As I have mentioned many times I am out and about in the city of New York and get to have many interesting and meaningful conversations with all kinds of #CRE people.
The main theme recently has been predominately about data but also there have been several about brokerage and the brokerage model.
A couple of years back I wrote What Is The New Future Commercial Real Estate Brokerage Model? Hint: It Does Not Include A Broker.
Catchy title don’t you think? To sum it up quickly, I made the point that WeWork was a better brokerage model than almost anything out there. Don’t agree?
Let me ask you this, have you referred any of your potential clients to them for space? Do you think you are going to get them back? Really? Congratulate yourself on being their tenant source pipeline.
Wait, in startup terms, that’s call customer or user acquisition by WeWork…hustled and funded by YOU!
I digress? I digress!
So their model seems to be working and the old school model seems to be…….still working.
Let me ask you this…how long?
Let me give you an example.
A potential client comes to you with an asset to move. Usually, you go through a due diligence period and for the sake of argument and debate let’s say it takes 30 days to do all of that work. I said for the sake of argument and debate.
But that client stares you in the face and says that you need to shrink the due diligence time from 30 days to 3 days or…you don’t get the business. And why not? It should only take 3 days in 2018 correct?
You say no way, really, why not?
It’s just about processing the data. You say you are not capable and that’s not what you do?
Ok, fair enough. What is that data suppose to do? The data is already there.
That data is supposed to make your job easier or is the data and platforms out there now enable lazy ass brokers who won’t even do the work to understand their market and do their real job?
Let me step back a bit
How about going old school or better put, just hold on to that shit!
It’s data gold, right?
How about this for old school?
Grid off an area in your market and own that shit. You know what I’m talking about…canvassing, walking the area and doing research on everyone and everything happening. Do you still do that? The startups call that data acquisition.
How about this old-school model? Niche to niche so fine that your base of customers is so small that no one else can touch them? Yea, I get that but how many transactions are you missing, how many potential leads are you not finding in the entire marketplace?
If you did that you would what…have wasted all that time nurturing those relationships for nothing. No focus, no $$$?
This is 2018 the era of what, Mobile phones, Autonomous cars AI everything and we still do it how?
But yet again we say “it works” it’s not broken.
Have we been lucky? Have we had a marketplace that props up everything underneath that value? Trillions and Trillions of dollars of value.
How about this, we don’t fuck it up. We just stay old school and dare somebody to do it better.
We keep the data we keep the leads we keep the relationships and we stagnate the hell out of the market.
One thing we are doing and doing well is making sure our clients rely upon us to and beg us to help.
They HAVE to come to us, They HAVE to.
What if, wait, what happens when that tenant is empowered?
Think about it. Empowered.
Want another scenario?
Here you go.
Corporate occupier handles 20 global locations with let’s say, 60,000 people.
What kind of data is that person using every day to make decisions?
Does it come from the building they occupy? NOPE.
Does it come from the brokers who “represent ” their interest? NOPE.
Does it come from internal resources, and if so what does that data say?
In your mind, it’s…..nothing or…we help facilitate integration of….of what?
Yea, you know the answer. Just pay the fuck up and let us run the building and do the deals. We got this right?
What if it was all out there…all the data and it was used…transparently….but you say “Hell NO!”
That MY market. That’s my Data. That’s MY way of making a living.
Ok fair enough. I already said we should go even farther back to the old school way. It works and it works well.
Let’s just leave it alone.
Everyone is making bank and that bank is being filled up by…………occupiers…occupiers who don’t know SHIT!
Why share, why empower, why create more market velocity, why do real work, why not just make old-school bank for doing the same shit someone did 20-30 years ago.
Nobody has figured out a better way yet, have they?
Not WeWork right, hell, they are your friends.
Not any #CRE or #TECH vendor all they want to do is get in your pocket and make $$$ off of your data.
They could give a fuck less at helping you be better or actually providing you with a solution that makes your job………BETTER, MORE EFFICIENT and or MORE PROFITABLE.
It’s their fault, right?
Or is it?
It’s 1993 and….wait…
It’s actually 2018 and these are Random Thoughts And Conversations About The #CRE Brokerage Model And Data.
+1 I did say I am in New York City one of the biggest and most valuable commercial real estate markets in the world?
+1+1 How’s that for an old school pic, take you back or what?