Pet Amenities Print Money
Issue 26 - April 2nd, 2021
WOOF WOOF. Now that I have your attention, I want to share a personal view of mine which I think will become a much larger and even more important trend over the next decade: pet-focused amenities in real estate developments. Disclaimer: I do not own a pet currently, but I do love dogs. I have strong conviction that pets are becoming an increasingly more important piece of people’s plans when deciding where to live and work.
The amount of money humans spend on their animals is much more than most people realize, and the number is increasing year over year. Where does this lead me? The next phase of the pet market evolution will lead to pet owners making more personal (human) decisions based on pet amenities in close proximity to their home and office. I think savvy apartment developers, office developers, and master planned community developers would be wise to incorporate pet-friendly concepts into their properties even more so than they do today - the crappy looking dog run on the top floor of the apartment building won’t cut it in the next decade. Imagine how quickly an apartment would lease in a dense urban area if their were a doggy day care on the bottom floor in the building? Or an office building with a similar service? There is a concept in Austin called “Work and Woof” which is a co-working facility specifically for pet owners!
When moving on from your apartment life and looking to buy a home, would you choose a home development community with ample dog parks or outdoor space for dogs or even a pet grooming service available in the neighborhood over just a normal ol’ community?
“Come Checkout Woof Townhomes Today - Free Weekly Poop N Scoop Services as part of your HOA dues!”
The opportunities are fun to explore and the market is wide open for these bark-friendly options.
Here are some PET MARKET metrics:
Pet spending statistics reveal that the global pet industry is currently worth an estimated $200 billion per year. Of this, the US domestic market occupies roughly 47% of the share.
Of all types of pets, dogs remain the most popular among Americans, as per APPA pet statistics. Around 63.4 million US households own a pet dog compared to 42.7 million who own a cat.
Among the most profitable ventures is high-quality pet food, for which pet owners are willing to pay a premium. Pet treats and end-of-life services are also fields that generate significant revenues.
45% of American pet owners spend the same or more on the healthcare needs of their pets than they do on themselves.
The pet grooming industry is expected to reach $5.49 billion in value by 2025.
Over the past 10 years, the amount of money Americans spend on pets has more than doubled.
More than half of millennial pet owners buy their pets gifts at least once a month.
Newsworthy Links To Share
REX CEO, Jack Ryan, wants to get rid of REALTORS in the home buying and selling process. REX is an online residential real estate brokerage that directly markets homes to potential buyers without putting them on a multiple listing service. REX charges sellers 2% to list their property on its website, opposed to a typical 5%-6% for both the seller and buyer agents. "It's been 6% for 50 years," he said. "Despite the price coming down for services like taxi dispatches, travel agents, stock brokers — this one seems to magically levitate without any constraint by the law of physics." (Austin Business Journal)
Zigg Capital based in NYC announces new $225 fund dedicated to PropTech investments. This second fund that is more than twice the size of its previous fund, despite the challenges the sector has faced during the coronavirus pandemic. Zigg has previously invested in companies like Juniper Square, Avenue 8, Kasa, Spruce, Snapdocs, and VTS. (Wall Street Journal)
Compass has officially started trading on the NYSE with their IPO occurring yesterday. They slashed the price the day before trading and ended up selling less shares than previously planned as analysts and Wall Street investors question the company’s business model - are they a real estate brokerage with flashy branding or a technology company? David Trainer, a stock analyst, believes that Compass is “a traditional brokerage with flashy marketing, whose only advantage is an unlimited ability to burn cash”. Shares opened at $18 per share and ended the day around $20. (TechCrunch)
Online notary service, Notarize, is on a mission to make online home closings the “norm” and not the exception as we push out of the pandemic. They also plan to push into new industry verticals fresh off a massive $130 million Series D fundraise: “Notarize first made headlines back in 2017 when the company facilitated the first remote closing. But for CEO Pat Kinsel, Notarize's latest moves in the increasingly hot world of e-signatures set the company up beyond just real estate. He sees a real opportunity for the company to be the last-mile solution for legal infrastructure, sort of like what Stripe and Plaid have become for the financial services industry.” (Protocol)
The Mountain Chalet, the oldest owner-built lodge in Aspen, Colorado, has been sold to McGuire Moorman Hospitality out of Austin, TX that specializes in boutique hotels and high-end restaurants. The property will be renamed the Aspen Mountain Chalet and will undergo a full renovation, which will include at least two new restaurants. McGuire said he envisions a traditional alpine restaurant where the lodge’s breakfast room is currently located, and a bar on the fifth floor, which is now used for conference space and community events like memorials and celebrations. (Aspen Times)