Real estate abstract
A system and method for creating a unified commercial real estate
data model through collection, distribution and use of information
in connection with commercial real estate and for creating a web-based
marketplace that facilitates the efficient and secure buying and
selling of commercial properties. The invention provides a digital
marketplace in which the members of the commercial real estate and
related business community can continuously interact and facilitate
transactions by efficiently exchanging accurate and standardized
information.
Real estate claims
What is claimed is:
1. A method for supplying content from a central commercial real
estate database to a web site of an affiliate, the method comprising:
providing user equipment sets, each user equipment set comprising
a display and a location determining device for generating data
pertaining to the user's location and for transmitting the data
pertaining to the user's location to a remote computer automatically;
providing a computer, the computer equipped for wireless communication
with geographically remote users that are equipped with the equipment
sets so as to send data to the equipment sets and receive data from
the equipment sets including the data pertaining to the user's location;
and providing the central commercial real estate database in communication
with the computer, the central commercial real estate database storing
information that includes information identifying a location of
a property and features of the property, whereby, in response to
receipt of the data pertaining to a user's location, the computer
automatically: identifies in the central commercial real estate
database, from the information identifying a location of a property,
a property nearby the user's location, wherein the nearby property
is associated with the affiliate, retrieves from the central commercial
real estate database the features of the nearby property, and an
identification of features of the property that have not been entered
into the central commercial real estate database, transmits the
features and the identification of missing features of the nearby
property to the user's equipment set for display on the display,
and prompts the user to update the features and input the missing
features through the user's equipment set; displaying on the web
site a graphical user interface having a modifiable portion and
having a linked portion, wherein the web site is in communication
with the central commercial real estate database, wherein the central
commercial real estate database contains data associated with more
than one affiliate; displaying, in the modifiable portion, content
originating from the web site of the affiliate; executing automatically
a predetermined query of the central commercial real estate database
to retrieve only property information associated with the affiliate;
and displaying the property information in the linked portion, the
property information including the features and the inputted missing
features of the nearby property associated with the affiliate.
2. The method of claim 1, wherein the affiliate is one of a particular
agent and a brokerage company, and wherein the step of displaying
the property information comprises displaying, in the linked portion,
property information that is associated with the one of a particular
agent and a brokerage company.
3. The method of claim 1, wherein the content in the modifiable
portion comprises one of a logo, contact information, and a service
description of the affiliate.
4. The method of claim 1, wherein the displayed property information
includes descriptions and photographs of listed properties.
5. The method of claim 1, wherein the affiliate is a commercial
real estate broker, and wherein the property information comprises
commercial real estate listing on which the commercial real estate
broker is listed.
6. The method of claim 1, wherein the affiliate is a commercial
real estate broker, and wherein the predetermined query searches
the central commercial real estate database for entries associated
with the commercial real estate broker.
7. The method of claim 1, wherein the affiliate is a commercial
real estate broker, and wherein the property information is associated
only with an individual agent of the commercial real estate broker.
8. The method of claim 7, wherein the predetermined query searches
the central commercial real estate database for entries associated
with the commercial real estate broker and the individual agent.
9. The method of claim 1, further comprising: updating the property
information in the central commercial real estate database; executing
automatically for a second time the predetermined query of the central
commercial real estate database to retrieve only updated property
information associated with the affiliate; and displaying the updated
property information in the linked portion.
10. The method of claim 1, wherein the property information is
retrieved in response to a user's accessing the web site of the
affiliate, and wherein the property information is displayed in
real time to the user through the web site of the affiliate.
11. The method of claim 1, wherein the property information includes
a photograph of a property, an address of the property, a building
class size of the property, a building size of the property, a number
of floors of the property, a year in which the property was built,
a buyer of the property, a sale price of the property, a price per
square foot of the property, and a cap rate of the property.
12. The method of claim 1, wherein the property information includes
a square footage of a property available for lease, whether the
property is available for sale, an address of the property, contact
information associated with the property, and a price associated
with the property.
Real estate description
BACKGROUND
1. Field of the Invention
The present invention broadly relates to the field of electronic
commerce and global network information management services, and
more specifically, to a system and method for creating a unified
commercial real estate data model through collection, distribution
and use of information in connection with commercial real estate
and web-based information systems that facilitate the buying and
selling of commercial real estate.
2. Background of the Invention
Whether measured in terms of variety, volume, or value of transactions,
the market for commercial real estate information is vast. In 1998,
the U.S. commercial real estate market had: hundreds of thousand
of leasing transactions, with an aggregate value of more than $200
billion, and had tens of thousands of sales transactions, with an
aggregate value of $285 billion. In the same year, lenders, provided
tens of thousands of commercial real estate loans, with an aggregate
net value of more than $110 billion, according to the Federal Reserve
Board. F.W. Dodge reports that during 1998, construction commenced
on 766 million square feet of commercial properties with an aggregate
value of $52 billion. Finally, vendors made $10 billion in sales
to tenants who were moving to new facilities, according to the Corporate
Realty Design and Management Institute.
Despite its enormous size, the real estate industry in many ways
is a backwater. In the current market, real estate brokers perform
various functions. To begin with, individuals, institutions, and
owner/users buy and sell buildings. The aggregate sales value of
commercial properties sold in the United States in one year is about
$285 billion, according to a Federal Reserve estimate. Most transactions
occur through the use of a commercial real estate broker, whose
job is to list the asset for sale, disseminate the correct information,
respond to questions and requests for specific information, attempt
to create an auction atmosphere, and complete and close a sale.
Brokers typically receive between 1% and 6% of the sales value of
the property, with the lower commission rates corresponding to higher
sales values.
Below a level of, about, $5 million, sales are typically locally
sourced to local users or individuals or small institutions. Beyond
$5 million and, more acutely, past $10 million, the market becomes
more regional as the buyer base narrows. Above $25 million, the
market becomes institutional in the sense that the potential buyers
are REITs, pension funds, advisors, or corporations. At this level
the market becomes national and, to some extent, international.
It is critically important to limit the dissemination of information
in this context.
In addition, every building that is not owner occupied must be
leased. Brokers usually take one side of the transaction as either
the listing broker or the tenant rep. Listing brokers list the space
for the property owner and attempt to drum up interest in the space
with flyers and information packages. Brokers also typically specialize
in a type of property and in a region, so their added value is in
knowing who is most likely to want a specific space for lease. Tenant
representatives usually represent the tenant and are specifically
looking for space for expansion or to enter a new market. Tenant
representatives consolidate all the listing information from the
listing brokers in a market for a specific type of space, conform
the package, and help the user make an informed decision. Many individual
brokers do both.
The real estate industry is so large and fragmented that, historically,
there has been no meaningful national research. Research that does
exist is typically local or regional in nature, frequently limited
to occupancy and rental rate information, and most of the time only
marginally accurate. From market to market, different data was kept
by the administrative assistant for a couple of local brokers, who
would then hold that out as proprietary knowledge in that particular
market. Ten years ago this was out of date; by today's standards,
it is completely useless. With the trend towards much more liquid
real estate markets and the dominance of large regional and national
tenants and capital providers, the need for accurate national data
has become acute.
At present, however, transaction costs are high, and information
is non-standardized as states, cities, and local communities all
have their own rules and regulations. To add to the milieu of confusion,
investors and owners frequently have different tax statuses, so
comparisons are never apples-to-apples. Brokers typically use this
to their advantage--their pitch becomes "I am the only one
that knows all this stuff, and if you don't use me, what you don't
know can hurt you." A helpful way to think about this would
be to imagine that each securities brokerage firm maintained its
own exchange, instead of them all feeding the NYSE and NASDAQ. Clients
would have little chance of getting the best execution since there
would be a closed market only. To some extent, real estate has operated
this way historically, except that each of the brokerage firms referred
to these closed networks as "proprietary information."
Over the past 15 years, however, a new class of investors and users
has opened up the business. National institutional owners like the
REITs and large ERISA managers like Jones Lang LaSalle have created
a need for standardized, reliable information and processes. This,
in turn, has led to a mass consolidation among the smaller local
and regional brokers. This trend toward a national information standard
is becoming more powerful. The old model of the local power broker
is being replaced by a single-point-of-contact model for national
real estate companies, in which client needs are met with just one
relationship. The only way a small brokerage firm can level the
field is by having access to the same information as the larger
brokers.
It has been long demonstrated in other contexts, e.g., the securities
industry, that distributed information improves market efficiency.
In the securities industry each broker has a system on their desk
that gives them access to standardized, accurate securities pricing
information. Largely, information is collected by the exchanges
and consolidated into a standard system of quotes and news. The
vendors of the information try to figure out the best way to graphically
present the information and to price the data feed to maximize revenue.
