Which Real Estate Jobs Are Headed For Obsolesence?

Posted On Tuesday, 23 March 2004 02:00 Published by
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There is not a TV program, newspaper, magazine or business discussion these days that does not involve the topic of jobs.

There is not a TV program, newspaper, magazine or business discussion these days that does not involve the topic of jobs. While the economy seems to be improving, there still seems to be a problem with new job creation. There are a number of differing opinions on where the jobs are and what the future might hold.

The experts give a number of reasons for why new job creation is not occurring while the economy is showing signs of recovery. The two most consistent answers are improved productivity due to automation and outsourcing to countries such as Russia, China and India. Ironically, both of these trends have been influenced by a topic very close to Realcomm -- technology.

In almost every industry, there is a recalibration going on relative to how business should be done. Just a few years ago, the thought of a call center in India answering service calls for Dell wasn't even on the radar screen. These small changes that seemed so insignificant just a few years ago are now making the headlines. It is safe to say that these changes are major, will continue to influence every industry, and will ultimately impact each and every one of us in a very personal way. We have seen airline ticket counter personnel replaced with Kiosks and it will not be too much longer before we will see RFID-based inventory and checkout systems obsolete the role of the grocery checkout clerk.

Automation and fiber cables that stretch across oceans are going to change every aspect of our world, including Commercial Real Estate. When you talk about the management of a property, there are a number of job descriptions that are under the microscope. Accounts receivable personnel, security guards, engineers, on-site property managers, parking lot attendants and leasing agents could all find their roles dramatically redefined over the next few years. Many of the advanced operating concepts that are redefining these roles have already been deployed in Asia and are already onto second and third generation iterations.

Smart cards that allow you to electronically pay for parking, video concierge systems that provide real-time video access to centralized property management staffs, electronic fund transfer (EFT) that eliminates the needs for accounts receivable personnel, engineers working from Building Operations Centers that manage two or three properties instead of one, and the army of security personnel sitting in lobbies and security surveillance rooms will be replaced by sophisticated systems which include motion detection, face tracking and gait analysis. It is no longer a question of if...simply when.

Some might argue that protectionism from outsourcing and the "human" touch could stave off such a dramatic change. The reality is, eventually financial and market pressures will force organizations to make the change. Another important point to consider is that highly automated, redesigned systems are very scalable, while throwing more bodies at a building is not a viable alternative. Most organizations in our industry do not believe that the extreme automation of our properties is feasible. Seeing is believing and their is no longer any doubt that this automated future will become a realty.

This year, Realcomm will delve into the concept of "extreme automation" and the impacts on existing jobs within the Commercial Real estate industry. We will take an incredibly hard and honest look at the reality that many of these jobs could be gone in the next 3-5 years. We are not going to talk passively about this very sensitive topic, but rather hit it head on and attempt to come up with some realistic solutions for the future. Farmers laid down their shovels and factories were closed -- it may be time for the jobs inside our buildings to change.

The key to all of this is to remember that we cannot stop automation or, for that matter, progress -- the world needs to move forward. Change is ultimately good. Once we get past the fear and unknown, the opportunities for a new and better way to live, work and play become very obvious.

Next week we will examine the changing nature of service organizations such as brokerage, lenders, appraisers and real estate attorneys. They, too, will be experiencing great changes as technology and automation continue to impact our industry. Whether it be a receptionist or a Commercial Real Estate lawyer, we all need to be open to change and willing to explore and understand new ways in which to create value inside our industry.


Publisher: Realcomm Advisory
Source: www.realcomm.com

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