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May 2000 vol. 1, num. 1

Welcome to @dealmakers.net Web Site Feature of the Month CB Richard Ellis, Jones Lang LaSalle and Trammell Crow Form E-Business Alliance I-scraper.com Improves Communication and Efficiency in International Building Industry Rbuy Opens Industry-Specific Marketplace Internet Startup Launches Online Service for Facilities Management Industry J.P. Morgan Mortgage Introduces New Web Site Gomez Advisors: Online Mortgages Will Grow to $150 Billion By 2003 Acadia Realty and Eversave.Com Form Strategic Alliance Kinzan.com Partnership with Nex-I.com Gives E-Commerce and Communications Solution NAIOP Survey Reflects Acceptance of New Technologies OnSite Access to Provide Communications Services to 31 Newmark-owned Buildings Virtual Loan File Unveiled by Ocwen Technology Exchange Viva.com Announces Online Apartment Leasing for Six Cities Lowe Enterprises and Watt Commercial Properties Join Forces to Provide Services to Commercial Office Buildings Bidcom Establishes Financial Services Division and Taps New Vice President Lease Cost Solutions Inc. Releases Enhanced LseMod Version 6.0 1031properties.com Launches Website CLASSIFIED

Welcome to @dealmakers.net

Welcome to the premiere issue of @dealmakers.net, the hard copy gateway to the Internet for real estate professionals. We’ll start archiving all issues along with other great resources and information on the @dealmakers.net Web site located at www.dealmakers.net. As our sister publication, The Dealmakers, said, “Everywhere we go we hear dotcom, dotcom, dotcom.” While most of the talk about the Internet is over hyped, there’s a tremendous demand and need in commercial real estate for information, which creates a synergy and critical mass that makes the two work in compliance (man, that sounds sexy). In any real estate transaction, information and networking are the catalysts to getting deals closed. Not only is it a matter of who you know, but also what you know. Knowing it before anyone else (of course you need the brain matter to exploit this new found information) is usually the edge needed for the one who closes the deal first, a scenario that holds true no matter if you’re a lender, landlord, investor, broker, construction company, etc.

In order for any industry to succeed and prosper, it’s required, even in today’s paperless society, to have a magazine, tabloid, newsletter or whatever that is considered by all of its peers ‘the bible’ for the niche that it serves. The reason for this requirement is that there has to be a universal expeditor of information. In many cases advertising is considered information, especially by the nature of the Internet . . . How do you know a great online resource exists unless it’s advertised? Advertising will play a big role in @dealmakers.net not only to make us money, but to also to let you know about sites providing info on property for sale, lease, who’s financing, where you can save money on construction, get demos fast, find comparables, research studies, etc . . . The goal is to make the Internet work for you instead of you working the Net. Your only other option to find useful real estate Web sites is to spend countless hours online (who needs to close deals, when you can surf the Net) or you can read a publication that’s a “cheat sheet” for finding sites on the Web that makes you more productive, knowledgable and, at the end of the day, more money!

So far, not many dotcom companies are making money. The Internet is still in the testing stage. Cash is being burned at incredible speed. We read about dotcoms getting hundreds of millions in funding, then have no clue when or if they’ll ever be profitable. A lot of of real estate companies are marketing their properties on the Web and spending as little as a few thousand dollars and as much as hundreds of thousands, but haven’t a clue if their money has been well spent. The Internet is the great unknown for the business to business platforms and will probably continue to evolve for our lifetime, but the next few years will be the fastest growth period. To put it bluntly, we don’t know what we’re doing, don’t have a road map, are revising the agenda constantly, and most importantly have yet to see much in the way of accountability when it comes to measuring how many deals closed directly because of the Internet. The real estate industry has always been slow to adapt to technology. But, people do change and NAIOP (see the article in this issue) reported many of its members are using the Internet to do more business. Post Properties, a multifamily housing developer, actually closed something like 1,500 leases directly from the Net. So as we stumble along, all of us in the real estate industry will be using the Internet today, tomorow and more in the future. You’ll need to know what works, what doesn’t and how to produce more deals using the Web. Listing and finding properties for sale and lease, obtaining financing, getting bids from vendors, retaining professional expertise and market research will become more and more reliant on the Internet and you’ll need a guide along the way.

