Unlocking Value: The Role of Digital Transformation in CRE

In the fast-evolving world of commercial real estate (CRE), the question isn't whether digital transformation is necessary—it's how best to implement it to maximize value and efficiency. This transformation isn't about replacing people with technology; it's about amplifying human capabilities and redefining workflows. If you're a commercial real estate owner or broker, the stakes are clear: embrace digital transformation or risk falling behind. But how can you navigate this shift without losing the human touch that defines our industry? In this episode of the Peak Property Performance® podcast, we explore the nuances of digital transformation with Amanda Betts, VP of Marketing at Buildout. We dive deep into how technology and automation can drive growth, streamline operations, and ultimately, enhance property valuations.

Embracing Change: Overcoming Resistance in CRE

The commercial real estate industry has long been perceived as a late adopter of technology. Amanda Betts sheds light on why this resistance exists and how firms can overcome it. "I think it's a little bit in human nature to feel change and want to be resistant to change," Amanda explains. "This industry is not the fastest to adopt technology change either, and that's because you can get a lot of work done and make a lot of money not using tech."

Despite the initial reluctance, the benefits of embracing digital transformation are undeniable. Amanda shares an illustrative example of a broker who managed a successful multimillion-dollar business using a 150-page Google Doc. While this method worked, it exposed the business to risks like version control issues and errors. By adopting more sophisticated tools that automate repetitive, error-prone tasks, brokerages can free up time to focus on building relationships and closing deals.

The key to overcoming resistance lies in leadership. It is not about mandating change but modeling it. Amanda highlights this point: "Real success in firms is where leadership doesn't just mandate the adoption, they're modeling it. It's so easy to say, hey, do this, but monkey see, monkey do." Leaders must demonstrate the utility of new technologies by integrating them into their own workflows, thereby encouraging their teams to follow suit.

Leadership Mindset: Driving Tech Adoption

A leadership mindset that champions digital transformation can significantly impact tech adoption. Amanda emphasizes, "True leadership comes from your ability to influence other people around you, good for the good, hopefully." In firms where leaders model rather than mandate technology use, adoption happens more organically, leading to quicker and more effective integration.

Consider firms that have doubled their monthly deal volume not by hiring more staff but by implementing tools that streamline workflows. These firms have leaders who actively participate in the adoption process, educating and supporting their teams at every stage. This approach not only makes the adoption of new tools smoother but also builds a culture of continuous improvement and learning.

At OpticWise, we often discuss the role of leaders as Chief Repetitive Officers, or CROs. Bill Douglas, CEO of OpticWise, captures this sentiment well: "We walk around repeating what the vision and the purpose is, because a lot of times the tasks get in the way of why we are doing this. Especially with technology adoption, we have to do that, because our team might not want to change. Once they do it, they love it, but doing it is not so easy."

AI and Automation: Enhancing Broker Efficiency

AI and automation are revolutionizing broker efficiency by automating mundane and repetitive tasks. Amanda shares a scenario where brokers repeatedly input listing details into multiple documents, a process that was both time-consuming and error-prone. By integrating AI into their marketing automation, brokers can now upload listing details once, allowing AI to populate all necessary branding materials automatically.

This automation not only saves time but also reduces errors and frees brokers to focus on high-value activities like building trust and closing deals. Amanda notes, "Some of the most early adopters of our AI function were the ones where they knew that they can have AI built right into the marketing automation." This approach illustrates that AI isn't about replacing jobs but enhancing them.

The efficiency gained from these technologies translates into tangible benefits for CRE owners. Reduced overhead and streamlined operations mean that brokerages can offer more competitive packages to attract top talent. As Amanda points out, the savings from consolidating tools and increasing efficiency can be reinvested into the business, such as offering signing bonuses to recruit the best brokers.

For a deeper dive into how digital transformation is reshaping the commercial real estate landscape, listen to the full episode of the Peak Property Performance® podcast.

AI and Automation: Revolutionizing Deal Flow

In our discussion with Amanda Betts, we explored the transformative potential of AI and automation in improving deal flow and efficiency within brokerages. The traditional one-to-seven model, where each admin supports seven brokers, is being challenged. Modern brokerages are pushing towards a 15-to-one ratio, not by overburdening their staff, but by leveraging technology to handle repetitive tasks. This allows brokers to focus more on building relationships and closing deals.

Amanda Betts: "We want to make the admins the most efficient, so then you can grow your brokers, because that's where you're going to make your money."

By embedding AI directly into existing tools, brokerages are enhancing productivity without the need for significant investments in data science or custom coding. Simple automations, like auto-populating contact data into CRMs, can make a massive difference in daily operations. This strategic adoption of AI not only streamlines processes but also enhances the ability to scale efficiently.

Data Strategy: Leveraging Information for Success

Owning your data and digital infrastructure is crucial. If you don't own it, your vendors do. This ownership allows CRE firms to leverage data as a competitive asset. Amanda Betts emphasized the importance of understanding whether a tech product sells you a solution or sells your data as the product. This distinction is vital in choosing the right partners and tools.

Amanda Betts: "Data is leverage. That's not any different in today's world. If it lives in a connected system, it becomes a competitive asset."

Data portability and centralized systems are key. When data flows seamlessly from CRM to marketing to deal closure, it not only boosts operational efficiency but also enhances property valuations. A unified data strategy provides transparency and a comprehensive view of the business, making firms more attractive to potential buyers.

Digital Transformation: Beyond Technology

Digital transformation is not just about adopting new technologies; it's about fostering a mindset of adaptability and continuous learning. Leaders play a critical role in this process by modeling behavior and creating an environment where innovation thrives. Amanda Betts shared that true transformation depends on investing in the human side of the business.

Amanda Betts: "Transformation lives or dies based on how well you're gonna invest on the human side of the business."

Embedding digital transformation into the cultural fabric of a firm involves accountability and celebrating behavioral wins. Regular check-ins, white glove onboarding, and acknowledgment of small successes help maintain momentum and engagement. This approach ensures that technology becomes a tool for empowerment, not a source of frustration.

Actionable Takeaways for CRE Owners

As the commercial real estate landscape evolves, embracing digital transformation is not optional—it's essential. Here are some actionable steps for CRE owners:

• Invest in Leadership: Model the adoption of technology and create an environment of continuous learning and adaptability.
• Streamline Processes: Leverage AI and automation to handle repetitive tasks, allowing your team to focus on strategic activities.
• Own Your Data: Ensure your data and digital infrastructure are under your control to maximize leverage and competitive advantage.
• Build a Unified Data Strategy: Implement centralized systems that enhance transparency, efficiency, and property valuations.
• Foster a Culture of Accountability: Celebrate both big wins and small behavioral improvements to maintain engagement and drive transformation.

For more insights on optimizing your properties and navigating data and digital infrastructure, visit our Peak Property Performance® book and listen to the Peak Property Performance® Podcast.

About OpticWise: OpticWise provides owner-controlled data & digital infrastructure for commercial real estate — from PPP Audits to portfolio-wide intelligence. See how we operate or read customer outcomes.