The first question I need to ask is how many BILLIONS of dollars in commissions are paid out each and every year just for commercial lease transactions? How about just the US, how about globally? I Googled it and could not find anything, and that’s not my job. I’m just guessing but it has to be BILLIONS does it not?
The second question I want to ask is how would you if you were NOT A BROKER go about getting a piece of that big juicy pie? I have written many times over how easy and yet dauntless this would be. Take a few million dollars (and the right, untouchable industry partners) get true and accurate data, face the consumer, set the pricing, make the market, and control the entire transaction. See, I told you, simple. Yet as we all know it has been anything but.
The third question I have is for you, and that is if a platform to do all of that existed and it was staring you right in the face would you even notice? Would you even care? We both know the answers to that but then again, that will NEVER happen will it? It only ever concerns you if it touches your bank account directly.
And the fourth question is for the entire #CRE world. Do you have any idea what TRUVA by VTS is and what it does or will do? I’m not completely sure myself but I do have a few thoughts!
As stated directly from the www.truva.com website.
Modernizing how you find and lease your next office.
We’re transforming the search for office space with you in mind.
Every space on truva comes straight from the people who own or manage. Our team verifies pricing and takes original photos and videos. No more bait and switch!
Truva is the only search platform built on top of VTS, the industry-standard inventory & deal management system. Our listings come straight from the source.
We’re taking the pain out of the process. Search for space, see real pricing, and even book your tour on truva.
So let me break down the above statements from the VTS website.
Transparency: Every space on truva comes straight from the people who own or manage. In other words directly from Building Owners and who can or will dispute that the data is the truest and most accurate? Or better put, it did not go through a broker and or The Dark Star and then to the market.
Our team verifies pricing and takes original photos and videos. They “verify pricing” because they have all the lease data, more on that later. The VTS team will take original photos because The Dark Star has set the precedent of suing the FUCK out of anyone who even looks at (except Google because Google has FUCK YOU money)a photo of a building.
No more bait and switch? Do I even need to comment on that? No!
Accuracy: Truva is the only search platform built on top of VTS, the industry-standard inventory & deal management system. Fair enough and who else is even close? Nobody at this point, maybe.
Our listings come straight from the source. Again, building owners not brokers or The Dark Star.
Simplicity: We’re taking the pain out of the process. What is the true definition of a transaction of any type? It a process and most if not all the world thinks that process is so complicated and difficult that they need someone (a broker) to help them. It is your core value proposition is it not? Just asking.
Search for space. It may have been published or said somewhere at some time that VTS has the data on 11 billion square feet of commercial space including 60% of all Class A space in the US. Is that true? I’m not sure if that’s the exact number right this very second, so how could I possibly know. How much data do they have in Europe and the rest of the world? I have no clue.
See real pricing. That means they have all the lease data. True and accurate lease data. Lease data in commercial real estate is DATA GOLD. Not some made-up bullshit number because someone wants to do what? Make the market and drive up…values and commissions? Just asking.
And even book your tour on truva. Well, isn’t that convenient as hell, why leave the site and engage with an outside source? No reason if you are getting all the service and attention you need in one place. I’m sure there is some kind of referral/minimal fee structure for those outside sources that help. What is the definition of a procuring cause again? That’s way too legal for me to go into right now, and I’m not a lawyer, but then again if you are smart it’s not even an issue that has to come up.
Here is the big question anyone and everyone should want the answer to, who handles the money and does the payouts? If it were me I would do it all. But that’s just me and I am only one little person. But that would never happen, would it? VTS is not a brokerage so….no need to worry.
At what point does a statement like this hit the PR spin cycle? “We love brokers, we are helping them make the market, be more robust and transparent. (Where have you heard that before, you’re welcome.) So, how could this be a bad thing? Oh, by the way, we did make a few million on our own with our own people, because you know it was just there. It’s not THE ENTIRE MARKET so, don’t pay any attention to that to part.”
Wait, it already happened last year.
Amy Millard, CMO of VTS provided the following statement to GlobeSt.com:
“Truva is designed first and foremost with brokers in mind. This marketplace is going to set brokers up for immense success by offering streamlined, real-time access to the leads and deals in their pipeline without even having to lift a finger. Furthermore, VTS is working with top tenant rep brokers in every market to build Truva.”
Ok, yes, I know the “we are making a money” part was not in there…yet. But still. Come on, what would you do?
Let me remind you of this well-known fact. If you raise a few hundred million your investors want a return, in order to get a return you must generate revenue and that revenue can and will come from what sources? Any source you can find, that’s the entire point. Should they, could they, and why not because what do they have to disclose to you? Nothing! If just their board sees the numbers and revenue growth that’s all that matters. As my friends in England might say “fair play.”
As far back as say 2014, I posted a little thing with the title Commercial Real Estate Brokerage Will Collapse. This Is Exactly How It Will Happen. And then in 2015, I posted What Is The New Future Commercial Real Estate Brokerage Model? Hint: It Does Not Include A Broker.
Now, if I say in any way shape or form out loud that tech companies are going to take over traditional brokers/brokerages and eliminate them forever…this is the reaction I get GLOBALLY.
In the beginning, I stated that I just Had A Few Questions About VTS and Truva.
And maybe I still do.
Is VTS a brokerage? Nope.
Will VTS become a broker? Nope.
Will they try and “make” the market? Yep.
Will they make money from “transactions?” Yep.
Is that a brokerage by your definition? Hmmm.
And if it is does it matter what YOU think? Yep.
Will you pay any attention? Nope.
Will you even care? Nope.
Should you do either?
You won’t and you know it.
$$$$$$$$$$$$$ is no longer coming your way and you need someone other than yourself TO BLAME!
If I were VTS I would go buy assets as a side because that’s what tech people think #CRE is, a side hustle.
But then again I’m just a real estate guy so what do I know.
+1 Hey, OZ, always paying attention to your moves.
+1+1 These are of course my opinions and random thoughts, are they based on any actual facts? I AM THE GODFATHER, you decide.