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"Dennis DeAndre Interview 1997"


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Dennis DeAndre Photo
4/18/97 Interview with Dennis DeAndre

Loopnet.com
2650 18th Street
San Francisco, CA 94110
Biography

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Description of the Loop Network

  1. This commercial real estate listing service, representing most of the commercial associations of Realtors nationwide, provides personal listing services for the organizations within their Web sites and carries their listings on the one larger system.
  2. Participants have the advantages of networking together and gaining additional exposure for their properties; also, users have a larger database for comparatively analyzing properties available.
  3. The database adds about 30 new listings per day, and properties expire off the system every six months; agents can edit/delete properties online.
Loop Network's Vision

  1. Loop Network's goal is to create a comprehensive service for the acquisition and disposition of real estate products nationwide; though focused commercially, it can be translated to residential real estate.
  2. The commercial listing service is the platform into a number of additional commercial services and is the logical place for disjointed real estate functions to come together at the time buy/sell decisions are being made.
  3. Alliances to be formed over the next two months will allow users to perform many steps online - obtaining title insurance, starting the loan application process, etc.
Factors for Success

  1. Previous attempts to establish a comprehensive listing service have failed, not from the unwillingness of brokers and owners to share information, but from their inability to access one common network; the World Wide Web has removed the access barrier.
  2. The Loop Network has addressed the problem of achieving the critical mass and momentum to be useful as a listing service by not charging users to post or search listings; it has grown faster than competitors.
  3. About 30 organizations and 6,000 commercial Realtors currently endorse and use Loop network exclusively; no other service is endorsed by more than two organizations nationally.
  4. The greatest competition for the Loop Network probably will be someone providing data in a different realm seeking to complement their existing marketplace; a number of large information providers are considering moving into listing services.
  5. The CCIM list service is an outstanding system for going beyond mere posting to manipulate information and make it useful; Loop Network would like to incorporate both systems into the Web sites it develops.
  6. To attract users, the Loop Network periodically mails brochures nationwide, but the most effective technique is requiring users to register as members (quickly and for free) before being able to see properties the first seven days they are posted; about 15 new users sign up daily.
  7. The resulting email list has been the greatest tool for contacting members to determine what they want in a listing service, to inform them of changes and to provide an extra level of service.
Other Favorite Sites

  1. Peter Pike also has a valuable service and his site is one of the most useful on the Web; the Urban Land Institute site offers members and users a number of useful tools; Sylvan Lawrence's company site helps users to see office space available and to learn about it.
  2. The Office Buildings Magazine site reproduces information from its comprehensive printed directory; searching by address brings up a color picture, contact information, a list of tenants and more; Loop Network includes the site in its commercial real estate Web site directory.
Up-Coming Developments

  1. Loop Network is creating alliances to provide a number of additional tools; it will become a one-stop source for on-demand services.
  2. Loop Ventures is not attempting to control commercial real estate or the information-providing business; the company is supplying an avenue for the various tools to be sold and accessed.
  3. The alliances will make available general sales and lease comparable information for free with the ability for users to purchase sale and lease comparables directly from a provider; tax roll, demographic and environmental information will be available in a similar way.
Revenue Sources

  1. Advertising and the subscription-based listing service will be long-term revenue sources; as a valuable marketing channel for real estate-related services, expansion of alliances should generate increased profits.
  2. The personalization of the Loopnet database is a significant source of revenue that will expand; Loopnet builds a listing service within a subscriber's site that searches and retrieves only listings of that company.
  3. Because Loopnet is a valuable point for selling information, the company would like to become resellers of information to some degree - i.e., work cooperatively with information providers.
  4. For individuals, Loopnet will remain a free service for searching and posting properties, but more subscription services will be built in.
Discounted Threat from a Spider

  1. The huge Commercial Real Estate Industry - 280,000 companies averaging two professionals - is too fragmented among small players to make development of a spider routine feasible.
  2. Similar companies benefit from the organizational structure of a Loopnet; very few commercial real estate sites are large enough to be work searching by a spider.
  3. Good business ethics require a company not to take information from a site without permission.
Impact on How Real Estate is Sold

  1. The Loopnet system is a tool that allows brokers and management companies to focus on what they do best; it is not a factor in the disintermediation of the commercial real estate brokerage marketplace. 2. Loopnet saves the professional time and effort from assembling marketing brochures, maintaining a personal database of properties, faxing/ mailing information on new listings.
  2. Use Loopnet to search existing local inventory and to market your properties; simple, graphical buttons walk you through the steps; use the newly added Commercial Real Estate Web Site Directory to search 15 peripheral service industries by state and to access the Web site of those resources.
  3. Loop Network is not competing with Peter Pike: Loopnet's directory is an ancillary tool it would relinquish to collaborate with Pike.
The Direction of Cyberspace

  1. A fully developed marketplace can reasonably evolve within 24 months; within six months, Loop Network will offer "one-stop shopping."
  2. Cyber tools will allow brokers to get away from menial daily tasks and function more as consultants.
  3. Every month, more investors are responding to Web postings; as Loopnet becomes known as a tool, its activity level is increasing drastically.
Contact Information for Dennis DeAndre:

(v) 415-216-1600
(f) 415-216-1601
(e) ddeandre@loopnet.com
(w)www.loopnet.com


Real Estate Sites & Tools in this Briefing:

Loopnet
CCIM Net
Pikenet
Urban Land Institute
Sylvan Lawrence
Office Buildings Magazine