PikeNet Dispatch, January 28, 2003
Vol 8 No. 8 (637), "More than 9,000 subscribers"
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Watch Out for "Paradigm Shifts" II
 
Is Technology Dangerous? ... Remember the old expression, "The more things change, the more they stay the same." Don't you sometimes feel the same way about the real estate industry? As I wrote in Watch Out for "Paradigm Shifts" (Dec 12, 2002), "When you hear the phrase 'We're changing the paradigm,' put your hand on your wallet." The core of the real estate business doesn't change. Many readers responded with similar sentiments.

Steven Hufendick, a Senior Asset Manager at ING Americas Corporate Real Estate, Minneapolis, MN, wrote, "When I pour through old investment files and compare my very complex valuations -- complete with computer models and loads of iterations covering most perceivable contingencies -- with a two-page, yellowing, handwritten ledger outlining a deal from 1950, I am particularly struck with how information was communicated so simply then."

Andy Melzer with BRE Commercial / NAI in Carlsbad, CA, wrote, "When the real estate industry recognizes something of value, it will adopt it without any problem. So far the value in the transaction is still in the relationship and not in the software."

Richard Etzkorn with Colliers Turley Martin Tucker in St. Louis, MO, writes, "Technology is simply a tool. If it cannot make the process more efficient, it is worthless and perhaps even dangerous! The act of gathering data can lead to great inefficiencies. People want more and more data and do not really do anything with it. Keep it simple. Make it do real work or don't use it."

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--Peter Pike

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