How has The Sharing Economy Affected the Real Estate Industry to Date?

 

The sharing economy affects all sectors and the building, construction and real estate fields are no exception.

BizBizConstruction.com, a joint initiative of Bibi Global Inc. and APCHQ, now allows the building and construction sectors to be carried by a new lease of life and to benefit from the advantages of the sharing economy instead of suffer the consequences. Look at a little history, and example of Airbnb, first in class.

One of the best-known examples of a company based on the sharing economy making an impact in the real estate industry is without a doubt the start-up Airbnb in San Francisco. With 250,000 rooms in 30,000 cities across 192 countries, Airbnb’s reach rivals that of major hotel chains, all without owning a single property.

For a long time, a multitude of detractors saw no chance of success for this start-up and the hotel industry did not see Airbnb as a threat. Over the years, as Airbnb has been more successful and bigger than the companies in the hospitality industry, the rhetoric has changed. The hospitality industry began to realize that it had something to fear.

As a result, Airbnb is now the second tech start-up, one of the most valuable in the world after Uber (Aiming for an IPO of $ 45 Billion in 2021). With the advantage of a low operating cost compared to that of a traditional hotel chain, Airbnb can offer more competitive rates and provide members with additional benefits, such as locally guided tours by hosts and a exposure to local culture. These are more appealing to the modern tourist, who craves a more authentic experience than a prepackaged hotel visit. Hotel service providers must adapt to the changing tastes of their customers in order to cope with this changing market, offering more value and a real experience,

And you, in All This?

Airbnb is undoubtedly a business that messes up and affects the profitability of some landowners, but did you know that tenants of an office tower or shopping center can also benefit positively from the sharing economy?

Since it is essentially based on the efficient use of unused assets, this concept can be applied to almost everything in the real estate industry, and not just to vacation rental (see Airbnb). This ranges from leasing unused parking spaces, to providing storage space, conference rooms or even office space. In addition, the equipment owned by tenants may find use with other tenants in the same building, or even in a neighboring building. They thus have access to the equipment without having to purchase it.

By offering a sharing platform to their tenants, building owners can now provide them with the many advantages of this new economy tuition. This is the opportunity to position itself as a manager keen to support its customers, by providing them with tools to allow the circularity of resources.

And the Construction?

The construction sector is a real estate sub-sector which can also greatly benefit from the sharing economy. Indeed, this industry is one of those which, on a daily basis, consume and dispose of a large number of resources. Just think of the material residues, which very often end up in landfills. In addition, the purchase, maintenance and storage of equipment have a significant impact on the profitability of businesses. Why not share these residues with other entrepreneurs who could optimize them? And rent equipment from another company whose sporadic use does not necessarily require you to purchase it?

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