New Technology Promises to Change Your Capital Planning

Riggs Kubiak

Honest Buildings is promising to disrupt capital planning on construction projects with a new purpose-built technology platform specifically tailored to help owners better deploy capital and mitigate risk. The company recently completed its Series B funding, raising $30 million from a broad group of investors that included Brookfield Property Partners, Oxford Properties Group, The Durst Organization and DivcoWest Real Estate Investments. As part of the round, Ric Clark of Brookfield Property Partners, Michael Turner of Oxford Properties and Lisa Picard of Equity Office Properties, joined the firm’s board of directors. Honest Buildings says that the platform will help institutional real estate owners more efficiently deploy capital and produce better risk-adjusted returns.

“Today, there is $10 trillion in global construction spend per year—to put into perspective how big this market is, there has only been $6 trillion of gold mined, ever,” Riggs Kubiak, co-founder and CEO of Honest Buildings, tells GlobeSt.com. “This annual market spend in construction is projected by McKinsey to grow rapidly over the next 10-20 years. Because of the magnitude of this opportunity PWC reported that they expect institutional real estate investors assets under management to grow from $64 trillion today to over $100 trillion by 2020. The real estate owner’s job is tied up in how they deploy all this capital and the value they create out of their assets. While there are currently many important technology platforms for general contractors and/or architects, there is nothing purpose-built for the owners—the ones who take all the risk.”