In 2015, my good friend Bill Lee(1942-2021) and I co-authored a CRE book titled Chasing Excellence. The current state of the office market has me thinking about Chapter 20 in our book, “Everything is Being Disrupted—Except This.”
In today’s rapidly changing world, the real estate market is no exception; everything is being disrupted. To stay relevant, you must adapt to new ways of doing business. Yet, amid all this change, one thing remains constant: Relationships. They continue to be the cornerstone of our success.
I thought I would share that chapter with you. You can read the chapter from our book below. Though it was written nearly a decade ago, the message remains clear: relationships will always be vital in the commercial real estate world. If you want more wisdom from us, you can buy it on Amazon using the link here!
Craig & Bill – 2019
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CHAPTER 20:
EVERYTHING IS BEING DISRUPTED — EXCEPT THIS
By: R. Craig Coppola & Bill Lee
As I’ve gained success and hit my thirtieth year in brokerage, I’ve
started looking at my success with an eye toward my legacy. With two of
my kids already out of college, and two more finishing up their education,
I think back to finger painting and bedtime story days with fondness. I’ve
never been one to fight change, but there’s truth to the statement that things
were simpler in the past. Well, maybe not simpler, but they were much
more predictable.
Today, everything is being disrupted. Old business models and “the
way we used to do it” mentalities are crumbling under the weight of new
innovations. These days, disruption is the new norm.
What does this mean for businesses? In my experience, it means that
there are no more sacred cows. “Sacred cows” refers to the Hindu belief
that cows are holy beings and are never to be slain. In business, it refers to
the traditions that companies cling to and refuse to slay or simply update,
even though the times have changed. And unfortunately, the relevance of
those traditions is quickly disappearing.
Today, there’s no tradition that isn’t on the table. Everything has to be
up for grabs all the time. Change is the new normal, and you have to be
willing to give up everything in order to keep up with the competition.
Companies that cling to the old ways, to the methods that have worked
for years, are being replaced by newer startups with fluid, adaptable
structures; innovative ideas; and rapid implementation of those ideas.
These more flexible competitors are coming in and stealing business from
the companies that refuse to change. Everything, from client acquisitions
to communications to corporate structure, is being disrupted.
The only thing that still stands, and I believe will continue to stand, is
the notion of relationships. Relationships will always be the most important
aspect of business because, even though the tools of relationship building
continue to change, human connections are everlasting. There is nothing
newer or better that will supplant relationships. Relationships will remain
vital to business success, no matter what else changes.
The pursuit of excellence means learning to let go of the old and
embrace the new. And believe me, there is a lot of new coming our way.
You have to be okay with this or you will not survive in this business or
any business.
Some tangible examples of the type of disruptions I’m speaking
of include:
1. Technology. This is a big one. The way we access information has
changed drastically over the past two decades. With the Internet,
laptops, smartphones, and Google, every year the changes in this
sector come faster and hit harder. While many of these changes are
improving the way we do business, helping us work quicker and
more efficiently, it can be difficult to keep up with the latest
technologies.
For brokers, a prominent example of technology disrupting the
business is CoStar. Listings are now easy to access online. No more
driving around and writing down the information on a leasing sign.
Today, everything you need to know about a building is a click away,
making business much quicker and, as a result, much
more competitive.
2. Companies chasing national accounts. JLL and CBRE are getting
tons of national accounts, and they are taking on any company with
more than fifteen to twenty offices nationwide. It used to be that they
would only work with companies with more than fifty offices, but
these days they’re facing stiff competition from all the other
brokerages that are chasing national accounts. The idea of working
with national companies is growing increasingly prevalent in
our industry.
3. Office space. This is a huge interest of mine. When I started out, the
typical office consisted of as many gray cubicles as could fit in one
space, a few conference rooms, and one or two offices with a view
for the higher-ups. Today, open space concepts are dominating the
markets. Communal workstations, cool cafés, lounges these are the
new norm. These are what millennials entering the workforce are
looking for in an office. If you want to attract new talent, you have
to be open to new structures.
Is anything really sacred anymore? Can you honestly examine your
industry, your company, and find something that you believe will never
change? I’ve put my mind to it and the only true sacred cow that remains
is relationships. Everything else is up for grabs to the fastest, brightest
innovators. If you’re not prepared to adapt, then be prepared to be left in
the dust.
