Uber for Commercial Real Estate?

Not long ago computers were a hindrance, not a help to commercial real estate brokerage. They stopped people from making cold calls and doing deals. Stopped them from doing the things that resulted in relationships, and results for clients.

Many of us late Gen Xers aimed for a Commercial Brokerage that was as heavy on results as the best big brokerages, and more efficient than the most efficient internet companies. I’m proud to say NAI Northern California is today on the cutting edge and extremely unique in categories such as technology, culture and collaboration, training, and efficiency, but we’re still maybe 70% old economy, 30% new economy.

Other commercial agents and brokerages cut out the old economy model of brokerage, relying on social media, landing pages, and email blasts only to sell properties, before confirming if the technology was ready. In general, we have a word for them: poor.

We all know there are robots today that can drive cars better and safer than any of us. Hopefully you’ve come to grips with the fact that Uber only needs humans for the next decade or so until they can cut this most inefficient and expensive part of their service out in favor of a fleet of almost human free robot cars.

Many claim that this same thing is soon to happen to commercial brokerage. That social media, cloud based solutions and automated clearing houses would render commercial brokerages superfluous. Some day they probably will, but it looks to be a very long time from now. One of the closest today might be Real Capital Markets. They seem to have cornered an admirable piece of the $10M sales transaction management market. Similarly, we have Costar for Data, and Loopnet(owned by Costar) for listings. But they’re still tools brokers use, not a completely new and efficient way of doing business.

On the flipside, there are tech companies like CompStak very slowly trying to intrude on Costar’s borderline monopoly, View the Space, and others, but they don’t seem to have any aspirations of actually serving a brokerage function. 42 Floors was the only company interested in straddling both sides of the fence. That just ended.


This admirably forward-looking Real Estate Tech company lays off 14 brokers to abandon the only part of their business that was somewhat conventional and focus on the part of their business that is relatively unadulterated tech/internet.

My guess is that we’re a ways off from even a Redfin for Commercial. Let alone a complete replacement, so hopefully you love you broker. If not, give me a call, and I’ll try to introduce you to an advisor you’ll love.

In the meantime, we’ll have to look for, welcome, and embrace those incremental disruptions that bring increased transparency, efficiency, and value to the services we provide our clients, or face the prospect of being disrupted out of a job by the more forward-thinking next generation advisors.

Original Souce: https://www.linkedin.com/pulse/uber-commercial-real-estate-james-kilpatrick?trk=hb_ntf_MEGAPHONE_ARTICLE_POST

NAI Northern California Closes $3.3 Million Mill Valley Multifamily Asset

MILL VALLEY – February 2014 – NAI Northern California is proud to announce the sale of a 12-unit multifamily apartment complex in Mill Valley, CA.  This is the latest in a string of high-quality transactions in the North Bay Multi-family market.

NAI was retained as exclusive representation for the Seller in the transaction and represented the Buyer as well. The property presented a unique opportunity due to low inventory in Southern Marin, high rental upside, amenities and an ideal San Francisco Bay Area location.

According to Joby Tapia who handled the transaction, “this quiet neighborhood in Mill Valley hasn’t seen this type of opportunity in decades. With planned renovations, this property should outperform neighboring properties.”

Firm President James Kilpatrick added, “This is a great example of how technology and expertise are both essential for the best outcome. Our Salesforce platform accessed serious Buyers outside of conventional parties. Joby’s years of expertise made sure a premium price was paid, and that the process and risks were well managed”.

Joby is an executive with 15 years of experience managing commercial and multifamily assets, including market rate and rent-controlled properties, for both private and institutional owners in the Northern California.

About NAI Northern California

Named a Top Commercial Real Estate Brokerage Firm by the East Bay and San Francisco Business Times, NAI Northern California’s three SF Bay Area offices are growing rapidly and benefit from 385 NAI offices worldwide. NAI Global is the largest managed network in the world and continues to be a top 5 worldwide Brand and operation as recognized by the most recent Lipsey Survey.

NAI Global Ranked Fifth Among Top 25 Commercial Real Estate Brands in 14th Annual Lipsey Survey

San Francisco, CA – February 26th, 2015: NAI Global, the world’s largest, most powerful network of owner-operated commercial real estate firms, earned the fifth spot in the 2015 Lipsey Survey of Top 25 Commercial Real Estate Brands. The survey was conducted among 100,000 commercial real estate professionals using a combination of ballot voting, phone interviews and focus groups to evaluate innovation, responsiveness and quality of service. NAI Global is the only commercial real estate network of independently owned and operated firms represented among the top five. NAI Northern California, based in San Francisco is a Member of NAI Global.

“We are proud that our clients and advisors continue to benefit from the incredible synergies of the NAI Global network, and that our strength and achievements are recognized by our consistently high rank among industry peers and colleagues” said James Kilpatrick, President of NAI Northern California.

The survey is conducted by The Lipsey Company, a leading training and consulting firm specializing in the commercial real estate industry. The 2015 survey results can be found here http://www.lipseyco.com./brand-survey.

