Good morning, if quantum computing was covered in the Guinness Book of World Records, IBM’s latest breakthrough would be in it this week.
IBM announced its new quantum processor, Eagle, which it hails as a key component of the world’s largest—and potentially most powerful—superconductor-based quantum computer.
The new processor allows for nearly 2x as much computing power as the previous record-holder, IBM’s 65-qubit Hummingbird.
But despite the milestone, the commercialization of quantum computing is still a distant thing - 10 years at least.
Today's Ginger Chai, however is ready to be perused right away.
The Changing CRE Landscape
Working from home started as a temporary fix but has very rapidly been embraced even by companies that balked at the mention of remote work for its employees.
Naturally, with such a big transformation underway, commercial real estate (CRE) itself has had to witness a lot of change, mostly bad.
- With many employees working from home for the foreseeable future, big roomy office spaces are looking like unnecessary investments/costs.
- Hybrid companies are eyeing reduced square footage, and easily-rearrangeable rooms to accommodate much lesser and inconsistent number of staff at the office.
CRE Market Values Will Go Down
As a result, leasing revenue will decrease, which also reduces their buildings’ market value.
In some cases, CRE owners may need to repurpose some of the building space to use as housing/serviced apartments/hotel in locations where it would make sense.
In some worst-case scenarios, commercial landlords may be forced to close operations and look at other models entirely to generate revenue from their assets.
CRE Brokers Need To Stay Current
Per this piece, CRE brokers may want to reach out to companies directly to see if they’re thinking about downsizing or relocating and helping them navigate the process.
The idea is to show the clients that you are current and abreast of global changes in the commercial real estate space. With that leadership, new business should not be a problem for long.
Can't Drown This
Per WSJ, this Miami beach house, built to withstand rising sea waves just listed for USD 25 million.
The house that stood before this one was bought over in 2017 for USD 4.575 million, demolished, and reconstructed to sit at 16.5 feet above sea level.
If it sells for that price, it might just off a DIY raise-this-darn-house and sell it at a 5X trend.
Turning global warming into easy profit? Welcome to real estate.
Hands Free Proptech
We regularly put out blurbs on proptech and in one of those, we had spoken about a great opportunity that exists in helping the real estate broker on the street succeed with tech.
Turns out, while we were only writing out a fantasy, techies were working on that very plan overtime.
Tech For Every Real Estate Broker
A new breed of proptech is taking over mundane tasks like accounting, hiring, training and digital advertising so real estate brokers can focus on real estate transactions.
In one sip, technology can now take everything off the brokers' plates so they can do what they’re best at, helping people buy and sell real estate.
Is It A First?
To be real, yes. While proptech giants like Compass and Zillow have been proptech pioneers, their tech is sealed inside the walls of their own agent communities.
Democratising the tech and making it usable on the street for a standalone broker (albeit for a small fee) is being done only now.
Must Be Rewarding
You bet it is. Per this CrunchBase report, proptech startup Place raised $100 million in a Series A round led by Goldman Sachs.
Founded in 2020, the startup is already a unicorn - thanks to it's vision of empowering the common broker.
🎙 "Top agents need more than just software; they need a full-stack offering that fully abstracts away the complexity of running a business. We were encouraged by a full-stack business with clear validation of its technology on a standalone basis," said Paul Pate from Goldman Sachs.
📢 Indian proptech startups, please stop competing with other brokerages, the action is here.
Studio Real Estate Is Red Hot
Your favourite movie hall may serve the best popcorn in the metaverse universe but unless there's something interesting playing on the screen, chances are, you're gonna give that snack a pass.
With a rapid rise in people turning to video streaming services (also called OTT - over the top, top is short for a set top box), the Netflixes of the world are frantically looking for fresh content (like movies and multi episode series).
And that means the world suddenly needs more studios.
The Appetite For Studio Real Estate
Per S&P Global, as competition for content production is driving up spending, private real estate investment firms are finding a way to put money in the studio game.
Most recently, Hackman Capital Partners LLC and Square Mile Capital Management LLC agreed to acquire ViacomCBS Inc. Studio City in Los Angeles for USD 1.8 billion.
It doesn't stop there, beyond the Television City and the reported Studio City deals, Hackman acquired Silvercup Studios in New York for USD 500 million.
Hackman also recently joined a group acquiring Sony Group Corp.'s Sony Pictures Animation campus in Culver City, Calif., for USD 160 million, and a group that acquired two Irish studios, Ardmore and Troy, for an undisclosed amount.
Netflix, You There?
Netflix has struck a renewed long-term agreement with UK production facility Shepperton Studios.
The site’s owner, Pinewood Group, also said that the site will be significantly expanded, with the new development totalling approximately 1 million sq. ft. of new production accommodation, and comprising 17 additional sound stages, adding to the 14 that already exist.
Construction is set to be completed by 2023.
Netflix also recently struck a deal to occupy a new site set to be opened in Enfield, North London.
Other countries deep into movie making are privy to a similar renewed love for studio real estate.
While in other news, the iconic RK Studios at Chembur, Mumbai, is now a residential apartment complex.
🤷♀️
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In a big boost to DIY, Apple just said that its devices’ parts, tools, and manuals—which were previously only officially available in-store and at other approved vendors—will soon be available to all, starting with the iPhones 12 and 13.
Looks like these days, its all about empowering the common man.
See you on Monday morning. 💚
☕ The Crew@Ginger Chai