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Proptech firm Entrata establishes Canadian presence | RENX – Real Estate News EXchange



IMAGE: Shannon Hylton, regional vice-president of sales for Canada, at Entrata. (Courtesy Entrata)

Shannon Hylton, regional vice-president of sales for Canada, at Entrata. (Courtesy Entrata)

Entrata’s only Canadian employee joined the firm less than three months ago, but the Utah-based property management software provider has big international growth plans.


Entrata was born in 2003 after its founders won a business plan competition at Brigham Young University for a cloud-based property management system.

“However, when going to market, we found there were some niches that were not being addressed,” president and chief operating officer Chase Harrington told RENX. “The main one was the ability to pay your rent online and log in to fill out applications, connect with the community and those types of things.

“So the business really pivoted and, as we went to market, that was our focus. We became the largest payment portal provider for real estate in the United States.”

The business has grown to the point where it now processes more than $20 billion (all figures in U.S. dollars) annually in rent payments, primarily for the multifamily asset class.

Expansion of original services

Entrata also returned to its original business plan of providing a property management system and a comprehensive platform for all real estate operations in 2010. Its single-log-in, open-access platform serves more than 20,000 apartment communities across the United States.

The application offers more than 50 products on one global cloud-based platform so it can provide a wide variety of online tools, including websites, mobile apps, payments, lease signing, accounting, utility management, insurance and resident management.

Entrata claims to be the fastest-growing software company in real estate with more than $200 million in annual recurring revenue and more than 2,100 employees. There are plans to add hundreds of employees in 2021 alone.

Entrata announced on July 7 that it had raised $507 million from a variety of investors in its first institutional round of capital raised since the company was founded.

The infusion will allow the company to more than double its research and development spending in the coming years, expand internationally, invest in personnel, and improve efficiencies in the client experience.

Entrata has moved into Canada, Mexico, Ireland, the United Kingdom, France, Spain and China, and is working on expanding into Chile, Brazil, Australia and Japan. It has an office in the Netherlands as its European headquarters and a development office in India.

Entrata’s Canadian expansion

Shannon Hylton joined Entrata as regional vice-president of sales for Canada at the beginning of June after previously serving in property management roles for BentallGreenOak, but Harrington said the company has been working on Canadian expansion for about a year.

“We wanted to focus on making sure, first and foremost, that we understood the operations and needs of the Canadian market as well as doing some localization of the system, including being able to offer it in French and English.”

Yardi is the dominant provider of similar services in Canada and Harrington believes the market is ready for a viable alternative.

Hylton told RENX she’s at the prospecting and reaching out stage now and can’t name any Canadian clients aside from student housing provider Varsity Communities.

“I’ll be driving connections in Canada and hoping to bring some Canadian companies to the platform,” said Hylton. “I’ll be spreading the word and bringing a lot of awareness to Entrata and what it has to offer, and hopefully bring as much success in Canada as it has had in the U.S. and other countries.”

Entrata has a small office in Toronto, but Hylton is primarily working from home at this point and will travel around Canada when needed. The plan is to establish a presence in Toronto, increase market share, then add more people and offices in Canada.

“The Canadian real estate industry is going to be hearing a lot and seeing Entrata’s name over the next couple of months,” said Hylton.

Entrata’s future growth

Entrata can service multifamily, student and seniors housing and commercial buildings, and has some capabilities to work with short-term rentals within the multifamily sector.

It’s primarily serving office and retail users as part of mixed-use buildings with a multifamily component, but Harrington said the company is increasing its presence in office- and retail-only buildings.

Harrington said he’s been thrilled with the focus on proptech and the increased adoption of technology in the real estate industry over the past few years. He believes Entrata is a leader in the space.

“We’re coming out and releasing new products and new services for the industry within the proptech realm all the time. We’re finally seeing an advancement in an industry that has historically not adopted new technology relatively quickly. We’re starting to see that change and that’s exciting.”

Entrata is focused on increasing the use of artificial intelligence and robotic automation in its platform, according to Harrington, who believes it will help users make better business decisions.

EDITOR’S NOTE: This article was edited after publishing to update the number of products which are offered within the platform – the correct figure is “more than 50” as per updated information supplied by Entrata.

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Elon Musk Warns Homeowners About the Value of Their Homes – TheStreet



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Elon Musk Warns Homeowners About the Value of Their Homes  TheStreet


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Elon Musk says home prices will tumble ‘next’—Redfin’s CEO disagrees – Fortune



There’s no doubt about it: Things aren’t looking so great for commercial real estate, especially for office space.

Look no further than a revised forecast issued earlier this month by a group of researchers from New York University and Columbia University, which predicts that office values in New York City alone will plummet a staggering 44% by 2029. That’s much steeper than the group’s prior prediction—issued a year ago—for NYC office values to fall 28% by 2029.

The stickiness of remote work, coupled with interest rates spiking just as many commercial real estate loans come due, is the underlying source of the commercial real estate bearishness. However, at least in the eyes of Tesla CEO Elon Musk, property declines will soon spread beyond commercial real estate.


