Www.LoopNet.com John Wood ([email protected]) Vice President Appraisal Information Services LoopNet, Inc. August 24, 2001 Knowledge SpeedReachRelationships

www.LoopNet.comwww.LoopNet.com

John Wood ([email protected])

Vice PresidentAppraisal Information Services

LoopNet, Inc.

August 24, 2001

Knowledge Speed Reach Relationships

Commercial Appraisal Data …..…..…who has the best?


The New LoopNet… PropertyFirst & LoopNet merge

• March 2001 – Intent to merge announced

• July 2001 – Merger complete

• New company operating under LoopNet name

• No. 1 online commercial real estate community

• 150,000 listings / 225,000 users / 300,000 visitors per month

• September 2001 – New LoopNet website launches


• National, online, appraiser-verified data cooperative

• Appraisal Institute members are exclusive data contributors

• Access to comparable sale, lease, and income/expense data

• Based on Appraisal Institute Commercial Data Standard

• Exclusive Appraisal Institute Members Benefits:

– Preferred Pricing, Revenue Sharing, and Leads

• Unprecedented access to technology on one desktop application

It’s an appraisal system that’s been built for you!

The Appraisal Institute Commercial Database … what is it?


• A common language for comparable data

• Initial version released May 2001

• Widespread interest

– Distributed directly to over 250 entities, fielded another 300 requests

• Gaining acceptance & adoption

– Data Consortium

– Leading Firms

• Enhances electronic data interchange

• Speeds technology adoption

Appraisal Institute Commercial Data Standard … a foundation for growth


• Assignment Management System – your “virtual” office

• FastStart System – jump-start your appraisals

• Private Company Database – share data seamlessly

• Appraisal Institute Commercial Database – finally, we can come

together and leverage our collective strength

LoopNet’s Appraisal Initiative …more than just a database!

It’s Appraisal Technology for the 21st Century


AttachmentsAttachments• Images – Images – Pictures,Pictures, Tax Maps and moreTax Maps and more• Documents – Documents – RentRent Survey, Rent Roll Survey, Rent Roll and moreand more

• The AppraisalThe Appraisal

Virtual Assignment Folder … the starting point

Subject Property DataSubject Property Data

• Property LevelProperty Level• SalesSales• LeasesLeases• Income & ExpensesIncome & Expenses

Comparable InformationComparable Information

• Land SalesLand Sales• Improved Sales Improved Sales • LeasesLeases• Income & ExpensesIncome & Expenses

LeadsLeads++


Assignment Management System… your own “virtual” office


Pre-PopulatePre-Populate

FastStart System … data & tools to jump-start appraisals

DemographicsDemographics

Marshall & Swift Marshall & Swift Shopping Center Shopping Center Traffic CountsTraffic CountsAnd More…….And More…….

More DataMore DataMappingMapping

PropertyPropertyTax RecordTax Record

DatabaseDatabase

Private Private CompanyCompanyDatabaseDatabase

LoopNet LoopNet ListingsListings

DatabaseDatabase


Once Logged into the system, all ofyour active assignments will be listed here.

The listing is then a link to accessthe data records in the assignment folder.


From within an assignment folder,you can access the Subject Property and comparable data records.


Yesterday’s Listing

Is Today’s Subject

Supports the Next Day’s Listing

Becomes Tomorrow’s Comparable

DataCooperative

The Virtuous Cycle of Data

Brokers, Owners &Tenants

Appraisers & Lenders


• Public records• Thin information• Information on sales only

• Internal researchers • Costly

• Third party data venders • Costs• Reliability• Dependence issue

• Sharing with other appraisers• Informal – the “old boy network” • Formal

• Appraiser Data Cooperatives• Appraisal Institute Commercial Database

What is the best source of comparable data?


Confidentiality Issues

• What does USPAP say about confidentiality? – An appraiser must protect the confidential nature of the appraiser-client

relationship.– An appraiser must act in good faith with regard to the legitimate interests of

the client in the use of confidential information and in the communication of assignment results.

– An appraiser must not disclose confidential information or assignment results prepared for a client to anyone other than the client and…(persons specifically authorized by the client; state enforcement agencies; and professional peer review committees, etc.) …



• What does USPAP say about confidentiality?

• Client engagement letter issues



• What does USPAP say about confidentiality? • Client engagement letter issues• Gramm-Leach-Bliley Act

– Generally not applicable to commercial transactions– Over reaching by bank legal departments


Data Ownership and Usage Rights Issues

• Who owns data?– Data Vender?– Property Owner?– Appraiser?– Client (lender)?

• Copyright Issues– Copyright law protects the expression of creative works. To qualify for copyright

protection, the expression must be an original work of authorship, which requires that the work be independently created and possess some minimal level of creativity.

• Contract Rights


With data becoming more readily available, how do appraisers add value?

• Client Needs: Broader services and products

• Competition: Encroachment from CPAs, MBAs and others

• Lender Concerns: Appraisal cost, timing and review process

• Securitization: Tools and data for collateral risk assessment

• Standards: Need for global data and technical standards

• Technology: Prospective young professionals are use to and demanding state-of-the-art technology and tools

Who Moved My Cheese?… adapting to change


Thank You