“Not being able to use that word in a sales pitch is a mistake, because when you can use that word and throw it in, you’re able to tell the receiving audience: I know your business. ”
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Episode 28 is another conversation with Joe Gaspardone, COO of Montgomery Technologies.
This time, Joe and I dove deep into commercial real estate finance. If you're interested in smart buildings, the business case for that solution or technology needs to be made at some point. In this episode, we show you what it takes to actually do that for one type of building: the commercial office building.
Mentions and Links
You can find Joe Gaspardone on LinkedIn.
Thoughts, comments, reactions? Let us know in the comments.
Music credit: The Garden State by Audiobinger
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Here’s this week’s deep dive outline:
My reaction, including highlights:
Identifying and defining the two markets within CRE: transactional and non-transactional
Cap rate - “the least-used, most important term in the technology space”
The power of leverage
The big picture of the ROI - bank return, appreciation return, and the depreciation return
Reframing the split incentive as the dark side of common area maintenance (cam) charges
The pressure to keep operating expenses flat
A word of caution on making fluffy claims to operations folks about increasing rent per square foot, tenant salaries, etc.
Climbing the disaggregated decision tree of CRE
The impact of climate commitments