This week Forbes and/or Bisnow asserted that 90 percent of a commercial real estate broker’s job will be done by technology in a decade. Here at Capstak we agree...to an extent. Hopefully technology will take away the burden of administrative work – CRM, uploading listings or managing a calendar – and give brokers the ability to spend 100 percent of their time on what technology will never replace, human to human interaction. Deals don’t happen because of business intelligence, or because of a virtual reality tour. Deals close because you trust the person you’re working with, and they have given you the confidence that the project will be successful. So, be thankful that technology will hopefully take over 90 percent of your work, because there will always be that 10 percent that is irreplaceable.
The Fed has had concerns about commercial real estate for some time now. And, who can blame them. We’re in, at least, year seven of an up-cycle with no sign that prices are going to stabilize. For example, in 2017, “The ongoing apartment building-boom in the US will set a new record: 346,000 new rental apartments in buildings with 50+ units are expected to hit the market.” Hopefully all that multifamily building is the right bet.
Like we said in the previous article, 2017 has seen an apartment boom. The problem with that is, according to CBRE research people are actually moving to suburbs instead of urban areas. At least in Texas. While this may seem isolated, Texas is currently receiving the most residents from other states than the rest of the US. Hopefully this is an isolated issue, and we don’t see soring vacancy rates in multifamily across the country.
Another announcement this week, is that CBRE was selected as the exclusive agent to market and sell the first shipping container community in the Western U.S. The shipping container development, located in downtown Phoenix, is currently the only shipping container community in the country on the market. Are shipping containers going to be the answer to the affordable housing issues we’re currently having. Or, is it another fad that will be overbuilt and unable to be repurposed.
Today, Tesla's long-awaited mass-market electric vehicle, is officially launching. And, no matter the outcome it seems like Telsa is going to come out on top. “If the Model 3 does well, it's a win for the electric vehicle market. And if the worst happens—say, a factory grinds to a halt and creates gigantic production delays—future EVs can coast off Tesla’s cultural cache. This is the company that managed to make electric vehicles cool.” Let’s hope this is the comeback of the American automobile...without the necessary rebuild of Detroit.