‘Reinvent Yourself With Tech’: How Brokers Can Position Themselves For Success In The Next Bull Market

The steady rise of artificial intelligence has many people worried about the long-term viability of their jobs. 

Kris Krisco, co-CEO of CRE software company Buildout, has a different perspective. He said instead of looking nervously over their shoulders at the oncoming AI revolution, commercial real estate professionals, brokers in particular, should be focused on the road ahead. 

Krisco said smart technology, used wisely, is an enabler, not a threat. In particular, he said, savvy brokers should take advantage of the current CRE market to gain familiarity with new tools to put themselves in a stronger competitive position when interest rates begin to fall and deal activity picks up.

“People who rise to the occasion are using this as an opportunity to do something that they've been thinking about for a while, to get more creative, try new tools and grow their business,” Krisco said. “The most successful brokers are leaning into technology because the AI landscape is incredible and they want to know what it can do for the modern-day broker.”

Fourteen-year-old Buildout’s mission is to help brokers adopt AI tools so they can be more productive. Bisnow spoke with Krisco to learn why he believes the future will be “broker-led, but tech-enabled.”

Many in CRE have sat on the sidelines in recent years, waiting for clear signs of improvement in the market. However, Krisco said that position is increasingly untenable because while the market will eventually improve, many people might not be able to hold out much longer.

“More people are going to be put in a position where they can’t wait for the next bull market and have to transact today,” he said. “While this will be painful for investors and lenders over the short run, it is an opportunity for brokers because every one of those deals comes with a commission payment.”

Krisco added that the process is cyclical: Brokers who come back first will get the market moving, followed by investors, lenders and so forth.

“Those brokers leading the way are the people we are innovating on behalf of,” he said.

During past down markets, brokers responded by concentrating on the fundamentals of the job, doubling down on making calls and strengthening their relationships in the industry. The benefits of that work ethic hold true today, but it will not be enough, Krisco said.

“It's important this time around that you use this as an opportunity to reinvent yourself with tech,” he said. “Brokers learning these tools will be running circles around the rest when the market improves.”

Reinvention can be easier said than done, particularly when the average CRE broker is about 50 years old. Krisco said it is the job of tech companies like his to help reduce the friction involved in adopting new technologies, whether the adopter is Gen X or Gen Z.

Buildout doesn’t see brokers going away with the adoption of AI, although Krisco acknowledged that this is not a view universally shared.

“Many other technology providers have flat out said, ‘We're going to replace the need for the broker so that the transaction can happen without this intermediary taking a percentage of every deal,’” Krisco said. “But we've always seen that view as short-sighted, even ignorant.”

Krisco compares AI to drones that can add new perspectives and provide support on a battlefield, but it is the brokers who are the boots on the ground, actually doing the hard work. 

“It is the broker that pushes those deals over the last mile, so how could you remove them from the process?” he said. “The way we see it, we're arming the 40,000-plus brokers on our platform with the best tools, data and insights to act now on their customers’ behalf.” 

Krisco said the good news for CRE brokers is that they don’t have to be good at seeking out, understanding and then implementing the latest AI tools on their own. They just need to be good at selecting technology partners.

To evaluate a technology vendor, Krisco said brokers need to ask certain critical questions, including how long have they been around? What is their reputation in the CRE industry? Are they known to be innovative?

“You need to know that they are solving your problems and aligned with how your business makes money,” he said. “Some companies see you as the product and profit whether you find success or not.”

Krisco said Buildout is invested in brokers actually making deals.

“We're only successful if our customers are,” he said. “It's a partnership.”

Buildout plans to make a major product announcement in May at ICSC Las Vegas, a three-day event for retail real estate professionals. Krisco could not divulge details ahead of the show but described it as a potential “game-changer” for CRE brokers.

“I can tell you that it's going to be a prospecting tool enabled by artificial intelligence that will multiply brokers’ efficiency in the market, as well as their understanding of what is happening as close to real-time as possible,” he said. “We believe their success is our success, which is why we are invested in brokers for the long term.”

This article was produced in collaboration between Buildout and Studio B. Bisnow news staff was not involved in the production of this content.

Studio B is Bisnow’s in-house content and design studio. To learn more about how Studio B can help your team, reach out to studio@bisnow.com.