SAN JOSE—To say that technology has blazed a path through the landscape during the last 15 years is a huge understatement. Each day brings more innovation and groundbreaking technology across many life spectrums. While the commercial real estate industry was slower to adapt than some industries, it is now embracing tech with both arms. In this exclusive, Mike Baumgardner, sales director at LevRose Commercial Real Estate, formerly with CoStar, recently discussed how to keep up with advancing technology in the face of rapid changes.
GlobeSt.com: How fast is technology changing?
Baumgardner: Technology is like a dog, for every physical year, it's like seven years of growth. At CoStar, a premier technology-based company providing commercial data, the industry was mailing discs to be downloaded by clients via CD-ROM in 2003. Yes, CD-ROM, which is almost now as dated as an eight-track tape. Since then, brokers have seen an incredible amount of technologies pass by in an industry that has traditionally been viewed as a slow adopter. Of course, technology waits for no one and the industry has no choice but to catch up.
GlobeSt.com: What does that mean to the individual broker and firm?
Baumgardner: This means to not only keep up with technology but be cutting edge and ahead of the curve. In this industry, those who are ahead win. For example, look at trend-setting companies such as Amazon or UBER: being ahead of the curve has affected those industries and their competitors are constantly playing catch up.
When firms keep up with technological tools, it allows for a more level playing field. Any broker with a smart phone can now have all of the pertinent data and research at his or her fingertips. This now allows brokers to do deals in a wider geographic area, at a faster pace, while cutting down on the deal cycle. This accessibility of data increases market velocity.
With research data platform options shrinking, many startups are starting to chase the Internet Listing Services market, looking to grab more of the national and international pool. How can one dial in on the best way to move forward? Our firm filters through these startups entering the space and makes sure to keep it simple for a still very much relationship-based business. Are there better ways to do things? Well, the only way to find out is to continue to look and think outside the box.
GlobeSt.com: What platforms offer business-leading services for CRE?
Baumgardner: The CRE market is at an all-time high. The transaction volume has steadily increased and there has never been a better time to be a part of this industry. The most important task for firms is to realize that there is no time to fall asleep at the wheel and to make sure to stay up to date. This is an extremely exciting time in the CRE industry and now firms of all sizes can compete. Ultimately, those who innovate will win in the end. The top five suggestions for 2018 technology are:
Research: Costar still leads the space with more than 95 billion feet tracked.
Listing Services: LoopNet is still the giant with cutting-edge technologies capturing more than 6 million unique visitors every month. A new service CREXI is one to keep an eye on.
Marketplace applications like TenX have a tremendous upside for investment-grade assets.
CRM: ClientLook continues to add features and tools to make brokers more efficient.
Internal communications with clients is key, using technology to communicate with prospects with a platform like VTS.
GlobeSt.com: Any final thoughts on the trajectory of technology?
Baumgardner: Just think of technology this way, the changes are happening at lightning speed. Clients expect brokers and CRE firms to be ahead and use all of these advances to help them. More so than in the past, prospects are searching for real estate using technology. When is the last time you drove down a row of restaurants and just looked at signs to find one? What about the last time you typed in restaurants on Yelp to choose? I bet I know the answer. Signs are becoming the eight-tracks and CD-ROMs. Today, new technology is key to capturing prospects and growing your business. Technology has changed the way we provide clients and prospective clients information before they ask for it.
In order to succeed in this ever-changing world, firms need to be as disruptive as Amazon but not complacent enough to be replaced. The changes may not seem favorable to all, but they will continually prove to test those who want to adapt and master the market.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