For the most part, the major quote and information providers are
all providing the same thing. The present invention relates to a
way of applying this approach to real estate information. By centralizing
and standardizing the information, it has made it much more user
friendly and, hence, valuable. It has created a digital exchange
with itself as the sponsor.
To facilitate transactions, industry participants must have, extensive,
accurate, and current information. Members of the commercial real
estate and related business community require daily access to current
data such as rental rates, vacancy rates, tenant movements, supply,
new construction, absorption rates, and other important market developments
to carry out their businesses effectively. Such data collection
is time-consuming, as shown by a 1996 study, which found that commercial
real estate professionals spent 40% of their workday collecting
and analyzing information on the real estate market. Therefore,
there is a need for a unified commercial real estate data model
to develop an efficient marketplace, where members of the commercial
real estate and related business community can exchange information,
evaluate opportunities using national standardized data, and interact
with each other on a continuous basis.
The parties involved in the commercial real estate and related
business community that require extensive information, include:
sales and leasing brokers; property owners; property management
firms; design and construction firms; real estate developers; real
estate investment trusts; investment banks; commercial banks; investors
and asset managers; government agencies; mortgage-backed security
issuers; appraisers; media; tenant vendors; building services vendors;
communications providers; insurance companies and institutional
advisors.
The commercial real estate related business community has yet to
develop an efficient marketplace because of the fragmented approach
to gathering and exchanging information within the marketplace,
i.e., the lack of a unified data model. Various organizations, including
hundreds of brokerage firms, directory publishers, and local research
companies, have attempted to collect data on specific territories
and to develop software to analyze the information they have independently
gathered. This fragmented approach resulted in duplication of effort
in the collection and analysis of information, excessive internal
cost, non-standardized data with varying degrees of accuracy and
comprehensiveness, and a large information gap.
The creation of an efficient digital marketplace for commercial
real estate requires a unified data model--an infrastructure of
a national, standardized database, accurate and comprehensive research
capabilities, and intensive, real-time participant interaction.
The global information network or Internet can help maximize interaction
among participants in a marketplace. The Internet has emerged as
a mass communications and commerce medium enabling millions of people
worldwide to share information, create communities among individuals
with similar interests, and conduct business electronically. International
Data Corporation projects that the number of Internet users will
grow from 100 million in 1998 to 320 million in 2002. In addition
to its emergence as a mass communications medium, the Internet has
features and functions that are unavailable in traditional media,
which enable users to: communicate or access enormous amounts of
information at low cost and without geographic limitation; access
dynamic and interactive content on a real-time basis; and communicate
and interact instantaneously with a single individual or with entire
groups of individuals.
Along with the impressive overall growth of the Internet, business-to-business
usage is also growing rapidly, as businesses are increasingly leveraging
the Internet's ability to reach clients globally, deliver personalized
content, and open new distribution channels. Forrester Research
projects business-to-business electronic commerce to grow from $17
billion in 1998 to $327 billion in 2002.
It is in this context that there remains a need for a system and
method for creating a unified commercial real estate data model
through collection, distribution and use of information in connection
with commercial real estate and web-based information systems that
facilitate the buying and selling of commercial real estate. The
collection, distribution, and use of information would preferably
include the ability to search all commercial real estate data, across
multiple markets, geographic regions, brokerage listings, and data
categories and types. The desired system and method would also preferably
indicate the timeliness and reliability of the information, and
would present the information through intuitive, convenient user
interfaces.
The present invention also relates to a method and system for listing
and brokering a commercial real estate and its financial derivatives.
An underlying principle of commodities, equities, or bond trading
is that the asset sought to be traded have an intrinsic value which
can be determined, usually by a market exchange, and that that value
will shift based upon the vagaries of the market. The determination
of market value can be aided by systems such as that described in
U.S. Pat. No. 4,713,761, System for Centralized Processing of Accounting
and Payment Functions, issued Dec. 15, 1987 to Sharpe et al., and
in U.S. Pat. No. 5,222,018, also for a System for Centralized Processing
of Accounting and Payment Functions, and issued Jun. 22, 1993 to
Sharpe et al. These systems merely provide a revenue or cost value
which can then be used by analysts in determining a market value
for the listed commodity. The ability to extract historical financial
and market information, and to evaluate shifts due to events that
pressure those markets, has been addressed by such art as U.S. Pat.
No. 5,414,838 for A System for Extracting Historical Market Information
with Condition and Attributed Windows, issued May 9, 1995 to Kolton
et al. Again, the element of speed in reacting to the vagaries of
the market provides the asset trading markets with winners and losers
on a day to day basis. Transaction time for financial markets has
been addressed by such art as U.S. Pat. No. 5,420,405 for a Secure,
Automated Transaction System that Supports an Electronic Currency
Operating in Mixed Debit and Credit Modes, issued to Norman E. Chasek
on May 30, 1995.
U.S. Pat. No. 5,724,524 to Hunt, et al. describes a Method and
System for Listing, Brokering, and Exchanging Carrier Capacity in
which listing, brokering, and exchanging a commodity requires identifying
a plurality of characteristics of the particular commodity, and
then entering those characteristics into the database of a data
processing system utilizing a real-time clock. An exchange market
for the commodity is established based upon a pre-selected set of
its characteristics. After a market price for the commodity has
been set, a class (or classes) of financial derivatives is established
together with a financial exchange market for those derivatives.
The characteristics of the derivatives comprise: a common descriptive
link between varied commodity types; a contract length that runs
from the purchase date of the contract to the performance date for
the commodity; and, a contract price.
In the context of commercial real estate, there has heretofore
been insufficient reliable information to create derivatives based
on the commercial real estate market. It is an object of the present
invention to provide a system and method that support the creation
of financial derivatives for commercial real estate. More specifically,
it is an object of the present invention to shift the financial
burden of long-term leases through the financial markets by providing
an opportunity to hedge against the future. While the landlords
would have to guarantee that capacity will be available at a time
when it is required, the financial burden of the landlords will
be minimized by making capital available up front in exchange for
capacity later. A further object of the present invention is to
provide the financial markets with an ability to trade commercial
real estate space as a tangible commodity by providing the method
and means for doing so.
As used herein, "Commercial Real Estate" means any real
property, including, without limitation, office, retail and industrial
rental space, a building, and multiple buildings for use by a business
entity, or one or more facilities or buildings that a business entity
occupies for the purpose of conducting its operations on a routine
and ongoing basis.
"Market" means a geographic region, e.g., the Washington,
D.C. metropolitan area, that includes all buildings or potential
buildings available for business occupancy, with boundaries that
are consistent with U.S. Census standards and that are generally
accepted definitions of metropolitan areas.
"Submarket" means a geographic area as a subset of a
Market and that includes buildings or potential buildings available
for business occupancy, with boundaries generally accepted by local
real estate professionals.
"Grade" means the designated quality of real estate on
a relative scale of quality, based primarily upon a generally accepted
classification structure, such as Class A, B or C properties. Real
estate experts familiar with the classification systems and with
generally accepted standards can provide this "grade"
designation.
"Rent" means the annual amount paid by a business entity
for rights to occupy real estate.
"Vacancy Rate" means the percentage of square feet that
is offered for lease in a market, submarket, or building.
"Absorption" means the net reduction in vacant square
feet over a defined period (typically, twelve-months) resulting
from new tenants, new construction, and lease terminations.
"Comparable Real Estate" means real estate that is approximately
equivalent in Rent, Grade, Use, and/or location to the business
entity's Real Estate.
"Area" means an indicator of economic attractiveness
of the submarket where the real estate is located; and it is based,
for example, upon rents, vacancy, absorption rate and/or other measures
of economic attractiveness of a submarket.
"Risk" means an indicator of the financial, market and
environmental exposure of real estate and of the financial, market
and environmental risks associated with the employees and the business
entity's occupancy in the real estate.
"Owner" or "Owner's representative" means anyone
acting on behalf of an owner, including for example the owner's
broker, the owner's property manager, and the owner herself.
"Seller" or "Seller's representative" means
anyone acting on behalf of a seller or potential seller, including
for example the seller's broker, the seller's property manager,
and the seller herself. The seller represented by the seller or
seller's representative includes potential sellers and those actually
selling.
"Buyer" or "Buyer's representative" means anyone
acting on behalf of a buyer or potential buyer, including for example
the buyer's broker and the buyer himself. The buyer represented
by the buyer or buyer's representative includes potential buyers
and those actually buying.