@dealmakers.net, in its own humble way, will attempt to be that bible, making your time on the Net productive and profitable. Every month, we’ll tell you about which Web sites are golden and which are a bust, so you don’t waste time. Hopefully, you have better things to do than just click your life away! Sometimes, we wonder about ourselves, since we actually visit Web site after Web site and spend countless hours surfing the Net, but we will make you money and your time online better spent.

Make sure you subscribe to @dealmakers.net; it’s FREE and all we need to get you started is name, rank and serial number, or you can just fill out the subscription request form in the back of this issue.

Be sure to stop by our booth at the ICSC Convention in Las Vegas - 667 Sixth Avenue. Until next month,



Ted Kraus, president

Ann O’Neal, publisher

Web Site Feature of the Month

www.loopnet.com

loopnet.com is billed as the Internet’s largest real estate marketplace. It lists more than $26 billion in property for sale and more than 360 million sq.ft. of property for lease each month. To access the site’s search capabilities, users need to join loopnet. It’s a painless two-minute process that requires submitting some basic information, but nothing too intrusive.

Buttons for accessing the site’s different functions are clearly displayed on the home page and on the tool bars at the left-hand border and bottom of each page. Navigation is quick and easy.

We set up a sample search for sale properties in the central region, with an asking price between $1 million and $20 million and occupying between 10,000 sq.ft. and 200,000 sq.ft., and more than 19 pages of properties fitting those criteria were called up. The page contains links to the Web pages of the seller if more information is desired. By clicking on the “LoopLeads” button, members can generate e-mail notifications of new properties fitting their search specifications once they become a part of the loopnet database.

Other key features of the site include “LoopLender,” a non-cost loan origination service that permits users to fill out a single loan request and get a response within two days from loopnet’s affiliated loan providers. LoopLender also permits borrowers to compare market rates and term sheets from leading lenders and to have their loan requests underwritten and packaged by loopnet’s loan originators.

“MarketNow” is the site’s advertising facility. The service sends full-color e-mails of company brochures to clients meeting the company’s buying/leasing specifications, and does so at a price advertised to be up to 75 percent less than traditional rates.

If you get lost, or if you don’t know exactly how to access the page you need, the site’s resource center has an index of everything the site offers, including links to the Web sites of buyers, sellers and lenders.
 

www.propertyfirst.com propertyfirst.com is a commercial real estate marketplace that lists properties for sale and lease, offers a brokerage finder, and contains links to more general information in an attempt to become an all-purpose portal for real estate professionals of all stripes.

Users do not need to become members to access the search database. Since the site did not permit searches restricted to a particular region (only by state or metro area), we crafted a nationwide search for sale properties with an asking price of $1 million to $20 million and square footage ranging from 10,000 sq.ft. to 200,000 sq.ft. 343 properties fit that description, and by clicking on the hot link under the property ID heading, a picture of the property with pertinent sale information popped up quickly. The advantage to being a registered user amounts to the ability to save search criteria and results, and only registered members can add a listing for a property that’s for sale or lease. Registration couldn’t be much simpler or quicker – the form is on one page and takes less than two minutes to fill out. The required fields are clearly marked with red diamonds, and all other information need not be submitted.

Like many Web sites, propertyfirst.com permits users to customize their experience on the site by consolidating all of the pertinent information a user wants to view on a personalized page, including search criteria, past listings made by the user, and properties currently of interest to the user. The site also offers “BuyerMatch,” which proffers a list of buyers that match the investment criteria for a user’s listing.

If you want to contact the company, its contact information is clearly displayed by clicked on the “contact us” button at the top right-hand corner of the home page.
 

www.incomeprop.com Income Property Services (IPS) maintains this Web site, and it is dominated by the Income Property Listing Service, which lists apartment and mobile home parks for sale in the San Francisco, CA Bay area. The service is free to all visitors, and requires a brief three-minute registration that asks for only basic identification information. Licensed brokers in CA can access a more complete database of listings, including private listings not available to the general public, by subscribing to a company service for $89 per year.

When we conducted a search for any properties with a gross rent multiplier greater than 5% and a capitalization rate greater than 8%, 13 properties were called up. The site designates each property as either “new,” “in escrow,” “reduced” or “active,” according to their present status. Visitors can reasonably expect to find new information on weekly visits, in that the database is updated “almost daily.”

