TechTalk: Measurabl’s Game-Changing ESG Platform for Sustainable Real Estate

Matt Ellis: 

Thanks, Janina. Great to be with you. 

Janina Teoxon: 

Right. The accolades that you and your company have received speak volumes. Energy Star Partner of the Year for the sixth consecutive year, Matt, your personal recognition in the Commercial Observer's Proptech Power 100 list, as well as San Diego Journal's Topmost Influential People. Now, that's amazing. Congratulations. 

Matt Ellis: 

Thank you. 

Janina Teoxon: 

All right, and to kick off for our conversation, can you introduce yourself, and give our listeners a brief overview of what Measurabl does, and the core mission driving your business? 

Matt Ellis: 

Sure, Janina. And by the way, going back to those first accomplishments, those are personal accomplishments, but I think the most important one is the impact that our business has had on sustainability performance and real estate. That is what we are here to drive, is the transformation to sustainable real estate using technology. I think we’ve made great progress. Still plenty to go on that point though. In terms of myself and the company, my background is in the real estate business. I started my career with a company called CBRE, which is the world's largest real estate services company. And I did traditional real estate, brokerage. But I always had a very personal interest in sustainability. And I never thought that that could be part of my professional life. But then one day I was out doing the brokerage business and I ran into this decal on a building that I had walked up to and it said, "Energy Star Certified". I was very curious, well, what does that mean? And it led me to this idea of green building, which back in 2008, 2009 was just starting to come into vogue. And I thought, wow, sustainability is part of the real estate business, can be part of the real estate business, and maybe I could be an advocate for that. And that's exactly what, and fortunately, I've been able to enjoy with Measurabl, which is a technology company focused on this idea that better business and better real estate is also sustainable real estate, and that we could prove that using data. So that's what we focus on. We're a firm that serves now 3 trillion in real estate asset value across a hundred different countries globally with our technologies, that help real estate organizations measure, manage, report, and oftenly act on, matters of sustainability. 

Janina Teoxon: 

Well, it's clear that Measurabl's mission is making a profound impact, not just in real estate, but in the sustainability as a whole. And I know that with every bold mission comes big challenges. So I'm curious, Matt, what specific challenges in the sustainability and real estate sectors is Measurabl addressing? And why are those issues so critical today? 

Matt Ellis: 

Sure. There's really two answers, and I think they're reflective of the distance we traveled over time here. So you understand first, that I've been in the real estate business now we're 15 years, and over a decade of those with Measurabl. When I started the company, there was tremendous skepticism, that sustainability, so-called ESG, were material, relevant at all even, to the real estate business. That skepticism was our initial challenge as a company, to say, "No, on the contrary, it's deeply material. Your carbon intensity, your physical climate risk exposure by things like flood, wildfire, hurricane and other climate hazards, your regulatory exposure, these things matter to bottom line and NOI in real estate." Now that's the discussion we were having, say 10 years ago. That is not the discussion today. That is the consensus of institutional investors and owners of real estate around the world, is that, yes, in fact sustainability is material, it is a path to a better business and more profitable business. Today, I think what we're going through is a revolution on how to actually measure that. And isn't that appropriate? Our company is called Measurabl for that exact reason. We came out and said, "These things don't have to be subjective. They can be objective." We can get to actual data, no different than you might look at an income statement and audit it, we could look at sustainability KPIs and audit those, and have confidence that those are true statements about sustainability performance. And that's where we're at today, is what are those KPIs? Have we defined them correctly? How do you exactly measure them and present them? And how do you do that reliably and repeatedly, so I can compare one building to another building, or one real estate organization to another real estate organization? That's where we're at today, and I'm confident that we will get through that next hurdle, also, again, using data, using technology, and getting to be objective about sustainability. 

Janina Teoxon: 

Wow, those are critical issues. And especially with the growing importance of ESG metrics, just like what you said in today's world. And I love that Measurabl is using technology to address these critical issues. So Matt, let's talk about the technology that you're using. Can you delve into the unique aspects of your platform? How does it enhance the efficiency and effectiveness of sustainability reporting and management? 

