{"id":1004280332,"date":"2018-11-19T03:30:24","date_gmt":"2018-11-19T11:30:24","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004280332"},"modified":"2022-12-08T08:54:03","modified_gmt":"2022-12-08T16:54:03","slug":"blockchains-implications-for-cre","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/blockchains-implications-for-cre\/","title":{"rendered":"Blockchain\u2019s Implications for CRE"},"content":{"rendered":"

By Scott Baltic<\/p>\n

\"Revathi<\/a>

Revathi Greenwood, head of Americas Research, Cushman & Wakefield<\/p><\/div>\n

Blockchain, the technology behind such cryptocurrencies as bitcoin, has been adopted by the CRE industry to only a limited extent so far, but it could be widely adopted within a decade. This could transform such functions as due diligence, asset management of large multi-tenanted properties or portfolios and global property searches. That\u2019s the central theme of a new report by Cushman & Wakefield, Blockchain, Bitcoin and Real Estate<\/a>, which provides current real-world instances of these functions being assisted via blockchain.<\/p>\n

Also known as a \u201cshared digital ledger\u201d and sometimes called a \u201cvalue-exchange protocol,\u201d blockchain is commonly associated with cryptocurrencies. The report notes, however, that the technology\u2019s efficiency, security and transparency also lend themselves to numerous other uses. A blockchain transaction simply involves the exchange of data, which could represent money, but could instead represent a contract or deed, for example.<\/p>\n

\u201cBlockchain is actually a shared digital ledger of transactions recorded and verified across a network of participants in a tamper-proof and visible chain<\/em>.\u201d the report explains. \u201cPermissions determine who can access or participate in the chain. Most commercial applications are expected to use a permissioned<\/span> model<\/em>.\u201d<\/p>\n

\u201cAs of today, blockchain and cryptocurrency adoption in our industry is in its early stages, but as with any technology that possesses the potential to essentially redefine how transactions occur in the real estate space, we are paying close attention to it<\/em>,\u201d Revathi Greenwood, Cushman & Wakefield\u2019s <\/a>Americas head of Research<\/a>, said in a prepared statement. \u201cAs operational hurdles are addressed, convergence with other technologies grows and questions over scalability are answered, we expect blockchain to influence and impact commercial real estate across several verticals<\/em>,\u201d she continued.<\/p>\n

Blockchain technology should result in faster transaction processes, specifically in cross-border transactions, added Cushman & Wakefield\u2019s Senior Managing Director, Strategic Consulting, Jeff Lessard. \u201cThis improved efficiency will have numerous financial benefits, including reduction in friction costs of commercial real estate transactions, like fees tied to document preparation and review.<\/em>\u201d<\/p>\n

The report identifies three key areas where blockchain could change CRE:<\/p>\n