Proptech Fun Facts & Insights

We are happy to share another edition of PropTech Facts: we provide you with short and sweet insights into the (Prop)Tech market. the trends we are seeing, and the interesting data we come across.

Employment Tenure for Tech Companies

This analysis by Resume.io, shows employment tenure (years) at major US companies. As shown, the length of tenure is particularly short within tech companies.

This, is in part, attributable to the movement of software developers - with data showing that 50% move jobs every 2 years - to salaries with a 15% increase in pay, per move.

With the recent travails of Open AI also being a good example, the value of the tech team, particularly, when leveraging internal IP / data, is where the value of many companies now exists.

This is becoming more and more salient in real estate, where a portfolio's ability to deliver alpha, is driven by their technology capability (team / data / stack).

Generations of Consumers

As the analysis from Kearney shows, for the 1st time in history, there are six generations of consumers in the US.

Recent jobs data from the Australian Bureau of Statistics, showed that a significant number of job applicants were from the elderly generation.

Moreover, with countries like Japan having 1/3 of their 70 years+ still working, the impact on real estate, and the provision of space will become more fragmented.

For Retail, in both the US and Japan Shopping malls are now specifically targeting the elderly, and this repurposing of space by focusing on specific cohorts, is a trend we are continuing to see globally.

These trends are both driving what tech is being developed and sought.

Security of Supply

In August this year, the sales of Pasmo + Suica cards (Train travel cards) in Japan were suspended, due to a shortage of semiconductors.

A recent survey by WTW indicated that 76% of the lack of alternatives, impeded the respondents' ability to implement an effective alternative semi-conductor sourcing strategy, highlighting the high degree of risk within the supply chain.

The $570bn semiconductor industry is set to grow even further, with Hyperscale data centres (operated principally by the mega-techs) to double in the next 10 years and the AI chip market to go from $8bn (2020) to $195bn to 2030.

We are seeing the leading real estate companies in the market identify the security of supply (+ cost) be a key consideration for their digital strategies rollout - particularly with the greater focus on Scope 3 and the rollout of tech-dependent strategies.