A popular software firm for commercial real estate ESG (environmental, social, governance) data management, Measurabl, has ended a Series B funding round with $18.7 million. The series was led by returning investor Sway Ventures, along with other repeat investors including Salesforce Ventures and real estate technology specialist Camber Creek, who had led the firm's Series A round. Building Ventures, Concrete Ventures, Impact Engine, and DivcoWest also participated. Leading provider of transparent and independent ratings, benchmarks, analytics, and data for the capital and commodity markets, S&P Global was among the major investors, along with Constellation Technology Ventures, and the venture investing arm of Exelon Corporation.
Measurabl is used by over 30,000 commercial buildings, across 7 billion square feet, in 70 counties. Measurabl covers approximately 7% of commercial floorspace in the United States, alone. The appeal is the company's unique, innovative real estate database that utilizes everything from traditional office space and industrial buildings, to major sporting arenas, educational facilities, government spaces, and data and retail centers.
“We’re heading towards a convergence where ESG indicators are held in comparable esteem to traditional financial metrics,” says Matt Ellis, Measurabl’s Founder and CEO. “As this new market reality takes hold, every real estate transaction - from investment to lending, appraisal to insurance, leasing to CapEx - will require easy access to accurate ESG indicators. Measurabl is building the digital infrastructure to enable this market transformation.”
“The market has grown considerably in its ability to integrate ESG into its decision-making and investment processes,” said Martina Cheung, President of S&P Global Market Intelligence and lead for the company’s ESG product strategy. “Measurabl is an early mover in the CRE ESG data space with a proven track record and opportunity to further establish itself as a key source of data for businesses and asset managers. We look forward to further exploring opportunities with Measurabl in order to provide our clients with bolstered capabilities in measuring ESG considerations.”
Real estate owners now heavily rely on ESG to give them a competitive advantage. They use it to gain preferred access to capital markets, lending, and insurance products. A perfect example of this is one of the largest office REIT in the United States, Boston Properties, who has been using Measurabl since the beginning and has recently oversubscribed a $1 bullion green bond issuance.
“We have led on matters of sustainability for many years including certifying our properties under green standards like ENERGY STAR and LEED, investing in energy efficiency, and disclosing ESG performance through organizations like GRESB,” noted Michael LaBelle, CFO of Boston Properties. “These investments have translated into a high performing portfolio of real estate that is desirable to our clients and delivers superior shareholder value. Our recent green bond issuance is just another example of the importance that ESG holds for Boston Properties.”
When it comes to corporations who get most of their environmental impact from leased or owned real estate, they are discovering that ESG is a must-have for their brand, employee attraction, and retention programs on top of everything else.
Real estate relies on ESG more and more as the world's industries continue to pollute the Earth, these industries being responsible for nearly 71% of the United States electrical consumption, 39% of carbon emissions, 14% of potable water usage, and 40% of raw material usage. Measurable addresses this issue along with the fact that people spend 90% of their time indoors and the health and wellbeing implications that arise.
“Investing in Measurabl aligns with our commitment to continually develop solutions that empower our customers and communities to reduce their carbon footprint and save money,” said Jorge Acevedo, Senior Vice President, Generation Innovation & Strategy, at Constellation. “Through Measurabl’s innovative platform, we have the potential to better serve new and existing commercial and industrial customers by providing a seamless sustainability reporting platform and more customized energy products and services.”
“The evidence is clear. Investors, both institutional and individual, are embracing sustainable investing, not only because they care about our planet, but because they can earn high quality returns,” says Doug Hodge, former CEO of PIMCO, Venture Partner at Sway, and new Measurabl Board Member. “Measurabl is a special company. It is uniquely positioned with the vision and scale to have a positive, transformative impact on how capital is allocated to the real estate markets.”
Measurable plans to use the Series B funding for partnerships, customer service, product R&D, and expanding its platform into Asia, as well as additional growth in Europe and North America.
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