Have you ever sneakily put something back on the shelf at the grocery store in the completely wrong spot? Scrolled through your favorite online store only to log off before purchasing the items in your cart? Waited for a birthday or holiday to splurge on something?
We’ve all been reluctant to purchase something. Maybe we couldn’t afford it, couldn’t justify the need, or were too overwhelmed by the logistics of it all and jumped ship. It doesn’t just occur in our personal lives either. Businesses experience these same forms of reluctance as well.
Adopting something new, like CRE technology, is a decision that many businesses are hesitant to approach. It’s time to lay the cards out on the table and discuss all of the elephants in the room. Here are four reasons why businesses are reluctant to adopt CRE technology.
They don’t know they need it
Typically, you purchase a product to solve some sort of pain point. But you can’t solve a problem that you’re not aware of. Businesses can be reluctant to adopt CRE technology, because they have no idea that they’re experiencing the issues that CRE technology solves.
CRE Technology, like Quarem’s lease management software, helps businesses organize and track all of the data, dates, and activities related to their commercial leases so they can avoid problems, like missing a lease expiration and having to pay holdover fees, or forgetting a rent increase and owing hefty late fees.
The first step to determine if you need CRE technology is to ask yourself the questions we provided in our post about lease administration:
- Could you produce a reliable list of every location your organization leases or owns from a single data source? Can you do this right now from anywhere in the world?
- Can you retrieve any lease document, proposal, floor plan or other file for every location?
- Do you remember every lease expiration, termination right or option?
- If asked to produce rent projections for the next month, quarter or decade, can you generate that report immediately?
- How many active lease negotiations are in-process? What is their status and who is negotiating the transaction?
- Do you know which leases have rent increases each month?
- A legal dispute arises, can you immediately identify the contractor who built-out your space two years ago or the broker who negotiated the lease?
- If your real estate manager left the company, could their replacement be in total control of managing your lease obligations day one?
They don’t see the value
Old habits, alternatives, and a busy schedule are just some of the things that can cloud your judgement when looking to try something new. When you’re entangled with the daily grind of running a business, you might not see the value that something like a lease management system has to offer. In the moment, the time and money spent adopting a new system outweighs the potential benefits it may provide.
Take a look at the questions above, but this time consider the risks associated with them. Do you remember every lease expiration, termination right or option? You can simply answer yes or no but consider the reality of that situation. If you answer no, there’s a chance you might be losing money to hefty holdover fees or missing out on an opportunity to negotiate a renewal term. Both losses could’ve been avoided with the help of a lease management system.
They’re overwhelmed by the logistics
Technology simplifies our daily processes, but sometimes it takes a little bit of elbow grease to get there. Every business, big or small, has an intricate commercial real estate footprint. So, when it comes time to adopt a strategy to manage it all, the entire process can seem like a trek up Mount Everest.
Additionally, technology, especially software, can have a bad rap when it comes to pricing, contracts, and subscriptions. Nobody wants to feel like they’re being trapped in a long-term commitment, nickel-and-dimed to death by hidden fees, or hounded by a sales team that just won’t quit.
It’s easy for businesses to get caught up in the logistics of it all, but, when you find the right partner to work with, you don’t have to worry. At Quarem, we value transparency and accessibility. Our contracts are flexible, the onboarding process is stress free, and our sales tactics won’t make you want to change your phone number. No need to let the logistics scare you away.
They’re afraid of being replaced
Will robots take over the world? These days, it sure can feel like it. The tech world is full of smart gadgets that are rapidly getting smarter, while us humans are just trying to keep up. It’s no wonder that some professionals view CRE technology as the new guy that’s trying to swoop in and take their job. Luckily, it’s not that black and white.
When it comes to managing leases, technology and people have to work together. Why? Because, commercial leases are complicated. They’re filled with wordy legal jargon, complicated rent schedules and confusing dates. They often change throughout their lifecycle and can be supplemented by handwritten notes scribble in the margins, emails, phone calls, and handshake agreements. They tell a story, and you need the human touch to be able to fully track that story and properly communicate it to the technology.
That’s what sets Quarem apart. We believe that technology alone isn’t an effective solution, because we know that great lease management comes from people and technology working together.
So, if you’re feeling reluctant, that’s okay! But, before you log off without completing your purchase or get too overwhelmed by the process, give us a call. We’re here to help you along the journey and make sure you adopt the technology that’s best for you.