Commercial Real Estate Brokerage Will Collapse (Due to Technology). This Is Exactly How It Will Happen.
&gt; Technology” companies. Companies that provide “technology services.”
“Services” that you pay for to help you do deals.
They provide tools and marketing brokers need.
They aggregate create demand and generate leads.
They create lead generation via internet search and do lead vetting like Lending Tree does for mortgages.
Think about the residential side, it’s been a standard for years.

* [article](http://www.dukelong.com/commercial-real-estate-brokerage-will-collapse-this-is-exactly-how-it-will-happen/)
* [discussion on r/RealEstateTechnology](https://www.reddit.com/r/RealEstateTechnology/comments/2njdck/commercial_real_estate_brokerage_will_collapse/)
[{"id": "cmebwrf", "text": "I disagree.", "replies": [], "depth": 1}, {"id": "cmefjnd", "text": "I'm not quite sure... the commercial side has always relied heavily on networking and the \"good ol boys network\". Many commercial deals are done under the table without the property even being listed. This is because you don't want your tenants getting bugged out that the building is for sale and start looking to move.\n  \nIt's quite different from residential where a single homeowner wants to move and lists their house on craigslist or zillow.\n  \nWith commercial property, often there is continued relationships as a building seller will use the money to acquire a replacement building via 1031 exchange. So sellers become buyers and vice versa. And in other cases the buyer wants to remain anonymous so the agent handles everything for them.\n  \n\n  \nIf anything, brokers are using sites like loopnet to enhance their business, not compete against it.\n  \nSo I think technology may change the landscape of commercial brokerage but it certainly won't collapse it.", "replies": [{"id": "cmei10j", "text": "There are a lot of reasons why commercial real estate is much more resistant to online competition compared to residential.\n\nThe spaces are far more unique and an owner may not know what the highest/best use is in a given market, what the latest comps are for that building type, who the buyers are for that type of building, what the current value is, what leasing/sales concessions should be made to close a deal, and connections to tax advisors, lawyers, contractors, property managers, financing professionals, developers, architects, etc.", "replies": [], "depth": 2}], "depth": 1}, {"id": "cmlsfk6", "text": "This is wrong. If it were right, there wouldn't be thousands of CRE agents, who generally make a lot more money that the median income. It's not as simple as locating a space and signing a lease. A CRE broker provides value that well exceeds the cost of the fee. And to dovetail on Supradealz comment, there is without question a good ol boys network. In a relationship based business, a broker in the network will flatly get their client a better deal. I negotiate lots of deals with uninformed brokers. I take them to the cleaners. Brokers who know the market and most recent comps, and also those I do lots of business with, get market deals. \n\nAt the end of the day, using an established broker all but ensures that a tenant will make a market deal. Just using some database will not give you the edge needed to make a market deal. Does the LL have an upcoming major vacancy that will scare them into giving an informed tenant a better deal? Does a Landlord's loan terms drastically affect a landlord's decisions? Yes. \n\nAnd the most important part of the business is comps. Brokers share full comp information with brokers. They don't with online databases. If I get a call from a broker I do business with, they will get the information. If some tech services company calls me for a comp, they'll get a dial tone. Simple as that.", "replies": [], "depth": 1}]