Commercial members: What are your options after the Xceligent bankruptcy?

Last week, Xceligent, a provider of commercial real estate data services, filed for Chapter 7 bankruptcy and immediately ceased business operations.

This represents a major disruption in services to commercial REALTORS®. Xceligent was NAR’s exclusive provider of commercial real estate information services and the entity that powered CommercialSearch.com, as well as the vendor of many commercial information exchanges across the country, including here in Texas.

The Texas Association of REALTORS® and the National Association of REALTORS® are closely monitoring this issue. NAR has announced the formation of a presidential advisory group to explore options for ensuring that commercial members have the business support they need. Updates will be posted here as they become available.

The purpose of the presidential advisory group is to define essential commercial real estate data needed by NAR members to conduct business and develop pathways for access. The issues being considered are:

  • Current state of data sources
  • Commercial data as a commodity
  • Gaps in geographical access and coverage
  • Few providers, high costs
  • Engaging commercial tech tools/start-up companies
  • Communication of available resources to members from all three levels of the organization
  • Access to data platforms

Here are some commercial resources to keep in mind:

  • REALTORS® have exclusive access to RPR Commercial at no additional cost. RPR Commercial has data on more than 35 million off-market proeprties, 320,000 listed properties, and 106,000 leasing opportunities. RPR’s data is not affected by the Xceligent shutdown. Learn more about the top 5 data needs for researching commercial properties through RPR.
  • TAR Commercial provides Texas Commercial Market Reports powered by Reis, a longtime industry leader in providing comprehensive and unbiased data used by commercial real estate professionals. Through this partnership, Texas REALTORS® have access to a wealth of information on commercial markets and submarkets throughout Texas, including detailed data on market and submarket trends, supply, absorption, rents, sale prices, vacancies and new construction and more. Click here to access the quarterly reports.

About Texas Association of REALTORS®

The voice for Texas real estate
This entry was posted in Commercial and tagged , , , . Bookmark the permalink.

2 Responses to Commercial members: What are your options after the Xceligent bankruptcy?

  1. chrisrosprim says:

    Marketing efforts vary with commercial properties
    Article date: Dec 19 2017
    Dale Beede
    Dale Beede

    Perhaps one of the greatest mysteries in real estate is how a broker effectively markets various types of commercial properties. Is there a perfect, one-stop, marketing program? Nope. Are there methods of marketing these properties that ensure information is getting buyers or investors? Maybe.

    So, why is it a broker’s specific marketing methods remain unknown to the public? Probably because there are so many different types of marketing systems that go along with the various types of real estate. Two different properties in different commercial categories won’t be marketed the same way even if both are listed with the same broker.

    Let’s say John Doe with ABC Realty has listed for sale a 2-acre parcel of vacant commercial land on an attractive retail corner. In addition, Doe has listed a 20-unit apartment building in a nearby bedroom community. Both properties are included in the local and regional multiple listing service systems and a national commercial website. Each property also could have an easy-to-read broker advertising sign placed on it. At this point, though, the marketing program for each property will begin to differ.

    The 2-acre retail corner will be listed in places searched regularly by retail and shopping center brokers and developers that typically belong and participate in the International Council of Shopping Centers. The trade organization represents nearly all retail stores, developers and investors worldwide.

    Target marketing will probably occur as the listing broker submits aerial photos — perhaps taken with a drone — as well as traffic and roadway information and demographics specific to the property to selected retail brokers representing clients whom the broker believes will fit the site well. Each retail entity — be it Starbucks, McDonald’s or Wal-Mart — is usually represented regionally by one brokerage that’s signed a representation agreement with the parent company. It could be any one of hundreds of retail brokerages, but they control access to that particular company.

    In addition, the listing broker will submit information to such national commercial websites as CityFeet, CommercialSource, CoStar, LoopNet and the brokerage’s own national website.

    Doe will treat his listing of the 20-unit apartment building differently. Buyers for residential income properties are more prevalent than retail developers.

    Following their contract acceptance for the purchase, they will usually perform significant due diligence on the units with in-depth inspections that include electric systems, exterior siding, laundry facilities, kitchen appliances, roofing and structural adequacy. These buyers require profit and loss statements for the previous two or three years. They typically also perform a financial analysis to check the accuracy of the seller’s or broker’s operating income expectations.

    In the case of the apartment building, marketing must be performed that gets the word out to the sites most often used by investors looking for such properties. This could include the local MLS systems for Realtors, CoStar/Loopnet sites featuring investment properties for sale and broker’s own national website. Most brokers of income properties like the apartment building, have a list of qualified investors looking for similar properties. In fact, the broker network could be the best source of buyers for that property.

    It is the specific tools in the commercial broker’s marketing toolbox and broker’s ability to use those tools that separate a successful marketing campaign from a poor one. Ask for a specific plan of action from your commercial broker and be sure your broker has all the financial information needed to prepare proformas for prospective purchasers.

    Like

  2. chrisrosprim says:

    As a longtime commercial REALTOR – and – a long time user of CoStar, Loop Net, Xceligent and Commercial Search – as well as a regular user of RPR Commercial – TAR and NAR efforts are appreciated.

    RPR only picks up what is listed in the MLS.

    At least in the DFW area – 99% of all commercial agents (REALTORS and non-REALTORS) are NOT members of the MLS and thus their listings will never be picked up on RPR and thus RPR is of limited use when searching for available properties for sale or lease.

    Now with Xceligent gone by the wayside – we are left with virtually nothing but CoStar and Loop Net and paying their exorbitant fees and rules if we want to place our properties where other commercial brokers will be able to find them.

    There are some listing services available in some areas that are generally geographically specific and not suitable for wide spread use. Xceligent came close and now is gone.

    I wrote an article on this subject 10+ years ago for the TAR REALTOR Magazine – and nothing much has changed in this regard in those years.

    We wish for a solution and hoped Xceligent was it – but was not to be.

    The only good thing to come out of this – is I no longer pay Xceligent $$$ a month. I just pay CoStar and Loop Net $$$$$$ a month.

    Maybe some day there will be a source to compete with CoStar Loop Net.

    Like

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s