"Confidentiality agreement" means a legal, binding contract
requiring parties to the agreement to treat certain information
as private and not for publication. For example, in the context
of real estate, a confidential agreement requires that a buyer keep
a property listing confidential in return for viewing the property
listing. As used herein, "non-disclosure agreement" is
synonymous with "confidentiality agreement." Executing
and submitting confidentiality and non-disclosure agreements can
occur, for example, by clicking-through an "accept" button
for an agreement posted online or by exchanging electronic documents
having electronic signatures.
SUMMARY OF THE INVENTION
An object of the present invention is to provide a system and method
for creating a unified commercial real estate data model through
collection, distribution and use of information in connection with
commercial real estate and a web-based marketplace that facilitates
the buying and selling of commercial properties.
Another object of the present invention is to provide a web-based
information distribution system that supports the efficient and
secure buying and selling of commercial properties.
The present invention provides a unified, robust, and unbiased
Internet marketplace for commercial real estate. The system has
access to databases containing independent and comparable data on
commercial real estate, which are continuously assembled and updated
by professional researchers. The system includes a database detailing
office and industrial space in the subject market that is comprehensive,
accurate, and up-to-date. The system also includes a tenant information
database of information about tenants that allows users to identify
and target the most likely tenants to lease space and determine
the underlying demand for commercial real estate in their market.
This broker-centric model of the present invention enables sellers
to reach a larger and more qualified universe of buyers, and enables
buyers to more quickly and effectively find and evaluate commercial
properties for sale by instantly referencing correlating web-based
information. The present invention features properties for sale,
including correlating content on comparable sales, for-lease space
availability, commercial real estate inventory and market statistics,
tenant information, and an image library of building photographs,
floor plans, aerials, and maps. It also includes background information
on buyers, sellers, lenders, owners, principals, and service providers.
The system of the present invention allows real estate buyers to
review potential deals through a search engine that matches properties
for sale with buyers' investment criteria. The system speeds up
the commercial buying process and does what electronic trading of
securities through NASDAQ did for the over-the-counter market by
creating an open, efficient market for commercial real estate.
Currently, sellers of a property hire a broker to market the building.
Usually that broker shows the building to a limited number of prospective
buyers, institutions or private buyers with whom the broker has
some personal connection. The system of the present invention site
allows sellers and their brokers to advertise a building for sale
to a much broader audience, but in a controlled manner: buyers have
to prove they are serious and have the resources to buy the property
before they can see any in-depth details.
At the same time, buyers can input various criteria such as price,
size, location, and desired vacancy rates and receive a list of
available properties. When a seller shows a prospective buyer a
package of information about the property, the buyer can independently
verify statistics about the building like rent rolls, tenant base,
and comparable sales prices for similar buildings in the market
by trawling through the system's databases, which are compiled by
researchers.
By acting as an independent collecting information through independent
researchers, the system short-circuits the buyer's analysis process
on any given property. In this way, the system eliminates the need
to expend time, money, and effort only to find out that data provided
by the seller was misleading.
In the currently preferred embodiment, the service is free for
sellers and their brokers, while buyers and their brokers pays a
subscription on a sliding scale from $250 a month up to $20,000
a month, depending on the size of the buying entities.
The system provides an interactive marketplace that enables brokers
to reach a larger and more qualified universe of buyers and sellers
faster, thus helping them complete transactions more rapidly, efficiently
and cost effectively--through the Internet. The system is capable
of providing information on thousands of properties for sale, including
correlating content on comparable sales, for-lease space availability,
commercial real estate inventory and market statistics, tenant information,
and an image library of building photographs, floor plans, aerials,
and maps. The system can also provide background information on
buyers, sellers, lenders, owners, principals, and service providers.
The present invention provides a digital marketplace in which the
members of the commercial real estate and related business community
can continuously interact and facilitate transactions by efficiently
exchanging accurate and standardized information.
The system of the present invention also facilitates mortgage lending.
In particular, since reliable information concerning all factors
needed to evaluate a commercial loan application, e.g., the building
characteristics and the information concerning prospective borrowers,
are accessible to the system or maintained within the system, the
system facilitates matching borrowers with lenders. Alternatively,
the system lists all available lenders, either generally or only
those lenders that are willing to lend money for a particular property.
The borrower can click on a particular lender and obtain information
or submit information for loan pre-approval.
The system of the present invention provides enough information
to allow lenders to actually underwrite a property. Based on the
property information, the lender is able to commit to a particular
loan regardless of who is buying the property, subject only to verification
of credit information. The system allows a lender to offer better
terms to a strong borrower. Lenders recognize the value of such
a system, but, as yet, have been unable to create suitable automated
underwriter systems that pull in discrete, disparate data fields
and create massive automated valuation underwriting. Lacking the
unified data model, lenders heretofore have had to pull data from
various systems making it extremely expensive to underwrite a property.
As such, lenders, to reduce costs, have had to be very selective
in choosing systems from which to pull data.
There are three levels associated with underwriting properties
and with establishing an underwriting marketplace. The first level
involves simply providing quotes and information on loan programs
and then matching that to people's requests. The second level involves
`soft quotes`--in which the system provides enough property information
for lenders to provide a commitment of loan quotes on a non-request
basis. This second level allows lenders to proactively market loans
instead of responding back to requests for information.
The third level is refinancing. The system and method of the present
invention make it possible for lenders to send pre-approved loans
to the owner of any building, whether or not the owner is seeking
to sell or refinance. Most owners are not currently marketing their
property for sale or refinancing. However, owners may still be receptive
to profitable offers. The unified data model of the system of the
present invention allows lenders to go into the broad universe of
all the properties stored on the database of the present invention
and create a pre-approved credit line or a pre-approved loan for
these different properties. Moreover, for certain properties, the
unified data model of the system of the present invention has enough
information to underwrite the loan. The system of the present invention
has enough information to actually submit pre-approved offers and
provide soft quotes. In contrast, without the unified data model
and system of the present invention, the expense of underwriting
loans is so large that lenders cannot process loans for under a
certain amount. The invention therefore allows lenders to considerably
increase their loan volume and brings much liquidity to the marketplace.
Everyone is able to find out the best possible loan that one could
obtain on his property.
As a further aspect of the present invention, a lending product
is provided on the system that lists every lender that the system
tracks. The present invention enables customers to click on a lender's
name in the list to request a free package of materials from that
lender. The system facilitates this communication between the customer
and a prospective lender.
The system uses linked databases and computers to provide a wide
array of digital service offerings including a leasing marketplace,
a selling marketplace, decision support, tenant information, comparable
sales information, property marketing, and industry news. All of
these services are preferably digitally delivered and most clients
receive daily service updates over the Internet.
The system includes a comprehensive database of information that
is relevant to commercial real estate transactions, a research department
for updating the information, and links, through the Internet, for
example, to participating organizations and other users. The database
of the preferred embodiment has been constructed over more than
a decade by a research department that now makes over 1.8 million
updates each year to the database. The system has obtained and assimilated
over 50 proprietary databases. The database now covers 54 commercial
real estate markets in the United States. It tracks over 15 billion
square feet in over 350,000 properties, including more than $40
billion in properties for sale, and over 900,000 tenants. It is
estimated that 36,000 participating companies use the marketplace
of the present invention to distribute information on their properties.
Of these participating companies, approximately 3,600 are clients,
representing 25,000 end-users, who subscribe to the services to
facilitate transactions, market services and properties, and conduct
market research.
The system of the present invention provides a digital commercial
real estate marketplace that takes advantage of network effects.
The digital marketplace can be used by and deliver value to several
distinct categories of users. To begin with, a large percentage
of the commercial real estate industry participating companies use
the marketplace to distribute information on their properties. Some
portion of these participating companies, are subscribers that pay
for enhanced access or additional information or related services
to facilitate transactions, market services and properties, and
conduct market research. A significant aspect of the present invention
is that the users, including clients and other members of the commercial
real estate and related business community, assist the system operator
by continuously updating the marketplace data. Each day thousands
of updates to the marketplace database are made. The resulting information
is distributed via the Internet, creating a more dynamic and efficient
market for transactions involving the commercial real estate and
related business community.
The system of the present invention capitalizes on the information
accumulated in the digital marketplace to create a high value-added,
full-service solution for users. The system of the present invention
provides the following services: Digital leasing marketplace--provides
the information required to efficiently conduct commercial real
estate leasing transactions, both between brokers and between owners
and brokers. This service provides a more comprehensive solution
with much higher data quality, at substantially less time and cost.