About NAI Northern California

Named a Top Commercial Real Estate Brokerage Firm by the East Bay and San Francisco Business Times, NAI Northern California prides itself on its accomplishments, culture and growth. With three offices in the Northern California Bay Area and 385 worldwide, NAI Global is the largest managed network in the world.

About NAI Global

NAI Global is the single largest, most powerful global network of owner-operated commercial real estate brokerage firms. NAI Global provides a full range of corporate real estate services, including brokerage and leasing, property and facilities management, real estate investment and capital market services, due diligence, global supply chain and logistics consulting and related advisory services. NAI Global Member firms, leaders in their local markets, are actively managed to work in unison and provide clients with exceptional solutions to their commercial real estate needs.

NAI Global was acquired in 2012 by C-III Capital Partners, a leading commercial real estate services company engaged in a broad range of activities, including primary and special loan servicing, loan origination, fund management, CDO management, principal investment, online capital markets, title services and multifamily property management. C-III’s principal place of business is located in Irving, TX, with additional offices in New York, NY, Greenville, SC and Nashville, TN.

To learn more, visit www.naiglobal.com and www.nainorcal.com

NAI Northern California’s Jordan Geller Closes Back to Back Sonoma Apartment Complexes

– January 2015 - NAI Northern California announced the sale of two Sonoma apartment buildings this month, another closing shortly, and a 4th coming to market. The closed transactions sales prices are $2,850,000 for 16 units and $1,498,000 for 10 units.

The well-located 16-unit at 885 Broadway, is a half mile from Sonoma’s downtown Plaza. While current rents are below market, after capital improvements the buyers expect significant rent growth. The complex will also benefit from the proposed Sonoma Gateway Commons project, planned for the northeast corner of Broadway and MacArthur.

The 10-unit at 120 Buena Vida Court is in the El Verano neighborhood of Sonoma with below market rents as well. This rental sub-market has vacancy under 4%. That demand fuels a plan to potentially add units to the large lot.

NAI Northern California has another multi-unit Mill Valley property currently under sales contract near asking for $3,320,000 and a 3.27% cap rate that is scheduled to close in the coming weeks. Joby Tapia is handling that sale and has another large multi-family asset that will be brought to market shortly.

President of the firm, James Kilpatrick added, “As we continue to see competition for high quality assets in core markets, real estate professionals like Jordan Geller and Joby Tapia may be suggesting to their clients that it’s a good time to sell assets–particularly if they have identified larger or add-value opportunities to exchange into”.

Jordan is a current member of the San Francisco Urban Land Institute and serves on a committee to explore increased housing density along San Francisco’s transit corridors for the San Francisco Housing Action Coalition. Joby has over 15 years experience managing commercial and multifamily assets and is a CAA certified instructor for CCRM designation coursework.

About NAI Northern California

Named a Top Commercial Real Estate Brokerage Firm by the East Bay and San Francisco Business Times, NAI Northern California prides itself on its accomplishments, culture and growth. With three offices in the Northern California Bay Area and 385 worldwide, NAI Global is the largest managed network in the world. For more information regarding these sales and other properties in the NAI portfolio, please contact (415) 226-0360.

NAI Broker Ethan Berger Closes 52-Unit Antioch Apartment Complex

ANTIOCH – December 2014 – NAI Northern California announced the sale of a multifamily apartment complex in Antioch, CA. This is the largest multifamily transaction in Antioch for 2014, both for number of units and for total dollar amount.

The Buyer in the transaction was represented by Ethan Berger of NAI Northern California, which was never publicly advertised. Berger became aware of the opportunity through direct contact with the Owner, who had owned the property for 25 years. The subject property was comprised of 80%+ 2 bedroom units and offered the potential for the new Owners to acquire a property with a significant amount of units at a low gross rent multiplier and to re-position the property to achieve significant upside.

NAI’s President James Kilpatrick added, “This is a good example of a continued trend we’re seeing where deliverable multifamily assets with upside potential in secondary markets are seeing increasingly competitive Buyer demand. Even local specialists such as Ethan Berger require aggressive legwork to be able to secure these investments for our clients. A large part of this is how many investors are chasing relatively attractive yields while rates remain low.”

Ethan began his career in 2009 as a member of the Contra Costa & Solano multifamily brokerage team at NAI representing buyers and sellers of multifamily properties. He hasgained a reputation of reliability and distinction after selling a number of buildings for record prices while delivering attentive service to his clients. Since joining NAI, Berger has been involved in a number of record-setting transactions in cities throughout Contra Costa and Solano Counties. His reputation as a dedicated, aggressive, and client-centric sales professional is evident in his successes and the relationships he has forged.

About NAI Northern California

Named a Top Commercial Real Estate Brokerage Firm by the East Bay and San Francisco Business Times, NAI Northern California prides itself on its accomplishments, culture and growth. With three offices in the Northern California Bay Area and 385 worldwide, NAI Global is the largest managed network in the world.