Did you know? 6/6

This post is part of a 'Did You Know?' series inspired by my book, 'Real Estate Capital Markets,' where I explore the four-quadrant framework, structures, trends, and opportunities shaping the U.S. real estate capital markets. In addition, I serve on the board of Agree Realty Corporation (a retail net lease REIT), teach real estate capital markets at NYU and Columbia, and consult on rating processes, expert witness work, and REIT structuring.

Did You Know?

Real estate capital markets evolve not only through cycles of boom and bust, but also through the instruments of change that reshape capital flows. Some of the most significant include:

· Crowdfunding: Once dominated by mutual funds and insurance companies, REIT ownership has expanded to online platforms and ETFs. Crowdfunding has democratized access, allowing everyday investors to participate in real estate, but they must be wary of these alternative platforms by completing due diligence regarding the underlying ownership.

· EB-5: This immigration-linked investment program channels billions into U.S. real estate by offering green cards to foreign investors who meet strict job-creation and capital requirements. While controversial, it has been a meaningful source of funding for development projects. The EB-5 program was reauthorized by Congress until September 30, 2027.

· PropTech (Property Technology): Is transforming real estate ownership. It refers to the application of technology to streamline and improve all aspects of the real estate industry, including property sales and managing buildings with efficient workspaces. PropTech platforms drive efficiencies in leasing, valuation, construction, and beyond. The US has over 2,000 PropTech companies (nearly 60% of the global market), mostly focused on the residential sector and projected to surpass $32 billion by 2030. — Momentum increased in 2H24 and is rebounding in 2025.

Open-Source Technology: With software costs and inefficiencies mounting, real estate firms are increasingly adopting open-source and third-party tools. These platforms save time, reduce expenses, and enhance flexibility in everything from accounting to asset management.

Each of these instruments has opened new pathways for capital, broadened access, and introduced efficiencies that were unimaginable just a few decades ago.

In Real Estate Capital Markets, we examine how these innovations are reshaping the landscape of real estate finance and what they mean for investors, lenders, and developers navigating the next decade.

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