The decision to implement enterprise real estate technology software can represent a significant upfront cost – in dollars and time for training and implementation – and is often quelled by the company’s decision to maintain the status quo.
It’s no secret that the real estate industry is relatively averse to new technologies. It’s understandable, of course, given the tried and true methods of paper RFP’s, building interpersonal relationships, steak dinners and offline transactions.
The real estate procurement process - from vendor management to bid leveling to spend tracking - can be a bear. Complexity often occurs for good reason, whether it’s due to an increase in project sizes or an appreciation for the benefits accrued from competitively bidding your projects.
We always hear that technology will significantly change how real estate markets operate, and revolutionize an industry often regarded as an ancient mastodon. There is, however, one clever bit of real estate technology that’s been around for some time and has already transformed both the residential real estate markets and the national economy in a most disruptive fashion: mortgage analytics.
Most real estate professionals rely heavily on word of mouth when they look for new vendors. A referral from a trusted colleague is a powerful thing, but it paints a narrow picture of someone’s qualifications.
Procurement - that murky phase between budgeting and building – is somehow still the red-headed stepchild of the real estate process. While real estate owners and operators have modernized their leasing, fundraising, and marketing strategies with technologies like VTS, Hightower, Fundrise and Floored, they are just beginning to address inefficiencies in the vendor management and bid management processes.
The real estate industry is built on relationships. You probably assume the service providers you’ve worked with for years are the best for your projects, and you may very well be right. Familiarity with process, company culture and mutual expectations are strong factors in favor of maintaining a go-to team.
We know that technology is essential in order to stay competitive, and the increased efficiency it allows can dramatically lower costs and save time. It’s also true that, if we’re not careful, the tools we use can end up costing just as much time as they save.
Adopting new technology platforms are disruptive to your team’s established workflow and costly to implement, right? Not necessarily. In fact, the opposite may be true.
Kushner Companies is responsible for more than 20,000 multi-family apartments and well over 12 million square feet of office, industrial and retail space across six states. As a company guided by strategic, innovative thinking, Kushner refused to accept the traditional, cumbersome “system” of Outlook, Excel, PDFs, faxes and text messages in order to drive procurement.