Commercial Investment Real Estate September/October 2019 | Page 23

company’s existing resources, namely human capital, allowing these individuals to accomplish more and reducing the need to hire additional staff. For example, with the use of a customer relationship manage- ment system, a sales team can accomplish required administra- tive follow-up functions faster, leaving more time to work on building personal relationships. A recent study by Buildout found that 41 percent of respon- dents spend less than five hours a week on developing personal relationships. Selecting the right technology could easily double the time for this activity — what many CRE executives believe is the backbone of a successful operation. Some OETs create back-office automation that streamlines the process of tracking and paying commissions, referrals and expenses, and bonuses. These new cloud-based platforms provide simple workflows and accounting journal entry automation for everything that happens after the deal closes. A few solutions offer integrations with QuickBooks and other general ledger accounting systems as well. Others take it a step further and provide a platform that accurately, simply, and with complete transparency, allows landlords to pay commissions over the term (OTT). OTT commissions are a tremendous risk mitigator for build- ing owners. Speaking of stability — how many owners can hon- estly say they have never paid a cash-out commission where the tenant didn’t make it through the term of the lease? When I was the managing broker of a 20-agent brokerage firm in Atlanta, I encouraged our agents to take OTT com- missions. OTT commissions also can add stability to the bro- kerage side of the industry. I personally know dozens of agents in Atlanta that even during the Great Recession still had six figures coming in via OTTs — all while new transaction vol- ume dried up. I’ve seen firsthand the power of technology at work in many areas of commercial real estate. In the report, “State of Tech in the Broker Sector,” recently published by SIOR and CRETech, 51 percent of respondents stated that technology has impacted their business “a great deal,” resulting in increased efficiency and business development. People say they don’t have time to learn new solutions, but they’ll also say time is money. Technology can save you time. Those of us in CRE who don’t rapidly start adopting technology will go the way of Blockbuster or the horse and buggy. Daniel Levison, CCIM, SIOR, is CEO of CRE Holdings in Atlanta. Contact him at [email protected]. Build Your Own Vacation Giveaway THE CCIM FOUNDATION’S MAJOR FUNDRAISER FOR 2019 Two lucky winners will receive a $5,000 voucher for a dream vacation. You choose your destination, your itinerary, and your timetable! CCIM Institute members can enter to win by donating $100 or more to the CCIM Foundation. Winners will be announced on Oct. 14 at the CCIM Fall Governance Meetings in San Diego. You need not be present to win. Prize sponsored by: Visit www.ccimef.org/sweepstakes.asp to enter. Your donation will be tax deductible to the extent allowed by the law. The CCIM Foundation is a 501(c)(3) nonprofit organization. CIREMAGAZINE.COM September | October 2019 21