Changes have been slowly underway in the archaic industry of commercial real estate, but no one could have predicted the Armageddon which was 2020. I had been a staunch believer that a downturn would create a boom for flexible real estate operators, as uncertainty would surely drive demand for short term commitments. What I could never have imagined was the reality that the Coronavirus pandemic created. This was not a typical downturn like the industry has experienced time and time again. The pandemic created a complete and abrupt stoppage to commercial leasing activity. Literally, all leasing activity grinded to a halt and everyone stopped coming into the office. Even old school thinkers like myself, those who believed that remote working was the death of productivity, started to see the euphoria of a 5-second commute, instead of the 4 hours I traveled everyday into and out of NYC. As much as I believed in the future of Flex, I never saw a future where commercial landlords would experience disruption on the level of Blockbuster video. I was wrong. The world has changed forever. Even when the vaccine brings an end to the pandemic, and I believe it will, the future will never be the same.
Your right that CRE needs an OS, but none of these guys have the Killer App.
I have 95 apps on my iPhone. I use 9 of these daily (including the phone, SMS and contact apps which were on my first mobile phone) and 11 on a weekly basis... and now I only have 65 apps on my phone because I deleted 30 that I can't remember using.
I believe the OS we're searching for may be more physical than digital. The biggest barrier landlords face to offering flexibility to tenants is the fit-out. Moving walls, HVAC, IT and fire protection systems is expensive and time consuming! If someone finds a way to repartition space every night for the needs of the building users the next morning they will have a killer app that tenants will demand - and pay for.
Until then, we will slowly evolve and the dream of a transformative CRE OS will remain just that.
Most interesting ideas.I'm more into residential .The keyword is "evolving" the dust hasn't began to settle a yet. What's to make of the millions + ft2 that will inevitably be unused?And what of the proposals enunciated in the press about converting them into residential apartments ?
How will that affect the overall market including the residential one in the City ? What effect could that conceivably have on the OS discussed here?
This is great. Thinking about physical space in the same way we do about software allows us to strip away some of the older ways of thinking and inject innovation. Instead of landlords, tenants, and brokers all being on different sides of the table, we need a provider that bridges gaps under the same purpose; to create spaces that people want to (and can afford to) use.
Great article!!! While your focus is on the commercial real estate space, there is a similar need on the residential side with significant upside as well. I am happy to be leading the growth of very solid company doing just that.
Your right that CRE needs an OS, but none of these guys have the Killer App.
I have 95 apps on my iPhone. I use 9 of these daily (including the phone, SMS and contact apps which were on my first mobile phone) and 11 on a weekly basis... and now I only have 65 apps on my phone because I deleted 30 that I can't remember using.
I believe the OS we're searching for may be more physical than digital. The biggest barrier landlords face to offering flexibility to tenants is the fit-out. Moving walls, HVAC, IT and fire protection systems is expensive and time consuming! If someone finds a way to repartition space every night for the needs of the building users the next morning they will have a killer app that tenants will demand - and pay for.
Until then, we will slowly evolve and the dream of a transformative CRE OS will remain just that.
Love the article, Glenn! This really hits home. Let's talk. Yael Tamar.
There is a vibrancy that comes with in person interaction that Zoom calls simply can't compete with. Very insightful.
Thought provoking!! Thank you Glenn
Good article...thanks. Interesting and a bit scary!
Most interesting ideas.I'm more into residential .The keyword is "evolving" the dust hasn't began to settle a yet. What's to make of the millions + ft2 that will inevitably be unused?And what of the proposals enunciated in the press about converting them into residential apartments ?
How will that affect the overall market including the residential one in the City ? What effect could that conceivably have on the OS discussed here?
This is great. Thinking about physical space in the same way we do about software allows us to strip away some of the older ways of thinking and inject innovation. Instead of landlords, tenants, and brokers all being on different sides of the table, we need a provider that bridges gaps under the same purpose; to create spaces that people want to (and can afford to) use.
Very good article Glenn! Looking forward to seeing the same on residential real estate. Congratulations and good luck to you!
Excellent read
Thanks for this, Glenn. Great article, and couldn't agree more with your thoughts on these areas as we emerge from the pandemic in the coming months.
Very informative Glenn. Kastle is seizing the very opportunities you've laid out.
Great article!!! While your focus is on the commercial real estate space, there is a similar need on the residential side with significant upside as well. I am happy to be leading the growth of very solid company doing just that.
great insights Glenn, couldn't agree with you more.