As we know, technology is only growing and playing a more pivotal role in business. Commercial real estate brokerage is notoriously a lagging industry when it comes to tech, but why? I have a few ideas:
- Brokers are independent contractors – the vast majority of brokers choose their own tech stack. Therefore, each sale a tech company makes, is usually for just a few licenses and low dollar amount. That means they need more volume, which is difficult. This has led to an massive underserved need and an industry of brokers with the mindset of “this is just how things are”.
- Brokers are commission only – so by definition, if you’ve been a broker for a handful of years, you’re ‘successful’. Of course, everyone has a different definition of success, but if you’ve been a broker for more than a couple years, you’ve earned enough income to make a living. That leads to the ‘if it’s not broken, don’t fix it’ mindset, or in CRE broker’s case, ‘I’ve made good money doing things this way, why change?!”
For those who continue to push themselves and re-define their definition of success, this blog post is for you. Below are the main categories of CRE tech and a few of the key players in each category.
Customer Relationship Management (CRMs)
CRMs are essential tools for managing interactions with prospects, clients, leads, and other stakeholders. They provide a centralized platform to track communication and optimize relationship-building efforts.
Key Players:
- OS Prospects: Not your traditional CRM. OS Prospects is the first prospecting tool built with the sole purpose of helping brokers get more deals. Built for brokers, by brokers, with very little onboarding & ramp-up time. We may be a little biased 🙂
- Salesforce: A powerhouse CRM, offering robust features and customization. “No one ever got fired for buying Salesforce.” The challenge Salesforce provides CRE Brokers is that Salesforce is an ‘everything for everybody’ CRM. It is extremely robust and built for enterprise organizations (consisting of 100’s to 1,000’s of employees) with operations and administrative teams who can work with the consultants to onboard and customize it the way they need, manage the ongoing data input, create custom objects, and run reports. Most brokers, because they are independent contractors, don’t have that time and those resources.
- Apto: A Salesforce overlay, now owned by Buildout, tailored specifically for commercial real estate professionals. A few years ago, Buildout was acquired by a private-equity company. Since then, they have gone on a shopping spree and acquired a handful of CRE tech companies, including Apto. This has led to a lot of different tech products, onboarding teams, and company cultures getting merged into one.
- There are several others including Monday.com, Hubspot, Real Nex, and more. If you’d like to have a conversation about any of these, email me!
Pipeline Tracking
Pipeline tracking tools help manage the sales process, and keep track of all the important deals you’re running and key data points related to them.
Key Players:
- OS Deal View: All the important data points for individual brokers and teams to track in order to manage their pipeline effectively and get the most out of their efforts.
- Excel: Widely used for its customizable spreadsheet functionalities. Can be used for nearly anything.
- We’ve talked to thousands of brokers over the past few years. The vast majority track their deals and pipeline
Lease-Specific Software
Lease-specific software focuses on managing leases, providing tools to track lease terms, rent payments, and other critical lease-related data.
Key Players:
- LeaseUp: Designed to streamline lease management processes.
- AnthemIQ: Offers comprehensive solutions for lease administration.
Market Data
Market data tools provide expansive property databases and analytics for market trends and property performance.
Key Players:
- CoStar: A comprehensive platform providing a range of CRE solutions.
- LoopNet: Focuses on property listings and marketing.
- Crexi: Facilitates property discovery and transaction processes.
Accounting Software
Accounting software is usually purchased and operated by the brokerage, not the individual brokers. It is crucial for managing financial transactions, tracking expenses, and ensuring compliance.
Key Players:
- Yardi: A comprehensive property management and accounting solution.
- Commercial Edge: Tailored to CRE brokerages to track invoices.
- Dealius: Originally built as an invoicing and accounting system for CRE. They have attempted to expand their product offering.
- QuickBooks: Widely used for its user-friendly accounting tools. Generic accounting software used by companies of all industries and all sizes.
While each category has it’s place, the key is finding a tailored solution that aligns with your specific needs. We always say, the most expensive software is the one you pay for but don’t use or get any value out of. That’s why we built OS Prospects and OS Deal View, to give brokers simple, yet comprehensive software to take their business to the next level.
Charlie Coppola
