Industry News

Real estate sees opportunity, feels pinch of global outsourcing

Office vacancies may overshadow reduced costs

Over the last 10 years, more data generated from real estate transactions is being collected and keyed overseas by third-party companies. That trend is mixed news. Real estate companies are expected to increase outsourcing to reduce technology and data entry costs. But the overall trend could have an adverse effect on the real estate industry in the long run. Some believe the yearly toll from global outsourcing will add up to nearly 53 million square feet of empty office space and a loss of approximately $1.2 billion in rent due to offshore outsourcing. It also means a loss of an estimated 3.3 million jobs across all industries, which could hurt the long-term demand for housing if job growth slows in the United States as it has in the last few years. "The economy can't continue to outsource as many jobs as the U.S. is losing and not have it impact the real estate industry," said Ronald R. Pollina, president of Pollina Corporate Real Estate, a corporate site locator company based i...