Increasingly blockchain and in particular crypto has been encroaching on commercial real estate. While proponents of these concepts can point to solid use cases, there are also plenty of examples of how potentially unstable, unpredictable, and in some cases untrustworthy, many aspects of the collections of things called "crypto" can be. As these concepts continue to gain traction, it would seem a good time to step back, untangle some concepts, and then proceed with more attention to the risk to investments and also industry reputation.

There is already use of the blockchain technology underlying cryptocurrencies. For example, MarketSpace Capital tokenized a multifamily project last year, which in theory means more automation of process without as much physical paperwork. Rather than maintaining records in traditional fashions and generating quarterly statements and ACH transfers, by using tokens, a specialized cryptocurrency. 

Tokens should allow greater liquidity, in this case after an initial 12-month holding period, without a special event like a sale. An additional concept for developers is that tokenization could practically enable more fractionalized ownership—technically possible today but too awkward in practice—that would open investment by millions more people, increasing demand that should push up the financial return.