• Propmodo Focus
  • Posts
  • Keller Williams Is Learning About the Downside of Robocalls

Keller Williams Is Learning About the Downside of Robocalls

Defining the future of real estate

Author

Franco Faraudo
May 01, 2024

Propmodo Daily

By Franco Faraudo · May 1, 2024

Greetings!

Today’s newsletter is brought to you by Prophia, an AI-powered data management and intelligence platform for the commercial real estate industry. In a major play for Seattle's hot real estate market, Palisade Group and Sabal Investment Holdings recently snagged two prime office buildings. Learn how Prophia's cutting-edge tech helped streamline the deal process.

Automated calls and texts can be annoying for the people who receive them, but they can be financially ruinous for the companies that send them. In today’s email, we look at a number of lawsuits being filed against Keller Williams for its brokers’ illegal use of telemarketing technology.

The confluence of high interest rates and maturing debt in 2024 is reshaping the commercial real estate landscape. Our new article explores the rise of rescue capital as a signal of investors pivoting from growth-centric strategies towards value creation within distressed assets.

This week on Propmodo Technology, sponsored by location intelligence platform Placer.ai, we're exploring retail property technology. We'll investigate how innovative tech helps landlords optimize their tenant mix, examine the enduring importance of physical stores in retail's future, and learn how Macerich leverages technology to empower small business owners.

Now, let's dig in!

Keller Williams Is Learning About the Downside of Robocalls

The growth of automation technology has transformed marketing outreach for businesses across all industries. With minimal cost, companies can now launch campaigns that automatically call or text thousands of phone numbers simultaneously. This technique, particularly prevalent in real estate, has both benefits and legal risks.

Robocalls and robotexts are technically legal, but come with strict limitations. Keller Williams is learning this lesson firsthand. The real estate brokerage was recently hit with a class-action lawsuit alleging its use of automated telemarketing violated regulations. The suit claims a Keller Williams agent continued contacting the plaintiff even after receiving a "stop" request.

This isn't the first time Keller Williams has faced legal trouble over telemarketing practices. Last year, they settled a $40 million lawsuit for violating the Telephone Consumer Protection Act by calling people on the National Do Not Call Registry. A judge has denied Keller Williams' claim that these cases are too similar to warrant separate legal action.

The risk of legal repercussions for outreach campaigns poses a unique challenge for brokerages. Their decentralized, franchised structure can lead to inconsistencies in marketing lists across locations. If someone who opted out of communication from one franchisee is contacted by another, the entire brokerage could be held liable.

As telemarketing technology advances, so will the courts' ability to hold those who misuse it accountable. Real estate companies must become more diligent in managing their lists and regulating their brokers' use of telemarketing. The legal fallout faced by Keller Williams serves as a warning. Any brokerage that sends unwanted messages risks becoming the next target for opportunistic lawyers seeking a similar settlement.

Featured Article

Real Estate Distress Has Created Opportunities for Rescue Capital

Rescue capital offers a lifeline for distressed real estate projects. Peebles Corporation and Lightstone Group are using this concept to help property owners in financial distress. Despite the challenges posed by market turmoil, the commercial real estate sector presents opportunities for investors. Opportunistic investors are using rescue capital in the distressed commercial real estate market to exploit 'once-in-a-generation' investment opportunities.

READ ONLINE: https://propmodo.com/real-estate-distress-has-created-opportunities-for-rescue-capital/

Insider Insights

💧 Overly concentrated: Researchers at the University of Michigan have found that one of the overlooked factors in China’s real estate crisis came from the fact that only five developers accounted for 30 percent of the country’s housing production.

🕳️ Default of your own: Defaults on office buildings reached $38 billion last quarter, a number not seen since 2012 in the aftermath of the financial crisis.

Overheard

Propmodo Technology: Retail Property

Macerich Builds Listing Platform to Appeal to 'Mom and Pop' Business Owners

Despite initial predictions of their demise due to online shopping, malls are experiencing a resurgence and becoming a bright spot in the real estate market. This is partly due to efforts like Macerich's online leasing platform, which streamlines the leasing process for smaller, local businesses. The platform offers virtual walkthroughs, transparent pricing, and tools for reviewing and signing leases, attracting a wider range of tenants. This technological innovation is driving interest in retail real estate and could lead to further digitization within the sector.

READ ONLINE: https://propmodo.com/macerich-builds-listing-platform-to-appeal-to-mom-and-pop-business-owners/

The Tech Helping Retail Landlords Find the Right Tenant Mix

READ ONLINE: https://propmodo.com/the-tech-helping-retail-landlords-find-the-right-tenant-mix/

How Brick and Mortar Commerce Fits into the Future of Retail 

READ ONLINE: https://propmodo.com/how-brick-and-mortar-commerce-fits-into-the-future-of-retail/

Reach over 70,000 commercial real estate professionals when you collaborate with Propmodo. For info, email [email protected].

Propmodo Live Webinar

Which Cities Are Still Thriving Even With Low Office Occupancy?

The office market is in flux, with some cities suffering far more than others. Join our discussion with Caroline Wu, Director of Research at Placer.ai, to learn which cities are hardest hit, how it impacts other property types, what strategies help downtowns recover, the success of office conversions, and where the office market may be headed.

REGISTER: https://propmodo.com/which-cities-are-still-thriving-even-with-low-office-occupancy/

Are You Enjoying This Newsletter?

Propmodo Daily is written and edited by Franco Faraudo with contributions from readers like you and the Propmodo team.

📧 Forward it to a friend and suggest they check it out.

🔗 Share a link to this post on social media.

🗣 Have ideas for future topics (or just want to say hello)? Share your feedback and tips at [email protected] or connect with us on X through @propmodo.

✅ Not subscribed yet? Sign up for this newsletter here.

📫️ Please add our newsletter email, [email protected], to your contacts to make sure you don’t miss any updates.

Explore Propmodo

Enjoy reading about trends and innovation in commercial real estate? Subscribe to Propmodo.com for unrestricted access to reliable, data-driven journalism and exclusive insights available only to subscribers.

Interested in sponsoring this newsletter? Email [email protected]