Each year at Realcomm, our sessions focused on Brokerage always represent some of the most spirited series of discussions and 2004 was no different. Because the Brokerage transaction is so paper-intensive and the pressures on reducing operating expenses are never ending, discussions on the concept of technology and more specifically automation are always lively.

Of all the sectors of the Commercial Real Estate industry, brokerage is right in the middle of the transaction. Whether is be conducting a financial analysis, analyzing lease comps or helping a client manage their Real Estate portfolio, there is an inordinate amount of information that changes hands. Despite all of the technology that is available, paper is still an integral part of the transaction. Having said that, each and every year we see a slow and steady migration from the paper-based analog possesses of the 20th century to the more automated, paper-less, streamlined, digital business models of the 21st. The following represent the major trends for the Brokerage industry that we identified at Realcomm 2004.

• The aggregation of reliable data has shifted the focus from hoarding to interpretation and application
• Mobility for Brokers, information 24/7/365 anywhere, anytime is now entering mainstream thinking
• Traditional office models of 30 Brokers, 6 staff, 6000 feet are beginning to transform
• Some Brokerage firms are radically and successfully reducing the square footage of their offices
• Brokers are evolving from holders of information (transactions only) to analyzer/advisor (consultants)
• There is a renewed awareness of profitability - firms as well as Brokers still require positive cash flow.
• Integrated information systems are at the heart of all new Brokerage business models
• Automated marketing systems are dramatically changing the way information is exchanged
• Commercial Information Exchanges (CIEs) continue to influence local market data strategies
• Clients, owner/corporate are continuing to influence innovation in the Brokerage sector
• The Brokerage sector is engaging in the Data Standards discussion and is making progress
• Brokerage is increasingly aligning with automation vendors that have matured and are now profitable
• The aggregation of disparate data is making for a more organized and accurate market
• Brokers must proactively take their respective web presence to the next level on a periodic basis
• Firms that do not adopt aggressive automation strategies will face an increasing gap between long-term stability/profitability and short-term cash flow
• Large, full-service, multi-market Brokerage firms will continue to gain market traction, as will small specialty 'niche' players; 'middle-market' Brokers appear most at risk

These items represent just a few of the major trends we see for the Brokerage sector. As technology continues to evolve, we will continue to see the transaction become more integrated and seamless and the overall business structure will continue to transform to a more digital, paper-less, efficient and effective business model.