Two other site features will be of good use for visitors: a sales and rent comparables database, and an apartment mailing list. The comparables database allows visitors to view the particulars of recent transactions in the market and to thereby compare properties of interest to them to those recently sold or leased. The apartment mailing list notifies brokers of new listings, and joining the list requires only submitting an email address.

IPS also provides a 24-page apartment market report for interested parties covering Santa Clara and San Mateo counties, and it is free of charge, though Adobe Acrobat software is needed to view it.

Other site features include a bookstore, with more than 40 titles on the world of commercial real estate, and a calendar of local real estate group meetings and forums, along with a brief description of the topics of discussion.

 

www.naiweb.com naiweb.com is the Web site for NAI, self-billed as “the largest real estate organization in the world,” with more than 3,000 real estate professional and 230 offices worldwide. The company provides demographic and site analysis, subleasing, financing information, multi-property acquisition and disposition, and region-specific market information.

The site’s search database lists properties for sale and lease from all over the world, and the tool bar allows visitors to read about the company, review its services, read testimonials from satisfied customers and more. Prominently displayed on the listings page is NAI “Propertunitie$,” which lists surplus properties from a featured client (on our most recent visit, that client was Sprint PCS).

One of the company’s products, an annual Real Estate Planning Guide, is not yet available for the year 2000 – and it’s now May. Were it available, it seems like it would be quite useful, in that it provides a review of real estate activities in more than 160 markets in the United States, Latin America, Europe and Canada.

The site allows visitors to request additional information by entering their personal information, including a window for visitors to tell the company how it might be best of service to them.


 

www.webrealestate.com www.webrealestate.com (WRE) is another entry in the Internet commercial real estate marketplace arena. The site permits property searches in two ways; first, its “MatchMaker” service allows visitors to enter search parameters and then receive updates by e-mail whenever a new listing appears in the site’s database fitting those specifications. Second, the site assigns featured properties a lot number, which can be entered into a window to call up a detailed report on the property, often including multiple pictures, square footage, asking price, and always showing contact information.

A new feature on the site, WebRealEstate BID, separates this site from some of its real estate marketplace competitors. Buyers can bid on selected auction properties by clicking the poorly-named “For Bid” button. The high and low bids, plus the date when the auction closes (typically about one month), pop up, as does the reserve price. Properties tend to be high-end, which is a departure from common auction offerings that quite frequently include distressed properties. That may account for the dearth of bids on the properties when we visited. In fact, of the four properties for auction (each of which had a minimum reserve of at least $1.75 million), no bids had been recorded, and each property had been on the block for more than one month.

The site also has a page with articles on industry news, and several of the stories were quite interesting, with a wide range of industry news on display.

Finally, WRE also offers Web design and Web-hosting services for real estate professionals interested in availing themselves of the company’s marketing tools.

CB Richard Ellis, Jones Lang LaSalle and Trammell Crow Form E-Business Alliance

Three leading real estate services companies formed an alliance to develop e-commerce initiatives that combine their collective experience and service delivery capabilities to benefit their clients in North America.

The alliance, between CB Richard Ellis, Jones Lang LaSalle Incorporated and Trammell Crow Company, is pursuing a broad range of e-business opportunities, focused initially on procurement, transactions, support services, and business-to-business and business-to-consumer portals. The first of the initiatives is expected to be announced by the beginning of the summer.

“Over the last few months, we have jointly focused on taking control of our future by looking to create the industry’s leading Web-based platform that will set the standard for delivery of real estate services,’’ says Stuart L. Scott, chairman and CEO of Jones Lang LaSalle. “Initially, we are pursuing powerful opportunities in North America that would provide sustainable benefits to our clients, our employees and in turn, our stockholders. Together, we hope to increase the pace of implementation.”

The three companies will have equal ownership in the new venture which is expected to operate as a separate business with a separate brand. The alliance seeks to use its considerable combined scale to control costs for the companies and their clients.
“Our companies collectively spend in excess of $5 billion for goods and services required for the more than 1.2 billion square feet of combined property that we manage in North America,” explained George Lippe, president and CEO of Trammell Crow. “This alliance will work to leverage the scale of our portfolios and to develop a system that improves overall real estate services costs and delivery for all of our clients.”

