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Joint Study by Loopnet and Google Finds 78% of Tenants and Investors Search for Commercial Real Estate Online. And Loopnet Wants Your Money. Can You Tell Me Why?

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Joint Study by Loopnet and Google Finds 78% of Tenants and Investors Search for Commercial Real Estate Online.

Source: MarketWatch

Here is the entire study. Click to Download PDF.

Some key findings from the study:

  • 80% of tenants and investors surveyed agree that they rely on the internet for their commercial real estate information needs more now than three years ago.
  • Over three quarters (78%) of tenants and investors surveyed use online commercial real estate services or tools at some point in their commercial real estate search.
  • Commercial real estate related online searches have grown 60% since 2008.
  • Six in 10 respondents search for commercial properties using their mobile devices at least sometimes.
  • Over half the survey respondents (55%) reported that they perform their own online searches for commercial property, even when they are working with a broker.

KEY TAKEAWAYS.

-Commercial Property Search Behavior. 

Brokers and firms not using online services to market listings are missing
a significantly large portion of the prospects who are actively searching
for commercial space.

-Mobile Usage. 

Brokers and firms should look for mobile-optimized advertising solutions they do not miss out on the large mobile searching audience that will likely continue to grow.

-Use of a Broker. 

Brokers and firms should consider advertising their services online
as a way to attract and retain new clients. Even if a tenant or investor
is already working with a broker, they may be actively searching for
listings on their own, which is another reason for brokers to advertise
listings online.

What Do These Results Mean for Commercial Real Estate Professionals?

The Internet plays a critical role in the way
investors and tenants research commercial
real estate properties.

A variety of online sources are used.

Brokers and firms are missing
opportunities by not advertising online.

Ensure your online advertising solution
is optimized for use with mobile phones
and tablets.

The use of a broker does not eliminate
investors’ or tenants’ own online searches.

Online property listings lead to property
sales and leases.

Everything above is straight from the study.

Sounds pretty convincing. It is from Google after all.

It’s also from Loopnet. I think they have made a fair point.

But, what about the real world?

Your real world.

The study is targeted to hit straight between your eyes.

Think back to your last 10 deals. What was the origin of the lead?

How many of them came directly from a third party site?

How many came from other sources? I know you track them we all do.

Did that client search the world over, find your amazing property click on your bio and say “hey I want to move into this 60,000 sq. ft. warehouse tomorrow. Let’s do a deal.”

I could happen right?

It may have happened right?

Has it happened for you?

Now, I know I know you have many multiple funnels that you work to get deals.

The internet may and I say may just be one of those funnels.

So it’s justified to just throw a little money at it get some exposure and see what happens. It’s marketing after all.

Or maybe not!

You and I know you watch, track, KPI, performance metric or whatever buzzword you use to know exactly what every lead, origin, conversion and the costs of each one of those are.

So, I have jumped on the horse more than a few times with my opinion about online searching.

Reonomy. Powerful Validated Comprehensive Commercial Real Estate Search.

Is This The Ultimate Commercial Real Estate Search Tool?

The Online Search Battle For Commercial Real Estate. It’s Not What You Think It Is. 

42Floors.com The NEXT Commercial Real Estate Search.

Loopnet and Google back it up with numbers.

So, Let’s really find out about online searching from you.

LET’S HEAR YOUR OPINION.

IT’S THE ONE THAT REALLY MATTERS.

Use this space. Use the groups in LinkedIn this is posted in.

Post a thread on Twitter. Opine with the real world stuff.

Sooooooo.

Joint Study by Loopnet and Google Finds 78% of Tenants and Investors Search for Commercial Real Estate Online. And Loopnet Wants Your Money. Can You Tell Me Why?

 

 

 

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  • ballpark not basis points – about 70% of my business is referral (past clients, F&F, other brokers). the other 30% is calls (outgoing), signage (incoming) and internet. Signage and internet incoming calls (principals, not brokers) tend to be the least viable in a “amount of work risked to get paid a fee” matrix. ie. while maybe you get to kiss a princess once in awhile, there are a lot of sows that want to gobble up your time along the way.

    • Duke Long

      Thanks Phillip.

  • abuchanan

    I received a call last week. At first, I was convinced that the caller was seeking medicinal cannabis dispensary space as the inquiry was on Santa Ana based property. Turns out, I was wrong. The caller was a neighbor of the building and wanted to lease the building for overflow space. Now mind you, IT WAS NOT MY LISTING! I had posted a virtual tour of the building for one of MY clients…TWO years ago! The neighbor googled the address and found the video, which prompted the call.

    • Dukelong

      Googled the address and then went to you as a source. That’s hyperlocal!

      • abuchanan

        Indeed! The funny thing is that the building recently leased, so the marketing sign was gone. There was a broker sign on the building for the past two years. I asked the neighbor why he didn’t call the broker on the sign and he said, “my requirement just happened and I didn’t know who to call so I reasearched the building online. Your video was second behind Loopnet, so I called you.”

        • …and didn’t look at LoopNet first. Interesting.

  • I am a broker in Gainesville, FL. I got a call recently from the owner of a small clothing boutique that I know personally but have never done business with. She explained she was investigating other spaces as a possible relocation or 2nd location. It was clear she knew about what we had to offer and had a ton of knowledge about our inventory. I was curious and asked her what her process has been and she explained that she’d been researching for a month and wanted to have all her ducks in a row, narrow her choices, and understand the market before she reached out to me. I’ve got to think 5 years ago her first call would have been to a broker to ask “what’s out there and where should I look”. Now, unknown to me, she spent A MONTH researching online before I ever had an idea she was looking. It was a powerful lesson for me and and validated my belief in what you’ve been saying – our business has been turned upside down by technology and online search and that’s not going to change.

    • Duke Long

      Nick,
      Thanks for the share. They have it all right in front of them but she still needs you. Broker + Data= #CRE AWESOMENESS

  • 70% of my business is online. Thru my websites, blogging, twitter, etc etc . I would agree with most of the article as over last 3 years I have seen quite a shift to online searches and education of clients. But with that being said
    Google and Loopnet have an agenda-advertising! Google with pay per click and Loopnet with featured broker. Google has sold out on their so called organic part of search page one.. Google office space for any major city
    and loopnet, costar, showcase and cityfeet will dominate first page (all Costar companies). Google is selling that so called first page of organic to the 800lb gorilla.So the only way to get to first page is google, pay per click. So quite the partnership on the article.

    • Duke Long

      Steven,
      That says it all!

  • I read a relevant article last week– discussed some of the telltale signs that a research study is flawed. High on the list was if the funders of the research had skin in the game. If Krispy Kreme published a study that concluded that donuts would reverse male pattern baldness, who’d listen?
    Better study would be to see how many tenants found online search to be an effective standalone tool. I’ve used LoopNet since they started, and am still waiting for a deal sourced from there. I love the potential efficiencies in on-line marketing of my building inventory, and wonder where we’d be if LoopNet would shake up their ‘user pay’ model.