A Little Internet Sleuthing Can Pay Off in This Tough Transactional Environment
61% of investors purchased properties they had initially found online.
Given the challenge of commercial real estate dealmaking lately, a recent study by LoopNet and Google found that owners are having success searching independently, without much assistance from brokers.
The study of US CRE tenants and investors found that online searches were being conducted by more than three-quarters of both groups and 95 percent of tenants found listings that they were not made aware of by their brokers.
Some 84% of investors relied on the Internet at some point in their process.
Even when they were using a broker, about 80% of tenants and 89% of investors continue to search online independently as frequently as “always,” “often” or “sometimes.”
Furthermore, 61% of investors purchased and 51% of tenants leased properties that they initially found online, according to the study.
This is not to say that sourcing deals can be done strictly with a computer and modem. Old-fashioned shoe leather also works, Chris Koerner, CEO of the boutique firm Off Marketers, told GlobeSt.com in an earlier interview. He has sourced many deals simply by calling around about attractive properties that he found while driving about.
“With real estate deals almost on pause as buyers and sellers try to get a better sense of price discovery, many of the transactions that are closing are being sourced off-market,” he said.
As for the report on online search strategies, it wouldn’t be a Google report without some commentary on search engine optimization and search engine marketing strategies.
The data shows that many commercial real estate term queries show an upward trend since 2013, “supporting the notion that SEO and paid search strategies are key elements in maximizing digital advertising efforts and visibility to the tenant audience performing online searches,” according to the study.
It also noted that assets looking to grab attention are finding photography and videography paramount for their listings in what can become a competitive environment.
For instance, listings with images were viewed 37x longer than listings without images; while listings with 3D tours were viewed 57x longer than listings without; and the inclusion of a video led to listings being viewed 87x longer than listings that lacked this element, according to the study, supported by data from LoopNet.