#CRETech Is A Complete Failure. And Here Is Why.
Some of you may say “finally this guy will shut the hell up.”
How about me just calling it as it is and not backing off so that I don’t hurt anyone’s feelings?
We are now realistically five years into this tech cycle. Specifically this #CRETech cycle.
Let’s start with the reality.
How many companies can you name that have real customers and are making money?
Easily less than twenty? Hell, it may be less than ten.
Is that considered a success? By who’s standards? Sure as hell, not mine.
Why so few success?
Why so few positives to champion?
The easy and most used explanation is that #CRE is “too relationship and hands on to be digitized.”
That’s just saying “fuck off we are making a shit load of money and don’t want to mess it up.”
I get that why ruin the third largest asset class in the world? If it ain’t broke….
Interestingly residential is has been and will continue to blow itself up with technology and then some.
Don’t think so? How about Zillow, Zoopla, Compass, RedFin, Matterport, Opendoor. Check the numbers. The real numbers. Billions with a B.
Every day there is another company going way out there. Doing everything they can to completely piss people off and digging straight into the industry pockets and going after milk and bread money. People opine about the fire and hell it will bring to the world. They push back. They decide how to hate on the idea. They rant rave and declare all out war on the arrogant and audacious startups and the sheer gall to even attempt to “disrupt” their precious business.
What do we get? What does #CRE get?
Companies with tall good looking CEO’s using artfully crafted “thought pieces” targeted and placed for optimal coverage in the correct eye-catching demographic media.
And the response? The response from us the actual users? The people in and of the business? NOTHING. NOTHING.
Oh, sure there a few “outliers” who pop a few comments in here and there. Who reads that kind of stuff anyway?
Residential just flat out kicks our ASS!
Innovation, Disruption, Controversy, Funding, Bad Ass Ceo’s, Hell Fire Business Models and …….
$$$$$$$ or human beings willing to pay $$$$$.
So, how are we in #CRETEch doing on all of those fronts?
Kissing ass and changing NOTHING! NOTHING!
A simple part of the problem is that we are only going after the low hanging fruit.
And do you know what that low hanging fruit means to a startup? It means ” I don’t know what we are doing, but it looks easy as hell so let’s go after that first.”
Where are the BIG IDEAS?
When Zillow started, it was like “no way, not even possible.”
How about Opendoor? They are getting hammered in the press. Let me give you a hint. It’s called a REIT.
And just recently there is Compass. A BILLION dollar valuation. BILLION. How many residential brokerages are worth a Billion Dollars? Not many?
How many radical commercial brokerages have come along in the last five years? NONE! Fucking NONE!
Where are the balls out ( yes, I know it’s sexist) radical leaders of that movement? How much money is paid in commercial commissions a year? How many times can I say BILLIONS in this article? Not big enough to chase after? WOW really!
Settle in I am just getting started.
Let’s step back for a minute. Let’s go back to the beginning of this #CRETech cycle. Five years ago and it was a heady time.
The entire world was changing. FaceBook, Amazon, Apple, Google, and Twitter were just beginning to show us how to communicate interact buy and source the entire world. We were becoming a connected global society.
Commercial real estate, on the other hand, was what? Siloed, Inclusive, Analog and Entrenched.
Think of all the possibilities that lay before us.
Technology along with the rest of the world would need to and could change for the better of all.
And what have we in #CRE done in the last five years?
Without doubt stayed Siloed, Inclusive, Analog and Entrenched with PRIDE!
The rest of the world has moved on! Moved ON!
Finance, Insurance, Transportation, Logistics, Technology.
All are progressing at a breakneck pace.
Five years later we have done nothing!
Pay for data.
Have no data standard.
Consume more global energy than any other asset class.
Refuse to adapt the physical environment to today’s reality.
Look at the facilitators of a transaction as a source of revenue.
Silo the most important source of data from all possible users. The building itself.
Do not fully utilize the building as a source of revenue.
Do not understand that the people inside a structure create value beyond the structure itself.
Fail to understand that the data of the building has more value than the structure itself.
Treat the process of the transaction as a special skill set only available to a few.
Refuse to have market transparency that allows consumer confidence.
Neglect to integrate data with other industries.
Deny a digitized central public property database.
Fail to see the value of a digited central public property database with blockchain protocol.
Completly undervalue a national industry-backed BIM education system.
Not understanding that discovery and search should be predictive.
Have no advocate for the end user or industry accountability.
And as an industry not even attempting to fund any of the above….out of ignorance.
What am I missing?
Go ahead and tell me how none of the above can not or will not change commercial real estate. Forever!
Why is that not even a consideration by this industry?
I don’t understand.
I will give you this.
The people in #CRETech to this point have done what?
They thought they wanted to change the world.
#CRETech Is A Complete Failure. And Here Is Why.
+1. You would _____ someone’s_____in public for a billion dollar valuation.
+1+1 Yes, you would!