COSTA MESA, CA—No matter how enthusiastically the industry embraces CRE technology, we will still need professionals to synthesize and make sense of data in order to create workable solutions, said panelists at RealShare Orange County here Tuesday. Speakers on the panel “Implementing CRE Tech: Learning From Success Stories” acknowledged industry fears—particularly from the brokerage community—that once clients get wind of what technology can do, they will no longer need professionals, but they also assuaged those fears.

Chase Rongé, associate partner and design technology director for MVE + Partners, said his firm has moved to a 3D platform, Revit, and can now better visualize how a project will progress. “This technology can do a lot more for us” than other methods; “it's the basis for connecting all that information and we lose continuity without it.” He added that the platform helps the firm cut down on cost and time in operating a building.

Mark Gittelman, SVP | third-party services management for Rising Realty Partners, said his firm became a pioneer in CRE technology when it was unable to get carriers to come into an inexpensive building in L.A. to install fiber optics. “Connectivity is one of the greatest needs of tenants.” His firm began to sell Internet connectivity to its tenants at one-third of the cost of AT&T and was able to sell the building at a great profit and still keep the tenants as telecom customers. The firm also allowed customers to turn on their service the same day they purchased it, and it allowed each tenant to have its own Wi-Fi network. These three points of attack allowed gave the firm an edge.

Moving from simply having data to using it effectively and efficiently is what gives professionals the edge on this front in CRE, panelists said. Michael Foxworthy, VP of national accounts for Xceligent, said his firm and others are owned by a larger firm, and he anticipates being able to put the data from each of these firms into a searchable database that will be more predictive in nature than previous technology. Andrew Bermudez, CEO and founder of Digsy, agreed that predictive technology is part of the technology of the future, and adding, “You don't want to base your decision making on comps from the past—you want predictive technology in order to know what it will be worth in the future. You need intelligent systems helping you predict the likelihood of a sale and for how much. People who adopt predictive technology will be leaps ahead of others.”

Foxworthy said eventually his firm will have customers mine their own data and manage it. Mobile programs have also garnered positive feedback.

Bermudez said current and future technology will allow users to layer on top of data, so agents will be able to eliminate from consideration buildings that don't work for a particular client's needs and allow them to jump on opportunities faster. “Helping agents become better advisors is key.”

Rongé said his firm's use of technology is “making the transition between building data and getting what you want in a concise way that leads to a solution.”

Moderator Robert Caudill, regional director, Orange County, for Colliers International, said, “There is technology being used in brokerage, but brokers get defensive about computers replacing them. Still, there's no substitute for a local expert” on a market. Bermudez said the broker's role will change—they are no longer matchmakers, but advisors, but Caudill said, “We've called ourselves that for years.” Bermudez responded, “But it's different now because they're paying for your expertise. If you feel threatened drop a lease on their desk.”

Gittelman said, “I want brokers who use technology, but I won't replace brokers. All the information we are getting is great, but without interpretation it's just a lot of noise.” He told the story of choosing a leasing agent who could tell the story behind the Pac Mutual building in L.A. because that agent had moved into the building—that's value that can't be replaced by technology.

Jim Palmer, SVP, brokerage channel, for Ten-X LLC, said, “Every asset is a snowflake,” so it needs the human touch in order for potential buyers to fully understand its value. Bermudez added, “Without brokers, we won't make money because we need people to adopt the technology.”

On the architecture side, Rongé said there is a fear that 3D modeling will eliminate the need for architects, but it's really just a tool to enhance what they do. Gittelman said his firm is looking at using technology to help with engineering space for amenities. “We are spending money on amenities that would have been an obscene amount in the past, but because these are shared amenities among tenants, it works.”

Bermudez said he expects technology to hit “hard and fast over the next five years,” and there is a lot of cool technology coming down the pike for CRE. Foxworthy added that technology is ultimately providing more transparency in the marketplace, which is always a good thing for the industry.

Foxworthy said eventually his firm will have customers mine their own data and manage it. Mobile programs have also garnered positive feedback.

Rongé said his firm's use of technology is “making the transition between building data and getting what you want in a concise way that leads to a solution.”

Instant Insights /

CRE Tech Can't Replace the Human Touch

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