Srihari Kumar

U-Haul's data on one way rentals is always informative when looking at migration patterns (below from 2023). This trend is a continuation of patterns seen during COVID - which enabled people to move and didn't require close proximity to their jobs (due to WFH). Few points to note for real estate + tech deployment: - The Carolinas has "4 seasons" weather wise - i.e warm summers and cold winters - a reason cited as why it it is a high, net recipient. One of the other factors noted was the lower risk of major weather events (c.f Florida). Climate events are now a material consideration for homeowners. - Prior datasets + investment hurdles, on clustered locations such as New York, are less relevant with material impact on vals - meaning significant overhauls, perhaps AI driven, to CapTrans models + data - Given infra projects take up to 7 years to complete (a proxy for 500miles of rail), we foresee a number of "white elephant" infra projects. A number of these projects were built with a CBD centre point - but these are less relevant now- impacting previous asset val assumptions. #Portfolios and assets are now fundamentally different. At The Proptech Connection, we help our clients with understanding how asset use will look across a ream of horizons and adopting the technology based on this. Reach out today to find out how we can help. Ivo van Breukelen Stuart Daun #Futurism #RealEstate

11

📈 AI Startup Sierra Expands HQ in San Francisco (4K to 41K SF) 🌁 Artificial intelligence firm Sierra is making a bold move by relocating to a larger office within San Francisco. The startup has signed a lease for a 41,104-square-foot space at 235 Second St., significantly upsizing from its current 4,000-square-foot office. 🏢 This move to San Francisco's South of Market neighborhood, where office vacancy rates have started to decline for the first time since 2020, is a positive sign for the city's hard-hit office market. The area's office vacancy rate, though still high at 28.8%, is slightly lower than six months ago. 📉 The deal contributes to the increase in leasing activity in San Francisco, which is up by about 1 million square feet compared to last year. This uptick is driven by the region's reputation as a leading national hub for AI companies. 💼 Sierra joins other AI firms expanding in the South of Market area, including Scale AI, which signed the city's largest office lease of 2024 with a 178,000-square-foot deal. So far this year, office tenants have signed leases totaling 750,000 square feet in South of Market, a significant increase from last year's 370,000 square feet. 🚀 Co-founded in 2023 by former Salesforce CEO Bret Taylor and former Google executive Clay Bavor, Sierra raised $85 million earlier this year to develop a customer support AI tool for businesses. The firm is set to relocate from its current space at 215 Second St. by next month. San Francisco's reputation as an AI hub, bolstered by its talent pool and six major AI research institutions, continues to attract companies. Recent significant deals include OpenAI’s sublease of over 400,000 square feet of Uber’s former headquarters and Anthropic’s takeover of Slack's former headquarters. These developments reflect a resilient and adaptive real estate market. As a commercial real estate professional, I’m excited to see how these trends shape the future of office space in our vibrant city.

22

I recently spoke to Sri from Rocketlane about the massive opportunity AI presents for the services industry. We also covered: Fast-Track Adoption of AI: AI is driving tech adoption at an unprecedented pace. Services companies must adapt quickly or risk being left behind. This rapid shift offers huge growth opportunities. Building a Winning Services Ecosystem: Leveraging AI to solve real business problems, not just following the hype. How Mindtree’s early adoption of digital tech set the stage for long-term success. The importance of positioning your company as a leader in AI services. The Future of AI Services: AI services could surpass the current $300B IT services market. Success will hinge on focus and strategic partnerships. Now is the time to prepare for the coming AI wave. If you’re building in AI services or planning to, this could be of use to you. Here’s a sneak peek into the episode. https://lnkd.in/esXXd3cy #AI Services # Mela Ventures #Category Creaters # Fearless Entrepreneurs

284

19 Comments

Thanks for sharing these insights. What I am seeing is that orgs test an idea using a proprietary #LLM like #OpenAI, then put it into production with an open source LLM using a development platform like #Llamaindex. That way, private data remains private.

1

We're launching the inaugural edition of Beyond Benchmarks, a deep dive into the metrics and trends observed across the early-stage enterprise cloud market. This is the first look at some of the business data around GenAI in SaaS. Some initial observations: 1) 60% of SaaS companies have already integrated GenAI into their offerings (60% of these as part of their current product and 40% as a new product), and an additional 20% are planning to do so this year. Almost half aren't monetizing these features. Those that are are primarily experimenting with both usage-based and flat fee pricing models. 2) Most companies are utilizing OpenAI as their primary LLM, but many are experimenting with multiple models - and we are noticing an early trend towards intelligently routing GenAI inference requests to different models based on cost, performance, and security. 3) Though we are in the initial innings of GenAI, we are seeing some positive signals - companies that implemented GenAI had 7% higher NDR than those that did not. Still early days, but we'll be doing this benchmarking report regularly to track and share how things progress in this new era. Link to report in comments.

104

6 Comments