Digital selling marketplace--provides the information required to
efficiently and securely conduct commercial real estate buy and
sell transactions. This service benefits users by allowing purchasers
to make more-informed investments and sellers to maximize realized
property values. On-line decision support services--allow members
of the community to perform an analysis of underlying market conditions
and trends when making investment, leasing, purchase, sale, build,
and marketing decisions involving commercial real estate. These
services benefit users by providing more powerful, flexible, time-efficient,
and accurate analytic capabilities. Comparable Sales Information--enables
members of the real estate community to evaluate property value
by analyzing comparable sales information including information
on sale prices, income and expenses, capitalization rates, loan
data, and other key details. This service provides a database searchable
by such parameters as location, property type, square footage, price
range, and number of units. Tenant information services--enable
members of the commercial real estate and related business community
to identify and market to the tenants who are the most likely prospects
for their goods and services. These services benefit users by more
precisely identifying and capturing viable prospects at a lower
cost. On-line property marketing--provides a unique on-line means
for the commercial real estate and related business community to
direct advertising to the appropriate decision-makers. This service
benefits users by providing them increased distribution, higher
visibility, and a more cost-effective way to reach their targeted
audience. On-line industry news--allows members of the commercial
real estate and related business community to remain current with
developments in the industry. These services benefit users by providing
more timely and in-depth news.
All of the foregoing services can be digitally delivered via the
Internet or through other forms of downloads. The increased availability
of services from a web-based platform will allow the commercial
real estate and related business community real-time access to the
digital marketplace data and provide the opportunity for increased
interaction among community members. The practical result of this
increased interaction is the development of a more efficient commercial
real estate marketplace.
The system of the present invention uses the latest technology
to continuously improve data collection, enhance sales efforts and
service capabilities, and control costs as the marketplace framework
and unified data model is built. The system preferably uses a mobile
information-collecting device that is equipped with a GPS system
and a link to the databases of the system of the present invention.
The device further includes a display screen and input device, and
can also include a web camera. As detailed below, the system is
able to provide location-sensitive real estate information automatically,
and to perform other useful tasks by correlating a vehicle's instantaneous
position to data stored in a remote database to identify geographically
pertinent information and transmitting the geographically pertinent
information to the truck for display on the display panel within
the truck. Optionally, the mobile information-collecting device
also includes audio capabilities and the geographically pertinent
information includes audio data, such that the device, for example,
plays a voice describing the geographically pertinent information
to the occupant of the mobile information-collecting device.
In addition, the system uses global satellite positioning and the
Internet to coordinate remote field research vehicles equipped with
GPS transponders, laptop computers, cellular communications, and
laser measurement devices, to provide the most precise and timely
inventory of available buildings.
The system also integrates a wide client and property information
management system with a telecommunications system and database
to allow the sales force, research staff, client-service staff,
and accounting department to develop a coordinated sales, research,
and account management effort. This enterprise-wide system also
assists management in improving quality control and training.
The system also includes equipment to collect architectural photographs
digitally so that the system can move the images into a database
substantially faster and at lower cost.
Thus, the present invention provides the first national and standardized
source for commercial real estate metrics that is comparable between
geographic territories. For example, the definitions of vacancy
rates and building classifications have varied among the different
providers of real estate information. Through national presence
and uniformity of services and data across all markets, the system
provides a foundation for members of the commercial real estate
and related business community to do business on a national basis.
Leading firms within the community conduct business efficiently
in multiple local markets by standardizing their internal systems
on the proprietary database of the present invention.
The system of the present invention provides a unified data model
that allows insight into relationships that were only inferred in
the past.
The system of the present invention includes a variety of features
that are useful for those within the commercial real estate field
and elsewhere.
For example, the system provides fraud detection--by alerting brokers/owners
that their property is being marketed--any person (subscriber or
not) can see "my listings," which includes identification
of properties that they own/represent that are shown as being on
the market.
The system of the present invention also provides intelligent searching--the
query system allows the user to add/remove terms from the search
without rerunning the entire search. This allows users to refine
searches. The ADD/DELETE feature lets the user narrow the user's
existing search results by adding search terms to the user's original
search request. The search software retains the user's original
search request and corresponding search results.
To perform an ADD/DELETE Request, the user follows the following
steps: 1. Once the user has completed a search request that returns
search results, the user selects ADD/DELETE from the Search menu
or clicks the ADD/DELETE button in the software's toolbar. 2. The
user then enters a complete ADD/DELETE request. If the user is using
the Graphical Interface, the user enters the ADD/DELETE request
in the ADD/DELETE Search Request field.
The software returns focused search results through which the user
can browse as the user normally would.
The user may want to narrow the scope of the user's search if the
search results contain too many documents. Or, after reviewing the
user's search results, the user may want expand the scope of the
user's search. The user can make these adjustments by modifying
the user's original search request to include additional connectors
and/or search terms--all without losing the user's original search
results. Narrowing the scope of search results is described herein
as running a query on a query or running a negative search query.
The present invention also provides a database of nationwide commercial
real estate information, in which each data entry is assigned a
market and an information category. Accordingly, the present invention
allows the user to execute searches based on market criteria (e.g.,
geographic region) and information type (e.g., a particular category
of real estate data, such as a for-sale property, a for-lease property,
a comparable sale listing, or a tenant listing). In addition, in
a further embodiment, the present invention provides each user with
a subscription status that dictates in which markets and information
categories the user can search. For example, a user who subscribes
to tenant information in the Mid-Atlantic region could conduct an
unlimited amount of searches for tenants within that region for
no additional cost above the periodic (e.g., monthly) subscription
cost.
In some circumstances, however, a user may wish to obtain information
beyond the information category to which the user subscribes. For
instance, a user who subscribes to for-sale property information
may want to learn more about the tenants of a particular building
that the user is considering purchasing. Thus, this embodiment of
the present invention enables a user to purchase one-time searches
outside of the user's subscription status. In this way, a user who
subscribes to searches in one market or information category can
conduct one-time searches in other markets or information categories.
In accordance with another aspect of the present invention, information
regarding tenants is gathered and stored in a central database,
and is associated with building information. This makes it possible,
for example, to graphically depict the occupancy of a particular
building.
Another aspect of the present invention provides a tenant information
database that contains tenant information from a plurality of markets
(e.g., regions of the United States) across which a user can search.
A user can cross-query the multi-market database to look for particular
tenant information, such as the properties leased by a specific
tenant, all of the tenants that occupy a particular building, or
all of the tenants that meet a certain criteria (e.g., occupy 500,000
square feet or more).
Another aspect of the present invention provides a comparable sales
database that contains information on comparable sales properties,
and that associates each entry with a "quality" identification
that indicates its degree of reliability and/or timeliness. The
quality identification enables a user to better analyze and use
the comparable sales information. As an example, the quality identification
could include one of three categories: 1) verified comparable sales,
2) unverified comparable sales; and 3) for-sale properties. In this
manner, the system of the present invention allows users to search
all relevant comparable sales information, while at the same time
calling to the user's attention the quality of the search results.
The system of the present invention also provides a unique method
for searching for property within a geographical area using a map
linked to a database that stores geographically pertinent information.
As an example, the map includes icons showing the locations of properties
for which the database has information. As a user drags a mouse
pointer over an icon, a window pops-up displaying the geographically
pertinent information from the database. For example, the information
in the window could include a photograph of the property along with
its sales price.
The system of the present invention also provides confidentiality
assurance through a system for controlled dissemination of information.
The system of the present invention provides and facilitates "soft
quotes," pursuant to which lenders offer loans on specific
buildings subject only to qualification of buyer and possible discount
for premium buyers.
The system of the present invention also provides and facilitates
unsolicited refinancing offers for owners of buildings. In this
way, the system allows building owners to take advantage of opportunities
created by changes in rates and increased information available.
The system of the present invention also provides and facilitates
creation of a derivatives market/futures market for commercial real
estate.
The system of the present invention also provides a mobile data
gathering and dissemination vehicle as well as a system tracking
and dispatch of mobile vehicles. The system of the present invention
further provides correlation of data stored in a remote location
to vehicle position in real time. This feature is useful in the
context of commercial real estate, residential real estate and as
part of a merchant directory.
The system of the present invention also provides a least cost
routing for data transfer system for transmitting data from the
mobile vehicle.
The system of the present invention also synchronizes data stored
in data sources by cross-checking data sources and prompting the
input agent to make necessary changes in affected databases.
The system of the present invention also provides an investment
advisor feature that provides relevant information such as: what
is the leasing history of specific building? what is the history
of market in that area? what is the history of the building relative
to market (is the building generally one of the first to fill up)?