Matt Ellis: 

Of course. So there's several things that are unique about Measurabl from a pure technology perspective. One is our overarching technology and product vision, which is to be an end-to-end platform for the real estate industry. What do I mean by that? Most of our competitors or folks who work in this space think that the issues of sustainability affect the building owner, and occupier, and the day-to-day operations of that building. That is only partly true. The reason we go farther at Measurabl to address other issues, like appraisal, like lending, like stock indices, is because we understand real estate to be both equity and debt. It is the day-to-day standing building, its materials, its operations, but it is also the fact that that building will bought, sold, refinanced, reappraised. It'll go into some portfolio of real estate, which will then have derivatives attached to it from the loans that are made to those buildings and so on. You can't get transformation to sustainable real estate unless you support that entire real estate experience. And that's what Measurabl does, because we are a platform. So that's probably the second key distinction, is when you come to Measurabl, you'll see an end-to-end technology experience, and you'll see that what we've done is put that on a platform so it's modular. In other words, you can use and consume one product, say to acquire utility data, another product to quality assure, another product to report that data and customize those analytics, and yet another product to identify decarbonization measures you can take in your buildings. But you don't have to purchase all of those at once. You can take them as you need them on your journey to being more sustainable. So that's another very important distinction. I think the third, and final, and most prominent distinction at Measurabl is we are by far the market leader in sustainability and real estate because of the data. I mentioned earlier, 3 trillion in real estate assets across a hundred countries. That's office buildings, it's industrial buildings, it's hotels, every manner of box that you can think of, apartment buildings and so on, are in our database. And we've measured these assets for over a decade. So we have the largest and most granular data set on sustainability performance. That allows us to do things like peer benchmarking, P-E-E-R. Peer benchmarking allows us to provide the most accurate and predictions, and these are huge advantages for our customers, to take their data, put it in context, and apply it to real actions. If you don't have that same depth and breadth of data, it's very difficult to give the most accurate benchmark or the most accurate recommendation on how to approve a building where we can. 

Janina Teoxon: 

That's fascinating. Great words there. And it's incredible how the technology or platform that you have, not only streamlines operations, but it also sets the standards for practices in real estate. And with innovations like this, Matt, you're shaping the future of the industry. And we know that the future also depends on how businesses like yours adapt to broader challenges. With the political climate evolving, what do you see as the future outlook for Measurabl and other startups in the sustainability space? How do you plan to navigate those changes? 

Matt Ellis: 

The most important thing we should all take away from the change in the US temperament around sustainability is that we must make sure to focus on material business performance. So we cannot, at this juncture, in our evolution towards sustainable real estate, be talking about subjectives anymore, or aspirations. We need to be talking about carbon intensity, physical climate risk. I need numerics on that. I need to talk about NOI, net operating income. I need to talk about asset value. And I talk about the specific degree to which sustainability performance advantages or disadvantages those particular economics. That is the best way forward for our industry, is to stick to the business of real estate, show how sustainability improves that business. So the politics can be politics, and they can be noisy, and we can go and we can talk about whether DEI is right or wrong, whether it should be or should not be in business. But what you're not going to debate is if you have a carbon intensity that's higher than permitted by New York local Law 97, and that encumbers that asset, and introduces fines and penalties that reduce the profitability of that building, that's a fact. I can measure that and I can hopefully, ideally, help you prevent those types of negative occurrences. That's a profitable and good way forward. So when you look at the politics, please, please, please keep your eye on the numbers, and the business value creation, and measure that objectively. Second comment, I suppose, Janina, is for your listeners who operate, deploy capital globally, it matters where you are. It matters if you're in Canada or US. And by the way, which state in the US, and by way, which jurisdiction locally in the US. The different policies and expectations really do change. Go overseas to Europe, again, different story by country. So be nuanced in your view of this. Look at the local regulations and look at the capital flows in your markets to decide where and how to invest, what to measure, what to manage. But what we do know is, it's not viable to not do it at all. 

Janina Teoxon: 

Great perspective that you have there. I like what you said, look at the numbers, because I'm an accountant, so I look at numbers all the time. So that's great value creation, you said that. Now, let's take a step back and look at the moment that brought you to where you are today. As the founder of a Series D company, there's undoubtedly been several moments that have shaped your strategy and operations continuing to drive your company to new heights. Reflecting on your journey, was there a particular event or breakthrough that significantly influenced Measurabl's direction and success? And how did it impact your strategy or operations? 

Matt Ellis: 

Oh, there's so many of them. Were so many of them. I can think of individual key marquee deals, customers that we secured, that may be at that junction or business were the difference between life and death. I certainly can recall some really prominent product innovations, like when we first created our first utility automation, utility data capture tools, to convert utility data into carbon statistics. And then to do that down in a very granular level in buildings at the time, spaces, and tenancy, and so forth, at the time, that was pretty novel territory to get into. I can think of more macro trends. For example, there's a big movement from where this sustainability exercise began, which has allowed a lot of voluntary reporting, to a whole sea change towards regulatory reporting and disclosure and audits of that. So again, as an accountant, you'd be very familiar with this, to this notion of investment grade sustainability and data. I think we saw around that corner. And Measurabl is very smart to focus on the data itself. These are different milestones in the business product or macro that really shaped us. But I can't say that there's any one in particular that was the one. And honestly, it's a series of them. We continue to have them to this day. I talked just a few minutes ago about the imperative of data quality, getting to consensus on the measures and the format of the sustainability KPI, so they can go into our economic models, our gap accounting, and our regulatory reports, and it's apples, to apples, to apples everywhere we go. I think that's another big change in the industry, and I think we're right on the cusp of that as a business as well. 

