Real Estate Study Focused on Identifying Trends in Online Search Behavior
More than 8 in 10 tenants and investors report they are likely to conduct their own independent online research for Commercial Real Estate.
WASHINGTON – May 17, 2023 – Today, LoopNet, a CoStar Group (NASDAQ: CSGP) company, issued the latest installment in a multi-year research effort providing insights into the commercial real estate search behavior of commercial property tenants and investors. The research was led by Market Connections, a third-party research company commissioned by LoopNet and in partnership with Google. The study polled 400 tenants and investors to determine what sources they use to search for commercial real estate and the role of their broker in their search process. This research helps CRE stakeholders better understand the decision-making journey of a tenant or investor searching for space.
According to the study of US Commercial Real Estate tenants and investors:
- 78% of investors and 80% of tenants agree that the internet is essential to their commercial property searches.
- 61% of investors purchased and 51% of tenants leased properties that they initially found online.
- 80% of tenants and 89% of investors who hired a broker continue to perform online searches for properties independent of their broker as frequently as “always”, “often” or “sometimes”.
LoopNet and Market Connections supplemented the main tenant and investor study with Fortune 1000 tenant interviews and an appendix featuring an exclusive look at the Fortune 1000 cohort. The interviews and supporting data-filled appendix paint a portrait of Fortune 1000 representatives as highly independent super users of online resources like LoopNet. The study delivers valuable insights providing a rare view into the once-opaque search cycle of this high-volume CRE segment. The report confirms, through quantitative and qualitative data, that many of the largest, most influential tenants are routinely performing their own independent searches online, supplementing the information supplied by their broker.
“We are thrilled to release this joint research with Google which validates our mission of bringing more transparency and visibility to the CRE industry. LoopNet has built the largest global tenant-facing CRE online marketplace connecting all vested parties – tenants, investors, brokers, and owners – as they come together to find the perfect space,” said Andy Florance, Founder and Chief Executive Officer of CoStar Group.
To review the full report, please visit: LoopNet.com/solutions/CRE-Tenant-Investor-Trends
Information and Article Courtesy of Matthew Blocher with the CoStar Group