How LEX Aims to Revolutionize Real Estate Securities Trading with Nasdaq Marketplace Services Platform
LEX, the commercial real estate securities marketplace, announced that it has selected Nasdaq to power its first trading platform, which will allow accredited and unaccredited investors to invest in individual properties. By leveraging the cloud matching service via the Nasdaq Marketplace Services Platform, LEX will be able to unlock previously unavailable matching opportunities between property owners, retail and institutional investors at speed and scale.
We spoke with LEX Chief Executive Officer Drew Sterrett to discuss how this partnership advances the company’s efforts to revolutionize real estate securities trading.
How long have you been working on a trading platform for real estate securities?
We started LEX in 2017 with the goal of making real estate investing available to everyone. Investors can buy and sell shares of individual commercial properties, giving them the flexibility to create customized and diversified real estate portfolios. The LEX marketplace will allow property owners to easily unlock equity while retaining operational control of their properties.
What opportunities will the platform provide to investors?
LEX aims to democratize the commercial real estate asset class and redefine real estate investing. We enable retail and institutional investors to directly invest in individual commercial real estate properties via securities qualified by the SEC under Regulation A, enabling trading by non-accredited retail investors. The shares offered are publicly-traded partnership interests, allowing the full tax benefits of direct real estate ownership to pass through to investors. So, retail investors will be able to invest in commercial real estate assets for as little as $100.
Is this a unique time to invest in real estate? What trends have emerged recently?
Historically, real estate has been limited to high net worth or institutional investors. We’re finally seeing that begin to change, following in the footsteps of other alternative asset classes that are opening to retail investors. We expect this trend to expand over the next three to five years. Additionally, the real estate market is at a crossroads, with the effects of COVID beginning to thaw in the market. While there are still some sectors that present potential risk, we’re seeing a lot of opportunities in all asset categories, including current market favorites, such as data centers, infrastructure, warehouses, and distribution centers.
How does the trading platform advance your business strategy?
By harnessing the power of Nasdaq’s multi-asset trading capabilities and experience scaling global markets, we can scale with the sophistication of a global market. This helps us achieve our mission of opening access to the asset class. Real estate has historically traded hands over the course of years. Nasdaq is providing us with the technology to make it happen in under a second.
Why did you select the cloud-based matching service via the Nasdaq Marketplace Services Platform?
Nasdaq’s market technology powers over 120 market infrastructure operators in more than 50 countries around the world. With road-tested technology in place, LEX will unlock previously unavailable financial market opportunities between property owners and retail and institutional investors at speed and scale. We’re able to demonstrate integrity and trust through transparent price formation mechanisms and inspire confidence for participants and investors. The platform aligns with our vision of making real estate widely available to a broad user base.
What opportunities does the cloud specifically enable?
Building our infrastructure on the cloud gives us a great deal of flexibility as we scale the platform and allows us to be nimble as we add features and offerings. LEX will leverage the cloud matching service via the Nasdaq Marketplace Services Platform to provide the same robust, low latency and high-performance trading features used by more than 70 global markets.
What is your long-term objective with the trading platform?
Our goal is to establish the technological foundation for the world’s most powerful commercial real estate and become the leading venue for trading commercial real estate securities.
Learn more about the Nasdaq Marketplace Services Platform.