The Value of Technology Specialization

Welcome! Have you ever tried to find a Commercial Real Estate agent that understands the specialized needs of technology companies? Do you know what these needs are?

In my prior life of selling technology products and services, I encountered organizations whose business was technology or who relied heavily upon technology, but who hadn't considered technology ramifications when selecting space to lease or purchase. This oversight alerted me to a void in the commercial brokerage community which my team and I now fill.

The impact of overlooking technology in a real estate decision can be substantial... Have you ever seen a broadcaster go down because a carrier's (old) fiber developed microbreaks? Or have you ever seen a technology company whose offices are across town from most of their collaborative partners? How about an online gaming company who finds out 45 days before move-in that their new facility is not fed by any communications fiber? I have seen all of these... and more.

Each of these situations could have been avoided IF the organizations had worked with a real estate broker who understood the key technology factors affecting real estate. The problem is that such agents are not at all common. For the record, the biggest of the key technology factors are communications, power, and people. Contrary to common perception, communications fiber does NOT reach all buildings (much less all areas) in a city, robust / diverse power CAN be had if one knows how to look for it, and geographic knowledge corridors DO evolve.

It's not entirely intiutive which companies should seek a tecnology-savvy broker. In general, they'll be technology and/or technology-reliant companies, but even those labels leave questions. To simplify things, don't look at the name of the organization - just ask a few key questions. Organizations who answer "yes" to any of these questions should seek a broker who understands technology:
- Do phone, data communication, or power outages impact your profits?
- Do you require large information “pipes” to move data to other facilities?
- Do you rely upon technical people to develop or manufacture products?

Some may be thinking, "I don't really need technology-savvy broker because I have consultants who can look at those factors." I'll share three thoughts on that point. First, you'll have a much smoother experience if your broker speaks your consultants' language and can work with them in evaluating these specialized factors. Second, your consultants are charging you for their time, while your real estate broker should cost you nothing (the landlord typically pays his/her fees). You do the math. Finally, your real estate broker's job is to know the area and to find you the right building... wouldn't it be better if they can attack that task byt partner with your consultant rather than having to lean on them?

For those who do fit the profile, how can they find an agent who "gets" it? Perhaps the best place to start is by asking your technology vendors if they know of any technology-savvy agents. Agents who operate in the mode you desire will be keeping current with technology vendors and/or service providers. If your vendors don't know, ask someone in a leadership role at a technology-reliant company. Once you find a potential agent, take the time to check them out, because there are a few consistent traits among the best. These agents typically have technology experience that predates their real estate career, and may even have direct experience in the communications, technology, or power sectors. They focus on the technology sector to keep current with technology trends and knowledge corridors, and maintain relationships with service providers to keep up with trends and service availiabiliy. They should be able to discuss fiber routes, resources within power companies, other technology companies/sectors in the area, and current technology trends.

The reward at the end of the process? You can rest in the knowledge that your new space meets all aspects of your organization's needs, and you won't have any ugly surprises to look forward to!