What are Vertical Technologies (VTs), and how do they differ from General-Purpose Technologies (GPTs)? Despite a well-established literature, emerging digital technologies and new vertical markets require reconsidering this question with more explicit theorization and categorization. We define VTs as industry-originated technologies and tailored GPTs, comprising hardware, software, and integrated systems designed to address the unique demands and processes of a vertical industry. We introduce a typology of GPTs and VTs and explore their relationships, with a focus on understanding technology and context. We apply this framework to Property Technology (PropTech), a concept similar to FinTech but focused on real estate, and define PropTech as both a concept and a distinct phenomenon. These clarifications support more precise identification of technologies and markets, enhancing decision-making—a common challenge for practitioners and academics working with technology and industry classifications.

The adoption of Property Technology (PropTech) is widely recognized as a driver of efficiency and sustainability in Real estate (RE). Yet digital transformation strategies often remain generic and fail to account for the mechanisms that shape how value is created, delivered, and captured in commercial real estate (CRE). 

This study examines how CRE sector logics influence technology adoption and why operational gains frequently fail to translate into asset-level value. A business model framework is combined with a path dependency lens to develop a conceptual value matrix. Mixed methods are employed, including interviews with stakeholders across CRE and PropTech, as well as descriptive analysis of technology adoption patterns, to identify mechanisms and barriers to value realization. 

The analysis shows a persistent compatibility gap: PropTech generates organizational-embedded value in processes, teams, data, and contracts, while valuation practices prioritize asset-embedded, transferable, and enduring improvements. This misalignment produces business model incompatibilities, under-recognition of digital benefits, and constrained growth opportunities for suppliers. To address this issue, the study develops a conceptual matrix that categorizes assets along dimensions of embeddedness and transferability, clarifying when and for whom value is captured. 

The contribution lies in advancing understanding of how business models in traditional sectors can be reframed to integrate technology-derived value more effectively. Limitations include reliance on a limited number of interviews and a single sectoral context, which may restrict generalizability. Implications for policy and practice emphasize the need to align valuation methods with digital value, strengthen procurement competence, and adapt financing structures to fully realize PropTech’s potential in CRE.