NEWPORT COAST, CA—Technology is one ofcommercial real estate's greatest expenses, butit's also one of its greatest assets, said panelists at lastnight's 2014 Orange County Executive Forum here,hosted by the USC Lusk Center for Real Estate andAllen Matkins. The impact of technology on theirbusiness was one subject the panelists tackled during the eveningas members took the industry's pulse and discussed their greatestopportunities and challenges in the current environment.

When moderator Gary S. McKitterick, a partnerswith Allen Matkins, asked Patrick S. Donahue,chairman and CEO of Donahue Schriber, “Is theshopping center dead?” now that e-commerce has taken off, Donahue responded, “Heavens,no! The scale of the Internet represents only 6%of retail sales. Catalog sales have always beenbetween 1.5% and 3% of retail sales, and the Internet doubled that.The Internet is big because of its breadth of inventory, notbecause of customer service. We think of it as tremendouslyadditive to our business.” He added that providing services topeople, which cannot be done over the Internet, will always beimportant for brick-and-mortar stores.

“Technology has allowed us to significantly reduce ouradvertising expenses, but our selling expense is significant—withthe addition of brokers—that it's offsetting that,” saidScott D. Stowell, CEO and president ofStandard Pacific Homes. He said that technologyhas helped his area of the industry enormously with measuring,tracking leads and design. “It enhances the customer experience.Customers want constant information [on the progress of theconstruction of their home], and it's easy to give it to them.”