Manatt Real Estate Partner Ted Hunter, Counsel Linda Rangel and incoming 2023 Associate Jimmy Yuen authored an article for VentureBeat about what the metaverse can learn from the traditional real estate industry in order to unlock its potential as a viable asset class and investment opportunity.
In light of recent market uncertainty, the authors identified opportunities for how web developers can innovate these virtual platforms and align them more with traditional real estate properties, which in turn may help them tap into the billions of dollars that are invested annually by real estate investors. Some of these areas include capitalizing on traditional real estate concepts such as land scarcity, zoning and land use standards, and the value of landmarks and common areas.
“Now that the metaverse has captured the imagination of a large variety of early users and speculators, web designers building out version 2.0 of their platforms would be well served to shift their focus to analyzing what has made investors invest trillions of dollars in actual real estate,” the authors wrote. “By making virtual land platforms a little more like real estate in the real world, metaverse platform developers could not only make their product better, but they can also unlock the investment potential of the real estate investment community.”
Read the full VentureBeat article here.