The system of the present invention also provides an intelligent
assistant for assisting in setting prices based on the saved searches
of users, i.e., knowing what other users (buyers) are looking (searching)
for. The system could, for example, advise the user that "if
you set the price at X level you will hit Y pending searches, but
if you set the price at X' level you will only hit (Y-n) pending
searches." The system thus allows queries against pending searches
so that the user knows what people are looking for.
The system of the present invention also provides quick alerts
when saved searches are satisfied to support user investment strategies.
In particular, the system notifies the user by wireless messaging
and/or e-mail as soon as a property matches existing search criteria.
In accordance with a particularly important aspect of the present
invention, this feature applies to searches that are satisfied as
a result of changes in market conditions that bring a previously
listed property within the investment criteria.
The system of the present invention in general employs the unified
data model to enhance knowledge of the overall context of business
decisions, for example, buying versus leasing.
The system of the present invention makes it possible for a user
to extract data relating to virtually every aspect of a commercial
real estate transaction. Although the data is described as being
contained within a "database," data can be stored in a
plurality of linked physical locations or data sources. The significant
aspect is that the database contains information relating to areas
that have previously been only accessible in isolation from one
another. By providing a unified data model and a system for forming
a variety of queries against the unified database, it is possible
to understand with precision the relationship between market factors
that have heretofore only been understood in an anecdotal way.
For example, prior to the present invention, a commercial real
estate investor might have recognized the value of investing in
a particular building that had low vacancy but was located in an
area of extremely high vacancy. If so, this investor might also
be interested in knowing that a building that is on the market has
lost a big tenant.
Prior to the system of the present invention, however, there has
been no unified way of storing an investor's investment criteria
and continually monitoring the market so as to have the ability
to provide a real-time alert when a property matching the investor's
investment criteria has become available. This advantage is achieved
because databases containing leasing information are linked with
databases concerning buildings for sale, which are linked to databases
that store a particular investor's investment criteria, which are
linked to databases that store the data necessary to determine market
conditions, and so on. It is through the connections of previously
discrete databases that the synergies and advantages of the present
invention arise.
In this sense, the present invention resides in the interconnection
of related pieces of information that allows a true understanding
and deep appreciation of a commercial real estate market. The user
of the system of the present invention has the ability to understand
data in context, because the data in one data source is influenced
by other data sources that have heretofore not been connected.
The data stored in the databases of the present invention is from
various sources. For example, property information can be obtained
by researching information sold and information available. Tenant
information can be obtained through personal inspection of properties
and from brokers. Market analytics are obtained through an historical
analysis. In addition, tax assessment information provides yet another
source of information.
To gather this data, an aspect of the present invention provides
a coordinated method and system for collecting data for a commercial
real estate database having distinct but related categories of information.
According to this embodiment, the system enters information concerning
one category of information into the database, and then determines
the relevance of that entered information to other categories of
information. If the entered information is deemed relevant to a
second category of information, then the system notifies a researcher
responsible for collecting data for the second category of information.
The system then provides the researcher with the entered information.
The coordinated research of this embodiment demonstrates the value
of having a fully integrated database which, in this instance, relates
to commercial real estate. Another advantage afforded by a comprehensive
integrated commercial real estate database is the ability to link
comparable sales records to current lists of tenants in particular
buildings.
Another way of gathering information is through mobile information-collecting
device, according to another aspect of the present invention. The
mobile information-collecting device is a truck or other vehicle
that is equipped with a GPS system and a link to the databases of
the system of the present invention. The device further includes
a display screen and input device, and can also include a web camera.
The system is designed such that the location of the truck or other
mobile information gathering device at any particular instance is
correlated to the database so that information concerning properties
in the vicinity of the truck is automatically displayed on the display
screen located in the truck. Thus, as a truck passes a particular
commercial real estate building, information pertaining to that
building is displayed, and the operator can determine whether additional
information has to be gathered or whether information obtained in
the database should be modified. The important feature is that the
system automatically retrieves and displays the entirety of the
currently available information so that the operator can determine
if pieces of information are missing or need to be updated.
The mobile information gathering system of the present invention
has other applications as well. For example, a similar device can
be used in connection with residential real estate listings to display
pertinent information and directions to the nearest available home
for sale. The pertinent information could include, for example,
photographs that pop-up on the display as the mobile information-collecting
device travels. Likewise, the system could be used to display information
concerning merchants, service providers, or tourist attractions
within a particular area in a non-commercial setting. For example,
the GPS in a passenger car could be linked to a database that contains
information about local merchants, such as restaurants. As the driver
approaches these restaurants, the system could display advertisements
or other information pertaining to the restaurants.
Thus, in accordance with the present invention, the system provides
location-sensitive real estate information automatically and performs
other useful tasks by correlating a vehicle's instantaneous position
to data stored in a remote database to identify geographically pertinent
information and by transmitting the geographically pertinent information
to the vehicle's occupant, by for example displaying the information
on the display panel within the truck or producing an audio message
of the information for the occupant to hear.
The invention also provides a method and system for listing and
brokering a commercial real estate and its financial derivatives.
In particular, the system of the present invention can be used in
connection with the creation of financial derivatives for commercial
real estate. To create these derivatives, one must have a source
of comprehensive information. The system of the present invention
supports derivatives for commercial real estate by providing sufficiently
accurate market information that supports the creation of indexes
and derivatives such as futures or hedge rental rates and occupancy
rates. The system can also be used for underwriting and rating commercial
mortgage banking securities.
For example, a big office tenant that must find 60,000 square feet
faces entering a 5-year or 7-year deal or longer-term deal without
knowing where the market will be in 7 years. If the tenant is $10
per square foot above market rate on 60,000 square feet--that is
a great deal of money. Because the system of the present invention
contains vast information concerning historical and current vacancy,
projected absorption and demand, projected rental rates, and supply
and demand figures, the system of the present invention can be used
to create indexes with which commercial office tenants can hedge
their occupancy costs. The tenants can basically buy futures, for
example, "class A, Washington, suburban, close in office futures."
This aspect enables Wall Street and the financial community to manage
the building space by watching supply and demand. By watching these
futures, investors can monitor and adjust building construction,
making the market much more perfectly balanced. Thus, the system
of the present invention cultivates the massive liquidity inherent
in these markets.
Since the system includes data concerning a plurality of characteristics
of the subject commodity, i.e., commercial real estate, in the database
of a data processing system utilizing a real-time clock, an exchange
market for the commodity, e.g., a particular type of commercial
real estate "Class A space in downtown Bethesda, Md.",
is established based upon a pre-selected set of the commodity's
characteristics; and, after a market price for the commodity has
been set, a class (or classes) of financial derivatives is established
together with a financial exchange market for those derivatives.
The characteristics of the derivatives comprise: a common descriptive
link between varied commodity types; a contract length that runs
from the purchase date of the contract to the performance date for
the commodity; and, a contract price.
The system of the subject invention comprises a number of elements
that include: data processing means; means for determining whether
a match exists based upon a comparison of the commodity offered
for sale and that requested for purchase or exchange; display means;
means for selecting the matched entry for purchase and/or exchange;
and, means for determining and selecting a class of financial derivatives.
The data processing means of the system, in turn, further comprises
a system controller which is further comprised of: a data processing
system; data entry means; memory means; and, communication means
for communicating data between the system controller and a plurality
of input and output points.
To achieve the advantages described herein as well as other advantages,
and in accordance with the purpose of the present invention, as
embodied and broadly described, a preferred embodiment of the present
invention is a method for allowing information providers to both
distribute specified information through the Internet and control
dissemination of information. This method operates within a system
that includes a system operator, a plurality of information providers
and a plurality of information customers. This method includes the
following steps: 1) making the information provider's specified
information available through a secured website on the Internet;
2) obtaining from the information provider a designation of a first
subset of the information customers that are authorized to receive
access to the specified information on the website; and 3) distributing
to each one of the first subset of the information customers that
are authorized to receive access to the specified information an
ID that can be used to access the specified information.
In an aspect of this method, the system within which the method
operates is used to facilitate exchange of information pertaining
to commercial real estate available for sale. In addition, the information
providers are owners or owner representatives that provide information
concerning the availability of their respective properties for sale.
Finally, the information customers are potential buyers or representatives
of potential buyers.
In another aspect of this method for allowing the information providers
to both distribute specified information through the Internet and
control dissemination of information, the method further comprises
requiring the execution of a non-disclosure agreement by each one
of the first subset of the information customers that are authorized,
before each one of the first subset of the information customers
that are authorized can access the specified information. The execution
of the non-disclosure agreement can be accomplished by clicking
through an agreement posted on the Internet.
