This post was created by Realmo

So, you’re tired of scrolling through endless (and totally irrelevant) property listings, right? Feeling like you’re missing out on those hidden gems in the commercial real estate (CRE) market? I know the feeling. Seriously, I’ve been there, spending hours and hours sifting, only to come up empty-handed. The frustration is REAL.

The secret to actually making profitable CRE investments might be choosing the right platform. But… local or global? That’s what I want to help you figure out in this article. We’ll look at the good and the bad of both sides. The goal? To help you make smart choices and finally find those investment opportunities that are perfect for you. Just a heads up, one of the best ones is Realmo

 Breaking it Down: Local Versus Global CRE Platforms

Okay, so what exactly do I mean when I say “local” versus “global” CRE platform? The main thing is market coverage, where the data comes from and, of course, who they’re trying to reach. Knowing the difference is HUGE before you even think about signing up for anything.

Think of a local CRE platform as being focused on one area, like a city or a state. They are “boots on the ground,” offering a super in-depth understanding of that market. Hyper-local data is their thing, and they’re great at creating networking opportunities in that specific area. Think of a platform dedicated to just commercial properties in Denver, Colorado, or maybe one that specializes in retail spaces all over Florida.

A global platform, on the other hand, gives you access to property listings and market data from all over the world. They’re aiming to give you a kind of “bird’s-eye view” of investment opportunities across countries and continents. They are often used by those bigger institutional investors who want to diversify their portfolios in a major way. Think of platforms like CoStar or Reonomy

The Good and Bad: Going Local

Local CRE platforms give you a level of detail and expertise that the global ones just can’t match. BUT that also comes with some limits. Let’s dive into the good and the bad, shall we?

The Perks of Local Platforms

By far, the BIGGEST perk is the super in-depth local knowledge you’ll gain. These platforms are run by people who know that local market inside and out. They understand the little nuances of specific neighborhoods, the shifting demographics, and those subtle market trends way before they become national news.

I remember once using my knowledge of local zoning rules (which I got from a local platform) to find a hidden development opportunity that would have been totally missed if I’d used a global platform. It was a property that seemed totally unremarkable on the surface. BUT the platform pointed out a zoning change that was about to happen, which would allow for much higher density development. That insight (which you couldn’t find on those bigger platforms) turned into a VERY profitable deal.

Downsides of Local Platforms

The most obvious downside? They don’t cover as much ground. If your goal is to spread your portfolio across different regions or check out international opportunities, a local platform just isn’t going to work. You’ll have to use a bunch of different ones.

I’ve also seen some issues with data consistency. Because they work on their own, you often end up with different formats and metrics. This can make comparing properties a real pain and means you have to spend more time manually getting the data into a usable format before you can make any good decisions about your commercial property investments. Basically, if you aren’t careful, the limited reach and possible data issues can limit your options.

The Good and Bad: Going Global

Global CRE platforms open up a world of possibilities, giving you access to markets and opportunities that a lot of investors just couldn’t reach before. Of course, this also comes with its own challenges. Let’s break it down:

The Perks of Global Platforms

The biggest and most compelling thing about global platforms is the sheer REACH. They give you access to a huge range of diverse investments from all over the globe. This lets you tap into international capital and REALLY diversify your portfolio.

Early in my career, I used a global platform to diversify a client’s portfolio beyond our own domestic market. We found an emerging market in Southeast Asia that had huge growth potential in the logistics space. The platform gave us the data and the connections needed to get a strategic investment in a warehouse development. The returns? They were way better than what we were seeing domestically at the time. I never would have been able to pull this off without a platform that had that kind of global reach. It’s a powerful tool for managing risk and maximizing returns.

Downsides of Global Platforms

It’s not always easy to get around the global CRE landscape, though. One of the biggest problems is the reliability of the data. Standards can vary A LOT from country to country. It can be tough to double-check the accuracy and consistency of the information being presented.

I remember one time when I ran into a major problem because of data inconsistencies on a global platform. We were looking at a potential investment in a European office building, and we based our decision on occupancy rates and lease terms listed on the platform. Well, after doing our own digging, we found out that

This content was produced independently from the Worldcrunch editorial team.