## Bob Knakal Launches New Firm, BK, Bringing Decades of Experience and Proprietary Data to Real Estate
**Key Takeaways**
– Bob Knakal, a prominent figure in the New York City real estate brokerage industry, launched a new firm, BK, focusing on selling buildings, debt, and equity transactions.
– Knakal emphasizes the power of AI in streamlining day-to-day operations and facilitating more efficient marketing and outreach efforts.
– BK’s unique edge lies in its proprietary data sets, spanning 40 years, that provide consistent and precise information on land sales, development pipelines, and property characteristics.
– This data, combined with Knakal’s extensive experience, gives BK a distinct advantage in providing accurate market insights and predictions.
**A New Chapter for a Real Estate Veteran**
After four decades in the New York City real estate market, Bob Knakal, a broker known for his deep understanding of the city’s landscape, has established his own firm, BK. This venture marks Knakal’s fifth in his career, a testament to his entrepreneurial spirit and unwavering passion for the real estate industry.
Speaking at a recent industry event, Knakal laid out his vision for BK, emphasizing his intention to leverage artificial intelligence (AI) to enhance efficiency and accuracy in real estate transactions.
“I think it’s the coolest business in the world,” Knakal shared, “It’s probably the purest form of meritocracy that exists. You get out of it exactly what you put into it.”
Knakal’s journey to establishing BK wasn’t without its challenges. He acknowledges the complexities of being a successful business owner, stating, “I’ve also come to find out I’m a horrible employee. I’m pretty good business owner, but I’ve been fired twice… that came into play when I decided what I was going to do when I grow up.”
**Leveraging AI to Streamline Operations and Generate Insights**
At the heart of Knakal’s vision for BK is the strategic integration of AI. He believes AI can revolutionize various aspects of real estate brokerage, from prospecting and outreach to detailed market analytics.
“I don’t believe AI is going to replace anybody,” Knakal said, “But somebody using AI is going to replace somebody that’s not using AI. It’s massively powerful.”
He outlined two key areas where AI can significantly impact real estate brokerage. The first is in the efficient management of day-to-day operations. Knakal envisions AI enhancing prospecting efforts, identifying potential sellers, and streamlining communication through personalized outreach initiatives.
“The efficiencies that AI can help with outreach are unbelievable,” he stated.
Knakal envisions a future where AI-powered tools personalize interactions with potential clients through mass text messages, emails, and even personalized videos. This tech-driven approach promises to dramatically increase the effectiveness and reach of brokerage efforts.
The second area where AI holds immense potential, according to Knakal, is in analysis. AI’s ability to process massive data sets in real time could revolutionize market assessments and predictions.
However, Knakal cautions that the sheer volume of data isn’t the only factor determining the accuracy of AI-generated insights. The quality and consistency of the data itself are paramount.
“Most data sets in real estate are terrible,” he stated, highlighting the challenges of obtaining accurate and reliable information from third-party data aggregators.
Knakal explained that many data aggregators rely on inexperienced personnel who may not be able to secure accurate information from real estate professionals. The lack of reliable data could undermine the effectiveness of even the most advanced AI models.
**The Power of Proprietary Data**
This is where BK’s true differentiator comes into play – its vast and meticulously curated data sets, spanning 40 years of land sales and development activity in New York City.
“We have these data sets that have been done the same way for so long,” Knakal explained, emphasizing their unique value. “I’m really curious to see what’s going to come out of that.”
Knakal’s proprietary data sets provide unparalleled insights into the intricacies of land sales, development pipelines, and property characteristics, allowing BK to offer unparalleled market analysis and predictions that other firms may not be able to match.
**The Map Room: A Groundbreaking Initiative**
Knakal revealed the genesis of BK’s data collection efforts, a project born during the 2020 COVID-19 lockdown. When New York City was placed under a strict lockdown, Knakal saw a unique opportunity to gather valuable information.
“I pulled up on the FDR Drive and I’m like, holy, this is a ghost town,” he recalled, describing the eerily deserted streets.
This unexpected scenario spurred Knakal to initiate what he calls the “Map Room” project, an intensive endeavor involving his team physically walking every block of Manhattan to meticulously document ongoing construction, development sites, and property characteristics.
“We covered the whole city in 4 months, 220 hours in the field,” Knakal revealed, emphasizing the sheer scale of this manual data collection effort.
Knakal further explained that this meticulous mapping process included identifying potential development sites, analyzing density, and tracking assemblage sites. Based on these observations, BK developed a comprehensive system that categorized development sites into various stages of activity, from pending to active to completed.
**Beyond Data: The Significance of Intangibles**
While BK’s data sets are a significant asset, Knakal acknowledges the importance of “intangibles” – the qualitative details and contextual information that often remain outside the scope of quantifiable data.
Knakal stressed the importance of understanding the specific rights and entitlements associated with a given property. Factors like inclusionary housing bonuses, development rights, and zoning regulations can significantly impact the value and development potential of a property.
“What you pay for the as-of-right development rights, the developer doesn’t care,” Knakal explained. “They care about what they pay on a blended basis at the end of the day.”
Knakal’s vast experience and network enable him to gather this qualitative information, which is not readily accessible through traditional data sources.
**BK’s Position in the Market**
In a crowded landscape of real estate firms, BK stands out with its unique combination of sophisticated technological capabilities, extensive proprietary data, and the seasoned expertise of Bob Knakal.
This combination promises to elevate the firm’s ability to serve clients with unparalleled insights and actionable strategies in a rapidly evolving real estate market.
“I think we’re going to be able to say, hey, based on this factor or this combination of factors, it’s very likely in 14 months, this is going to happen to the land market,” Knakal said.
**Conclusion**
Bob Knakal’s launch of BK is a significant event in the New York City real estate market. By combining his deep experience with the power of AI and a unique data advantage, Knakal is positioning BK to become a leading force in the industry, delivering unparalleled insights and driving innovation in the real estate investment landscape.