Prologis

  • Increased objectivity for real estate property prices
  • One standard for the industry
  • From paper to digital ownership

Real estate market place

Do you remember all the information you had to collect in order to buy a house? Well, real estate asset managers suffer from the exact same problem on an industrial scale. They spend on average 40,000 euros on collecting information for every single transaction. With 12,500 real estate transactions a year this becomes a half a billion euros problem.

"Buildings can now run their own data management system"

The root causes of the problem are as follows: first, there is little transparency because information is scattered across multiple parties, stored in many different formats and systems. Collecting information becomes a very slow, tedious and costly process.  Secondly, transactions come at a high risk. Real estate assets are of high value, often worthy of tens of millions of euros. This value varies widely, so having the accurate  information is key. Yet, the validity of information is hard to assess.

So in the PoC for Prologis we created a marketplace platform based on distributed ledger technology, where all parties are provided with the same real-time information and where historical transactions are stored. Any party can assess the market, manage their own properties, look at properties that are for sale and request information. Once their counterparty has accepted a request, all the information is made available. Key info such as sector, square meters, tenants and units can now be accessed in real-time and are transferred once a transaction has taken place. Overall, this leads to higher transparency, less effort and lower risk.