“Great! Another offering memorandum!” – said no investor ever. On any given day, the average investor receives over 50 OM’s in their inbox. The only changes to OM’s seem to be expanding page length; most are about 7 pages. It’s simply not possible for an investor or broker to effectively read through 350 pages of OM’s, along with their daily tasks. Even if it were possible, I think most will admit they’d likely rather watch paint dry then read that many OM’s.
Obviously information contained in OM’s is important; in fact, it’s imperative to understand the property and the potential deal. The problem lies in the information’s format. A 7 page PDF takes considerable read-time, not to mention how difficult it is for brokers to make a property stand out on a PDF. Listing sites are doing their best to make this information more digestible, with quick facts beneath some pictures, but if you’re serious about a property then you’re still stuck clicking the “Download OM” button many times a day.
Quantity and format aside, let’s discuss quality. According to the National Association of Realtors, the average CRE deal in Q2 of 2018 was about $1.8 million. Yet the materials being used to represent these immensely valuable assets look the same they did decades ago. Marketing materials should adequately communicate the brand and asset they represent. If a real estate firm holds itself to a high standard and prides itself on being a “premium” brand, then the OM should reflect that.
So if OM’s are so boring and time-consuming, then why is it still the standard marketing asset for any commercial property? Simple, lack of innovation; that is, until now. Videoms is revolutionizing offering memorandums. Video enables a more in-depth, real-time understanding of a property.