Ray Wirta, CEO of CB Richard Ellis, notes, “Last year, the companies in this alliance executed on behalf of their clients more than 6,400 sales transactions for a total of more than $31.4 billion and collectively completed 30,800 lease transactions that exceeded 400 million square feet in the
Americas. By harnessing technology to improve our own operations and sales efforts, we can give our salespeople the direct opportunity to expand their client base and, in turn, increase market share. This alliance should allow each of our sales forces to leverage leading-edge tools and technologies to improve and grow our businesses. At the same time, it should also be able to introduce new and complementary Web-based products and services that meet the needs of clients who wish to be fully automated and online.”

Over the coming weeks and months, the three companies plan to finalize their real estate services e-business alliance and announce additional joint e-business initiatives.

The three alliance companies cover the full range of commercial real estate services, providing office, retail and industrial real estate owners, investors and occupiers with property sales and leasing, property management, corporate facility services, development and project management, mortgage banking, investment management, capital markets, appraisal/valuation, research and consulting services.

For more information about the three companies, visit their Web sites or call: www.cbrichardellis.com, 310-563-8600; www.joneslanglasalle.com, 312-782-5800; www.trammell-crow.com, 214-863-3000.

I-scraper.com Improves Communication and Efficiency in International Building Industry

Confusing revisions, time-consuming trips to the mail room and an overwhelming number of drafts are considered a routine part of the real estate development and construction process. i-scraper.com is a new tool for the building industry that uses the Internet to streamline the building process, minimize cost overruns and project delays.

With i-scraper.com, a secure Web site is created for each construction team throughout the life of their building project. All data related to the specific project, including letters, drawings, e-mails, calendars, photography and other key information is stored on that site. Members of the construction team can access information on-line 24 hours a day, alert relevant team members instantly when changes in the design are made, track budgets, solve problems and make decisions virtually.

i-scraper.com and its team of building experts train the entire project construction team, no matter how far flung members are, on how to use their system. From customizing the individual project sites, to on-going support and consultation, to the ribbon cutting at the building’s opening, i-scraper.com’s client service manager is a proactive member of the project team during the entire process.

Because i-scraper.com’s system provides ultimate control over building projects, it has proven to be a powerful communications and management tool that enables teams of developers, architects, contractors, engineers and consultants to communicate with each other to complete multi-million dollar projects in record time.

“i-scraper.com’s project management service simplifies and speeds up building projects by giving members of the construction team a way to communicate quickly to resolve problems and make decisions,” notes Philip Wharton, president of i-scraper.com.

“We eliminate bottlenecks, improve coordination-- and protect the bottom line. Online program management is already beginning to change the way the world is being built. Our flexible system and service make it easy to take advantage of the benefits of real time management without having to implement major changes in the process,” says Wharton.

Clients also report dramatic improvements in planning and execution with substantial savings on the total cost of development. According to Michael Auger, developer for Chelsfield plc in the United Kingdom, “i-scraper.com addresses one of the major challenges in the building industry today-- streamlining the design process and reducing the piles of drawings. Our ability to review and redline plans instantly online speeds our work tremendously and keeps the costs down. The savings on printing and couriers alone are significant, but the ability to avert delays is priceless.”

Launched in 1998 in Israel, i-scraper.com and its team of building experts are now the number one online construction management company in Europe. Recently, the company established its United States headquarters in New York and plans to open offices throughout the nation and in other world locations.

i-scraper.com is a privately held company, backed by the following top global venture capital companies: Apax Partners, established by Alan Patricof (USA), Ronald Cohen (UK) and Maurice Techenio (France), is a leading venture capital group providing equity funding to entrepreneurial businesses internationally; Israel Seed Partners, the leading seed venture capital fund in Israel which places emphasis on broadband communications and a range of Internet software; and Softbank’s Seed Capital Partners, one of Japan’s largest investment based corporations, specializing in a broad range of internet ventures including Microsoft, Cisco, Yahoo, the NASDAQ and E-TRADE.

For more information, visit the company’s Web site at www.i-scraper.com or call 212-808-3016.
 

Rbuy Opens Industry-Specific Marketplace

Rbuy.com, Inc., an online auction for realtors, launched an “Industry-Specific Marketplace” providing vendors the opportunity to integrate into the real estate marketplace and become more accessible to realtors and the public.

The marketplace allows the real estate industry to join forces with other industries as an e-commerce business and offer a more efficient approach, providing customers with all the benefits of the bidding process at a central marketplace.

