SIOR’s Aaron Barnard: As CRE Gets More Complicated, the Trusted Advisor Matters More

Commercial real estate faces a growing list of challenges, from interest rates and geopolitics to supply-chain disruptions, technology and changing workplace expectations.

Those issues will be among the topics discussed when the Society of Industrial and Office REALTORS (SIOR) gathers in New York for its Fall Event Oct. 19-22. The event will bring together CRE professionals from around the world as SIOR celebrates its 85th anniversary.

According to incoming global president and Cushman & Wakefield senior director Aaron Barnard, succeeding in the current environment comes down in part to what he calls “relationship intelligence,” a key component of being a trusted advisor.

“We’re entering a time where the trusted advisor is more important than ever because of the speed and rate of change,” Barnard told Connect CRE.

Artificial Intelligence vs. Relationship Intelligence

On the technology side, Barnard sees plenty of uses for artificial intelligence. A professional who gets a lead on a particular company can use AI to research the business, its geography, relevant news and other information.

That broker can become “smart enough to be dangerous really fast,” he said, as long as the information is fact-checked.

AI is an assistant, not the ultimate authority. Everything still needs to be independently verified before moving ahead.

A bigger question is whether AI will replace entry-level brokerage work.

“I don’t see it taking away,” Barnard said. “It takes away some of those entry-level jobs, but it changes the entry-level job.”

AI could change the nature of what an entry-level broker needs to know.

“When I hire a college graduate today, I need to know, first, how motivated they are. The second thing I want to know is if they can write really good prompts or verify data,” Barnard said.

Those skills feed into another essential quality for a successful broker: being a trusted advisor with strong relationship intelligence.

No matter how much technology changes, Barnard said, building relationships remains paramount to CRE success.

The trusted advisor is the person who conveys information, understands laws and regulations, has in-depth market knowledge and maintains a network of essential contacts, including title companies, attorneys, appraisers, other brokers, lenders and municipal employees.

“If you have a trusted advisor on both sides of the table, everyone wins, versus a knock-down, drag-out fight,” Barnard said.

Discussing the Current Trends

Several issues, Barnard said, should remain on the radar of commercial real estate professionals.

The Market May Be Global Even When the Broker Isn’t

Relationships also play an essential role in the globalization of CRE. They don’t stop at market boundaries.

A Chicago industrial client may be dealing with international supply chains. A Dallas company could be expanding internationally. An Atlanta-based company may suddenly need real estate expertise in another country.

Being involved means being curious and asking the right questions, regardless of where the broker is located. That can include understanding how deals are conducted in other countries, the impact of media headlines on overseas real estate, tariffs, local politics and more.

“Be curious,” Barnard said. “Don’t just close your mouth and go.”

This is where Barnard sees SIOR’s global network providing an advantage. A broker can maintain deep knowledge of a local market while connecting a client with trusted SIOR professionals elsewhere.

Office Flight to Quality Is About More Than the Building

Barnard expects office bifurcation to remain one of the defining CRE trends over the next 12 to 18 months.

But “flight to quality” goes beyond the asset itself.

“It has to be well-located,” he said. “Work-live-play is more paramount than ever.”

The best-performing office properties tend to be part of an ecosystem where employees can walk to lunch, shopping, entertainment and other amenities. The building matters, but so does everything around it.

For one thing, chasing sublease space is becoming more difficult.

Barnard recently surveyed a client who preferred sublease space because it could offer a relatively short, turnkey and often furnished solution. But much of the readily available sublease inventory has been absorbed.

“There was one space available where three years ago, there would have been 20,” Barnard said. “We are seeing that space get gobbled up.”

The solution again goes back to the trusted advisor, with the knowledge and networks to uncover opportunities.

“With all the data we have at our fingertips, bumping into somebody at an event and saying, ‘Hey, I might be bringing something in a market in 90 days,’ that’s absolutely paramount,” Barnard said.

Reshoring Is More Than a Short-Term Trend

On the industrial side, Barnard expects reshoring and nearshoring to continue, driven by policy, global supply-chain risks and economics.

“It’s a lot of money to bring something from halfway around the globe that you can build in your own backyard or a neighboring country,” Barnard said.

For the broker, that means more than having the right data. It also involves the relationship.

“You can’t walk in just with all the data and win that relationship,” Barnard said. “You have to do the data and relationship-building at the same time.”

It also depends on whether the broker knows which information matters.

Building the Next Generation

As SIOR’s incoming global president, Barnard also pointed to the need to improve connectivity and innovation within the organization.

That process begins before the next generation of brokers is hired.

“We need to look ourselves in the mirror and ask how we can get people into the business,” Barnard said.

One step is to expose new brokers to SIOR through its member associate program, which allows them to take advantage of conferences, chapter meetings and relationships without necessarily meeting the five-year activity, transactional history or gross fee income thresholds required for full membership.

Barnard’s priorities also include member experience, connectivity and innovation, while maintaining SIOR’s emphasis on expertise, ethics, professionalism and the quality of its membership.

And in an industry where transactions are taking longer, he sees relationships as one way to improve and speed them up.

“If you get something done faster and quicker, it’s usually more cost-effective for everybody in the world,” he said.

Ultimately, Barnard’s vision for SIOR isn’t centered on choosing between technology and the traditional brokerage model.

It’s about combining them.

“AI is always going to be there, and it’s only going to change,” he said. “I think the winner will figure it out early and figure out how to be the best broker with the best data, but also walk in with the relationship.”

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