The office industry is seeing a sluggish return after COVID-19 rocked the workspace. While many businesses have slowly started to reintroduce in-office operations, office landlords have definitely felt the pinch in the interim. Standing out as a landlord right now makes a massive difference in finding, securing, and retaining tenants in today's tight market. This is why the acquisition of Lane Technologies by VTS, the largest commercial leasing and asset management company, could be positive news for the office sector.
Improving the tenant experience in CRE
Toronto-based Lane Technologies is an online leasing software that simplifies the management and leasing aspects of commercial real estate (CRE). Its technology allows landlords to improve ease and safety for tenants in the office space and handle and organize day-to-day management, including rental leasing, rental inquiries, maintenance requests, advertising vacant space for lease, creating websites, and communicating with tenants. All these are extremely appealing solutions to tenants right now as they navigate the return to the workplace in a post-COVID world.
CRE tenant solution domination
Lane's unique tenant solutions are exactly why VTS, a New York-based proptech start-up that manages more than 12 billion square feet of commercial real estate, with over 45,000 users across North America and Europe, recently acquired the company. Earlier in 2021, VTS acquired Rise to help introduce digital tenant solutions to its current platform offerings. The Rise acquisition (now VTS Rise) went well for the company, and the acquisition of Lane will allow both companies to benefit from expanded services and a larger global footprint.
The acquisition of Lane, which is believed to be worth around $200 million, makes it one of the largest proptech acquisitions in history and makes VTS the largest commercial tenant solution provider today. Lane's technology will be coupled with the company's existing property operations and tenant management software, VTS Rise, and Lane Perks, a promotional tool to help drive business for its tenants. The wide variety of digital solutions available to VTS users should help office operators compete and improve efficiency today.
VTS's tenants include some of the country's largest, most distinguished operators in the commercial space, including real estate investment trusts (REITs) and real estate equity firms Blackstone, Brookfield Property Partners, LaSalle Investment Management, Boston Properties, JLL, CBRE Group, and more. It's likely this new acquisition will allow VTS to serve more people in the office space while also helping its existing customers ease their way back into more active leasing.
It's a tough market right for a lot of office landlords right now, but many operators see the current disruption as a temporary one. Boston Properties, for example, a major office operator in the Northeast United States, is on a buying rampage, using today's current lull to help boost its future operations. And VTS is surely helping it organize and manage its expansion during this process.