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Build This And Kill Off Co-Star And Loopnet.

Pretty bold statement don’t you think.

Don’t think it can be done?

Not enough money in the world to make it happen.

Already too entrenched into the industry and no need to change it……forever.

Here’s the problem.

What we have always done and and continue to do has always been wrong for brokers clients and the market.

Brokers handle the technology and they are controlled by brokers who want them to do everything themselves.

This is what supposedly keeps the all important data in the brokers hands and allows them to make the deal and therefore make a commission and pay the bills.

Sounds simple and a perfectly sane way to do business.

Two things need to change.

1. The way we approach technology.

Just Don’t! We are not good at it!

We relate to clients and building owners. We do relationships and create deals.

The best that we can do is use old outdated technology and platforms. Yes, I mean Co-Star and Loopnet. (Sorry Kelly)

2. Let technology help us create a tool that enables brokers owners managers etc. etc.

Not just a technology that is used by brokers.

Provide a free set of tools to any and all of the major real estate holders. I said FREE!

Aggregate the data into a database. Yes I know it’s expensive and time consuming but…..

It will create a database with REAL TRUE INSTANT and ACCURATE data.

The tools will provide real value for the users while…..

Keeping it away from the brokers so they can’t control it.

Did I mention that this will kill Co-Star and Loopnet.

The data will become it’s own platform and will help us create the next.

Is THIS just too simple.(<<<<secret answer)……to not work?

 

Photo Credit:http://www.flickr.com/photos/luc-de-zeeuw/

 

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  • Adrian Hessen

    Duke, we are creating an accurate tenant data web-based service. It will be very close to what you are describing above. I, like you, see the huge need in the market. The MVP (minimal viable product) will be complete within the next few months.

    • Dukelong

      Adrian,
      Please keep me in the loop<<no pun intended.

    • GreggK

      Would love to hear what you are doing when ready.
      Gregg Katz, The Shopping Center Group
      greggk@theshoppingcentergroup.com

  • Robert Stevens

    Wait for Google to gain interest. They could easily create a disruptive model

  • Michael Duhs

    The current model is completely backwards and I have talked with quite a few broker associates who agree. We (as brokers) give valuable comp data for FREE to CoStar and LoopNet, then they turn around and sell it to us (as brokers). It’s nuts!! We need a model that is data-driven by brokers that is then used by brokers. I would like to discuss this with other professionals in the industry. Brokers are being taken advantage of in a huge way. Feel free to connect with me off-line if you would like to discuss this more. CoStar and LoopNet should be paying us for the data! Now there’s an idea. How about instead of the current system — for every property you put data into a system the broker receives points, which are redeemed for comp data in return. Now, that sounds more equable. Or, maybe brokers need to have their own system and let others pay us for using it. Just a few thoughts. Michael Duhs of East West Commercial Real Estate

    • Adrian Hessen

      Michael, these are great points and i couldnt agree more. As I mentioned to Duke, we are building a site that I feel will address these market demands (and will include a points based system). I would like to get initial test drive feedback before rolling out to market for larger scale feedback. The site will be complete in a few months. When site is ready for initial feedback/test drive, would you like us to reach out to you?

      • Jared Fisher

        Adrian, Lets connect. Would to hear what you are working on.

      • I believe this is basically what compstak.com is doing.

      • Michael Duhs

        Absolutely. I’ve been in the business for 25 years and our brokers have complained about this for a long time.

  • Sony_kim

    Sounds very positive and very interesting. We’re in a technology world where anything can happen if we put our mind to it and work together. Congratulations and good work guys!

  • As a long time owner of a CRE social media and membership site, I would like to find fault in what you have said, but I agree.

    It is a fact that disparate platforms are finding ways to connect and work together and this I believe is the natural order of things to come. All platforms will have to play nice together or they will not be considered viable.

    So the same makes sense in your scenario. Vetted Broker / Owner / Lender / Management must be able to work in tandem with vetted data. I also agree that the data needs to be centralized. You cannot manage what you cannot manage and without the data being kept coherent form for all types and locations, then control is lost. Data is easily manipulated and often incorrect or useless.

    We could go on and on. The issue I have is that the industry has such a limited understanding of technology and they are seem to be trying to keep it that way, wheras most industries are embracing and working hard to be first adopters and technology leaders. The CRE industry is treating technology as like something only idiots would try to embrace. This is nothing less than ignorant, but this industry is known for its old boys clubs and its arrogance.

  • LocalCRE

    If your looking for a good domain name for it, consider localcre.com. We’ll turn it into democratized, membership, bloomberg terminal. Ring me.

  • Kelly Steitz

    Always enjoy your blog posts Duke! Can’t wait for your next visit to SF. Drinks after work instead of lunch next time.

  • Pingback: Weekly CRE and Retail Article Roundup – August 9, 2012 | Retail Rocks In The Mid South()

  • Squarefeetblog

    As somebody who jumped on the CRE social media bandwagon before most others, I can say that getting info standardized and out there as an ecosystem is not a new idea. The problem though is that having information that nobody else has is what keeps you in business, and history has shown that losing that edge means you get disrupted.

    But the issue at hand really is that in order to disrupt things, you need the SUCCESSFUL brokers to engage in getting info out there is this is where the challenge lies because it’s the successful brokers that have the information AND don’t have a need to share it. It’s also these same people that don’t really care about paying CoStar and Loopnet $600 a month.

  • Ignorant

    Just as intelligence does not equate to wisdom, information and data alone do not make deals. In most cases, improved data sources and public access CAN result in better consumers. The brokerage business is founded in relationships, experience and context into which to put the data.
    Social media functions to bring us information more quickly. It has not made us any smarter, and arguably is providing us with a false sense of connectivity.
    Take advantage of the new technology; social media is just today’s newest mule!

  • Jack Minter

    I thought I responded to this but do not see what I wrote.

    I think that the owners and users are the ones who should be driving the technology and the service providers will follow. The technology will have to be accessible to the teams the users and owners hire.

    I believe I have developed a site that will provide what we are looking for. It is called MYRETA.COM

    Give it a try and give me your thoughts