Another preferred embodiment of the present invention is a method
for allowing information providers to both distribute specified
information through the Internet and control dissemination of information.
According to this embodiment, the method includes the following
steps: 1) making the information provider's specified information
available through a secured website on the Internet; 2) obtaining
from the information provider a designation of a first subset of
the information customers that are authorized to receive access
to the specified information on the website; 3) distributing to
each one of the first subset of the information customers that are
authorized to receive access to the specified information an ID
that can be used to access the specified information; 4) allowing
a second subset of potential customers to query a searchable database
containing a plurality of descriptions of information; 5) indicating
to the second subset of potential customers that the specified information
exists without revealing the specified information; 6) if one or
more of the second subset of potential customers are interested
in obtaining access to the specified information, allowing an interested
potential customer to communicate a request for access directed
to the system operator; 7) the system operator forwarding the request
for access and information concerning the interested potential customer
requesting access to the information provider in response to a request
for access; and 8) allowing the information provider to make a decision
to grant or deny the request for access and to communicate the decision
to the system operator. In response to a deny access decision, the
interested potential customer is notified of the deny decision without
learning the specified information. In response to a grant access
decision, the system operator grants the interested potential customer
access to the specified information.
In an aspect of this embodiment of the present invention, the method
further includes requiring the interested potential customer to
execute a non-disclosure agreement prior to allowing the interested
potential customer access to the specified information. For example,
the interested potential customer executes the non-disclosure agreement
by clicking through an agreement posted on the Internet.
In another aspect of this embodiment of the present invention,
a profile of a member of the second subset of potential customers
is obtained by the system operator and transmitted to the information
provider in response to a request for access. As an additional aspect,
before a profile of a member of the second subset of potential customers
is transmitted to the information provider in response to a request
for access, the system operator can authenticate the profile.
In another aspect of this embodiment of the present invention,
the system operator, in response to a request for access, obtains
a profile of the interested potential customer, authenticates the
profile, and transmits the profile to the information provider in
conjunction with the request for access.
In another aspect of this method, the system operator forwards
the request for access to the information provider in response to
a request for access, and requests a response from the information
provider in real time through the Internet or through wireless data
transmission. Optionally, with the request for access, the system
operator can also forward a profile of the interested potential
customer.
In another aspect of this embodiment of the present invention,
the system is used to facilitate exchange of information pertaining
to commercial real estate available for sale. The information providers
are owners or owner representatives that provide information concerning
the availability of their respective properties for sale. Finally,
the information customers are potential buyers or representatives
of potential buyers.
Another preferred embodiment of the present invention is a method
for allowing information providers to both distribute specified
information through the Internet and control dissemination of information.
This method operates within a system that includes a system operator,
a plurality of information providers, and a plurality of information
customers. The method begins by making the information provider's
specified information available through a secured website on the
Internet and allowing potential customers to query a searchable
database containing a plurality of descriptions of information.
The method continues by indicating to the potential customers that
the specified information exists without revealing the specified
information. Then, if one or more of the potential customers are
interested in obtaining access to the specified information, the
method proceeds by allowing an interested potential customer to
communicate a request for access directed to the system operator.
The method continues by having the system operator forward the request
for access and information concerning the interested potential customer
requesting access to the information provider in response to a request
for access. The method continues by allowing the information provider
to make a decision to grant or deny the request for access and to
communicate the decision to the system operator. In response to
a deny access decision, the interested potential customer is notified
of the deny decision without learning the specified information.
In response to a grant access decision, the system operator grants
the interested potential customer access to the specified information.
In an aspect of this embodiment of the present invention, the information
concerning the interested potential customer requesting access is
a profile of the interested potential customer. Optionally, the
system operator can authenticate the profile of the interested potential
customer before forwarding the profile to the information provider.
In another aspect of this embodiment of the present invention,
the system operator forwards the request for access to the information
provider in response to a request for access, and requests a response
from the information provider in real time through the Internet
or through wireless data transmission.
In another aspect of this embodiment of the present invention,
if the request for access is granted, the method involves the additional
step of requiring execution of a non-disclosure agreement by the
interested potential customer before the system operator grants
the interested potential customer access to the specified information.
The execution of this non-disclosure agreement can be accomplished
by clicking through an agreement posted on the Internet.
In another aspect of this embodiment of the present invention,
the system within which the method operates is used to facilitate
exchange of information pertaining to commercial real estate available
for sale. In addition, the information providers are owners or owner
representatives that provide information concerning the availability
of their respective properties for sale, and the information customers
are potential buyers or representatives of potential buyers.
In another aspect of this embodiment of the present invention,
the system within which the method operates is used to facilitate
exchange of information pertaining to residential real estate available
for sale. In addition, the information providers are owners or owner
representatives that provide information concerning the availability
of their respective properties for sale, and the information customers
are potential buyers or representatives of potential buyers.
Another preferred embodiment of the present invention is a system
for correlating information stored in a remote database with a user's
location, retrieving pertinent data files from the database based
upon the user's location, and automatically transmitting the selected
data files to the user. The system includes user equipment sets,
a computer, and a database in communication with the computer. Each
user equipment set includes a display and a location determining
device for generating data pertaining to the user's location and
for transmitting the data pertaining to the user's location to a
remote computer automatically. The computer is equipped for wireless
communication with geographically remote users that are equipped
with the equipment sets so as to send data to the equipment sets
and receive data from the equipment sets including the data pertaining
to the user's location. The database stores information that includes
information identifying a location of a property. Within this system,
in response to receipt of the data pertaining to a user's location,
the computer automatically retrieves information pertaining to the
user's location and transmits the same to the user's equipment set
for display on the display.
In an aspect of this embodiment of the present invention, each
user equipment set further comprises a data input device for allowing
the user to input data. The information is displayed on the display
in a way that prompts the user to input missing information using
the data input device.
In another aspect of this embodiment of the present invention,
the display is a color display adapted for displaying photographic
images.
In another aspect of this embodiment of the present invention,
in response to receipt of the data pertaining to the user's location,
the computer automatically retrieves information describing commercial
or residential real estate near the user's location and transmits
the same to the user's equipment set for display on the display.
In another aspect of this embodiment of the present invention,
in response to receipt of data pertaining to a user's location,
the computer automatically retrieves information regarding at least
one of commercial enterprises and landmarks near the user's location
and transmits the same to the user's equipment.
In another aspect of this embodiment of the present invention,
the user's equipment set includes audio capabilities, and the information
pertaining to the user's location includes audio data.
In another aspect of this embodiment of the present invention,
the computer transmits the information pertaining to the user's
location to the user's equipment set for color display on the display.
In another aspect of this embodiment of the present invention,
the information pertaining to the user's location includes information
on commercial enterprises located near the user's location. The
information on commercial enterprises includes information on at
least one of the products, goods, and services provided by the commercial
enterprises. In addition, in response to receipt of the data pertaining
to a user's location, the computer automatically retrieves the information
on at least one of products, goods, and services provided by commercial
enterprises near the user's location and transmits the same to the
user's equipment set.
In another aspect of this embodiment of the present invention,
the computer automatically retrieves information describing real
estate near the user's location and the display shows a pop-up window
including the information describing the real estate.
In another aspect of this embodiment of the present invention,
the information stored in the database includes at least one of
the following: square footage available for lease; whether a property
is available for sale; property address; contact information; and
price. With this information in the database, in response to receipt
of the data pertaining to the user's location, the computer automatically
retrieves information describing the commercial or residential real
estate near the user's location and transmits the same to the user's
equipment set for display on the display.
Optionally, the information stored in the database also includes
at least one of the following: a digital image of the commercial
real estate; square footage data representing a square footage of
the commercial real estate; data characterizing the selected use
of the commercial real estate; rental price of the commercial real
estate; sale price of the commercial real estate; data about the
tenant in the commercial real estate; a real estate submarket identification;
sales comparable information; lender information; a grade indicator
of the commercial real estate, the grade indicator having an alpha
numerical representation and being a function of a classification
system of the commercial real estate that is consistent with accepted
standards and providing a representation of the quality of the real
estate; a classification of the commercial real estate based upon
at least one of the following: a building grade, an age of the building,
and an extrapolation of comparable buildings; and information pertaining
to the submarket including at least one of (i) rents, (ii) vacancy,
and (iii) absorption rates for each of the submarket and nearby
submarkets, and (iv) other indicators of submarket and location
attractiveness.
