A New World In Commercial Real Estate

When we were raising our fund, I still made a couple of angel investments.  One of them launched their platform yesterday.  Build Truss is going to disrupt the commercial real estate market.

The low end of the commercial real estate market really sucks.  For owners that want to lease smaller spaces, it’s really hard.  Commercial Real Estate brokers don’t make money leasing a 5000 or 10000 square foot space.  They make the big bucks by leasing out large floors in buildings over multiple years.

For people looking for that small office, it sucks as well.  No one wants to pay attention to them.  Searching for an office is time consuming.  It’s one dead end after another.  Doing the paperwork for the lease is painful as well.

Build Truss fixes all that.

I have made prior investments in the commercial real estate space.  It’s a core competency of Chicago.  My prior investments all dealt with satisfying independent workers, small teams, and individuals looking for a place to hang. Deskpass and Nextspace align perfectly with trends we are seeing in the global economy.   Deskpass is awesome for all kinds of workers that want a place to work that is not a crummy coffee shop.  I find I get a lot more done in a co-work space than I do at home, or in a food establishment.  Nextspace can provide an office to a small team, but what about when you get to be larger?

That’s where it becomes a massive pain point.  Co-work spaces cannot solve for it.

“Office space is the second largest expense to small businesses and we believe this complex business transaction should be as simple and transparent as possible,” said Truss Co-Founder Bobby Goodman.

I had startups that outgrew co-work spaces.  But, they had a really painful time trying to find a new office.  For early stage startups once you get past a certain point, it’s important to have an office.  It gives the team a sense of place.  It helps create culture.  It helps set up boundaries.  It also gives the team a sense of accomplishment.  They grew enough to have a real office.  As my daughter says, #adultingishard and so is building a company.

 

  • Interesting and surprising to me honestly.

    Commercial leases are really egregious to startups and early stage companies. Security deposits and credit demands that push many–even established companies out of the running.

    Likewise work share has expanded to capitalize on this and for many is the choice up to 30+ employees.

    At least in NY and LA.

    • Except, in many co-work places it is hard to build a culture. Some are cold, utilitarian. They are highly dependent on the community manager and the culture they instill. One of the things I love about Nextspace is the culture. While you are in LA, go work out of the Culver City Nextspace and tell Nate I sent you. You will see what I mean.

      • will do.

        the brilliance of the model of course is that they are note inexpensive, actually at market but they are month to month.

        huge advantage.

  • Sounds like a GREAT niche tool for small companies — yet with some potential to become a kind of platform for all real estate, and even all “outsourcing” to non-core experts.

    There will be competition for such multi-tool neo-platforms coming very soon, especially as bots become better assistants and the successful companies have some web sources oriented at helping such assistant bots choose that company.