Disintermediate means to remove middlemen from a value chain by providing goods and services directly to the consumer.
Examples of disintermediation:
- Car buying websites enabling car sellers to engage directly with car buyers (leaving out car dealers)
- Garage sales where sellers of old furniture can sell directly to passers by (leaving out auctioneers)
- Direct insurance models, where customers of insurance can buy direct from insurance providers (leaving out insurance brokers)
Why is this relevant to commercial real estate (CRE)? Within certain circles in CRE there is a belief that agents (leasing consultants or brokers or CRES providers) will be removed, or disintermediated, from CRE deal processes (sales deals and leasing deals). That is, prospective tenants will contract directly with owners of that space, or owners of property will sell directly to other owners of property.
It is Gmaven’s opinion that this will not happen. The reasons to disintermediate CRE professionals are fewer than those in favour of having skilled CRE professionals in play. If you are interested in reading more on our possibly controversial view, please click here for an article explaining our reasons.