EDITOR’S COMMENT I write this as the glitz and glamour and celebratory air of the EG Awards gives way to a touch of tiredness.
But the night, one of my most favourite of the year, reminded me again of the true value of real estate. Not just the value that the physical development of space brings, but the value that the professionals in this sector provide.
And, as the fog lifted on a night that went on well past my usual bedtime, I pondered on how much the industry really values itself. I know I’m the first person to call out the bravado and self-congratulatory behaviours that stereotypically personify this sector, but if you look past some of the hubris that comes naturally with any industry that deals with large quantities of money and big shiny things, there is so much that this sector does that I don’t think it speaks loudly enough about.
There is so much that the industry provides that it is just not getting best value for. And, if it did start to put a real value on those things and start talking about itself in a different way, would it finally start to get the recognition it deserves? Would it finally start to break the perception of it being a champagne-swilling sector full of fat cats (sidenote: I do see the irony of this, having said I’m writing this post the EG Awards, but that’s an annual celebration, not a daily occurrence) and build a new perception of it being worthwhile, creative and valuable?
It is easy to devalue the real estate industry. It’s just estate agents, right? And they’re just car salesmen in fancier suits? I bet you’ve all heard that once or twice in your lives. I know I’ve certainly been a perpetrator of that view. I’ve said those words. Rarely about commercial, obviously, but I have said it.
But why should a surveyor, a consultant, in a real estate firm be labelled as less than a financial adviser, or legal adviser, etc? The answer is that they shouldn’t. But we all know they are. And, the strangest bit of this, is that the sector does it to itself.
There’s no denying that business is really hard at the moment. The cost of doing business is going in one direction only, businesses are having to work harder and harder to comply with rules and regulations and new demands from their workforces, inflation is up, interest rates are up, everything is up.
So what about your fees?
That was one of my questions this week. The answer? “Same as they have always been: low.”
This is an interesting conundrum for property advisers. Competition for work is fierce. Winning the business is everything. This means there is often a race to the bottom when it comes to pricing that work. But is the sector doing itself a disservice in this race? With the threat of disintermediation ever present, does reducing your fee show that you are not adding much value as an adviser. And if you’re so cheap – so lacking in value – why wouldn’t I just get AI to do it for me?
In these times, when advice, good, proper advice from people who spend their days obsessing over real estate, is absolutely vital in making the right decision, shouldn’t fees be going up?
In these times, when our buildings are so important to the success of the UK economy and when the way we build, operate and even tear down those buildings is so important to the survival of the human race, shouldn’t the value of those services be going up?
Fresh from celebrating the very best in real estate, from the deals, the workplaces, the public/private partnerships, sustainability and social impact measures and the phenomenal individuals in this sector, I can’t quite help but think that real estate needs to start showcasing this message beyond the EG Awards.
This is a valuable industry. An invaluable industry. And it’s about time you believed it.
To send feedback, e-mail samantha.mcclary@eg.co.uk or tweet @samanthamcclary or @EGPropertyNews
