CBRE gets Floored: Brokerage acquires real estate tech startup

Miami /
Jan.January 05, 2017 09:45 AM

CBRE acquired real estate tech startup Floored for an undisclosed price, in a deal that expands the real estate services behemoth’s technology division.

Founded in 2012, Floored produces virtual, 3D office floor plans for landlords and brokers. The firm’s co-founders David Eisenberg, Dustin Byrne and Judy He will join CBRE along with their 36 employees.

Eisenberg, who will become CBRE’s new senior vice president of digital enablement and technology, told The Real Deal that Floored will be CBRE’s “proprietary asset” and will no longer sell products to CBRE’s competitors.

The deal comes six months after CBRE hired Chandra Dhandapani from Capital One bank as chief digital & technology officer, with plans to double down on real estate technology.

“Space visualization is something all of us can relate to,” Dhandapani said, “and it makes it easier for our brokers to work with our clients.”

Dhandapani and Eisenberg declined to say how much CBRE paid for Floored, but Eisenberg claimed that “everybody was happy.” Floored had raised $7.36 million from investors including RRE Ventures, according to Crunchbase. But it hadn’t raised a significant round since December 2013. At the time, it was valued at $29.5 million, according to Pitchbook.

Eisenberg said joining CBRE means Floored will no longer have to hunt as aggressively for clients. Finding customers willing to pay for technology that is useful, but not necessarily crucial, for their business has been one of the biggest challenges facing Floored and many of its real estate tech peers.

“It struck me that a lot of challenges Floored had as a business could be solved by being part of CBRE,” he said, recalling the first time he seriously considered being absorbed by the brokerage.

The deal comes a month after real estate tech firms VTS and Hightower merged in what the firms said would create a $300 million company.  The recent deal activity seems to corroborate predictions that a real estate tech merger wave is around the corner.


Related Articles

arrow_forward_ios
Cognito's John Backus and 7960 Biscayne Point Circle (LinkedIn, Zillow)
Ex-nightclub mogul Francis Milon sells waterfront Miami Beach home for $13M
Ex-nightclub mogul Francis Milon sells waterfront Miami Beach home for $13M
6315 11th Ave Gulfport (iStock, Heckler Realty Group, Illustration by Shea Monahan for the Real Deal)
Tampa-area home billed as first in US to be sold as an NFT
Tampa-area home billed as first in US to be sold as an NFT
Lucy Guo and One Thousand Museum (1000Museum, LinkedIn)
Silicon Valley whiz kid buys One Thousand Museum condo for $7M
Silicon Valley whiz kid buys One Thousand Museum condo for $7M
From left: Brian Long and Liz Day in front of 6901 Granada Boulevard (Attentive, The Carroll Group, iStock)
Tech CEO, New York Times reporter buy waterfront Coral Gables mansion for $20M
Tech CEO, New York Times reporter buy waterfront Coral Gables mansion for $20M
Edward Lando with his new house (Getty)
Goody founder pays $15M for waterfront Venetian Islands home
Goody founder pays $15M for waterfront Venetian Islands home
Pacaso CEO Austin Allison and one of their Miami listings (Pacaso)
Second-home startup Pacaso expands into South Florida
Second-home startup Pacaso expands into South Florida
Lease roundup: Apparel company inks 142K sf lease in Miami Gardens & more
Lease roundup: Apparel company inks 142K sf lease in Miami Gardens & more
Lease roundup: Apparel company inks 142K sf lease in Miami Gardens & more
Clockwise: River Landing, Delray Commons and the PulteGroup office space
Lease roundup: Driveshack, GoPuff ink leases & more
Lease roundup: Driveshack, GoPuff ink leases & more
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...