I received a outstanding ebook white paper thing from Andrew Waller of Remit Consulting. It addresses the use of the cloud and how it relates to commercial real estate. PLEASE take the time to read the entire thing as it is very thorough and full of great information. He also asked for my thoughts on the subject.
By simple definition the cloud is a way to access data from any place anywhere at any time from any device. A more defined definition well….click here.
How will this effect commercial real estate?
- Data access: The cloud allows real time data analysis. Compare your building data and deal to all others in the market that exists NOW.
- Valuation: The cloud allows access to true data. Think of an appraiser or a brokerage with “historical “ comps. Any and all members of the firm or database have access to all data and in real time. Saving time, effort, and money. Creating a more true and accurate value.
- Transactions: Research due diligence forms transaction standardization. Transaction efficiency.
How it makes commercial real estate better.
- Reduction of costs: 10% of existing IT costs. Savings of 60-70% of long term operational costs.
- Collaboration: Access to other database and access to people within define organization or even better other data rich sources. Just ask CBRE. Great Example Andrew!
- Search: Multi- sources of data for each property available. In real time.
- Create a data standard: Data can be tied to a defined standard. OSCRE?
- CRM in real time: Think Salesforce.com Watch the video.
- Create a true mobile workforce: Uh, how much office space do we need?
- Total loss of control of the precious data that defines commercial real estate. I think NOT.
- Security of data: There is always a risk. The risk can should and will be managed.
- Physical location: Laws and more laws. India,U.S,Canada,Europe. Will it really matter?
The cloud has be hyped pretty heavy in the last year or two. The hype although pretty strong is very much justified. It will change commercial real estate in ways some never thought possible. The impact will be felt across the entire industry. For one simple reason. Commercial real estate defined in its most simple term is:( Location+ Data= Commercial Real Estate.) The cloud IS access to all data anytime, any place, on any device. Thoughts?