Nothing Is Easy

Team CREXi – November 22, 2016

Besides being gluttons for punishment, yearning for higher hairlines and larger bald spots, and aspiring for less taxes in the form of lean salaries, we at CREXi are here to bring technology to the slow-to-adapt commercial real estate market. “But Eli, I’m a real estate purist, does the CRE industry really need technology to be great?” you might ask. My answer: “No.” Commercial real estate is already a great industry. My favorite industry. As the son of a real estate investor and entrepreneur, I owe any business prosperity in my life to the CRE industry. However, I learned a valuable lesson as a child when my father would announce every night while walking in the door: “Eli, nothing is easy!” As my life and career progressed, I learned truer words have never been spoken. So how can we make the lives of our clients and customers easier?

DEAL CONDUITS

There is a supply and demand disconnect in the commercial real estate market. Sellers and their brokers always want more buyers and offers for their dispositions while buyers always want access and exposure to more deals. Both sides of the transaction are searching for each other yet often fail to connect. CRE has long been a high-barrier-to-entry market with opaque information. When new investors flow into new markets the common strategy remains: take every broker out to lunch for six months to ensure you are receiving all of their offerings. Having seen the waistlines of some old broker friends, those lunches aren’t always cheap. Our aggregated marketplace of 5,500+ deals allows buyers to quickly find inventory and download information following the one-click execution of an NDA as opposed to waiting for a response to an e-mail or phone call. You can find available properties and obtain information in minutes not days. Brokers also have a forum to reach and curate their listings to a wider audience than the local buyer pool and directly target our exponentially growing user pool of current and active commercial real estate investors.

ONE STOP DEAL MANAGEMENT

Real estate is still a mostly pen-and-paper industry which is time consuming and inefficient. The disposition process is rife with pain points. Most brokers are using 3-6 often expensive platforms to run their process and usually employ a staff of 2-3 team member for support. We’ve created a platform that will speak to every one of these pain points all in one intuitive easy to use web location. Game changing features are in development and will drastically simplify the entire process and transaction work-flow. Contact us for a demo.

SPEED

Commercial Real Estate remains a relatively illiquid asset class. Deals typically take 6-9 months from the first broker meeting to eventual closing. We aim to speed up transactions by eliminating inefficiencies and large chunks of downtime associated with slow information flow and antiquated processes. As famed investor Sam Zell says: “Liquidity Equals Value.” We aim to add value to the commercial real estate process by speeding up deals.

Nothing is easy, but we hope to make transactions easier.

 

Feel free to reach out anytime to “geek-out” over CRE or CRE Tech @ eli@crexi.com or 305.331.2881. Resumes are always welcome to those interested in joining the mission.

Coming Soon in our Weekly Blog:

  • Data-less 2017 Market Predictions (Analysis Without Paralysis)
  • What the F Does “Off-Market” Mean Anyway
  • A week in the Life of an Offering Memorandum
  • When Going Hard is Bad
  • Forget Hillary, Where Did My 30,000 (Marketing) E-Mails Go
  • Tinder for CRE
  • Thanks For the Listing, See You in Six Months

 

5 Reasons CRE Should Pay (Even More) Attention to Technology

Team CREXi – May 9, 2016

When it comes to tech adoption, CRE is a sleeping giant. The industry is one of the world’s most significant asset classes, with about a trillion dollars in capital changing hands globally each year. (National Real Estate Investor/Penton report on Global Leasing and Investment Sales Volume). It generates massive amounts of associated data, related documents, and critical correspondence.

The amount of information that must be handled and considered is far too large to manage without digital tools. Anyone who tries to tell you otherwise is just not paying attention. One of the fastest-growing areas of development for apps and platforms is in the CRE field, and the tools that are now available address virtually every task and process that we encounter.

Still, as an industry, CRE is lagging behind others in its rate of tech adoption. A recent report from the Altus Group surveyed more than 300 international CRE executives and made some findings that illustrate this. It found that worldwide CRE firms spend, approximately 50% less on technology than Financial Services and the Public Sector (including Healthcare).

The study found that more than 30% of the CRE industry worldwide is still primarily using spreadsheets for asset and portfolio management. This represents up to $11 trillion in assets -a stunning figure, when you consider the increased risk of human error and resulting inaccuracies inherent in handling these manually.

The remaining 2/3 of the industry does employ digital tools for managing portfolios and properties, but of those users, the study found that ¾ did so in “data silos.” This outdated approach of storing data in separate, unconnected applications is certainly an improvement over spreadsheets, but it fails to unlock the real potential of technology for CRE.

We stand to gain the same benefits from utilizing digital tools as other industries –and increasingly, our competitors- do.  Taking advantage of coordinated systems for managing customer relations, transactions, listings, marketing, and contacts is essential for moving our industry forward, and for keeping pace with related service providers in finance and development.  There are several advantages to tech adoption that apply regardless of the specific tool selected.

Security

Handling sensitive documents, including contracts, in the Cloud enhances security. Since they no longer reside in a single computer or a file cabinet, these documents are immune to theft and loss, safe behind the layers of protection and encryption that these services provide.

Accuracy

The use of coordinated tech tools eliminates redundancies that can be a source of error. Information is consistent and up to date across the organization.

Access

As more of us collaborate with remote colleagues and clients, the ability to access a project or transaction at any time, regardless of location is a tremendous time-saver.

Transparency

Working together virtually creates a clear story of every transaction that can be tracked by all team members. Actions are clearly dated and attributable, making everyone more accountable and heading off miscommunication.

Efficiency

All of the factors above contribute to increased efficiency.  Consider, for example the time involved in just securing signatures on a contract. Without online document sharing and e-signatures, multiple paper copies of the document would need to be produced and mailed. On arrival they would be reviewed, signed (if approved), and eventually mailed back. This can easily eat up 2 weeks, while multiple parties can often review and sign a contract online in one day.

Learn More at: www.crexi.com