6 Radical Ideas That Change Commercial Real Estate Forever!
Let’s go back to the old days say 2002 and you are in the boardroom at BlockBuster,shoes shined sweet tie and poppin white shirt. Sales are brisk and the stock price per share is kicking ass. The board meeting has the general reports read by the designated members and all looks well. Nothing left to do generally but pat each other on the back and drink a celebratory glass with your genius board members. Then someone stands up and says “Wait. I have a great idea, let’s let our customers watch their favorite movie anytime they want from any device they want for free”. The next thing you hear is the door opening and the security guard motioning for the idiot to step outside. You wonder how he got on the board in the first place. Must have been the son of some big shareholder. Nothing wrong with a little brainstorming but hey,the board and management have a great plan and they are executing it like a machine.
Well someone somewhere did have that crazy idea and called it Hulu. Check the balance sheet of BlockBuster today. Wait your right, they just got bought out of bankruptcy court by Dish Network. Do I need to even mention the Netflix business model? What may seem radical in thought not so long ago may prove over time to be not so radical. What are those seemingly radical ideas in commercial real estate? Shocking I know but….I have a few thoughts.
1. All Data is Free
Aggregation, compilation, qualitative, qualitative,variable, sustainable, categorical, variable etc. etc. The need or perceived necessity to pay for any type of commercial real estate data is Killing the commercial real estate market. Whoever controls the data controls the market. If we in commercial real estate do not stop paying for the data we already have the consumer/client will take the data and Create the real commercial real estate market.
2. The Building Markets Itself.
Geo-mapping, Geo-data video, 5-d Platforms, Entire historical databases dedicated to one specific location, BIM. All of this is not “new” technology. It is rapidly becoming “old” technology. Pick any device and search any location. The building markets itself.
3. Eliminate Brokers and or the Brokerage Model.
We are selling a service that is no longer needed to a consumer/client that no longer sees a real value for the service and is becoming reluctant to pay. How much value do you think the market places on decisions that were made 2-3-4-5 years ago. How do those decisions look today? With a shout out to Rob Hahn. Change the brokerage model to something similar to a legal/accounting firm or become the next Grubb & Ellis.
4. Leases Are No Longer Binding.
WHAT? Shared space, co-working environments, virtual hubs, a huge movement already adopted by CBRE. No way this works or the only way that a good percentage of commercial real estate spaces will have to adapt just to survive. The workforce will demand flexibility, innovation and complete transparency from the commercial real estate industry…..or they will create their own. How will it work? Two words: Worldwide Competition.
5. Eliminate All Green Sustainable LEED Standards.
Standards defined by who? The government, a not for profit organisation out of DC, a made up association? Marketing scam,unrealistic expectations,law suits by consumers/buyers/owners for what? Status conscience, money grabbing, green brick huggers?
6. Create A Dead Center Tear Down Program.
Dead Centers. They do not dot the landscape they are defiling it. In almost every city town and burg in this nation. Empty,decaying, rancid, useless,valueless. Most owned by complete idiots that still think the world will go back to the Hummers and Harley in every garage era. Tear them down and start rebuilding and or creating a real use for the community even if that means leaving the land empty and clean until the next generation with more brains and balls than this one makes some better decisions.
Way too radical for any sort of adoption? Are you like one of the geniuses that sat in the boardroom at BlockBuster patting yourself on the back and thought the world would NEVER change? Oh no, you are way too smart for that! Thoughts?