{"id":1004548892,"date":"2021-09-01T09:30:27","date_gmt":"2021-09-01T17:30:27","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004548892"},"modified":"2022-12-08T11:56:39","modified_gmt":"2022-12-08T19:56:39","slug":"the-cdo-stack-blockchain-and-real-estate","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/the-cdo-stack-blockchain-and-real-estate\/","title":{"rendered":"The CDO Stack: Blockchain and Real Estate"},"content":{"rendered":"

As I was thinking about the technologies that hold promise or seem as though they should already be here (or at least have gained traction), blockchain technology broadly came to mind. Not so long ago, it seemed that the hype of blockchain was giving way to practical and useful applications for the industry.<\/p>\n\n\n

\n
READ THE GUIDE<\/a><\/div>\n<\/div>\n\n\n
\"John<\/a>

John D’Angelo<\/p><\/div>\n

Maybe it\u2019s just me, but conversations about how and where blockchain technology could be applied to real estate seemed to die down as quickly as they started \u2026 until recently. In my last column<\/a>, I said that I\u2019ve had more conversations about blockchain in the last three months than in the last three years combined. Let\u2019s take a few hundred words and explore those applications.<\/p>\n

I\u2019d rather not spend many of those words defining blockchain or describing the technology, but let\u2019s set a quick baseline. Deloitte<\/a> has described blockchain as \u201cjust another type of database for recording transactions\u2014one that is copied to all computers in a participating network.\u201d That\u2019s part of the benefit\u2014that it\u2019s distributed.\u00a0<\/p>\n

Another big part is encryption and distribution, making it difficult to tamper with individual blocks.\u00a0Other benefits of blockchain technology are that it operates near real-time, enables a trustless environment, is irreversible and is resistant to censorship.<\/p>\n

New Platforms<\/h2>\n

As crowdfunding of commercial real estate investments looked to be taking off, leveraging blockchain to \u201ctokenize\u201d ownership of an asset appeared as though it was about to be the next big thing in real estate investing. Maybe it would even bring about a significant change in how real estate was being capitalized and by whom.\u00a0<\/p>\n

While crowdfunding isn\u2019t dead, blockchain and tokenization of assets certainly haven\u2019t changed real estate investing \u2026 yet. But should it? Maybe.<\/p>\n

Today, an institutional investor has only a few mechanisms to invest in real estate, and publicly traded REITs are the one mechanism that offers liquidity.\u00a0Imagine you\u2019re an investor who wishes to buy a portion of a specific asset or build a portfolio of multiple portions of assets that fit your specific investment objectives or thesis. \u201cTokenized\u201d real estate provides a mechanism to portion out ownership and create a sellable part of ownership. I know there\u2019s an issue in that there isn\u2019t a market to trade tokens, but once there are tokens, how far behind would that market be?<\/p>\n

Another interesting application of blockchain is certification of building information and providing access to parties who have rights to that information. That\u2019s vague, but think of the exchange of information that takes place once an asset is marketed for sale to support due diligence by potential buyers or the actual exchange of information that takes place when an asset is sold.<\/p>\n

I had a client whose CEO set a laudable goal that every single building in their portfolio be \u201csale ready\u201d at any moment. This meant that all documents required for due diligence or transfer of ownership would need to be available and accessible without searching, gathering or thinking about version history\u2014and ready to send to a prospective buyer.<\/p>\n

When I\u2019ve asked others how they compare to this benchmark, often, I get an embarrassed look and a nervous laugh. Now, imagine all the documents required to make a building \u201csale ready\u201d are not only available but they\u2019re also easily shared with interested parties just by granting access.<\/p>\n

I know I left off several potential applications, like placing the title itself and title history on a blockchain and using blockchain to power smart contracts. But unless I\u2019m very much mistaken, the widespread application of blockchain in real estate seems as though it\u2019s a \u201cwhen\u201d rather than an \u201cif\u201d question.<\/p>\n

As someone who has spent decades helping to improve the efficiency of the real estate business, I think blockchain holds great promise for dramatically improving that efficiency. To quote a Deloitte publication from 2017: \u201cThink about it, question it, but don\u2019t ignore it.\u201d<\/p>\n

John D\u2019Angelo is a managing director with Deloitte Consulting and leads the real estate industry sector for Deloitte Consulting in the US. With over 33 years of experience as a management consultant to the global real estate industry, John has helped some of the biggest names in real estate leverage technology and use data to optimize and transform their operations.<\/em><\/p>\n

Read the September 2021 issue of CPE.<\/em><\/a><\/p>","protected":false},"excerpt":{"rendered":"

