Author: Manager

Coworking: The Past, Present and Future

Submitted by Sivilay Xayasaene, Gresham Smith

On June 11, 2019, CREW Charlotte’s luncheon program featured a panel of all CREW members who addressed the many questions surrounding Coworking.  The panel included Wendy Hill with IWG, Hunter Fleshood with WeWork, Mary Wilken with Insite Properties and moderator Virginia Luther with Savills. The luncheon was also CREW Charlotte’s FIFTH annual Bring Your Intern to Lunch.

The panel discussed where they see the future and evolution of coworking and agree that the trend isn’t slowing down. With market unpredictability, the need for flexibility in real estate has increased as companies of all sizes across industries are less likely to pursue longer term leases.  The ability to scale quickly globally is attractive to large companies and the ability to have access to amenities otherwise out of reach for many small firms makes the coworking solution attractive to most organizations.

Across the country, over the last few years we’ve seen a shift in power from employer to employee. According to research from IWG, flexible working is an expectation as a company offering, not just a perk. In the war for talent, having a flexible work environment can be a deal breaker. This approach allows firms to hire people where they want to live – extending their candidate pool for attracting talent, and sustaining retention which are paramount. It’s an ideal choice during good times as well as during a downturn.

Second Annual Signature Luncheon with Mira

“No one would exploit a child if there wasn't someone there to buy the services of that child.” These powerful words were spoken by award winning actress, Mira Sorvino. Sorvino was the keynote speaker at CREW Charlotte’s Second Annual Signature Luncheon.

On Wednesday, May 15^th, Sorvino spoke to a crowd of 350 CREW members and guests about the atrocity that is human trafficking. Sorvino is a United Nations Goodwill Ambassador who works tirelessly to combat human trafficking and slavery. She spoke about the work she has done and also about personal encounters she has had with victims. However, nothing was more compelling than the human trafficking survivor, “Katie” that joined Mira for the luncheon. "A lot of people have a stereotype of what they think a trafficker or a buyer looks like,” Katie said. “I want to blow that stereotype out of the water. I was sold to rich guys, poor guys, old guys, young guys, sold to some women. You know, you have the legislators, lawyers, cops, coaches, the guy that just lives down the street.”

Katie’s story brought many in the audience to tears. Although it is hard for her to tell her story, she is using it as a way to show others that human trafficking could be happening right in front of your face.

There are several organizations across our city and state that work to end human trafficking and slavery. If you want to learn more about how you can join the fight, you can click here. If you have any concern that a child you know is in danger, please call the National Human Trafficking Resource Center at 1-888-373-7888.

Hype or Hope? The Blockchain “Revolution” and WHAT IT MEANS FOR THE Commercial Real Estate INDUSTRY

Submitted by Nichole Kelley, Wells Fargo Bank

At the April 2019 CREW Charlotte Luncheon, we heard from Pax Sinsangkeo with Winstead, who concentrates his practice in commercial real estate financing, commercial mortgage securitizations, asset-based lending, and related real estate and financial services transactions. He has represented major capital markets lending institutions and real estate investment companies in connection with the origination and servicing of commercial mortgage loans, credit facility loans, and multi-asset portfolio transactions. 

Blockchain technology, hailed as the great disruptor of financial markets, enterprise management and data privacy, is a distributed ledger of data and/or transactions that is maintained on a shared network.  On a blockchain, transactions are recorded chronologically, forming an immutable chain, and can be private or anonymous depending on how the technology is implemented.  The ledger is distributed across many participants in the network; it doesn’t exist in one place.  A block could represent transactions and data of many types, such as currency, digital rights, intellectual property, identity, or property titles, to name a few.

As CRE companies consider investing in a multitude of technologies to meet their varied business requirements, it is important to assess whether and where blockchain can be useful as the technology has its own unique characteristics and inefficiency in processes.  Benefits of blockchain include the possibility of near real-time settlement of transactions, eliminating the need to rush a wire to meet the Federal cutoff time, or delays in due diligence processes (i.e. confirming zoning status, legal description of properties, and any data requiring third party verification).  Additionally, blockchain technology is based on cryptographic proof, allowing any two parties to transaction directly with each other without the need for a trusted third party.  This means borrowers and lenders or any other parties can work directly with each other without the need for counsel, escrow agents, or other centralized authorities to verify documents and information; ultimately, this would result in reduced transaction costs and faster execution times for any parties involved.  In addition to the cryptographic security, a blockchain contains a certain and verifiable record of every transaction ever made, which such record is stored among multiple sources (instead of a central authority), which mitigates the risk of fraud, abuse, and manipulation of transactions.

So how can blockchain be used in CRE?  Blockchain is disrupting subscription-based MLS services by allowing brokers, title companies, and appraisers to directly provide information about a property. In addition, a blockchain network can issue tokens or some other data to symbolize real estate rights – this would allow real estate developers and promoters greater access to capital as an alternate form of crowdfunding, and allow investors more liquidity in trading those interests (i.e. a fractional interest in a real estate property) and easier access to real estate ownership. The drawback is competing data from multiple sources may affect consistency and questions around who is validating the data.  Another example of how blockchain is disrupting CRE is the incremental standardization of land deed records to be immutable, making it easier to record deeds and mortgages, verify title insurance, and clarify property rights that may have been historically murkey.  The con is obtaining consensus as to incorrect deeds or chains of title.

While blockchain technology has significant potential to increase efficiency and cost savings for CRE owners and provide greater liquidity and transparency to the CRE market, there are still a number of shortcomings to consider.  Blockchain is susceptible to human error; if there are errors at the beginning of the block that are not identified for some time, who is liable and how can it be corrected?  Also, because it is such a new technology, a lot of the coders and blockchain developers may not be familiar with real estate processes and not accurately track data stored on there. Ultimately, CRE companies who are approached by blockchain companies may need to adopt a “wait and see” approach and perform their due diligence to see if their business truly has a need to incorporate such technology.

To see Pax’s presentation, please click here.