Here we attempt to apply the timeless, and immensely powerful, economic concept of opportunity cost to CRE. Using a video and story, we attempt to illustrate what a powerful efficiency lever opportunity cost can be. If you can apply the principles, we feel confident you will see the benefits in your business, and in your bank account!
This blog is the ongoing, and collective, output of many CRE professionals in the commercial real estate industry and us here at Gmaven.
If you ask what Gmaven team members do, all will have different answers. But if you ask why, you will pick up one common thread: the desire to make things better. To make a difference. And how do we do this? We deliver efficiency. Efficiency to businesses, efficiency to hard-working professionals in those businesses, and efficiency to the industry as a whole. How data is flowed, how data is managed, how processes take place.
The CRE drug
Me personally? I joined commercial real estate (CRE) in 2006 as an investment sales / capital markets broker, when I was a young, green and enthusiastic chartered accountant. CRE hooked me then, and many years later, I keep on coming back for the hits. This industry runs on data, and is all about numbers. Moreover, it is incredibly complex – you always find yourself learning. But precisely because of this complexity, the industry is backward in its adoption of technology, and without tools. This creates exciting opportunities to provide efficiency and make a difference. Starting off my working life as an auditor, this opportunity to both add efficiency and be of value was intoxicating.
An industry with a bad rep
But with the passing of time I realised the industry has a major reputation problem. An undeserved reputation problem.
Brokers have a poor reputation.
Property owners have a bad reputation for not being straight.
Sometimes this is deserved.
Other times it is merely a function of CRE being complex. CRE’s numbers are big. It’s easy for outsiders to misunderstand things. And expectation gaps are misinterpreted as attempts by industry insiders to muddy the waters.
This is unfair. But it’s also a reality.