Hybrid Done Right: Buy the Core, Build the Edge

Why the Smartest CRE Leaders are Rethinking Their Build vs. Buy Strategy

In today’s commercial real estate landscape, technology has become a competitive differentiator—but not every innovation should be built from scratch. At this year’s CREtech in New York City, industry leaders from PredictAP, Connexus, Forty5Park, and Second Century Ventures gathered to tackle one of the sector’s most important strategic questions:

When should you build bespoke technology, and when is it smarter to buy proven solutions?

The New Calculus for CRE Technology Decisions

Every organization reaches the same crossroads: invest in in-house development or implement a best-in-class platform. But the decision isn’t purely financial; it’s operational, strategic, and increasingly influenced by AI adoption.

Key questions CRE leaders must ask include:

• Is in-house development a cost center or a long-term cost reducer?

• Is owning the technology a true competitive advantage?

• How critical is speed-to-market in achieving ROI?

• How much do integration, customization, and IP ownership matter?

The answers often vary by function. Finance teams, for example, may prioritize rapid deployment and vendor support, while operations teams may need deep customization to align with internal workflows.

The Hybrid Approach: Buy the Backbone, Build the Edge

For most CRE organizations, the right answer lies in the middle.

A hybrid strategy—buying standardized core systems while building differentiating layers on top—balances efficiency with innovation.

This approach allows companies to:

• Deploy faster by adopting proven, enterprise-ready systems.

• Maintain agility and control by building proprietary tools at the edge.

• Reduce total cost of ownership while preserving flexibility.

• Align technical decisions with business goals rather than technology trends.

In practice, this could mean buying a robust AP automation platform while building analytics or reporting tools that visualize portfolio-specific insights.

The Build vs. Buy Matrix

Don't Overlook Data Privacy

As AI and data-driven systems proliferate, data privacy and governance must be part of every decision.

Before committing to a vendor or starting an internal build, leaders should evaluate:

• Third-party data use: How will vendors handle your proprietary information?

• Security protocols: What measures exist to protect sensitive financial or tenant data?

• Breach accountability: Who bears the risk if something goes wrong?

Clear data-sharing terms and robust security frameworks are non-negotiable, whether you’re partnering with a vendor or developing in-house.

The TL;DR Version

The smartest CRE companies aren’t choosing between building and buying; they’re mastering both. By buying the core and building at the edge, they’re creating scalable, secure, and differentiating systems that evolve with the market.

As AI continues to redefine what’s possible in commercial real estate, hybrid done right may just become the industry standard.