How is CRE brokerage evolving? The traditional ways of going through a broker are slow, tedious, and non transparent. Even with a big broker, you can be left in the dark in terms of the deal pipeline and where you stand in the process. There are a wide variety inefficiencies in this space.
Was wondering what everyone's thoughts were on this.
[{"id": "i996kr9", "text": "It\u2019s not and it doesn\u2019t need to. Commercial brokerage is way too complicated to attempt to automate. If your broker isn\u2019t in contact with you about the deal pipeline then they\u2019re a shitty broker and you should get a new one.", "replies": [{"id": "i9986xh", "text": "Well said man.", "replies": [], "depth": 2}, {"id": "i99c1n4", "text": "Exactly.", "replies": [], "depth": 2}, {"id": "i99ta2q", "text": "Maybe not CRE sales but leasing can be easily be automated with costar, automated lockbox and \u201ccalendly\u201d\n\nThink about it, imagine a lockbox that integrates with costar and a calendar scheduling tool. Once the tour is finished, a tenant can select on the app whether they\u2019re interested in moving forward with a RFP/LOI.\n\nI\u2019ve done leases without ever stepping foot on the property and just providing lockbox codes. It just goes to show how easy CRE leasing can be.\n\nIt sounds like you\u2019re not familiar with the current technology, let alone a technology 5 years in the future.\n\nLoopnet now has 75% of what costar has. There are way too many inefficient CRE brokers I have encountered. I say this as a CRE broker myself with a more technical background. A lot of brokers have their voicemails full so it\u2019s hard to reach them and when they do travel, they\u2019ll say \u201cI can get that information when I come back\u201d. Really? Ever heard of bringing a laptop or downloading the costar app or google drive to store all that data?", "replies": [{"id": "i9a22a3", "text": "Yes. Those brokers are what we call \u201cdogshit brokers\u201d.\n\nThe un-evolving aspect of this specific position is that brokerage value is 5% purely transactional, 95% wealth management/advisory/planning - pertaining to real estate. \n\nThat\u2019s not really going anywhere. If you provide the real value, that\u2019s where the real relationships are built.", "replies": [{"id": "i9wvy21", "text": "Sounds like a \u201cdogshit brokers\u201d make up atleast a quarter of CRE brokers. I say that not to be demeaning, just candid feedback", "replies": [], "depth": 4}], "depth": 3}, {"id": "i9cfqc5", "text": "I think you could automate easy straight forward leases.   I can't imagine automating a complex office or retail lease.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "i99et7u", "text": "It sounds like you just have a shitty broker", "replies": [], "depth": 1}, {"id": "i99gy7t", "text": "This sounds like an MBB slide pitching a crappy strategy project", "replies": [], "depth": 1}, {"id": "i99m3ou", "text": "All the negatives are completely by design. How else would insurance companies, brokers and clueless vendors make money?\n\nGet outta here you NFT communist.", "replies": [], "depth": 1}, {"id": "i9bkv68", "text": "It\u2019s not, and why should it? CRE brokers at the top of the chain control the market. They literally have more power over transactions than any principal. You always get someone who assumes they can break into the space as a buyer\u2019s broker \u2014 that\u2019s wrong, because at the top levels the buyers and sellers all use the same brokers all the time. Everyone knows each other. And buyers are sophisticated enough that goddamn it they don\u2019t need buyers brokers.\n\nIf you are having this problem as a seller, you have a shitty broker. If you are having this problem as a buyer, you are a shitty buyer.", "replies": [], "depth": 1}, {"id": "i9cq4lq", "text": "You're frustrated and I get that. In sales, clients are prioritized. So while you are important and every dollar counts, smaller one-off deals will not get the same attention as larger deals with clients who will return or are good introductions to other new clients.\n\nAlso, CRE is market specific. So while many things can be electronic or automated, you don't want everything to be that way. You want a broker to take a little time to put all the pieces together for you/with you. The CRE world is littered with deals that exploded because someone didn't do due diligence. In some markets this is a big deal (can't build there, sorry) and in others it's less so (need to speak a little more on environmental abatement, meh). You don't want this space to be fully automated, there are too many potential points of failure. And you don't want a broker who does nothing but surf websites like CoStar or LoopNet for potential deals. Things are advertised if there is no buyer in-house or in-network.\n\nSo if you're in the middle of something, speak up. \n\nIf you're fishing to promote your magic solution to all the 'inefficiencies', I wish you the best. Many have tried, but as CRE has significant variation the cost to cure or accommodate is often costly or leads to a substandard product.", "replies": [], "depth": 1}]