Another preferred embodiment of the present invention is a commercial
real estate information exchange and market. The exchange and market
includes a database for storing information about commercial real
estate, and computers and communication equipment for allowing a
plurality of users to query the database, add data to the database,
and retrieve the information from the database. The database contains
data records, including information pertaining to lease information,
sale information, comparable sales information, and tenant information.
In an aspect of this embodiment of the present invention, the database
further includes at least one of: data about a tenant in the commercial
real estate; building-specific information including data representing
an age of the commercial real estate, and data representing financial
obligations and tenancy status of the tenant in the commercial real
estate; square footage data representing a square footage of the
commercial real estate; data characterizing a selected use of the
commercial real estate; cost data including a rental price of the
commercial real estate; a real estate submarket identification;
a classification of the commercial real estate based upon at least
one of a building grade, an age of the building, and an extrapolation
of comparable buildings; and information pertaining to a submarket
including rent data, vacancy data, and absorption rate data.
In another aspect of this embodiment of the present invention,
the data records include market analytic information.
Another preferred embodiment of the present invention is a method
for storing and automatically displaying descriptions and visual
images of commercial or residential real estate on a display of
a user. The method involves generating a plurality of digitized
video images of real estate, storing data records concerning the
real estate; determining a location of the user; retrieving data
records corresponding to the user's location; and displaying on
the display the data records corresponding to the user's location.
According to the method, each digitized video image depicts a real
estate. In addition, the data records include the digitized video
images, textual information concerning the real estate, and information
identifying the location of the real estate.
Another preferred embodiment of the present invention is a method
for listing and brokering commercial real estate. The method includes
the following steps: 1) identifying a characteristics of the commercial
real estate and entering the characteristics into a data processing
system to establish a first exchange market for the commercial real
estate based upon the characteristics; 2) identifying a market value
for the commercial real estate and listing the market value on the
first exchange market; 3) determining a class of derivatives based
upon a pre-selected subset of the characteristics; and 4) establishing
a second exchange market in respect of the derivatives.
In an aspect of this embodiment of the present invention, the first
exchange market and the second exchange market are co-located within
the data processing system.
In another aspect of this embodiment of the present invention,
the characteristics include a geographic location, a start date
and a finish date, a size, a class of building, and a cost.
Another preferred embodiment of the present invention is a method
for establishing a unified group of correlated databases that provides
real estate data to facilitate a real estate transaction. According
to this method, each database of the unified group is a discrete
data module. The method includes the following steps: (a) associating
real estate data entries of a first database of the unified group
with corresponding real estate data entries of the remaining databases
of the unified group; (b) collecting the real estate data from real
estate industry data sources; (c) recording the real estate data
in the first database of the unified group; (d) determining an effect
of the recorded real estate data on the remaining databases of the
unified group; (e) reconciling remaining real estate data in the
remaining databases based on the effect; and (f) distributing the
recorded real estate data and the reconciled real estate data to
real estate industry professionals and to real estate industry customers.
In an aspect of this embodiment of the present invention, the real
estate data includes property information and tenant information,
and the unified group of correlated databases includes a property
information database and a tenant information database. Optionally,
the real estate data further includes comparable property information,
assessment information, and market analytics information, and the
unified group of correlated databases further includes a comparable
property information database, an assessment information database,
and a market analytics information database.
In another aspect of this embodiment of the present invention,
the real estate industry data sources include at least one of property
managers, proprietary databases, Internet sources, site inspections,
building owners, brokerage firms, real estate investment trust filings,
tenant canvassing, public records, and comparable property databases.
In addition, the step of collecting the real estate data involves
the following steps: (i) communicating with at least one of the
property managers, the building owners, and the brokerage firms
by mail, electronic mail, telephone, or facsimile, if the real estate
industry data sources include at least one of the property managers,
the building owners, and the brokerage firms; (ii) searching and
extracting data from at least one of the proprietary databases,
the Internet sources, and the real estate investment trust filings,
if the real estate industry data sources include at least one of
the proprietary databases, the Internet sources, and the real estate
investment trust filings; (iii) recording observed data from at
least one of the site inspections and the tenant canvassing, if
the real estate industry data sources include at least one of the
site inspections and the tenant canvassing; and (iv) extracting
data from at least one of the public records and the comparable
property databases, if the real estate industry data sources include
at least one of the public records and the comparable property databases.
In another aspect of this embodiment of the present invention,
collecting real estate data involves receiving web-based input from
the real estate industry professionals and the real estate industry
customers. Collecting real estate data also involves receiving communications
from the real estate industry professionals and the real estate
industry customers through mail, electronic mail, telephone, or
facsimile. Optionally, collecting the real estate data can further
involve gathering information with a mobile data acquisition vehicle.
In another aspect of this embodiment of the present invention,
reconciling the remaining real estate data involves confirming that
the real estate data entries and the corresponding associated real
estate data entries are internally consistent.
In another aspect of this embodiment of the present invention,
distributing the real estate data involves providing a web-based
interface in communication with the unified group of correlated
databases. Optionally, this distributing further involves providing
communication between parties to a transaction, and providing transactional
services in support of a transaction. Also optionally, the method
further involves providing a derivatives marketplace in which to
define, value, and exchange real estate commodities. These commodities
could be real estate cost futures.
In another aspect of this embodiment of the present invention,
distributing real estate data involves accepting a property search
query from a user, and running the property search query in the
unified group of correlated databases and returning property search
results to the user.
Optionally, this distributing could involve adding properties to
the property search results as directed by the user without running
another search query, removing properties from the property search
results as directed by the user without running another search query,
and running negative search queries in the property search results
as directed by the user to remove properties from the property search
results.
Also, optionally, this distributing could involve accepting a second
property search query from the user, running the second property
search query on the property search results, and returning a second
set of property search results to the user.
In a further embodiment of this aspect of the present invention,
the property search results provide data from at least one of leasing
history of a specific building, history of a market in a particular
geographic area, and history of the specific building relative to
the market.
In another embodiment of this aspect of the present invention,
the method further involves saving the property search query as
directed by the user, running the saved property search query at
a periodic interval, and notifying the user of new properties that
satisfy the property search query. Optionally, the saved property
search query has at least one field that relates to market conditions
and at least one new property satisfies the property search query
because of a change in the market conditions. Also optionally, the
saving, running, and notifying repeat for different users, resulting
in a plurality of saved searches. With these saved searches the
method continues by calculating an amount of saved searches of the
plurality of saved searches that will be satisfied by entry of a
new property listing, and reporting the amount to an owner or owner
representative so that the owner or owner representative can maximize
demand for the new property listing. The owner or owner representative
can maximize demand for the new property listing by setting, for
example, an optimum price. The owner or owner representative can
also maximize demand for the new property listing by setting, for
example, an optimum building grade.
In another aspect of this embodiment of the present invention,
distributing real estate data involves disseminating location-sensitive
information to a mobile information receiving device. The mobile
information receiving device determines its location and the unified
group of correlated databases receives the location of the mobile
information receiving device and transmits the location-sensitive
information to the mobile information receiving device.
In another aspect of this embodiment of the present invention,
distributing real estate data involves displaying a user interface;
displaying a display element on the user interface to indicate a
property for which information is recorded in the unified group
of correlated databases; providing a link to the information on
the user interface proximate to the display element; allowing a
user to select the display element; and in response to the selection,
retrieving and displaying the information. The user selects the
display element by dragging a pointer proximate to the display element,
in which case the information is automatically displayed. The information
can be displayed in, for example, a pop-up window.
Another preferred embodiment of the present invention is a system
for collecting, distributing, and using real estate data. The system
includes data sources, data mining applications in communication
with the data sources, a contact management system in communication
with the data sources and the data mining applications, a core data
warehouse in communication with the data mining applications, database
processes in communication with the core data warehouse, and network
integration applications in communication with the database processes.
The data sources gather and generate real estate data. The data
mining applications receive and organize the real estate data into
separate interrelated modules, and evaluate the real estate data
and reconcile the real estate data among the interrelated modules.
The contact management system directs the data mining applications
to conduct continuous pollings of the data sources to update the
real estate data. The core data warehouse receives and stores the
reconciled and updated real estate data from the data mining applications.
The database processes access the reconciled and updated real estate
data from the core data warehouse and create database sets. The
network integration applications manipulate the database sets in
response to commands from a user and present results of the manipulation
to the user.
In an aspect of this embodiment of the present invention, the network
integration applications comprise at least one of a look up property
application, a search database application, and an add listing application.
The search database application can accept property search queries
from the user, run the property search queries, and return property
search results to the user. The search database application can
also add properties to the property search results as directed by
the user without running another search query, remove properties
from the property search results as directed by the user without
running another search query, and run negative search queries as
directed by the user to remove properties from the property search
results.
