With the office market facing continued uncertainty, VTS believes it’s found the solution.
After acquiring the office tracking startup Rise for a reported $100 million in March, then doubling down with the $200 million purchase of Lane Technologies last month, the proptech unicorn says it’s assembled the pieces to create a “super app” that will redefine the future of the office.
“We are the largest player in the world focused on solving this problem, which is probably the largest problem that our industry’s ever faced, which is getting people back in the office,” VTS CEO Nick Romito told The Real Deal’s Brand Studio during a recent interview.
Contrary to the headlines, “behind the scenes, [companies are] expanding office, they’re buying whole office buildings, they’re tripling down on their office space,” Lane founder Clinton Robinson said. “The reality is we’re all going back to the office. It’s just a matter of when it’s going to happen.”
VTS will integrate the Rise and Lane platforms with its own to create a seamlessly integrated, one-stop tenant experience platform.. Rise founder Prasan Kale said the merger would combine his firm’s back-of-house functionality with Lane’s expertise in engagement, perks, and flex space — which the team agreed would be a must-have for post-Covid offices.
The deals have VTS poised to create a nearly full-stack office platform, enabling everything from marketing and leasing office space to analyzing tenant needs and information to streamlining the renewal process. For the VTS team, a focus on renewals gives them an unusual edge.
“There’s this intense focus on the experience for the tenant, the occupier, right?” Romito said. “This is a renewal market. If I’m a great landlord and give you great service, you’re going to want to stay with me.” His team believes that improving tenant experience is the best way to not only ensure renewals but also to increase rents and improve margins for landlords.
Watch Brand Studio’s interview above for more on the acquisition and the future of the office experience.