Who@'s Blog

Professional Networking Can Facilitate the Meeting of Supply and Demand for CRE

November 25, 2009 at 10:00 Leave a comment

Commercial Real Estate (“CRE”) is suffering from a lack of liquidity not seen since the late ‘80s to very early ‘90s.  Property values are slowly adjusting to 60% of highs across most categories, and to avoid reality many are just holding with the hope of better times to come.  Over the long term, all markets are better served when liquidity is maximized.

However, professional networking may help space users find space, capital providers find CRE investments funds, and property buyers find sellers.  These economic transactions close when connections occur between the supplier and the consumer.  Online networking tools connect information and basically help those interested in an introduction extend their reach.  CRE has always been a relationship driven business this is just an efficient productivity enhancement.

This concept should be particularly interesting to organizations that have a number of employees that each have their contacts, but have no means to leverage across all contacts in a controlled private manner.  Let’s suppose a leasing agent has space that is ideal for a grocer.  The agent can maximize the number of possible space users and the possibility of finding the right contact by reaching across all the contacts of the firm.

Another example might be a new fund which has recently closed with a new team that has interest in Class A office in the Southwest.  A long term owner would like to get a measure of interest from them about his asset, but has no direct relationship.  The professional networking tool would allow them to reach out across all downstream contacts with whom they have agreed to share.

Low cost, easy use, no travel and increased opportunity sound like a positive to improving the likelihood of valued connections and thereby liquidity in CRE.

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