Now is the time to embrace data and technology , but it ’ s also the time to have a high bar to make sure technology and solutions are going to be around in the next few quarters and years . You need proven solutions that can make a positive impact on business .
CIRE : THIS PANDEMIC IS A ONCE-IN-A- CENTURY CRISIS THAT FEW PEOPLE COULD ’ VE PREDICTED A YEAR AGO . HAS COVID-19 CHANGED THE GAME AS FAR AS DATA COLLECTION AND ANALYSIS ?
SARKIS : Absolutely . Look , this is different than any sort of recessionary show we ’ ve seen in our lifetime , as I said before . I ’ ll give you a concrete example how it has affected our business . Some of the data we collect , we get from local municipalities and the tax assessor ’ s office , where they record mortgages , record the deeds when a property sells , etc . Guess what ? When everyone had to shelter in place , that meant the tax assessor isn ’ t going to the office . People aren ’ t around to physically record mortgages , so there is a gap in the recording of data . Now that things are beginning to come back online , we ’ ve seen that gap be filled , but it has had a pretty big impact at the source and for downstream companies like us .
In terms of our business , the analogy I like to give is a restaurant . We are not in the business of selling raw ingredients , like chocolate chips , butter , and milk . What we do is we get the best ingredients we can find from different purveyors , so we can bake the most delicious chocolate chip cookies , and that ’ s what we sell . In this case , our supply chain was stressed , which had a downstream impact on our ability to bake cookies . In our case , it ’ s to deliver insights and analysis via our products . During the shutdown , we were able to mitigate some negative impacts with multisourcing across public outlets . But the nature of the shock , being a virus , is a different challenge than a terrorist attack or natural disaster .
CIRE : IN RECENT YEARS , THE APPETITE FOR DATA HAS BEEN GROWING IN NEAR- LY EVERY INDUSTRY , FROM SABERMET- RICS IN BASEBALL TO COMMERCIAL REAL ESTATE . BUT LIKE YOU SAID , IT ’ S NOT ONLY ABOUT THE INGREDIENTS — IT ’ S HOW THEY ARE PACKAGED . HOW DO YOU GO ABOUT TAKING RAW DATA AND PRESENTING THE BEST ANALYSIS FOR YOUR CLIENTS ?
SARKIS : I , like a lot of folks , am thinking , “ Oh , I ’ ve got to embrace data . I ’ ve got to embrace technology or whatever new solutions are out there because I don ’ t want to be left behind .” Those are all good things , with the pandemic forcing people to rethink the status quo . But there is risk because a lot of people don ’ t know where to start necessarily because it ’ s not something they ’ ve done before . Back to our analogy , you don ’ t need to go out and buy chocolate chips in bulk . You don ’ t necessarily need the raw data . You need insights drawn from data that allow you to do your job more effectively , to make more money , to make better decisions . The consumers of data don ’ t necessarily need it ; they need insights derived from it .
There ’ s a risk in having too much data or the wrong kinds of data presented in an incorrect manner . But this is a crucial part of the equation that sometimes gets overlooked , especially with folks who are just beginning their journey into data .
CIRE : NOW THAT WE ’ RE HEADING INTO THE FINAL STRETCH OF A TUMULTUOUS 2020 , HAVE YOU IDENTIFIED ANY OBSTACLES OR OPPORTUNITIES THAT LIE IN FRONT OF US ?
SARKIS : One opportunity that will be available to certain businesses is the availability of companies to snap up distressed
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assets . Others are going to find opportunities to lend to companies with more COVIDproof portfolios . But as far as obstacles , the big question about this recession , which is unlike any other , is when will it be over ? There ’ s no clear end in sight . We ’ re still living through the pandemic , and it is a global problem , not a local or national one . It seems to be likely we will have a second wave . There is going to be a lot of uncertainty in terms of what the next few quarters are going to look like . Historically , the time between Labor Day and Thanksgiving is when a lot of business gets done . This is an incredible moment for the country and for us as an industry to figure out how to handle the uncertainty in the air . Is a vaccine in the works ? Will there be therapeutics ? What ’ s going to happen with the election ? Is there going to be a second wave ?
Uncertainty is an obstacle because it cripples people . If things are bad , you can make decisions based on a bear market . If things are good , you make different decisions . But if you don ’ t know which way is up , that indecision can be a major obstacle . I hope we get clarity through the end of the year , and we ’ ll see the rebound everybody wants and is hoping for .
CIRE : AS SOMEONE IN THE SOLUTIONS BUSINESS , WHAT WOULD YOU SAY TO A CRE PROFESSIONAL WHO MIGHT BE A BIT FRETFUL OR INDECISIVE ?
SARKIS : I would just say start somewhere . Start putting in the work . The worst thing someone in this business can do is sit on the sidelines and say , “ I ’ m not going to do anything because of the uncertainty .” Guess what ? Your competitor isn ’ t playing wait and see . As I ’ ve said before , when economies do restart and when we do mitigate some of the uncertainty , the people who have been putting in the work will be ready to take advantage of the situation — and this can mean anything from calling your existing book of business and making sure you ’ re relevant to reaching out to potential new clients to be on the front foot when things start moving .
Nicholas Leider
Senior content editor of Commercial Investment Real Estate Contact him at nleider @ ccim . com .
Editor ’ s note :
This article is an adapted excerpt from a fulllength Commercial Investment Real Estate podcast . To listen to the full episode , head to SoundCloud , iTunes , Spotify , or wherever you listen to your favorite podcasts . Don ’ t forget to subscribe , rate , and review .
CIREMAGAZINE . COM COMMERCIAL INVESTMENT REAL ESTATE MAGAZINE 7