The term “innovation” often feels like a buzzword. Yet, true innovation is not about merely adopting new technologies or processes. Instead, it’s a mindset—a way of seeing the world with openness, curiosity, and a willingness to challenge the status quo. For commercial real estate (CRE) professionals and entrepreneurs alike, cultivating this mindset can unlock new opportunities, drive meaningful change, and ultimately redefine success.
The Core of Innovation: A Mindset Over Mechanics
Innovation is often misunderstood as a technological breakthrough or the development of an entirely new product. While these elements are undeniably significant, the heart of innovation lies in an open and observant mindset. Being innovative doesn’t necessarily require inventing something new; rather, it’s about reapplying existing concepts, adapting successful practices from other industries, and refining processes to create meaningful impact.
For instance, in CRE, seemingly unrelated methodologies can yield powerful results when reimagined for the real estate domain. A prime example of this is the adoption of municipal defeasance processes—a structured financial technique—to streamline commercial real estate transactions. By borrowing proven strategies from other sectors, professionals can deliver transformative results without reinventing the wheel.
Learning to See Around Corners
An innovative mindset allows individuals to see “around the corner”—to anticipate changes and embrace new possibilities. This perspective requires constant observation and a willingness to ask critical questions: How can I apply this concept to my business? What lessons can I learn from unrelated industries? How can a customer-centric mindset redefine our operations?
This approach extends beyond external observation. Internally, innovation can flourish when businesses integrate insights from various domains under their umbrella. For example, the principles of customer journey mapping and key performance indicators (KPIs) often used in technology companies can be equally transformative when applied to real estate operations. Viewing tenants, investors, and brokers as customers opens up avenues for improved engagement and service.
Reapplication: The Cornerstone of Creativity
One of the most effective ways to innovate is through reapplication—taking ideas, processes, or tools from one context and applying them to another. In CRE, this might mean adopting principles from the software industry, such as streamlined onboarding processes or advanced data analytics, and using them to enhance property management or investment strategies.
Reapplication is not about copying but about adaptation. It’s about recognizing the potential of an idea or tool in a new environment. For instance, self-checkout systems in grocery stores revolutionized the customer experience by reducing wait times. This concept of creating convenience can inspire CRE professionals to optimize leasing processes or streamline tenant onboarding.
Balancing Innovation with Focus
While innovation encourages exploration and creativity, it’s equally important to maintain focus. Successful entrepreneurs often begin with a laser-sharp focus on a specific problem or goal. Over time, as their processes and playbooks mature, they gain the capacity to manage broader challenges and opportunities.
For CRE professionals, this focus might mean honing in on a niche—whether it’s multifamily housing, office spaces, or retail properties—and mastering the nuances before expanding into adjacent markets. Focus provides clarity and direction, enabling businesses to channel their resources effectively and build a strong foundation for future innovation.
Building an Innovative Culture
Innovation doesn’t happen in isolation. It requires a supportive organizational culture where experimentation, curiosity, and adaptability are encouraged. Leadership plays a critical role in fostering this environment. By setting clear expectations, rewarding innovative thinking, and providing the necessary tools and resources, leaders can empower their teams to think creatively and take calculated risks.
In long-established industries like CRE, where traditional practices often dominate, creating a culture of innovation can be particularly challenging. However, it is also essential. Without a commitment to continuous improvement and reinvention, businesses risk stagnation and obsolescence. Encouraging employees to question norms, explore new ideas, and embrace change is key to sustaining relevance in a competitive market.
Leveraging Technology as a Tool, Not a Crutch
While technology is a powerful enabler of innovation, it is not a substitute for a creative mindset. Adopting the latest software or tools without understanding their purpose or potential impact does not constitute innovation. Instead, technology should be seen as a means to achieve a larger goal—whether it’s improving efficiency, enhancing customer experiences, or gaining a competitive edge.
In the context of CRE, data analytics platforms and business intelligence tools can provide valuable insights into market trends, tenant behaviors, and operational performance. However, the true value lies in how these insights are interpreted and applied. Combining technology with human expertise and intuition creates a dynamic approach to problem-solving and decision-making.
Innovation: A Path to Resilience and Growth
Innovation is not a luxury—it is a necessity in today’s dynamic and competitive CRE landscape. By embracing a mindset of curiosity, adaptability, and continuous improvement, professionals can navigate challenges, seize opportunities, and drive long-term success. Whether it’s reapplying existing ideas, leveraging technology, or fostering a culture of innovation, the possibilities are endless for those willing to look around corners and think differently.
Next Steps
Whether you’re looking to improve your operational efficiency or adapt to shifting market conditions, now is the time to take action and lead your business into the future. Reach out to industry experts, invest in continued learning, and make innovation a cornerstone of your strategy.
