Social sites trumped by traditional networking
Commercial real estate professionals are using social media websites and other Web-based publishing applications to establish larger digital footprints, though some are more proactive than others in their approach to new communication platforms.
An analysis of CoStar Group Inc.’s recent survey of 800 readers showed that nearly one-third of respondents indicated that their respective companies had presences on all three of the most prominent social media sites: Facebook, LinkedIn and Twitter.
And of the 76 responses CoStar generated from those asked to complete a questionnaire regarding their activity on the three social networking sites, three out of four said they maintained a personal page on LinkedIn and half said they had a Facebook account.
But even among those who have shown an interest in social media, which has provided planners, developers and brokers of commercial space with new online connection points as they generate leads and search for industry information, some are showing signs of hesitancy.
“Generally speaking, it’s important to keep up with the latest technology and trends to keep abreast of what’s going on in the industry and worldwide,” said Larry Socia, director of Pyramid Brokerage Co.’s retail division in Syracuse, N.Y.
In his response to CoStar, Socia said his use of social media helps him to appear more modern as he keeps tabs on clients and competitors. Yet his company is more interested in staying on par with the competition than it is in taking the lead.
“Right now, I’m more of an ‘old school’ person who uses these social networking resources as a means to keep pace with clients and competitors, rather than have a ‘Challenger’ moment trying to be first in space with cutting-edge technology,” Socia said.
Sue Clark, founder of Sue Clark Real Estate Services LLC in Clive, said she could relate to those who take an “old school” view of social networking. After all, the 63-year-old business owner and commercial broker entered the profession in 1967, long before the arrival of cellphones and email.
But as the use of mobile devices and personalized landing pages evolved, Clark said the 10-year-old trade association she administers decided last year to carve out its own niche online.
In January 2011, the Iowa Commercial Real Estate Association (ICREA) launched www.iowacrea.org, which features information on upcoming real estate-related events, such as the organization’s annual Iowa Commercial Real Estate Expo, and a member directory.
About half of ICREA’s approximately 175 members are licensed brokers, Clark said, noting that the rest of its roster is made up of investors, developers, bankers, appraisers, accountants, property managers, government officials and others with an interest in commercial properties.
“We felt like we needed something that we could use to pull everybody together,” Clark said of the website, the creation of which was given top priority by the group’s 2010 board of directors under the direction of then-president Jason Lozano, an assistant manager with Iowa Realty Commercial.
Working with a budget of $2,500, Curtis Brown, the city of Ankeny’s assistant director of economic development and a director of ICREA, tapped Urbandale-based Webspec Design LLC to spearhead the site’s design.
Clark said ICREA primarily serves as a networking and marketing outlet for the state’s commercial real estate practitioners, many of whom operate in Greater Des Moines.
At least one is preparing to extend its own presence online.
Kurt Mumm, president of the Des Moines office of NAI Ruhl & Ruhl Commercial Co., said his brokerage launched its initial social media campaign two years ago with the establishment of an office-specific LinkedIn account, a Twitter handle and a company news blog.
“Our intent with starting a social media campaign was to gain a presence on the Web,” Mumm said. “We have gained the most value from the combination of use, rather than one medium in particular. They all serve their own purpose in driving traffic back to our site, which reinforces our name, branding and services.”
Ruhl & Ruhl also encourages its brokers to create personal LinkedIn accounts, and to use them to network with other commercial real estate agents, Mumm said. Last year, the company began publishing an e-newsletter that contains information on property listings and the completion of significant transactions.
Now, as those in other industries begin exploring the potential for augmented reality applications, Ruhl & Ruhl hopes to stay ahead of that emerging technology.
“Our newest campaign is going to be the use of QR (quick response) coding on property listing signs,” Mumm said. “Anyone with a smartphone will be able to pull up the property’s listing flier by simply taking a picture of a barcode located on the sign. Now, any interested prospect will be able to access and save the property’s information right there on the spot.”
Mumm pointed out, however, that the effort his company has invested in researching new media is not intended to trump its traditional marketing strategies.
“Our clients are very diverse in their personal use of technology, so we are trying to cater to everyone’s needs,” he said. “Our industry isn’t dependent on 20-somethings with iPhones and Twitter accounts, so we aren’t going to operate our business this way. We want to stay ahead of the game by exploring new marketing channels. However, we understand sending out daily ‘tweets’ isn’t everyone’s cup of tea.”
Kevin Crowley, chief operating officer of Iowa Realty Commercial, said the majority of his company’s agents are committed to social networking and many use LinkedIn and Facebook to connect with one another.
“Social networking is in its infancy; however, it is rapidly growing as we adopt and accept its uses,” Crowley said. “Technology has changed and will continue to evolve. Like any technology, there are early adapters followed by the multitudes.”
Only one in 10 respondents to CoStar’s social media survey identified Twitter as a “primary” outlet for business communication.
Concern that professional dealings could spill over into private affairs presents another possible hindrance to the wider adoption of Twitter and other social media applications by the commercial real estate sector.
“I think it will become more important over time,” Tim Noonan, an associate with Marcus & Millichap Real Estate Investment Services Inc. in San Diego, told CoStar. “I use it primarily for branding and so clients can find out a little about me. But, at the same time, I think it is good to keep as much about your personal life personal. I like the fact that people can find me if they needed to, but they don’t know about my family and what I do away from the office.”
Some local real estate professionals are concerned that online conversations may undercut the importance of one-on-one encounters with established customers, prospective clients and professional connections.
“Personally, I do not see what the fuss is about,” Karen Van Hamme of Des Moines-based Principal Life Insurance Co. told CoStar. “I prefer to get my business communication by reading newspapers and journals (online) and emails that push the news to me rather than social networking sites. I see little value in my business of (commercial real estate) research. I need more than 120 characters to get the info I need, and I want it from reputable sources, not random ‘twitterers.’”
That’s in line with the outlook of Pat Schneider, a longtime broker with Ferguson Commercial Real Estate Services in Clive. Though she has established a presence on some social media sites, she told the Business Record that she primarily uses them to get updates rather than start a conversation.
“I still find it better to talk with clients one on one rather than do a mass social network,” she said. “It loses its personal touch, I feel, and brokerage is based on relationships, in my mind. Clients don’t have a chance to interact with you via social media the way you do with either personal contact or even over the phone.”
Clark summed up the generation-gap aspect.
“I see more of the younger people using that,” Clark said of applications such as Twitter, Skype and instant-messaging programs. “Old dogs really haven’t embraced that part of social networking. We still make phone calls. We don’t do the text messaging as much.
“But it’s coming to that, and I think the website is the start.”