Although only a small percentage of commercial real estate professionals currently access the web on a daily basis, thousands of service providers and owners are developing web sites. These development efforts share parts of four goals--to promote their companies, to provide research information, to interact with clients and, in the future, to transact business online. This issue of the PikeNet Dispatch, highlights the most important trends to watch in 1997.

1. Use of the Web to Reduce Marketing Expenses. The distribution of marketing brochures, floor plans and space available reports can all be done inexpensively using the web. In the not too distant future a broker will automatically log onto an owner's web site rather making a telephone call to inquire about space available information. Likewise, owners will make available marketing packages in Adobe Acrobat format at their web sites rather than sending out thousands of space available fliers.

Watch these companies. CarrAmerica Realty Corporation (nationwide), Ciminelli Development Company (Buffalo, NY), Equity Office (nationwide), Gaedeke Landers (Dallas/Ft. Worth, TX), Kranzco Realty Trust(shopping centers in the Northeast), Maverick Mangement (New York, New Jersey), Schroeder Properties (shopping centers in the Pacific Northwest and Canada), Stiles Corporation (Florida) and Yonge Wellington (Toronto, Canada).

2. Development of Strategic Intranets. Companies can gain immediate strategic value by developing a strong intranet web presence which facilitates communication between their professionals. In the future certain clients will be provided access to a firm's intranet for project management and research purposes.

Although much of this information will not be available to the public, watch CB Commercial, Julian J. Studley, New America Network, John B. Levy & Company and the Whittier Partners Group.

3. Increased Access to Public Records. Governmental agencies, or service providers that have traditionally sold government information, in print or CD-ROM format will make their information available over the web, either for free or by subscription.

Watch these sites. Baca Landata ($ Houston, TX), Chandler Online ($ Memphis, TN), Harris County Appraisal District (Houston, TX), Hillsborough County Property Appraiser(Tampa, FL), InfoSpectrum ($ Connecticut), Quick Tax Supersite (Tarrant County--Fort Worth, TX) and TN Real Estate (much of Tennessee). Note: A $ symbol indicates a subscription service.

4. Growth of Regional Listing Services. Narrowly focused, regional listing services provide the best leasing databases on the web today because of the importance of local knowledge. There are a growing number of strong players in this market around the country. Many local information providers who have previously furnished information via print, CD-ROM or a dailup connection will move onto the web.

Watch these sites. Austin Real Estate Connection (Austin, TX), Commercial Real Estate Arena ($ Oakland/East Bay, CA), COMMREX (Texas), CommercialSearch (Colorado), Daily Journal/BOMA-LA (Los Angeles, CA), eTours (San Francisco, CA), Jamison Research (Atlanta and Dallas), Office Space Online (Seattle and Denver), The Property Sourcebook (Florida), Realty Showcase (Chicago, IL) and The Smith Guide (Orange County).

5. Development of National Listing Services. There are just a few listing services that can claim to be truly national in scope. Look for these competitors to partner with trade associations and national service providers to quickly grow the number of their listings. They will also compete by adding more features to their listing information, e.g., maps and demographics.

Watch CRE-NET, the Commercial Real Estate Marketplace and the Loop Network.

6. Increased Market Research Availablility. There is a huge demand from institutions and corporations for information on market trends and leasing and sales comps. National proprietary information providers are the logical organizations to respond to this need. Watch for subscription services to be the predominant revenue model, although a portion of the data may be free to attract further interest.

Keep an eye on these sites. COMPS, Inc. (nationwide), Flick Resource Center (Austin and central TX), LeaseTrend (Midwest and Florida), Regional Financial Associates (nationwide) and the Retail Tenant Database (nationwide).

7. Conversion of Print to the Web. Many of the traditional print publications covering business and real estate are developing a strong web sites. Most pricing models involve the sale of advertising although, if strong research information is available, access fees may be successfully charged. This is an area sure to grow.

Watch these pioneers. American City Business Journals (nationwide), Daily Journal of Commerce ($ Seattle, WA), Maddux Report (Florida's West Coast), National Real Estate Investor's Internet Review Online (nationwide), Office Buildings Magazine (Northeast U.S.), REJI-Real Estate Journal Interactive (mid-Atlantic states), ReviewNet (Florida), Source Real Estate (San Diego, CA), Area Development Magazine (nationwide), Bizsites—Plants, Sites and Parks Magazine Online (nationwide) and Expansion Management Magazine(nationwide).

8. Consumerization of Services. Many services provided in the past as business-to-business services can now be made easily accessible to consumers via the web. This provides a new way to leverage a firm's core strength.

Marcus & Millichap, for example, has partnered with Yahoo to create AllApartments, a site which provides access to data on almost 5 million apartments for consumers and professionals alike. Cognetics Online ($) enables developers to search for tenants and individuals to search for job possibilities from their database of 3.2 million U.S. businesses. COMPS, Inc. does not currently, but could easily sell comparable sales data directly to consumers.

9. Asset Managers Will Develop Strong Sites. Investment advisors have not yet felt the need to develop major sites. This will change in 1997. As a competitive advantage to market their services, solicit property submittals and save money distributing marketing materials, look for investment advisors to upgrade their web sites.

Watch these companies. Compass Retail, Equitable Real Estate Investment Management, Koll Online, Lasalle Partners, Metric Partners, PM Realty Group and Trammell Crow.

10. Trade Associations Lead the Industry. One of the under-appreciated strengths of the real estate web sites is how good the national trade association sites are. Look to these sites as they continue to emphasize interactive capabilities. For example, members can send e-mail directly to their representative. Or sign up for a class. Or buy a publication using a credit card online.

Watch these sites: BOMA, CCIM, IDRC, IREM, NACORE, NAIOP, NAREIT, SIOR and ULI.

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-- Peter Pike