From the moment the landline was invented in the late nineteenth century, it took 75 years to reach 15 million users. It took mobile phones 12 years to reach the same milestone. And the very popular mobile reality game Pokemon Go? 19 days.
Now is a great time because technological innovations are revolutionizing our personal and professional lives at breakneck speed. The poor assessment of the commercial real estate industry as slow adoption is 100% correct, and those of us who rely on a handshake and our last agreement to make our future business book will be left in the dust if we do not evolve with technology.
According to a report by the Center for Real Estate Technology and Innovation Real Estate Tech Venture Funding Report, private investment in proptech reached $ 32 billion in 2021, an increase of 28% over the previous year. There are currently 8,000 startups targeting commercial real estate with a certain level of WC funding. Proptech creates greater efficiency and greater transparency between the broker and the client, changing the corresponding expectations in the provision of services. Instead of feeling that technology threatens long-term relationships, CRE brokers must accept the opportunity to be a better, more informed advisor.
Recently, SIOR Global President Robert Thornburgh, SIOR, spoke with a group of SIOR Chicago Chapter members and shared his insights on how brokers can embrace this more digital future. Here are five ways he suggested you get started:
5. Know what’s there. If you do not have a level of comfort with proptech, start by getting acquainted with companies such as Cherre, Juniper Square and VTS. These powerful digital platforms can do things like manage and centralize leasing reporting, raise investment capital, automate construction operations, and launch digital marketing. VTS has been particularly well received with more than 45,000 CRE users.
4. Subscribe to podcasts, newsletters and blogs. There is no end to the desire of our industry to share opinions and trends regarding technology. Take advantage of it! MIT’s CRE tech blog is interesting, digestible and connected to everything we do at CRE. The American Commercial Real Estate Show is a weekly podcast designed to inform CRE professionals. Connecting with LinkedIn groups specific to CRE technology will give you a steady stream of insights.
3. Look for youthful opinions. If everyone in your organization or project team or service line is over 40 years old and you have no connection with millennium and generation Z workers, your competitive advantage decreases. They have new ideas, challenge things and have no long-term baggage of employees. Actively seek their opinion and knowledge and integrate these ideas into your business.
2. Attend technology conferences. This is a largely neglected opportunity to not only learn about technology, but also to be where your customers are. Conferences like MIPIM can completely transform your view, and with just three or four key presentations you will be able to communicate with your client at a much higher level.
1. Find time for professional development. We’re all busy and preoccupied with client requests, but when you find the resources that help you the most, make sure you set aside consistent time each week to dedicate to them. Take that knowledge and create an annual business plan for yourself that includes technology like a North Star.
Part of the technology will not replace the broker. However, what remains are expectations about the level of sophistication of brokers and the way services are provided. Knowing the local market is key, but to compete with your personal story, you need to incorporate technology in a meaningful way. Brokers who see technology as a major threat have the most reason to worry.
Sam Badger, SIOR
President, SIOR Chicago Chapter