In another aspect of this embodiment of the present invention,
the data sources include at least one of property managers, proprietary
databases, Internet sources, site inspections, building owners,
brokerage firms, real estate investment trust filings, tenant canvassing,
public records, and comparable property databases.
In another aspect of this embodiment of the present invention,
data mining applications include at least one of a property information
database, a tenant information database, an assessment information
database, a comparable property information database, and a market
analytics information database.
In another aspect of this embodiment of the present invention,
the system further includes a mobile information collection device
that provides functions of the data sources and the network integration
applications. The mobile information collection device includes
a global positioning system, an output device, and an input device.
The global positioning system determines a location of the mobile
information collection device. The output device is in communication
with the database processes and the global positioning system. The
output device reads the location provided by the global positioning
system and retrieves and displays the database sets corresponding
to the location. The data input device receives changes to the database
sets corresponding to the location and transmits the changes to
the data mining applications.
Another preferred embodiment of the present invention is a method
for securely facilitating buying and selling of real estate properties.
The method involves the following steps: (a) maintaining a unified
group of interrelated databases accessible through a global information
network; (b) accepting a property listing from an owner or owner
representative and recording the property listing in the unified
group; (c) providing confidentiality agreements to pre-approved
buyers or buyer representatives named by the owner or owner representative;
and (d) providing access to the property listing for buyers or buyer
representatives that agree to the confidentiality agreement. The
confidentiality agreements require that the property listing remain
confidential in return for viewing the property listing.
In an aspect of this embodiment of the present invention, the buyer
or buyer representative is provided with an electronic identification
key to access the property listing. The key generates a variable
password at a predetermined frequency.
In another aspect of this embodiment of the present invention,
the accepting and recording of the property listing involves determining
if the owner or owner representative is fraudulent by posting the
property listing for viewing by a true owner representative.
In another aspect of this embodiment of the present invention,
the method includes the following additional steps: (e) indicating
to an unapproved buyer or buyer representative that the property
listing exists; (f) accepting from the unapproved buyer or buyer
representative a request to view the property listing; (g) forwarding
the request to the owner or owner representative for approval; (h)
if the owner or owner representative approves the request, requiring
the unapproved buyer or buyer representative to agree to a confidentiality
agreement requiring that the property listing remain confidential
in return for viewing the property listing; and (i) if the unapproved
buyer or buyer representative agrees to the confidentiality agreement,
providing access to the property listing for the unapproved buyer
or buyer representative.
According to this aspect, optionally, the unapproved buyer or buyer
representative subscribes to an access service that indicates the
existence of property listings in the unified group of interrelated
databases.
Also according to this aspect, optionally, the buyer or buyer representative
agrees to the confidentiality agreement by clicking through an agreement
posted on the Internet.
Also according to this aspect, optionally, forwarding the request
further involves forwarding a profile of the buyer or buyer representative
to the owner or owner representative. The forwarding of the request
could also involve authenticating the profile of the buyer or buyer
representative.
Also according to this aspect, optionally, accepting a request
to view the property listing further involves obtaining a profile
of the buyer or buyer representative, authenticating the profile,
and transmitting the profile to the owner or owner representative.
Also according to this aspect, optionally, forwarding the request
to the owner or owner representative involves requesting a response
from the information provider in real time through the Internet
or through wireless data transmission.
Another preferred embodiment of the present invention is a method
for securely facilitating buying and selling of real estate properties.
The method includes the following steps: (a) maintaining a unified
group of interrelated databases accessible through a global information
network; (b) accepting a property listing from an owner or owner
representative and recording the property listing in the unified
group; (c) indicating to an unapproved buyer or buyer representative
that the property listing exists; (d) accepting from the unapproved
buyer or buyer representative a request to view the property listing;
(e) forwarding the request to the owner or owner representative
for approval; (f) if the owner or owner representative approves
the request, requiring the unapproved buyer or buyer representative
to agree to a confidentiality agreement requiring that the property
listing remain confidential in return for viewing the property listing;
and (g) if the unapproved buyer or buyer representative agrees to
the confidentiality agreement, providing access to the property
listing for the unapproved buyer or buyer representative.
In an aspect of this embodiment of the present invention, the unapproved
buyer or buyer representative is provided with an electronic identification
key to access the property listing. The key generates a variable
password at a predetermined frequency.
In another aspect of this embodiment of the present invention,
the accepting and recording the property listing include determining
if the owner or owner representative is fraudulent by posting the
property listing for viewing by a true owner representative.
In another aspect of this embodiment of the present invention,
the unapproved buyer or buyer representative subscribe to an access
service that indicates the existence of property listings in the
unified group of interrelated databases.
In another aspect of this embodiment of the present invention,
the unapproved buyer or buyer representative agrees to the confidentiality
agreement by clicking through an agreement posted on the Internet.
In another aspect of this embodiment of the present invention,
forwarding the request involves forwarding a profile of the unapproved
buyer or buyer representative to the owner or owner representative.
Optionally, the profile of the unapproved buyer or buyer representative
can be authenticated.
In another aspect of this embodiment of the present invention,
forwarding the request to the owner or owner representative involves
requesting a response from the information provider in real time
through the Internet or through wireless data transmission.
Another preferred embodiment of the present invention is a method
for underwriting loans for real estate property. The method begins
by establishing a unified group of correlated databases that provides
data to facilitate a real estate transaction. Each database is a
discrete module of real estate data. The method continues by providing
quotes on individual loan programs in response to customer requests.
The quotes are based on property data in the unified group. The
method continues by providing soft loan quotes based on property
data in the unified group. The method ends by providing pre-approved
loan quotes to owners of particular properties based on real estate
data for the particular properties and market information in the
unified group.
In an aspect of this embodiment of the present invention, providing
pre-approved loan quotes involves examining a financial profile
of an owner, examining a property owned by the owner, evaluating
the property to determine value and market analytics, and formulating
a pre-approved credit line for the owner based on the property.
Another preferred embodiment of the present invention is a method
for listing and brokering real estate commodities and financial
derivatives of the real estate commodities. The method involves
identifying characteristics of the real estate commodities; entering
the characteristics into a data processing system utilizing a real-time
clock; establishing an exchange market for the real estate commodities
based on a pre-selected set of the characteristics; setting a market
price for the real estate commodities; and establishing classes
of the financial derivatives.
In an aspect of this embodiment of the present invention, the characteristics
can be geographic location, lease term start date range, lease term
end date range, building class, volume, or cost.
In another aspect of this embodiment of the present invention,
entering the characteristics into a data processing system involves
the following steps: (i) determining whether or not a commodity
is being identified to the data processing system for a first time;
(ii) storing the characteristics in a commodity database if the
commodity is being identified to the data processing system for
the first time; and (iii) determining a status of the commodity
with respect to being a candidate for purchase, sale, or trade,
if the commodity is not being identified to the data processing
system for the first time.
In another aspect of this embodiment of the present invention,
the classes of financial derivatives can be all commercial real
estate available during a particular time period in a particular
region, all commercial real estate of a certain class, all commercial
real estate of a certain cost, a lease space equivalent use, or
combinations thereof. The lease space equivalent use can include
a common descriptive link between varied commodity types, a time
period that runs from a date of a contract to a performance date
of the commodity, and a contract price.
Another preferred embodiment of the present invention is a system
for listing and brokering real estate commodities and financial
derivatives of the real estate commodities. This system includes:
(a) a data processing means for accepting and storing parameters
of an available commodity available for sale or exchange; (b) data
processing means for entering a description of a desired commodity
desired for purchase or exchange; (c) means for determining that
a match exists between the available commodity and the desired commodity;
(d) means for displaying the match to a system operator; (e) means
for selecting the match for purchase, exchange, or purchase and
exchange; (f) means for determining a class of financial derivatives
based on a pre-determined set of characteristics resident in commodity
descriptions stored in a database; and (g) means for selecting a
class of derivatives for purchase, exchange, or purchase and exchange.
In an aspect of this embodiment of the present invention, the data
processing means includes a system controller comprising a data
processing system, a data management program, data entry means for
entering data into the data processing system, memory means for
storing memory, and communication means for communicating data between
the system controller and a plurality of input and output points.
The plurality of input and output points can include, for example,
one or more commodity input points, one or more commodity receiver
points, one or more commodity brokerage points, and one or more
derivative exchange points.
Another preferred embodiment of the present invention is a method
for shopping for real estate and completing real estate transactions.
This method involves providing a mobile information transmitting
and receiving device that is in communication with a database containing
real estate data; determining a location of the |