Janina Teoxon: 

So those defining moments really shaped, not only a business, but the entire industry. And it's inspiring to see how that’s driven Measurabl's growth. Now Matt, let's turn to those who might be just starting out on their journeys. As a seasoned and successful entrepreneur, what advice do you have for entrepreneurs who are just starting out? 

Matt Ellis: 

Yeah, one of my mentors, a guy named Ray Wirta, and Ray was one of the most illustrious figures in all of real estate. Ray was, among other things, the CEO of CBRE, world's largest real estate services company. Ray went on to be the President of the Irvine Company, one of the most prominent private owners of real estate out there in the world. And I'm probably going to miss a voracious angel investor in prop tech, and many, many other accomplishments. I am going to fail. And I remember Ray saying, "What I'm reticent to do is give you advice, but what I can talk about is my own experience, and my personal walk, and things that you're going through." And I always thought that that was a really nice way of saying, "I'll tell you what I have done and how I have thought about it. It is for you to conclude, in your experience, in your personal journey whether that fits right, wrong, and how you'll go forward." So I'm reticent to give advice. What I can share with you then is what I have gone through. And I've gone through everything from skepticism, as we discussed, that this issue even exists, let alone worth solving. I've gone through skepticism that technology was the way to solve that. Today, it is still common that you use consultants and Excel files to measure and administer sustainability. I think technology is finally catching on in a real way, and I think people are coming around to that. I think that there has been, in the venture community, we raised almost 200 million in venture capital. There was the whole Clean Tech 1.0 and a lot of investors got burned. And so there was a lot of skepticism that this was a good venture backable business. And I think that Measurabl has done a great job of proving that, yes, in fact it is. And that's given some air cover, I think, to our successors and innovators who have also gone out to raise venture capital and build ideas around sustainability, clean technology, and so on. So hopefully these are some good examples of what advice would I give. Believe in yourself, be persistent, test and iterate relentlessly. So don't build the perfect thing and release it. Go to your customers or prospective customers with the idea and the vision. Get validation and then build it. So work backwards, I guess, is maybe one important one. And make sure to continue to declare vision. What's so important to me and to our company is this vision of sustainable real estate. Better, capital B, or all, capital A. Those who participate as business investors and operators, and those who are just wandering around through their communities and enjoying the benefits of healthier, cleaner environment, for example. You got to keep the vision and you got to keep returning to that vision. 

Janina Teoxon: 

Right. Those are valuable insights. I heard, believe in yourself. That's great. I'll take that. And also, have a great vision. So advice like that can really for sure resonate with entrepreneurs navigating their own challenges. Finally, before we wrap up, I'd love to hear what's next on the horizon for Measurabl. What milestones or goals are you excited about in the near future? 

Matt Ellis: 

Last year, 2024, we launched what we call our next-gen platform. This was very significant. It included a number of product innovations, and perhaps most importantly, below the surface and below the waterline was the launch of our quantum cloud. And this is the largest repository of aggregated ESG data and real estate, full stop. Now we're seeing, with the rise of AI, the ability to leverage data in stunning and new ways. I'm excited for Measurabl to go beyond software and drive to the data. We talked about data quality, but once we have quality data, can we apply that in ways that change the business model in real estate? I think the answer is yes, and I'll give you one example. Last year we partnered with the London Stock Exchange Group and FTSE Russell to deliver our data in support of a new version of the FTSE Upper Net Rate Developed Index. It's basically a public real estate index. And now they could have a green version of that based on high-quality investment-grade sustainability data. The business model and the incentives can change now. Investors can allocate capital, not just to traditional real estate, to traditional index products, but they can seek out performance and lower risk through sustainable real estate, thanks to data. I think there's many of these opportunities out there on the horizon for us. And so I foresee Measurabl being, in the future, much more about data than software at all. And that using that data to change the business model and change the incentives in real estate, again, to get us to sustainable real estate. 

Janina Teoxon: 

That's fantastic. I can't wait to see what's ahead for Measurabl. And thank you so much for joining me today, Matt. It was an incredible conversation, learning about Measurabl, and all the work you're doing to drive sustainability in real estate. 

Matt Ellis: 

It's my pleasure. Really happy to be talking with you about it. 

Janina Teoxon: 

And thanks to our listeners for tuning into TechTalk, the entrepreneurs and innovators who turn to EisnerAmper for audit, tax, advisory, and outsourcing solutions to help propel their business forward. Again, subscribe to the EisnerAmper podcast to listen to more TechTalk episodes, or visit www.eisneramper.com for more tech news you can use. 

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