NEW YORK CITY-A relatively light turnout did not deter the weight of the message given at PACT’s B2B Real Estate Construction Conference, held here yesterday. Mark Friedman, CEO of, said in a panel discussion moderated by Real Estate Forum editor Cynthia Hoffman, “The next year will be marked by chaos and carnage. It’ll be how we separate the wheat from the chaff.” This grim pronouncement was one of many predictions of more failures of dot-coms. Other themes that came up throughout the day were fragmentation and integration, strategic partnering or consolidation and the emergence of standards.

Friedman’s predictions continued. The year 2001 will bring “revenue, but not profit,” he said. “In the next 90 to 100 days, most of these companies will be gone. 2002 is where we’ll turn the corner. The shakeout will be done.”

Metin Negrin, CEO of iscraper also commented on shakeout in an earlier panel. “We’re hearing a lot of noise,” he noted. He predicted the market would “clean out the noise.”

Catherine Rice, managing director for Banc of America, remarked in the first panel of the day, “The last six months have been very painful, but I think healthy.”

Bruce Zev Weissberg, CEO of Realty joked, “After hearing the speakers today, I think I should have brought copies of my resume.”

“It was staggering to hear Mark’s figures, but I don’t disagree,” said Dennis DeAndre, CEO of Loopnet Inc. “I can only hope we’re on the up side.”

Many said in addition to venture capital and financing from bricks and mortar businesses, consolidation and strategic partnering would provide an answer. “If they keep building individual silos,” commented Dan Cornish, CEO of, “it will not work.”

Kevin Travers, president of said, “Consolidation will bring clarity.”

DeAndre, however, commented, “I don’t think we’ll see end-to-end. The longer [Loopnet is] at it, the more narrow is our focus.”

Negrin stated, “I don’t think we’ll see a model like Microsoft where all things come from one source.” He argued businesses will be seamless and the best of their niche.

The biggest obstacle identified by the panelists was the “fragmented” nature of the industry. All seemed to agree integration, lower prices and easier installation and use of technology would help. “In the future there will be an opportunity to leapfrog within the construction industry based on fragmentation,” said Tim Harmon, vice president for strategy of Expertise.

Rice identified the focus from IPO to B2B, terming it “back to business.” Paul Mockapetris, senior vice president of engineering CTO for Urban Media, said technology would become so essential, not having it would be “bringing a knife to a gun fight.”

Frank Rockwood, CEO of Vectiv, argued that community is out, the marketplace is suspect, “disintermediation” is a bad word and a poor customer base/poorly defined revenue model do not work. He added browser-based applications, ASPs, Internet business service providers, customer focus and providing whole solutions do work.

Many argued integration would bring greater definition of standards. “Standards will emerge over time,” predicted Anne Bonaparte, co-founder of Cornish contended, however, “The idea that one standard is going to emerge is a bit of old thinking.” Most panelists throughout the day, despite Cornish’s comment, argued standards would emerge and bring owners, wary of technology, to embrace it, and investors, wary of commercial real estate, to see its value.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Dig Deeper


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join now!

  • Free unlimited access to's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.