Technology Bit by Byte
Oct 1, 2007 12:00 PM
A decade ago, talk was that the Internet would revolutionize retail real estate. Back then, the feeling was that it was just a matter of time before online shopping killed the traditional shopping mall. A host of online retailers and services popped up, raised tons of capital and then went bust. Besides Amazon.com and eBay.com, most of those sites have long disappeared.
But while the Internet did not destroy the mall industry, it has changed things. In one of the most exciting developments, more mall companies are adopting software that enables customers to virtually shop every store at a mall from home and then come to the property to actually pick up their wares.
That's not all.
In one piece, we look at a host of emerging sites that enable investors to peruse potential property acquisitions online. New Google-like search engines and listings are streamlining the process through which investors find developments. Traditional brokers are still involved and many have embraced this technology. Photos, site plans, trade area data and more are available at a buyer's fingertips. As these sites are continually enhanced — with 360 degree property views, virtual tours and more — online trading of properties should only grow.
Similarly, the art of site selection is becoming more of a science as reams of data become more accessible. Web sites and software suites offer retailers and developers drive time maps, demographic data and projections, lists of competitors and much more. Providers are continually adding new features.
We also look at how one developer has revolutionized the way it presents its properties to retailers. Using FlashPaper, W/S Developments turned all of its meetings at this year's ICSC Spring Convention into virtual, interactive presentations. Maps, trade area data, site plans and more are dynamically generated and available through its new presentation system.
In the next few pages, Retail Traffic provides a look at four technologies that are having an impact on the retail real estate industry. We hope you find it useful.
Mining Site Data Online
By Beth Mattson-Teig
More and more, real estate professionals and investors are relying on the Internet to research prospective acquisitions. Those that log on find a mountain of information, encompassing listings, customized analysis, graphics and even help to navigate through the data.
LoopNet and CoStar remain the dominant players in the online listings market. As of June 30, LoopNet's (www.loopnet.com) online property database contained more than 515,000 properties, with more than $440 billion in commercial and apartment real estate for sale — including about $88 billion in retail properties.
CoStar's (www.costar.com) inventory of 2.4 million commercial real estate properties contains about 290,000 for-sale listings, of which approximately 52,000 are retail or include a retail component. Those numbers are staggering when you consider CoStar entered the retail market just last year with the release of its new Retail Dimension, a service used for acquisitions, development and site selection.
The two sites alone draw millions of registered users. LoopNet reports having more than 2.2 million registered users.
Still, both LoopNet and CoStar continue to roll out new products and services with additional features that provide more value for users. For example, LoopNet's RecentSales service delivers sales comps on commercial property transactions across the United States.
“This service now incorporates LoopNet's full mapping suite, including bird's-eye imagery in most major metropolitan areas,” says Thomas P. Byrne, chief marketing officer at San Francisco-based LoopNet Inc.
CoStar's maps and aerials allow users to display a wealth of market information, including traffic counts, street names, retail properties by name, retail properties by type, parcel boundaries, and more viewed a layer at a time or in a composite displaying up to 10 layers of market information.
“With these information overlays, CoStar's online aerial images go far beyond a 30,000-foot view of centers and retail complexes,” says Michael Griffin, director of retail sales at CoStar Group Inc. in Bethesda, Md. Users can view tenant rosters displayed by location across the center's rooftop either as end cap or in-line. The building outline is also digitally highlighted, featuring frontage location and length for a more accurate perspective.
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