"I started realizing that technology will one day affect the commercial real estate space"
The commercial real estate landscape, like any cyclical industries, pushes brokers to plan far ahead and position themselves for the future. Ira Zlotowitz, founder and CEO of GPARANCY, believes the way leaders respond determines winners and losers for the years to come.
In the latest edition of MPA Talk, Zlotowitz shared how the rapidly changing nature of the commercial sector became the guiding principle behind his decision to leave Eastern Union, a commercial real estate brokerage he co-founded 20 years ago.
“I started realizing that technology will one day affect the commercial real estate space,” he told MPA. “I realized that, unlike other industries that totally replaced people, I think it was a hybrid, half-human half-machine, some percent of human-machine and better tools for those humans. I think technology doesn’t replace people. People using technology replace other people. And so, over the years, I’ve always tried to be ahead of the curve using the latest technology and data points to grow the business.”
Zlotowitz also emphasized the importance of preparation.
“I don’t think it’s that important to reinvent. That shouldn’t be your mission. The mission should be to follow the winds, stop looking at trends, and track your own data,” Zlotowitz said. “If you’re noticing that when you used to get a deal, you convert a certain percentage of clients and their average fee was a certain percent. Then you start noticing that going down when you notice that I end up refinancing and financing 100% of this person’s portfolio, and now he’s not scattering in certain deals, that for whatever reason, he stops doing it himself… then you start to see the trends. Deal with that. Be prepared to make that change.”
Listen to the full MPA Talk podcast episode here: What’s the future of the commercial mortgage business?