The technology\u2019s large-scale implementation in the industry appears to be just a matter of time.<\/p>\n","protected":false},"author":1119,"featured_media":1004549087,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[39191,1521],"tags":[32782],"class_list":["post-1004548892","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-rc-cfo-corner","category-digital","tag-deloitte"],"acf":[],"yoast_head":"\nThe CDO Stack: Blockchain and Real Estate - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/the-cdo-stack-blockchain-and-real-estate\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The CDO Stack: Blockchain and Real Estate\" \/>\n<meta property=\"og:description\" content=\"The technology\u2019s large-scale implementation in the industry appears to be just a matter of time.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/the-cdo-stack-blockchain-and-real-estate\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2021-09-01T17:30:27+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-12-08T19:56:39+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2021\/08\/CDO-Stack-Image-by-geralt-via-Pixabay.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"900\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"John D'Angelo\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/the-cdo-stack-blockchain-and-real-estate\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/the-cdo-stack-blockchain-and-real-estate\/\",\"name\":\"The CDO Stack: Blockchain and Real Estate - Commercial Property Executive\",\"isPartOf\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/the-cdo-stack-blockchain-and-real-estate\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/the-cdo-stack-blockchain-and-real-estate\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2021\/08\/CDO-Stack-Image-by-geralt-via-Pixabay.jpg\",\"datePublished\":\"2021-09-01T17:30:27+00:00\",\"dateModified\":\"2022-12-08T19:56:39+00:00\",\"author\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/64705160706d96e1f3ff327abfd8fb13\"},\"breadcrumb\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/the-cdo-stack-blockchain-and-real-estate\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.commercialsearch.com\/news\/the-cdo-stack-blockchain-and-real-estate\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/the-cdo-stack-blockchain-and-real-estate\/#primaryimage\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2021\/08\/CDO-Stack-Image-by-geralt-via-Pixabay.jpg\",\"contentUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2021\/08\/CDO-Stack-Image-by-geralt-via-Pixabay.jpg\",\"width\":1200,\"height\":900},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/the-cdo-stack-blockchain-and-real-estate\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.commercialsearch.com\/news\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"The CDO Stack: Blockchain and Real Estate\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#website\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/\",\"name\":\"Commercial Property Executive\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.commercialsearch.com\/news\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/64705160706d96e1f3ff327abfd8fb13\",\"name\":\"John D'Angelo\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/5b1b698aadaf04e28f60fb086f2700479a642e4953d33fdc2515fb9e651f4907?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/5b1b698aadaf04e28f60fb086f2700479a642e4953d33fdc2515fb9e651f4907?s=96&d=mm&r=g\",\"caption\":\"John D'Angelo\"},\"url\":\"https:\/\/www.commercialsearch.com\/news\/author\/johndangelo\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"The CDO Stack: Blockchain and Real Estate - Commercial Property Executive","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.commercialsearch.com\/news\/the-cdo-stack-blockchain-and-real-estate\/","og_locale":"en_US","og_type":"article","og_title":"The CDO Stack: Blockchain and Real Estate","og_description":"The technology\u2019s large-scale implementation in the industry appears to be just a matter of time.","og_url":"https:\/\/www.commercialsearch.com\/news\/the-cdo-stack-blockchain-and-real-estate\/","og_site_name":"Commercial Property Executive","article_publisher":"https:\/\/www.facebook.com\/CPExecutive","article_published_time":"2021-09-01T17:30:27+00:00","article_modified_time":"2022-12-08T19:56:39+00:00","og_image":[{"width":1200,"height":900,"url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2021\/08\/CDO-Stack-Image-by-geralt-via-Pixabay.jpg","type":"image\/jpeg"}],"author":"John D'Angelo","twitter_card":"summary_large_image","twitter_creator":"@cpexecutive","twitter_site":"@cpexecutive","schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.commercialsearch.com\/news\/the-cdo-stack-blockchain-and-real-estate\/","url":"https:\/\/www.commercialsearch.com\/news\/the-cdo-stack-blockchain-and-real-estate\/","name":"The CDO Stack: Blockchain and Real Estate - Commercial Property Executive","isPartOf":{"@id":"https:\/\/www.commercialsearch.com\/news\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.commercialsearch.com\/news\/the-cdo-stack-blockchain-and-real-estate\/#primaryimage"},"image":{"@id":"https:\/\/www.commercialsearch.com\/news\/the-cdo-stack-blockchain-and-real-estate\/#primaryimage"},"thumbnailUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2021\/08\/CDO-Stack-Image-by-geralt-via-Pixabay.jpg","datePublished":"2021-09-01T17:30:27+00:00","dateModified":"2022-12-08T19:56:39+00:00","author":{"@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/64705160706d96e1f3ff327abfd8fb13"},"breadcrumb":{"@id":"https:\/\/www.commercialsearch.com\/news\/the-cdo-stack-blockchain-and-real-estate\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.commercialsearch.com\/news\/the-cdo-stack-blockchain-and-real-estate\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.commercialsearch.com\/news\/the-cdo-stack-blockchain-and-real-estate\/#primaryimage","url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2021\/08\/CDO-Stack-Image-by-geralt-via-Pixabay.jpg","contentUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2021\/08\/CDO-Stack-Image-by-geralt-via-Pixabay.jpg","width":1200,"height":900},{"@type":"BreadcrumbList","@id":"https:\/\/www.commercialsearch.com\/news\/the-cdo-stack-blockchain-and-real-estate\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.commercialsearch.com\/news\/"},{"@type":"ListItem","position":2,"name":"The CDO Stack: Blockchain and Real Estate"}]},{"@type":"WebSite","@id":"https:\/\/www.commercialsearch.com\/news\/#website","url":"https:\/\/www.commercialsearch.com\/news\/","name":"Commercial Property Executive","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.commercialsearch.com\/news\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/64705160706d96e1f3ff327abfd8fb13","name":"John D'Angelo","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/5b1b698aadaf04e28f60fb086f2700479a642e4953d33fdc2515fb9e651f4907?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/5b1b698aadaf04e28f60fb086f2700479a642e4953d33fdc2515fb9e651f4907?s=96&d=mm&r=g","caption":"John D'Angelo"},"url":"https:\/\/www.commercialsearch.com\/news\/author\/johndangelo\/"}]}},"jetpack_featured_media_url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2021\/08\/CDO-Stack-Image-by-geralt-via-Pixabay.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004548892","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/users\/1119"}],"replies":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/comments?post=1004548892"}],"version-history":[{"count":5,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004548892\/revisions"}],"predecessor-version":[{"id":1004552053,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004548892\/revisions\/1004552053"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/media\/1004549087"}],"wp:attachment":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/media?parent=1004548892"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/categories?post=1004548892"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/tags?post=1004548892"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}