“A central marketplace for real estate is a necessity for vendors and realtors because of the fragmentation of the Internet,” says Charles Huggins, CEO and founder of Rbuy.com. “The explosion of Web sites on the Internet has made it almost impossible to find many of the vendors that service the real estate industry. As a result, some vendors are spending huge amounts of money on advertising to remain visible; and the cost of marketing an e-commerce business is rapidly rising. This combination of vendors that target the same market will create the synergistic effect of lowering marketing cost while increasing the size of their market.”

Recent e-commerce businesses to join Rbuy’s Preferred Vendor Program are Iown, Inc. and Old Republic Home Protection Company.

According to Huggins, “Real estate companies simply cannot afford to ignore this change in business practice and must quickly adopt it to remain competitive. Their business should experience a rapid increase of their market share. Consumers follow the leaders that serve their best interest.” says Huggins.

For more information, visit the company’s Web site at www.-Rbuy.com or call 303-355-3717.

 

Internet Startup Launches Online Service for Facilities Management Industry

ServiceChannel Inc., an Internet-based services company for the facilities management industry, launched ServiceChannel.com, a Web application for property owners, facility managers and service contractors to streamline their processes and conduct business more efficiently via the Web.

ServiceChannel acts as an independent repository for service history, capturing, storing and communicating all aspects of a facility’s management, maintenance and repair data. From work orders to time usage, ServiceChannel aggregates all service information about a building or portfolio of properties into a single platform, creating a powerful reporting tool for all partners involved in maintaining facilities.

The company’s mission is to ensure that all parties, from the smallest sub-contractor and facility manager to the largest maintenance organization, share the opportunity to leverage the Internet to share resources, ensure compliance, reduce costs, and increase business efficiencies. Benefits include the input and access of service requests and records in real time, enabling the management of all required paperwork online, from initial orders and routine tasks to final invoicing.

The ability to view all service data across all service trades in real time from a single vantage point has significant benefits for businesses in every major industry managing facilities including hotel and retail chains, commercial real estate management companies, universities and colleges, municipalities, and hospitals.
By providing an online service to every trade community including heating/ventilation/air conditioning, electrical, elevator/escalator, janitorial, lighting, landscaping, plumbing, and pest control with minimal expense and inconvenience, ServiceChannel offers a customer service tool for contractors, mechanics and service technicians.

“ServiceChannel gives both facilities managers and their service contractors a single vantage point from which to coordinate, collaborate and conduct their business,” says Steven Gottfried, president and founder of ServiceChannel. “With online access to their respective contacts and work orders, both parties stand to gain in terms of easier management and monitoring of multiple projects.”

ServiceChannel employs a variety of methods for gathering data from service contractors. These tools range from faxable work order forms and telephone-based interactive voice response to full backend integration with existing ERP systems. Proactive notification via e-mail alerts verifies service repair completion and ensures that routine maintenance calls are never missed.

The company has achieved rapid customer adoption in more than 3500 facilities nationwide. Early customers include: Barnes & Noble, Federated Department Stores, the Eckerd chain of drug stores, and the University of Connecticut.

“ServiceChannel is more than just a ‘nice to have’ Web site. It is a critical business tool that allows me to manage a disparate collection of service contractors, maintenance demands and facilities while keeping my customers happy and my business running smoothly,” says Bruce Griffith, Kemper Cost Management, a subsidiary of Kemper Insurance Companies.

ServiceChannel board members include: Jeffrey Finkle, managing partner, Odeon Capital Partners; Steven Gottfried, president, ServiceChannel; Corey M. Horowitz, general partner, CMH Capital Management Corp.; Serge Lubensky, chief technology officer, ServiceChannel; and Brett Rosen, senior managing director, Cowan Financial Group.

For more information, visit the company’s Web site at www.ServiceChannel.com or call 212-485-8000.

J.P. Morgan Mortgage Introduces New Web Site

Eventually, brokers will be able to make loan applications online

J.P. Morgan Mortgage Capital Inc., a conduit that originates and securitizes commercial loans, rolled out the first phase of a new Web site, www.jpmorganmortgage.com.

The first phase of the site is the marketing phase, which covers topics including: tombstones of recent deals, testimonials, loans products and program guidelines, articles and company information, employment opportunities and office locations. “It is slick and easy to maneuver. We are very proud of the work that has been accomplished to date,” says Brien Wloch, national production director.

