We Sell Square Footage. We Are Selling the Wrong Thing.

Commercial real estate’s footprint is changing, for the better.

I love this video of Gunnar Branson.

Recorded a few years ago, it is still worth a watch. The topics are familiar to anyone paying attention to the changing landscape (literally: landscape) at the intersection of urbanism, technology, and the emerging economy.

In it, Branson reveals that real estate reflects how people actually live and work. He draws parallels between the idea of Moore’s Law and how, as physical things get smaller and more compact, so do our living preferences.

His big takeway is this: Don’t sell square footage. Sell what people want, and understand that what people want from a physical space is changing dramatically. It’s worth a watch, but I’ll direct you to my favorite part, which starts at the 14:00 mark.

Branson asks, what if real estate means we’re selling access, to a seat… or a membership in an apartment…

…or membership in a collection of commercial buildings, globally

I will invest in this idea the moment it is possible!

I will invest in this idea because a membership based, space-as-a-service model solves real life experiences I’ve had, as a lessee, and many others have, too, such as:

• Moving by choice between countries, cities, or neighborhoods;
• Moving before a lease is finished, for work, illness, or unforeseen situation;
• Moving spaces based on evolving wants/needs;
• Moving between kinds of leases, from apartment tenant to commercial space tenant

In every situation I would have gladly accepted additional fees for the value of flexibility.

Imagine:

• Renting your next apartment at premium knowing that, if your job changed suddenly, you could finish out the lease in a similar building owned by the same company (or partner company) in another city.
• Renting in one place (an apartment) gave you perks on rent somewhere else (like WeWork).
• Renting for several years in one rental ecosystem (a group of partnerships between companies) could be “cashed in” in the form of more favorable lease on, say, a new or different kind of lease, such as commercial office space.

If these desire lines — as Branson describes them — are unstoppable, it makes sense that commercial real estate investors have a way to keep tenants happy.

Fabulous, you say, but how?

Blockchain and Blocksquare

One way to make this possible? Make access to real estate more liquid, more transparent, and more easily traded between investors and tenants — by using blockchain. There are many advantages.

One way would be to use a development platform like Blocksquare to set up partnerships, make exchanges, offer perks, and keep records.

Blocksquare is a set of protocols, APIs, and tools being built on Ethereum to tokenize real estate. In theory, any real estate-related endeavor could use the platform to facilitate trading. The Blocksquare platform could enable partnerships cross-town, cross-country, or even between countries.

Further, the gains could be equitable: independent real estate investors could use the platform to deliver more services at scale to the people they serve. A family-owned and operated commercial building could, for example, establish themselves as part of voluntary network that exchanges tenants or provides additional services.

In short, Blocksquare could be the mechanism that provides 1,000x more flexibility for tenants, keeps rental properties (and networks of properties) competitive, and provides even the smallest investors access to real estate investment.

This video was recorded five years ago. It says nothing about blockchain but that is exactly the technology that will bring about so many positive things for tenants, owners, and investors alike. Exciting times!

— ### —

I am volunteering as a Blocksquare Ambassador. The ICO is over but you can still register to invest in the upcoming A-Series.

Check out the following resources for more information on Blocksquare:

One Page Doc → go.blocksquare.io/onepager
Whitepaper → go.blocksquare.io/whitepaper
Proof of Title Paper → go.blocksquare.io/proofoftitle
Help Documentation → go.blocksquare.io/helpdocs