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WeWork has more office space in Manhattan than anyone

(REAL ESTATE) WeWork is now the biggest renter in Manhattan – what it says about the company, and perhaps an opportunity for *your* business.

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It’s official: WeWork now rents more office space than anyone in Manhattan—including their previous competitor, JP Morgan. With 5.3 million square feet of rented space, the coworking company clearly intends to maintain its momentum, thus lending credit to the inherent value of social work environments.

The sheer growth WeWork has seen in 2018 speaks to the notion that the coworking craze — perhaps surprisingly — isn’t slowing down.

While WeWork (and other similarly themed companies) only accounted for 3.3 percent of the new leases signed in 2017, they ate up 9.7 percent of new leases signed in the first two-thirds of 2018. Those aren’t the numbers of a trend in decline.

Despite some water cooler disdain toward WeWork’s potentially wishy-washy work culture and some of their latest publicity stunts, investors seem to like them more than ever. In fact, word on the street is that SoftBank — a prolific WeWork investor — is considering a second investment that would value WeWork at or around 40 billion dollars.

Like we said: not a sign of a declining company.

WeWork’s objective success isn’t the star of the show here, however; it’s what they’ve proven through that success which matters.

WeWork’s ethos (that human beings need interaction with other similar human beings in order to thrive in a workplace) gets further reinforced with every lease the company signs.

If small- to mid-sized companies can take away one thing from WeWork’s example, it’s this – many people need other people in order to do their best work.

There will always be exceptions to the rule—plenty of folks work alone from home and are happy to do so—but the fact that freelancers living in some of the most expensive real estate in this country are willing to pay additional cash just to be around other like-minded individuals is fairly indicative.

If nothing else, keep in mind the social atmosphere afforded by WeWork when designing your office spaces or nailing down your workplace culture expectations. And yes, they allow Realtors and brokers to lease space, too…

Jack Lloyd has a BA in Creative Writing from Forest Grove's Pacific University; he spends his writing days using his degree to pursue semicolons, freelance writing and editing, oxford commas, and enough coffee to kill a bear. His infatuation with rain is matched only by his dry sense of humor.

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Real Estate Corporate

Zillow patent grab advances, now seeking patent on automated rental rates

(REAL ESTATE) Zillow has been applying for utility patents left and right, now adding rental Zestimates to the list.

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We recently reported that Zillow is scooping up patents faster than developers are bulldozing Central Austin single family homes to build two modern half-million dollar homes in their place.  And since then, Zillow’s showing no signs of slowing down.

The online real estate search giant applied for another utility patent for automatically determining market rental rate index for properties .

And what is that you ask?

This application patents Zillow’s ability to determine and index the market rental rate for homes in a geographic area. By accessing the current market rental rate of every home in each area, they can automatically compare them to similar homes to obtain aggregate results.

This functionality isn’t new. Other sites use similar functions to help renters find homes in the areas of their choosing at prices they are willing to pay. However, as we stated, utility patent applications are time intensive and the cost alone raises eyebrows.

Why?

Because if granted these patents, Zillow will be putting themselves at odds with their direct competition and other heavy hitters in the real estate search engine space. No biggie, it’s a free market, but brokers (who butter their bread) also feature automated rental rate tools, many not from Z.

As we mentioned before, this calls into question the unsavory practice of patent trolling. Patent trolls weaponize patents by scooping up patents from other companies instead of coming up with new ideas or technologies. In this case, it means grabbing patents for common technology, such as functionality that allows a user to compile a list of homes with desirable attributes in their prices range.

This kind of technology is already commonly used by several companies and some tell us they believe it shouldn’t need a patent in the first place. However, if Zillow’s applications for the patents go through, they can use them to threaten competing companies with legal action for infringement or failure to pay licensing fees for use of said tech.

Alternatively, this could be a brilliant move by Zillow to protect their intellectual property, their very own special way of automating this data, and that too is a smart business move.

We don’t know how this shakes out, but we’ll definitely be keeping a close eye out for updates.

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Real Estate Corporate

Zillow patent apps claim they invented AVMs, uploading home data via mobile

(CORPORATE) Zillow has applied for a handful of utility patents, and their invention claims will shock the real estate industry.

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It appears that online real estate search giant, Zillow, is applying for some pretty interesting utility patents. They currently have in four applications with the U.S. Patent Office, including automatically determining the current value for a home, the capture and use of a building interior data from mobile devices, and connecting and using building interior data acquired from mobile devices.

So, patents on AVMs and uploading data about a house via smartphone.

A claim that they invented both and should hold the patents.

First things first, what’s a utility patent?

Regarding inventions, U.S. Code defines a utility patent as “any new and useful process, machine, manufacture, or composition of matter, or any new and useful improvement thereof.” Patents are instructions from inventors telling the public how to use their invention. 

There are two kinds of patents – utility and design. Design patents are less detailed requiring only drawings of one’s design and a very limited text explanation. Utility patents require drawings, diagrams and very detailed explanations of how the invention works.

