In 2014, Loopnet partnered with Google and released a study called “Commercial Real Estate Consumer Online Behavior and Trends”, with the stated objective of “better understanding the role of the internet in finding, selling, and leasing commercial properties.”
Utilizing a 3rd party company, a blind survey was conducted to examine the behavior and sentiments of commercial tenants and investors regarding their online search habits. This data was then supplemented by Google internal data, and a complete picture started to emerge. We’ve taken some highlights from the study for your perusal.
Highlight 1: “The internet plays a critical role in the way investors and tenants research commercial real estate properties”
The way that people look for information has changed, and will continue to do so. According to the study, 6 in 10 respondents indicated that they use the internet as their first step in searching for commercial real estate. To further illustrate the trend, 8 in 10 said that “they rely on the internet for commercial real estate information more than they did 3 years ago.”
So what does that mean? First, and foremost, you should be seeking out relevant information (sites, online communities, news) to help with your commercial investment activities. Sites like mynoi.com which are actively coalating the latest news and trends in commercial real estate, or others that are specifically geared to help you develop new channels for finding and listing properties, will be incredibly important as you gather new information to stay ahead of the ever evolving tech curve.
Highlight 2: 50% of respondents have purchased or leased a property they found online
This cannot be emphasized enough. As consumer behavior continues to trend towards online shopping and product search (according to internetretailer.com, 55% of all online shoppers start product searches in one place—Amazon.com), online listing sites such as LoopNet will likely factor more strongly in the buyer cycle. This means that if you’re not actively developing an online, or “digital” strategy for your business and investment needs, you are becoming a laggard.
Tech moves fast and survey respondents took note, with 54% indicating that they predict an increase in future internet use in the next 12 months.
The world wide web is increasingly finding its way into all aspects of our society; business, entertainment, information, and interpersonal relationships. It doesn’t take much imagination to see a number of trends that are ongoing in the commercial real estate industry that are directly tied to the rise of internet technology.
We’ll do our best to keep you up to date and in the know!
To read or download the LoopNet/Google report, go here, and as always, stay tuned for more articles and videos.