CRE Inefficiency and PropTech

Several startup firms are making an impact on commercial real estate and the timing is right.

By Ronan Remandaban July 15

It’s no secret that the commercial real estate industry historically has been slow to adopt new technologies – CRE has been plagued with inefficiencies for a millennium especially if you are a broker. From access to reliable data to an array of dated software solutions, you historically have had to master a number of disparate data services and software applications to do your job properly.

The good news is that recently developed technologies are eliminating some of the inefficiencies by centralizing like features and functionality in user-friendly interfaces – these platforms will certainly help the industry evolve. One only has to read about the emergence of several new PropTech firms to realize that commercial real estate is about to undergo a fundamental change for the better.

The timing is perfect. Many economists and commercial real estate pundits have been opining for the last two years on when the next market correction will happen. The optimists among them believe that there’s no end in sight for the upside in the industry while the pragmatists maintain we are in the final phase of this long economic recovery. Given that sales and leasing transactions nationally have been slowing over the last few years and that the Federal Open Markets Committee (FOMC) forecasts a slowdown in GDP in 2020, it’s apparent we are moving down the curve.

This impending correction will certainly not resemble the last: the weak CMBS debt underpinnings at the end of the last cycle caused a global financial crisis that had not been seen since the Great Depression. The open question is the manner in which CRE professionals will handle the changing market fundamentals. If obvious that those who embrace emerging technologies will be better positioned to address the softening conditions.

Companies Bringing Change to CRE

There are a several companies that have created innovative tools that are bringing efficiencies to the industry. Here are a few notables and their primary focus:

CompStak – lease and sales comps

Buildout – property marketing

Enertiv – building operations

Reonomy – building ownership information

HqO – tenant experience and engagement

CrowdStreet – property investment

Introducing Truss CRE

At Truss, we are also doing our bit: we have developed a unique listing and transactional commercial leasing marketplace, Truss CRE. Built by brokers for brokers, it’s designed to streamline leasing transactions by fully automating the search-to-lease process. We recognize that you need cutting-edge broker technology tools that make you more productive and competitive. Think of our platform as your able “team member” fulfilling many of the tasks in the leasing process for you. Whether you are an industry veteran or just starting in brokerage, Truss CRE will increase your market expertise and help you expand your book of business.

Be More Efficient, Close More Deals

The Truss CRE platform improves your client relationships by giving them a clear view of what’s available in a market given their requirements. You can invite them to enter their search criteria, perform their own search, and select their “favorites” – Truss CRE uses a sophisticated search engine to select and score the direct and coworking spaces that best match the criteria. You can also elect to be more “hands-on”, entering their information and finding spaces for them. Some clients want a full-market view – you can provide that as well along with favorites you have selected for them. In other words, you can customize the search experience to match their needs and sensibilities, all the while building trust with them.

The database has unique features including 3D virtual reality imagery and price transparency (nearly impossible to obtain) that provide an enjoyable user experience. Truss CRE makes the search process easy and fast – it compresses the search and property tour request process from weeks to minutes. And, it has proven results: 50% of clients that request a tour do so within 24 hours after the initial search. It also means that the number of property tours is narrowed to a few: the average is 5 space tours per closed transaction – all this translates into a huge reduction in the time that you spend arranging and conducting tours.

Truss CRE also tracks where your clients are in the leasing process in a dashboard only you can see – it manages all scheduling, transaction negotiations, and documents. It also features a handy chat function so you can collaborate throughout the lease-signing process with your clients, colleagues, listing brokers, and attorneys. It’s important to note that all of your client information and communications are highly secure – no other brokers using our platform can see your data and all metrics Truss pulls from the database are anonymous and aggregated.

Expand Your Business

The brokers who have embraced Truss CRE have said that it enhances their knowledge of market conditions and makes them more efficient: on average, the time between a first search and a signed lease is reduced by 60%. Because of the time savings, you can devote more energy to growing your business.

Let’s Talk

See why Truss CRE has been adopted by all the leading CRE firms. Let us introduce you to our brokerage platform – please visit us at truss.co/broker-tech or call us at (888) 339-7077. Give us a few minutes and we will show you how you can grow your business.