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Commercial Real Estate and the Internet
BNH quizzes InfoSpectrum's Steve Hargis, vice president of marketing, to find out if the Internet is a useful business tool or just high-tech wasted space. Located in Hartford, InfoSpectrum is a provider of business and consumer information related to real estate needs and property-information for the state.
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Business New Haven
9/22/1997
By: BNH
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How productive a tool is the Internet in commercial
real estate?
It's extremely productive for people who use it. The availability of the information on a 24-hour, seven-day-a-week basis is extraordinary. The key is to get people on board using it as a regular tool. The biggest use to come will be site-selection, whether that is in regard to locating a site or getting a retail analysis.
How are subscription research services useful?
The best site with regard to commercial real estate is PikeNet. I think that Pike has done a wonderful job of creating a model for other sites. That model is providing information that is vital to the user. The reason Teleres, the Dow Jones site, failed is they had a lot of information that was not properly targeted to the potential user, and was not provided in a format that matched with the way their potential customers do business.
Those who offer the best service will be those who understand how a commercial broker does business. They will combine such things as listings, market analysis, location in relation to highway structure, bus routes, workforce and utility services. The information must support the way the broker does business. Companies that simply provide raw data - I don't think that is the wave of the future.
Do you see access to research as a challenge for smaller companies or individuals?
The Internet provides a wonderful platform for small businesses and individuals. With Internet-based services, you typically don't pay large fees as opposed to proprietary on-line systems; you pay for what you use. It levels the field between the big and the small guys. We find a parallel to that in dealing with law firms. The smaller firms which can't afford the libraries and the staff can get the information for the same price as the big guys. Everyone has equal access for the same price.
Will the cost of subscription databases rise, fall or stay the same?
My feeling is they will be going down because the competitive market will drive it there. Which is not to say that you can't have expensive applications running as well. Analysis of information will be priced higher.
How can a real estate professional make the best use of the Internet right now?
This is what we tell all our clients: Get on it. I don't care whose information they use; get on and use it. Don't wait for the application that will solve all their problems. People tend to wait for the ultimate product. Start now to work it in daily in small ways, like checking ownership of property. Interact with the Internet on a simple level, and then move on to something more sophisticated.
How about in five years?
I feel the types of services will be more of a menu of services offered by a full-service broker. Consumer empowerment is occurring right now. They have access to much of the same information as the Realtor. People are coming into a deal much better educated and informed. But you still need the professional for his expertise and education. Instead of a package deal, brokers will offer an array of separately priced services. The package will vary depending on how much the customer has done on his own.
What are some of the main problems with the Internet?
The main problem I see is that people are still concerned about security in doing financial transactions on the Internet. I don't think it's a problem if people are aware of what's secure and what's not. Also, the Better Business Bureau is taking a hand in allowing consumers to judge the sites and what's legitimate and what's not. Another problem is that a small percentage of people have access to the Internet.
What is a common mistake people make in using the Internet for commercial purposes?
The typical mistake is 100-percent reliance on data. Real-estate data is not always kept up to date.
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