It is going to change the way we do real estate processes, and the ones who don't get it right are going to be roadkill. For example, we can use the system to reserve a conference room and order the food that will be served during the conference at the same time. But many executives say the big savings may come from changing the way transactions are conducted, especially sales and leases. That will mean changes in how brokers operate and are paid. Until recently, a big part of brokers' stock in trade was their knowledge of the market.
Brokers are in the market every day, while their clients get involved only when their needs change.
In tight markets, they know which spaces are likely to come on the market. In markets glutted with space, they know which landlords are willing to make financial concessions to lease space. But that information is becoming more accessible to anyone willing to pay a price. Two national service companies, CoStar and RealtyIQ, collect information on property and transactions and make it available to online subscribers for a fee. As a result, the value of market knowledge is suddenly much lower.