What CRE Pros Can Learn From Recent Stock Market Fluctuations

 February 25, 2021

By  Guy Gray

The craziness that went on in Wall Street with GameStop, AMC and other companies took the country by storm in January. Millionaires were made overnight, controversies swirled and even REITs were getting in on the action.

It begs the question: is there anything commercial real estate professionals can learn from recent stock market fluctuations? There are actually a few practical lessons here for CRE professionals who had this news on their radar. Let’s take a look at them:

Paying Attention to the Market Matters

Regardless of who you think was in the right, those who were able to notice the action early were able to cash in. At the beginning of the year, for example, GameStop’s stock was in the $17 range. By January 27, it had ballooned to $347.51. That’s an increase of nearly 2,000 percent! For everyone else who didn’t notice what was going on, they were either too late to join or experienced large losses after the stock readjusted itself.

For CRE professionals, this goes to show that paying attention to the market matters. While fluctuations won’t be as drastic as Wall Street, if you’re paying attention to rent rates and property values, you’ll be able to take advantage of good deals for your portfolio.

The Winners Have the Tools

This recent stock market fiasco is an example of an event that couldn’t have happened just 30 years ago. Thanks to technology and the speed of communication these days, followers of wallstreetbets on Reddit were able to capitalize on what was going on. They had access to stock advice, the right tools for purchasing stock and a smartphone that kept them updated about any changes—meaning they also knew when it was time to sell.

Similarly, real estate software can help boost the results of the most successful CRE pros. Take critical date tracking, for example. With the right CRE software, you can set up automated reminders of critical dates and when you should take action on your leases. Reporting, FF&E, asset management… the list of benefits from CRE technological tools today is staggering.

Communication Is Important

Finally, these events have proven the importance of communication. Reddit users were able to beat Wall Street at its own game by all being on the same page and communicating effectively. Not enough users communicating effectively and the results wouldn’t have been as newsworthy. As with any industry—including commercial real estate—communication is important for success. With CRE software like Quarem, you can communicate with team members across the world and on any device, as well as leave notes for yourself and others. 

Stay up to date on all of the happenings in the CRE industry so you can react quickly and make informed decisions. Request a demo of Quarem today.

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About the author 

Guy Gray

Guy Gray serves as Chief Operating Officer overseeing our technology and client services teams. He is responsible for guiding Quarem application development, networking and security, as well as new client implementations.

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