Radio Header

Get Adobe Flash player

"New Horizons for Commercial Success!"


Attend This Session

Doug Curry Photo
2/7/03 Interview with Doug Curry

Xceligent
4231 South Hocker Drive
Independence, MO 64055
Biography

Print Print this handout

The History of Commercial Networking

  1. As long as Commercial brokers could track all the data in their market, they stayed competitive over smaller operations by not collaborating.
  2. Once outside providers started to gather the data, the industry started to lose control of its own information; Commercial brokerages are finally waking up to the need to build locally controlled exchanges because the marketplace demands efficiency.
The New Attitude of Collaboration

  1. The mindset of Commercial brokers is changing, especially in office and industrial leasing; the new attitude is absolutely accepted in the larger markets, smaller markets are moving in that direction.
  2. The Investment side is not changing as rapidly toward collaboration; on most exchanges, properties up to a value of $6­7 million are readily promoted; beyond that threshold, listings tend to be held back.
Residential and Commercial Common Ground

  1. The biggest need for Commercial pros is a timely dataset that actually moves at the speed of the market, similar to Residential MLS systems.
  2. There is crossover between Residential and Commercial with some technologies that can be integrated back into the MLS platforms.
  3. Aerial and mapping products originally promoted for Residential use are floating over to Commercial, e.g., AirPhotoUSA and AerialPics
The Goal for Xceligent

  1. The company is bringing Commercial brokerage communities together to maintain control of their data at the local level and to share best practices nationally so that a standardized dataset might one day be possible.
  2. As that vision unfolds nationwide, the brokerage industry will be viewed as the source of reliable data, and the mortgage industry will be able to make more educated lending decisions.
Third Party Providers

  1. Of the 20 or so companies that came into the industry to try to revolutionize how the brokerage industry did business, two had major impact.
  2. One was LoopNet, a free public listing service with limited data and no research capability; LoopNet made the industry realize that it needed to share information.
  3. CoStar picked up on the need for depth of data and started to collect data on its own to sell back to the industry.
Xceligent's Service

  1. The company builds fully-researched, complete property universes that include every building for sale or lease in a market; information is complete with photos, GIS coding, physical characteristics and all availability.
  2. Xceligent gives the ownership and control over the dataset to the local marketplace; each brokerage community sets its business rules for such things as the degree of exposure and the price point for information.
  3. At the end of the contract period between Xceligent and its client/brokers, the brokers can move the data to a competing platform ifXceligent is not providing appropriate value or quality.
  4. Xceligent's data mirrors CoStar's but is more efficiently kept current because members do their own updates and the company has to research only non-member data.
Setting the Business Rules

  1. Marketplaces vary widely and do business differently, so it makes sense for the local brokers to set the requirements for their area.
  2. Templates provide guidance for brokerage communities, and a national steering committee serves as a place for market areas to share ideas ‹andcome up with "best practice" guidelines.
The Competition

  1. CoStar is Xceligent's main competitor; each company helps make the other one better.
  2. CCIM's Site To Do Business and CCIM Net are more in competition with LoopNet, the leader in trying to create a national listing service. 3. SIOR supports Xceligent on a national basis; many CCIMs also belong to the Xceligent exchange.
  3. The company is currently in 15 markets and hopes to expand into a total of 125 (down to markets of 450,000) within a few years.
  4. Whereas CoStar serves the top 40% of markets and LoopNet serves thebottom 80%, Xceligent's product can be scaled to any size market and offers promise for achieving a truly standardized system that the entire country can use.
  5. CoStar pricing is high because its dataset was expensive to create without industry cooperation and its business model is expensive to maintain; Xceligent offers the only alterative for non-legally bound datasets.
Future Technology

  1. Commercial real estate needs to get to an open architecture system; Xceligent is trying to provide true value for brokers by tying together the best solutions for contact management, GIS, aerial, tenants, etc.
  2. The aim is a smooth flow of information so that brokers can focus on being market analysts, not market aggregators.
  3. Xceligent provides a data exchange to feed into a transaction management platform, which focuses on the details of the deal; Xceligent is talking to several transaction management vendors about linking up ‹then the industrywill feel a real benefit.
Web Site Recommendations

  1. Good real estate resources online include: RealComm, PikeNet and other real estate publications.
  2. The Data Consortium, LoopNet and CoStar all offer good national public data and market analysis.
Changes in the Offing

  1. As Commercial marketplaces become standardized, lenders will be able to make more educated decisions, improving deal flow overall.
  2. To remain competitive, brokers will have to be more efficient and offer value beyond just knowing about information, they will have to be able to analyze it.
  3. Over the next three years, information exchanges will appear across thecountry; data on the availability and investment sides will become more transparent; even the retail side will start to move toward a greater sharing of information.
  4. A nationally accepted platform for information exchange will begin to emerge.
Contact Information for Doug Curry:

(v) 816-303-5300
(f) 816-303-5301
(e) doug.curry@xceligent.com
(w)www.Xceligent.com


Real Estate Sites & Tools in This Briefing:

Xceligent
Aerial resources
Aerial resources (other)
LoopNet
CoStar Group
CCIM sites
CCIM sites (other)
Real estate Web sources
Real estate Web sources (other)
Real estate Web sources (other)