(Alternative heading: 5 reasons why CRE will never “TripAdvisor” or “AirBnB”)
The Ford Edsel, Microsoft’s Zune, New Coke and Google Glass. What do they all have in common? They are all product flops. Similarly, it is our view and experience that any product aiming to remove agents from commercial real estate will end up in the same trash heap. But first some background.
Like most of the Southern Hemisphere’s CRE industry I have just been on holiday. During this time I used and became impressed with the power of TripAdvisor. If you haven’t heard of it, TripAdvisor uses crowd-sourced ratings and a lot of user-friendly slice and dice tooling, to replace the traditional travel agent completely. How? It empowers you as a traveler to “self-serve” and engage directly with the hotel or guest house.
In short: occupiers talking directly to a property through sophisticated technology…
Can you feel the dots connecting?
Think about it – TripAdvisor gives users a one stop shop where complete information around available stock is available, and allows users to transact. Seamlessly.
No agents needed!
Cue alarm bells. Panic. Doom and gloom. Tech is out to get us!
As the former shareholders of these businesses below will tell you, tech-driven disruption is fast and painful: