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"Dennis DeAndre Interview 2000"


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Dennis DeAndre Photo
8/4/00 Interview with Dennis DeAndre

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

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Recapping the 1997 Vision

  1. LoopNet's vision is constant if you control where people go to buy, sell and lease real estate, you can facilitate the entire transaction online.
  2. If he could begin again, DeAndre would grow the company more rapidly and fill the management team at a much earlier stage so that LoopNet would have an even larger advantage now.
LoopNet Defined

  1. LoopNet set up the multiple listing service for commercial real estate in the U.S. and Canada; it represents 92% of the agents from those countries who market their properties on the Internet.
  2. The LoopNet search engine is transparantly integrated into 1,100 of the top 1,200 web sites‹including 14 of the top 15 national brokerage companies, the NAR and all of the national trade groups.
  3. In addition to the largest commercial listing service, the company also runs the largest loan origination platform, LoopLender.
  4. The company comprehensively covers all the functions of marketing and searching, all the functions of analytical information and all areas of transactional services.
Old Economy Consortiums

  1. Old economy companies are beginning to form consortiums, such as The Realm, Project Constellation and Octane, to impact the Internet marketplace, but these are not independent exchanges focused on what LoopNet does.
  2. LoopNet's deal in fall 1999 created a commercial real estate exchange that merged old economy and new economy players including six of the top national brokerage companies, the NAR and HomeStore.
Contrasting Approaches to Listing Information

  1. Research models that track buildings, availables and space for lease were the standard approach in commercial real estate; companies that follow this model, like CoStar and Realty IQ, collect data and sell access to it.
  2. On the residential side, instead of research models, multiple listing services developed as self-generating tools.
  3. The two distinct models of research and self-generation persist in the commercial marketplace, and which will dominate remains undecided; there is probably room for both to play a role.
  4. LoopNet has been very successful in its efforts to generate critical mass in its commercial real estate listings it is the largest competitor in self-generation; CoStar is the largest in research; much consolidation is taking place and some companies are beginning to play both sides of the field.
  5. LoopNet's competition comes mainly from the research models.
Alliance with the NAR

  1. The National Association of Realtors has turned to LoopNet for assistance in delivering tools to its commercial practitioners.
  2. Since LoopNet represented 70 of the top 75 commercial realtor associations nationwide and handled all their web site services, LoopNet was a natural choice to take over HomeStore's operation of the NAR web site.
Benefits of LoopNet

  1. Though aimed at the commercial market, LoopNet is excellent for residential agents to use in marketing occasional, small commercial-investment properties; the beginning level for consideration on LoopNet would be properties in the duplex-triplex range.
  2. LoopNet provides a critical mass of commercial properties available for sale and for lease over 100,000 across the price spectrum; such a comprehensive resource has been lacking.
  3. Through LoopLender, commercial professionals are enabled to order a loan based on personal preferences, survey the loan details from 42 of the largest lenders, apply online and get hard quotes back in 48 hours.
  4. LoopNet's CuttingEdge service allows a commercial real estate practitioner to create an instant web site.
  5. A new listing can be matched with buying and leasing requirements and marketed directly to all LoopNet users by email brochure; email notification of a match is a tremendous time-saver for agents.
  6. With LoopNet handling searching and the assembly of marketing information for you, you can concentrate more on value added services such as analysis, deal-structuring and negotiation.
The Importance of Critical Mass

  1. Critical mass in demand is as important as critical mass in supply one feeds on the other; with both, LoopNet is now a powerful exchange.
  2. Agents are motivated to update and renew listings frequently 58% of listings are updated more than once a month, compared with a standard of current data for research companies of 30-60 days. Virtual Tours on LoopNet is compliant with six leading virtual tour companies; to use another source or a tour of your own making, check with Client Services at LoopNet.
Classic Sites

  1. Trend setting sites that continue to have value include Marcus & Millichap, REcyber.com and PikeNet.
  2. Inman.com presents a unique blend of real estate technology plus news of the industry with an editorial bent.
The Advancement of the Revolution

  1. In the last three years, LoopNet met expectations for the expansion of its activity level, and cybertools have freed brokers from menial tasks to function more as consultants.
  2. Although many components are in place and all the areas of a transaction can be accessed, the vision of a comprehensive online digital transaction may take another two years to be realized.
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