Asked whether the combination of the two companies would have drawn as much media attention or industry notice had it occurred a year or two ago, Kubiak says, “Probably not, but that's just because of the natural cycle. Both companies have become larger and real estate technology has come a long way in the past three or four years, from being relatively nascent to increasingly prominent.”

More institutional owners have adopted one platform or the other in the past couple of years; “the companies have grown and their teams have grown,” Kubiak says. “In the ecosystem of real estate technology—and I think we're included in that conversation—more and more companies in our group are having more traction with owners, and the owners are seeing more real success out of what these companies can actually do from the perspective of driving value.

“It makes sense that it's a bigger story now than it would have been a couple of years ago, and it sets up real estate technology to continue to grow,” he continues. “These aren't small companies anymore; these are more meaningful-sized companies that are starting to do some pretty impressive things.”

He agrees that the future could well bring more mergers. “Consolidation is always appropriate as industries mature. As an industry, real estate technology has a long way to grow, but I think it's growing up a little bit more, which leads to conversations around consolidation and I wouldn't be hugely surprised if there were other companies looking at a similar route. But it's still very early innings,” he points out.

Early 2017 will see the RealShare Conference Series survey the CRE tech landscape as it's configured at present, from asset management to big data and analytics. RealShare Tech is set for Feb. 2, 2017 at the New York Hilton Midtown.

NEW YORK CITY—“Real Estate Tech Companies VTS and Hightower to Merge in $300 Million Deal,” proclaimed the Wall Street Journal. “Lease Management Platforms VTS and Hightower Join Forces,” CRE.Tech trumpeted in giant type. “CRE Tech Firms VTS, Hightower to Merge,” GlobeSt.com reported. Announced on Tuesday, the combination of two of commercial real estate's biggest leasing and asset management platforms was headline news in a way that wouldn't have been the case a couple of years ago.

To Riggs Kubiak, whose Honest Buildings is a peer—but, with a different focus than the two merged companies, not a competitor—to VTS and Hightower, “I think it sends a very positive signal” about the traction that the tech sector has achieved, in that the two companies would be combining forces as well as planning to expand globally. “Between them, both companies have billions of square feet in their platforms,” Kubiak tells GlobeSt.com. “The fact that they have continued to grow quickly and now have an opportunity to grow in the same direction rather than compete against one another is a very positive sign for the industry, and I think the result will be an even stronger product” with more value for owners.

Asked why such a merger would happen now, Kubiak says, “The timing was perfect. We're very happy with it, and we have a unique perspective because we're also out working with many of the owners that use both of these platforms.

“We've had owners ask whether they should use VTS or Hightower, and we always tell them that they both have very strong value,” adds Kubiak, CEO and co-founder of New York City-based Honest Buildings. “Now owners will have this one solution in the market, with the combined team of product and leadership from both Hightower and VTS. It just streamlines that conversation for owners, and I think that's positive for the industry, because it's easier than asking 'should we be using this company or that company?' and having this constant debate over one or the other.”

Asked whether the combination of the two companies would have drawn as much media attention or industry notice had it occurred a year or two ago, Kubiak says, “Probably not, but that's just because of the natural cycle. Both companies have become larger and real estate technology has come a long way in the past three or four years, from being relatively nascent to increasingly prominent.”

More institutional owners have adopted one platform or the other in the past couple of years; “the companies have grown and their teams have grown,” Kubiak says. “In the ecosystem of real estate technology—and I think we're included in that conversation—more and more companies in our group are having more traction with owners, and the owners are seeing more real success out of what these companies can actually do from the perspective of driving value.

“It makes sense that it's a bigger story now than it would have been a couple of years ago, and it sets up real estate technology to continue to grow,” he continues. “These aren't small companies anymore; these are more meaningful-sized companies that are starting to do some pretty impressive things.”

He agrees that the future could well bring more mergers. “Consolidation is always appropriate as industries mature. As an industry, real estate technology has a long way to grow, but I think it's growing up a little bit more, which leads to conversations around consolidation and I wouldn't be hugely surprised if there were other companies looking at a similar route. But it's still very early innings,” he points out.

Early 2017 will see the RealShare Conference Series survey the CRE tech landscape as it's configured at present, from asset management to big data and analytics. RealShare Tech is set for Feb. 2, 2017 at the New York Hilton Midtown.