|Commercial Real Estate in 2018: Outlook|
|Thank you & Happy 2018!|
|Did the Fed get inflation wrong?|
|Where Tech is Taking Us|
|Annual Suit Drive|
|market research (2)|
|January 2018 (1)|
Commercial Real Estate in 2018: Outlook
What will commercial real estate be like in 2018?
According to Deloitte there are four priority areas in 2018 and the "real estate industry seems to be on an accelerating disruption curve highlighted by rapid changes in tenant dynamics, customer demographic shifts, and ever-increasing needs for better and faster data access to allow improved service and amenities."
Deloitte believes "that companies should consider to look within at current processes and people and evaluate different ways to bridge the gap between technology advancements and business productivity."
While Deloitte's report may address the largest companies and players in international real estate markets, their four priority areas in 2018 can still be beneficial to local, individual real estate agents and brokers looking to grow this year.
- Unlock the value of REITs - consider different approaches to reinstate enthusiasm...use critical assessments of existing practices and communication approaches...review current state of operations, growth opportunities, and any strategic alternatives (business alliances, co-branding, having a commercial real estate lender like BALBOA on your side)
- Focus on real estate fintech startups - "For more than 15 years, the cost of establishing an internet-based startup has reduced substantially, from $3 million in the 1990s to just $300 today."...basically, there is no monetary excuse to not have some sort of online presence. Ask your kid or grandchild to help you get a website (or update your current site) and/or start a business page on Facebook or even Instagram. They'll probably be able to have you ready to go before Jeopardy is over! And if you're still uncertain about the future of real estate fintech remember this, "global online lending industry is expected to grow from $40 billion in 2016 to over $1 trillion in the next five years, the growth in CRE financing may very well be led by these RE fintechs."
- Embrace robotics and cognitive automation (R&CA) - Deloitte states that "automation is transforming the industry, changing the nature of work and helping companies go beyond conventional barriers." As a broker, the better you can acquire information quickly and effectively for your borrower, the better you perform and stand out from your competition. That makes you a valuable asset and consultant for your borrower. That makes you indispensable and more profitable! While you don't need to have an office of robots rolling around processing loan applications, you can stand out by leveraging the most efficient and easy-to-use technology available today. Are there back office tools that you can implement to become more nimble? How do your borrowers communicate? Are you making it really easy for them to connect with you?
- Reimagine talent and culture - to put it bluntly, the CRE industry has a huge proportion of Baby Boomers nearing retirement and not enough Millennials interested - or able - to replace them. In this vacuum stands a great opportunity to review and revitalize your office and employees - even if you run a 1-person shop. Are you using Microsoft Word to create a report or file that would be much easier to create using Microsoft Excel? How much time could you be saving? Could your local college or university offer an internship program that would be able to provide you the talent needed to help you assess any of these inefficiencies? First step, consider rethinking your approach to talent, employee experience, and organizational culture as the RE industry undergoes a digital transformation - if you'd like to stay viable.
Whether you run CBRE's global office or your own independent neighborhood shop, you stand at the crossroads in commercial real estate in 2018. Technology is here and will continue to grow. This industry is - and will most likely always be - a human experience/relationship focused transaction. Discover how to combine the two and see your business survive, and grow, in 2018 and beyond.
Interested in learning how BALBOA can fund your commercial real estate loans? Contact a CRE lender directly by calling Joseph Morstad at 619-397-7774