Innovation Isn't Optional: What Blockbuster Forgot

“What’s Blockbuster?”

I was talking with my kids the other night about how we used to go to Blockbuster on Friday to decide what movie we would have for the weekend. You didn't dare bring it back late for fear of late fees—and don’t forget to "Be Kind, Rewind!".

They listened, half amused and half baffled, as I explained the whole ritual. Then came the inevitable question: “What ever happened to Blockbuster?”

It’s a simple answer on the surface: Netflix. But of course, the real story is much deeper—and it’s a powerful lesson in why adapting matters.

Blockbuster didn’t die because people stopped watching movies. It didn’t die because demand disappeared. It died because it failed to evolve. In fact, Blockbuster had the chance to buy Netflix early on. They passed. They thought their model was too big to fail.

And that’s where the lesson hits home—not just for media companies, but for all of us.

The Risk of Standing Still

In business, staying the same can be more dangerous than taking a risk. The world doesn’t sit still. Technology changes. Customer expectations shift. Demographics evolve. And if your business isn’t built to respond to that, eventually, it gets left behind.

We see this everywhere—and it’s certainly visible in commercial real estate.

For years, certain property types—retail strips, office buildings, even industrial space—were built on assumptions that no longer hold. We assumed offices would always need square footage. That big-box retail would always anchor shopping centers. That location alone would carry the value.

But space demands have certainly changed from what they once were.

In Alaska, we’ve watched communities change faster than many expected. Tourism ebbs and flows, remote work reshapes where people live, and logistics routes evolve. Some buildings that were high-value a decade ago now struggle to stay relevant. Others—those that were flexible and forward-thinking—are thriving.

Innovation Isn’t Just for Tech

We tend to think of “innovation” as something Silicon Valley does. But if there’s one takeaway from Blockbuster’s fall, it’s this: innovation isn’t optional, and it’s not just for startups.

In commercial real estate, innovation can look like rethinking the highest and best use of a property. It can mean reconfiguring space to serve new industries. It might involve adding tech infrastructure, making sustainability upgrades, or simply listening to the changing needs of tenants.

One of the most promising things I’ve seen lately is how some property owners and developers are becoming more proactive. Instead of waiting for tenants to leave, they’re asking: What’s coming next? What are people going to need three years from now? How can we get ahead of it?

That mindset—curious, forward-looking, agile—is what separates long-term success from slow decline.

The Human Side of Adaptation

Change is uncomfortable. It always has been. Blockbuster’s leadership likely didn’t ignore Netflix out of laziness—they believed in what had always worked. That belief, that familiarity, can be a powerful blind spot.

In our industry, we sometimes see that same resistance: “This building has always been full.” “We’ve never had trouble leasing this center.” “Our tenants have been here for decades.”

But as leaders, it’s our job to challenge those assumptions—not out of pessimism, but out of stewardship. We owe it to the people we serve—our clients, our tenants, our communities—to keep evolving. That doesn’t mean reinventing the wheel every year. It means staying alert, curious, and willing to pivot when the signs are clear.

Brokerage Is No Different

As a broker, I think about this every day. It’s easy to fall into patterns—run the same numbers, market the same way, rely on old networks. But that’s where we risk becoming the next Blockbuster in our own industry.

That’s why I’ve built my business around a simple belief: There’s always a better way of doing something.

That motto reminds me not to get too comfortable with “the way it’s always been done.” It keeps me asking better questions: Is this the best strategy for this client? Is there a smarter way to position this property? What tools or approaches haven’t we tried yet?

That’s where real value comes from—not just delivering results, but finding better ways to get there.

The Real Lesson

I don’t tell my kids the Blockbuster story to make them laugh at the past. I tell them because it’s a reminder of how quickly things can change—and how the right response to change is growth, not fear.

For those of us in commercial real estate—owners, investors, brokers, and advisors alike—the path forward isn’t about holding on to what was. It’s about seeing what’s next and moving toward it, even when it’s uncertain.

Because the businesses—and the buildings—that thrive in the future will be the ones that learn, adapt, and never assume they’re too big to change.