Change

“All great changes are preceded by chaos.” -Deepak Chopra

Every day we are confronted by the fact that our modern world is changing, and that change is accelerating. If you are reading this blog you know exactly what I am talking about. Let's think about it for a moment. 

Remember when you wanted to look something up you went to the library? Google changed that in the course of a few years and has made a $40 Billion Dollar Annual Business in the process. Today I have been tweeted, texted, called, and may Facetime all on my cellphone. Nobody had cell phones when I graduated from high school! I'm only 30 years old. 

I remember when my dad, an IBM sales manager at the time, brought home the first family computer. It had a green screen and the keyboard made a funny kind of a click-clack like the keys were spring loaded.  With a good deal of excitement my Dad plugged the computer in the phone line and we booted up Prodigy. Remember Prodigy? In 1990 it was the world's 2nd largest search provider. Today it is a distant memory after being swallowed by what is now the reenergized AT&T.

Think about how Facebook has changed our interaction with old friends and classmates. Now you know what everyone had for breakfast on this Easter morning.

In this time of unprecedented change, think about all of the new businesses that have built their castles on this new digital ground. Norton Anti Virus (Symantec). Netflix. LinkedIn. Ebay. Zynga.

Older companies can get into the mix too. Apple placed itself firmly in this new landscape by controlling digital content (iTunes) and creating a simple yet innovative user interaction with iPods, iPhones, and iPads.

What does this have to do with commercial real estate?

Today nothing beats face to face interaction and a relationship built on trust and performance. However, the methods in which we reach potential buyers and tenants will change substantially in the next 10 years. As the younger, digital generation obtains the means and decision making power to make commercial real estate decisions, brokers and owners need to communicate effectively to this audience. It also means that strong companies of yester year (Blockbuster, Best Buy, etc.) will face increasing competition and decreasing profits. A realistic plan for tenant turn over in commercial properties needs to be reviewed on a quarterly basis.