January 10, 2019
There is no secret that technology is, slowly but surely, worming its way into commercial real estate. Everything from marketing, to transactions, to research is being driven by some type of tech.
There are, however, myths when it comes to merging technology and CRE, prompting Yulia Yaani, founder and CEO of RealAtom, to bust three prevalent claims:
1) CRE is a relationship business; there is no place for technology. Yes and no, Yaani indicated. Yes, real estate is a relationship-driven business. No, it won’t be replaced 100% by technology. And, yes — technology and relationships can work hand-in-hand to ensure a successful transaction. “Data is essential for efficiency,” she wrote, “and new tech is the tool to collect it.”
2) New CRE tech is only useful for small transactions; $2 million and under. Yaani exploded this myth by pointing out that larger deals — those $25 million and above — “actually stand to benefit most from new CRE tech.” This is because technology is driving the market toward more reliance on data-driven insights.
3) New CRE tech could replace brokers. Nope. Brokers are essential for transactions, Yaani explained. The goal of technology is to “drive efficiency and competition in the marketplace, which will only refine transaction processes,” she noted. This myth demonstrates a misunderstanding of the broker’s role in CRE; they provide service, as opposed to access. As such, “new tech is easing access and . . . allowing brokers to focus on their role as service professionals,” Yaani added.
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