estate Investment

These ideas represent a radical shift in how we think about and interact with real estate investments. Treating buildings and even entire cities as tradable assets opens up new avenues for investment and creates incentives for sustainability and efficiency. This vision for the future could lead to more transparent, dynamic, and responsive real estate markets, fundamentally altering the landscape of urban development and investment.

More will be revealed,

Olivia

Link to conversation with Eric Brody:

https://www.youtube.com/watch?v=1bn3fgsAxr4&t=2s