HqO Lands $50M Series D Amidst Rocky Time In Commercial Real Estate

It’s been a bumpy time for commercial real estate as remote and hybrid work — not to mention layoffs — has reduced the office space needed for many companies.

Workplace startup HqO locked up a $50 million Series D led by Koch Industries subsidiary Koch Real Estate Investments to help landlords and building operators retain some of that occupancy.

The Boston-based company has created what it calls the Real Estate Experience Platform that lets owners and managers gauge and understand how their tenants use their facilities. The tools allow building managers to measure tenant preferences and satisfaction with an eye toward better retention and efficiency concerning operating costs.

“HqO is here to reimagine the status quo and lead the charge toward a more connected, efficient, and user-centric real estate experience,” said co-founder and CEO Chase Garbarino in a release. “We’re doubling down on our commitment to connect real estate to the people and help create spaces that truly serve the evolving needs of those who use them.”

The platform has already connected over 350,000 users across 700 properties in more than 32 countries, according to HqO.

The new capital brings the company’s total funding to more than $200 million. Accomplice, Insight Partners and Related also participated in the recent round.

Real estate funding dips

Like almost all sectors, real estate tech funding has been down this year when compared to the past couple, per Crunchbase data. In 2021, VC-backed real estate startups saw a massive $7.1 billion worth of venture funding. That number fell to $4.6 billion last year.

Thus far this year, such startups have only seen $1.6 billion in funding.

Real estate tech is likely facing more headwinds than many other sectors, as commercial real estate navigates through a post-pandemic world. This year’s numbers may represent the new normal for the industry.