This really is a powerful image – road side bomb for lenders?

Yes.  And as a son of a man who flew Air Force Special Ops during the Tet Offensive, I understand the image.  (We thought he was lounging around, and safe and sound, on the base in Thailand.)

Technology is being used in building operations, and in the businesses that are in them (such as hotels, distribution centers, apartments, etc.) – all in ways that commercial real estate lenders do not appreciate, and have not taken into consideration in due diligence and in loan documentation.

  • Am I wrong in this?

Owners of commercial real estate are way ahead of the lending community in understanding the value of technology.  (My piece in Mortgage Technology magazine.)

To give you some perspective on this (or at least my perspective), take a look at these topics:

One day (soon) a lender will foreclose, show up at the building, walk into the building systems "control" room, and stare at a wall of plugs – where the computer rack stood when it operated the building systems and amenities (HVAC, security, telecommunications, internet, hotspots, elevators, etc.).

Or, the racks are full with computers,  but . . . the software and necessary data is missing.

Or, the link to the off-site (read: on-line) service has been disconnected.

And the historical data is missing. 

(More than an "ouch.")

Please post your comments below.