Zillow has recently applied for four patents.

Two for separate patents for automatically determining a current value for a home. See here and here. Both of these include inventions that would have the ability to locate a home in a particular area as described by a user and thus offer the user the selling price and recently sold price through the evaluation of a home’s particular attributes.

The third is for the capture and use of a building’s interior data from mobile devices. This could mean using a phone’s camera to analyze the interior of a home to generate a representation of the home’s interior, for example.

The last patent is for connecting and using building interior data acquired from mobile devices which could mean automating the operations used to acquire images of a home’s interior such as using a phone to capture video for multiple views to put together a virtual representation of a home.

So, why is this important?

Utility patent applications are time intensive and super costly starting at around a few thousand dollars for simple inventions and leaping into the tens of thousands range for more complex ideas and technologies.

Considering the cost alone, one could assume that Zillow has something pretty big in store for the future or at the very least, some pretty lofty goals.

If granted, these patents would instantly put Zillow at odds with the majority of real estate tech companies and brokerages.

Could this have anything to do with rumors of their potentially being acquired in 2019?

Or could it having something to do with the expansion of Zillow Offers, the company’s direct home-buying and selling service?

Maybe Zillow’s just attempting to quash their competition?

Or maybe they’re looking to boost revenues with some good old fashioned patent trolling

Time will tell what Zillow’s patent rampage means, or if the Trademark Office will even grant these patents.

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Real Estate Corporate

New Zillow strategy – telling you to take your money and shove it

(REAL ESTATE) Zillow is adding a new feature that is raising eyebrows, but could go a long way toward consumers’ trust in their new direction.

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In college I would spend hours investigating what courses I would be taking the next semester. My university provided a flow chart of the kinds of classes I needed to enroll in, but it was completely up to me which one I chose. I used two main sites that helped my make my decision. One was a site that showed me every single variation of my potential schedule and the other was a crowd sourced rating site for the professor. Since then, several rating sites have come out all in different industries, and as you already know, real estate is no exception.

As a consumer, I have a very strange relationship with Zillow. I’ve never bought a house, but I’ve used Zillow to find multiple rental homes, to dream about homes I’ll never afford because I like avocado toast and to look at the before photos of a home my friends bought.

I also have a strange consumer opposition to them after their little Zestimates drama last year, their recent foray into alleged photo poaching, and their not so blatant attempt to run the table by buying a mortgage company.

That said, Zillow’s new strategy has my interest piqued.

With the purchase of Mortgage Lenders of America, Zillow has secured their place at the adults table of the real estate world. They’re now the search engine that will help you find a house, the company that will connect you to a Realtor and the lender that can help you buy it. Zillow is taking their one-stop shopping a step further and allowing you to rate your real estate agent (beyond their existing rating system) — just like I did with my professors.

Customers will be asked for input on agents’ communication style, responsiveness, trustworthiness, and expertise (sound like HomeLight? Yeah, I know).

In an effort to be customer satisfaction driven, Zillow’s Premier Agent customers will be privy to reports based on data that Zillow will collect from other customers that will gauge agents’ performance.

Zillow believes their customers are all about customer service and I can’t say they’re wrong. I don’t know of any industry where customers don’t want quality assistance. The irony is not lost on me, though, that they’re an online company trying to measure human interaction.

Zillow’s President, Greg Schwartz, explained, “we promise you this: we’re going to give you the greatest platform to make it happen. And we’ll keep pushing to get it right so you can deliver exceptional experiences.”

Solid promise, but how is it going to work? Will it be like the website I used to rate my professors where it was an option to do so or I could just lurk in the shadows and reap the benefits of the reviews? Or is it going to be like Uber / Favor / fill-in-the-blank-phone-app-service where I am required to submit a review before I’m allowed to do literally anything else? They’ve long had agent ratings, but insiders suggest that an Uber-esque rating is really what’s in play here.

Schwartz went on to talk about agents who aren’t performing up to customer standards — again, are there hard and fast guidelines? Because I can guarantee you that as a customer, I will have different standards than Mariah Carrey.

Schwartz said, “For agents who aren’t performing up to customers standards — Zillow will no longer be interested in taking their money. The company wants to be able to tell every consumer who comes to the site that the agent they select will deliver a high-quality experience.”

Whoaaaaaa. Schwartz is really swingin’ for the fences there. If you aren’t up to Zillow’s standards, they’ll tell you to take your money and shove it. Despite a shaky opinion of the mega-company, this speaks to me.

I’m not entirely sure alienating large groups of a people you’re trying to work with is the best strategy, but Zillow seems to have the appearance of trying to do good things. We’ll see what shareholders think, how brokers will respond to a potential Uber-esque rating for their agents, and ultimately, how consumers opt to trust the data in a sea of subjective agent ratings alongside endless lawsuits against that shake confidence in the brand.

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