On Monday, Musk insinuated that pain awaits the residential housing market when he tweeted that “Commercial real estate is melting down fast. Home values next.”

Musk didn’t say how much he thinks U.S. home prices will fall—nor did he explain why. He also got some pushback.

On Tuesday, Redfin CEO Glenn Kelman shot back at Musk, tweeting, “But the loss in demand for commercial real estate is what’s driving demand for residential real estate. People who work from home need more space at home. Sales volume is down because inventory is down. Today, home prices increased for a second straight month.”

The idea that remote work has boosted home prices during the pandemic is supported by research published last year by researchers at the Federal Reserve Bank of San Francisco. The San Francisco Fed paper argues that upwards of 50% of Pandemic Housing Boom gains through November 2021 can be attributed to an elevated demand for “space” created by the pandemic’s remote work shift.

“Our results suggest that rising house prices over the pandemic reflected a change in fundamentals rather than a speculative bubble. This implies that the evolution of remote work may be an important determinant of future housing costs and inflation,” wrote the team of San Francisco Fed researchers.

So who is right, Kelman or Musk? The industry is fairly divided.

While national home prices have fallen a bit—down 2.2% from June 2022 according to the seasonally adjusted Case-Shiller National Home Price Index—they aren’t crashing broadly. Some markets like San Francisco (down 12.9% from its 2022 peak), Phoenix (down 8.4%), and Las Vegas (down 9.0%) have fallen sharply. However, many places in the Midwest, like Chicago, and along the East Coast, like Miami, are still near all-time highs.

Economists at firms like Zillow and CoreLogic argue that national home prices have bottomed, while firms like Moody’s Analytics and Fannie Mae think that national home prices—which rose on a month-over-month basis in February and March according to Case-Shiller—will soon flip back into correction.

Want more housing data? Follow me on Twitter at @NewsLambert.

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Why Elon Musk sees house prices, commercial real estate values falling – Markets Insider



  • Elon Musk warned this week that commercial real estate is in meltdown and house prices will slump.
  • The Tesla chief blamed the Fed’s interest-rate rises for putting pressure on property values.
  • Musk has explained that higher rates mean bigger mortgage costs, making homes less affordable.

Elon Musk sounded the alarm on US house prices and commercial-property values this week. The billionaire’s warning reflects his fear that the Federal Reserve is strangling the economy and threatening to cause a needless recession.

“Commercial real estate is melting down fast,” the Tesla, SpaceX, and Twitter CEO tweeted on Monday. “Home values next.”

Interest rates and real estate

The root of Musk’s concerns is the Fed. In response to historic inflation, the US central bank has raised interest rates from virtually zero to upwards of 5% since last Spring.

Higher interest rates encourage saving over spending and make borrowing more costly, meaning they’re often bad news for asset prices and economic growth. They tend to pull down real estate prices because they raise mortgage payments and financing costs, leaving less money to buy homes with, or invest in offices and restaurants.

Steeper rates also erode the relative appeal of real estate to investors because they boost the yields from bonds and savings accounts.

Moreover, after mass withdrawals of customer deposits caused major problems at several banks this year, smaller lenders are pulling back in fear of further bank runs, raising the prospect of a credit crunch. They may also be more wary of lending given the prospect of a recession, pressure on their asset portfolios, and the increased risk of loan defaults when rates are higher.

The shift to remote working since the pandemic also poses a threat to commercial real estate values. Fewer commuters depresses occupancy levels in office buildings, and also affects traffic for commercial sites such as shopping malls and entertainment venues, making them less profitable bets for investors.

A painful mix of downward pressure on asset prices, higher borrowing costs, and tighter lending by regional banks is especially bad news for the commercial real estate industry, which is heavily reliant on debt financing from smaller lenders.

Musk’s worries

The Tesla chief has been making dire predictions about real estate for several months now.

“We really haven’t seen the commercial real estate shoe drop,” Musk said on Fox News’ “Tucker Carlson Tonight” in April. “That’s more like an anvil, not a shoe.”

The billionaire argued the damage to real estate portfolios has been minor, but would become a serious problem in the coming months as customers cancel their leases, decline to renew them – or go bankrupt.

Moreover, he said that house prices were likely to decline as some Americans couldn’t afford to pay as much for homes due to higher mortgage costs.

Musk has also weighed in on the vast amount of real estate debt expiring over the next five years, and homeowners facing a sharp rise in monthly payments once their fixed-rate mortgages end.

“This is by far the most serious looming issue,” he tweeted in March. “Mortgages too.”

The Tesla CEO zeroed in on the housing market’s challenges, and what they could mean for banks, earlier this month.

“The massive jump in monthly payments for a 30-year mortgage, due to high interest rates, obviously greatly reduces home affordability,” Musk tweeted. “Mortgage portfolios are at risk if housing prices drop significantly.”

It’s worth emphasizing that Musk stands to gain if real estate prices tank and the Fed cuts rates in response.

He’s complained that higher rates effectively raise the price of Tesla vehicles, as they translate into larger monthly car-loan payments for consumers. As a result, Tesla has to cut its prices just to maintain demand, he said.

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