Can technology replace everything? Stay competitive with basic human interactions - by Perna

In the real estate industry, there are certain “nuts and bolts” methods of doing business that I believe will never change.

No matter how much advanced technology improves our communication in the real estate world, there are basic human interactions that will always be required to be competitive.There is no question technology has allowed us to easily reach and conduct business, not only in other parts of the country, but across the globe. It has also enabled us to interact with, and become familiar with areas we never would have thought we could.

Technology has also provided useful tools for presentation and financial analysis that enable us to differentiate our organizations and properties, and stand out against competition. In my opinion, however, there is one aspect that I believe technology will never replace. You will always need to see the “whites of the customer’s eyes” in order to build rapport and a relationship. Instead of being just a voice over the telephone, you become someone who demonstrates a real interest in providing a service; the mark of a true professional.

If you are conducting your brokerage business within your local markets, it is important to be on the streets. You need to know where certain businesses are located, the size of their facilities, what the surrounding environs are like and the nature of their business. Technology alone cannot do this. Sure, you can go to Google Maps, but sorry to say, you need to physically see the buildings, know the streets, how to get around, and become a witness to the various types of businesses. When you are physically driving or walking in your marketplace, you can see who is busy and who is not, while also acquiring important information about other potential customers who may be looking to expand or sell their facilities.

Another aspect of effective real estate brokering that is important, especially for newcomers in the industry, is the canvassing of local markets. Foot canvassing does not have to be a door-to-door operation. You can target your canvassing based on what you’re trying to achieve. For example, when you have a particular building or agency, the first approach to canvassing is to target companies in the immediate area. Why? Companies in close proximity to the property will, for the most part, look for additional space locally. Most interesting, based on my experience, many companies and their executives always want to know what is going on within their areas. In the process of canvassing, you can acquire useful information about these other companies and their businesses, while getting to personally know the decision makers.

The advent of e-mails is another technological advance that has facilitated the process of communication with our customers, landlords and attorneys, among others. We have become dependent on e-mails to conduct business, facilitate communications and give multiple people quick access to the same information. Sometime, however, e-mails can get in the way of concluding transactions. As we all know, issues often arise when trying to conclude leases and contracts. In those instances, emails aren’t always enough to facilitate a resolution. The in-person meeting is critical if you want to get the deal done.

I am a firm believer in technology, but I am also “old school.” Yes, certainly e-mails during the initial phases of a business transaction are necessary to get the process in motion, and can certainly fast track the comments portions of leases and contracts, versus going back and forth through the mail. But, there can be a breakdown in communication and personalities tend to grandstand behind e-mails.

In my experience, the conclusion of a transaction is best achieved with a face-to-face meeting. By having all parties present to discuss the outstanding points of the lease or contract, you can get the job completed.

E-mails for basic communication, arranging appointments, offering out space, sending proposals, and conduct e-mail blast marketing mailings are great tools. There are times, however, when technology is not applicable to get deals done, or accomplish the essential “hands- on” in the marketplace. We all have, including me, come to rely on technology, and yes, I would be lost without my phone, my emails and my computer. Certainly, there is no denying that technology allows you to become more organized and productive. My closing question is: “Will technology replace brokers?” I think you probably know my answer.

Stay tuned!

Ralph Perna is the executive managing director of Newmark Grubb Knight Frank, Melville, N.Y.