Well you would have to think forever right?
Maybe not so much!
We all know the basics tasks of a commercial real estate broker. Let’s look at them and then think about it another way.
Listing and Marketing.
Listing as we know is the basic agreement between the owner and broker to market the building.
“Marketing “the building today is what? Send in “data/info” on a specific building to the marketing department “chick” and let her do that special pdf flyer magic. Blast out a spam email every three days for a month and….Whew! Now that real work! You of course make sure you send the two or three links the building is on to your client to make sure they see it on the fancy inter webs and you are pulling that data from where? Go ahead admit it! Yea it’s the same data as the last company that had it right? Shhhh I won’t mention the LoopConetDarkStar company.
The building is already marketing itself nanosecond by nanosecond. Linked up and interacting with it’s own environment.Defining it’s value and comparing itself to every other structure in the world.Without you.
Analyzing the data.
Think back to the days when a young hot shot wannabe deal maker comes busting out of school ready to take on the world. What do you do with him? Bury him that’s what. It’s the old “you need to know how to analyze the deals before you create one” sceniaro. Of course that fresh talent grinds and grinds until it DIES staring at the computer. Then of course it is then time to slot in another fresh face world beating MBA to sit and squander their talent also.How much does an prime analyst make 50-60-80 dollars an hour?
You know what’s next and yes……guess what you can do…… “outsource” that task now for what……. 20-25 dollars an hour?
Now that data is available in real time and automatically analyzed with pre programmed software. Why do we need an analyst at all?
Defining the market.
By rate by pricing by class by location by……nothing that can’t be readily sourced by anyone!
Yes yes yes I know it’s what brokers Really do. People still do business with people. I am sure that will continue to a point and at….What Negotiated Discount Price? That strategy will…….discount us all.
As a side.
Mentioned writing something like this to a broker friend. He said I was “fear mongering”. Hey asshole I know your reading this. Go climb into your bomb shelter with your canned peaches and don’t forget to put the tin foil on your head for protection. I heard that Russia still has the bomb.
A very nice guy named Chad commented on my site that none of this stuff matters because there are 10 Ways Old School Commercial Real Estate Is Still Kicking Ass.This is one of the most popular posts I have ever written and I know why. It speaks directly to the seasoned broker that is hoping praying pleading that this technology thing does not make them obsolete and that the way they did it “back in the day is by god how we still need to do it today! Dammit!”
So this is not exactly a brand new thought process about brokers and their relevance in the future commercial real estate market.
I have generally written about this in the past and it got me banned from LinkedIn groups nasty emails from brokers and Rah Rah comments that said “WE Will Adapt And Survive”….and so be it but think about this.
You can scream and yell at the messenger all you want but the fact remains.
The data and the client/user is creating the real commercial real estate market…without us. NOW!
How long will we matter?
You Tell Me!