Substantial value will be added to the site in the next phase of site development when brokers and other third parties will be able to obtain quotes and make loan applications through the Web site. “This type of operating functionally will enable us to cut administrative costs, achieve process efficiencies, market advantage, etc. We anticipate beginning implementation of operating functionality for the Web site during the second quarter of this year,” said Lamar Kelly president and CEO.

J.P. Morgan Mortgage Capital Inc.is headquartered in Atlanta, Georgia with offices located in New York, Boston, Denver, Dallas, Washington D.C. and Los Angeles.

For more information, visit the company’s Web site at www.jpmorganmortage.com or call 770-351-8300.
 

Gomez Advisors: Online Mortgages Will Grow to $150 Billion By 2003

Online mortgages accounted for approximately $20 billion in 1999

Gomez Advisors, a provider of e-commerce research and analysis, released the results of its Spring 2000 Internet Mortgage Scorecard. The an-alysis indicates that more than 100 new providers initiated online operations in the last six months, and top performers are a step ahead of the competition, boasting faster approval and closing times, lower rates, and extensive decision support tools. The leading providers also added a slew of new site features, including live chat, voice over Internet technology and expanded customer service hours to ensure good customer experience.

“Online mortgages accounted for approximately $20 billion in 1999 -- just two percent of the total marketplace. Gomez Advisors projects the market will grow to $150 billion by 2003,” said Nick Karris, Gomez Advisors real estate analyst. “Out of the 20 firms qualifying for the Spring 2000 Scorecard, 13 reached national coverage in just the last three months, which is clear indication of the industry’s rapid growth and potential.” Mortgagebot.com took top honors for Overall Score on the Spring 2000 Scoreboard for its superior customer service, leading decision support tools, and extensive customer guarantees. Mortgagebot.com allows users to easily compare rates and closing costs from leading lenders at a single site, and fees and the speed of its approvals. These features also lead the firm to the top spot in the Customer Confidence and Relationship Services categories.

The Spring 2000 Internet Mortgage Scorecard also reveals a resurgence of leading “click & mortar” banks. In response to increased competition domestically, a number of firms are expanding globally. According to Karris, “It’s still too early to predict whether these companies will be successful. At a minimum, these markets will require fluent customer service representatives familiar with the applicable local laws to hand-hold consumers through the complex mortgage process.”

For more information, visit the company’s Web site at www.-gomez.com or call 781-257-2000.
 

Acadia Realty and Eversave.Com Form Strategic Alliance

The alliance enables Acadia’s tenants to effectively interact with consumers online. Acadia President Kenneth F. Bernstein says, “This is the best mid-dle ground that I have seen between traditional retailing and e-tailing.”

Acadia Realty Trust (NYSE: AKR), a fully integrated shopping center and
multi-family real estate investment trust, and Eversave.com entered into a strategic alliance bringing Acadia’s 53 shopping centers on-line through Eversave.com’s Web site.

Eversave.com is an Internet company focused on connecting shopping center owners, traditional retailers and consumers. Local consumers can go on-line and find out about sales and other special events at Acadia’s centers as well as check up on the availability of specialty items. Furthermore, Eversave.com’s coupons can be printed at home and used with local merchants for additional savings.

“We think that this is an ideal format for capitalizing on the convergence of bricks-and-mortar with the Internet,” said Kenneth F. Bernstein, president of Acadia Realty. “Eversave.com will enable our tenants to profitably and efficiently interact with consumers on-line. Eversave.com’s multi-focused strategy will bring additional efficiencies to the marketplace where the consumer meets the retailer. This is the best middleground that I have seen between traditional retailing and e-tailing.”

Jere Doyle, founder and president of Eversave.com, notes, “This brings one more multi property owner (along with Kimco Realty, Pan Pacific and Regency Realty) into our Internet solution.”

Acadia Realty is a fully integrated equity REIT which is self-managed and self-administrated. It owns 11 million square feet of retail centers and multi-family projects in the eastern half of the United States. Acadia’s retail portfolio consists primarily of supermarket and/or discount department store anchored community and neighborhood shopping centers.

For more information, visit the company’s Web site at www.aca-diarealty.com or call 516-767-8830.
 

Kinzan.com Partnership with Nex-I.com Gives E-Commerce and Communications Solution

Kinzan.com, an e-business platform provider for deploying and managing very large networks of Web sites, formed a partnership with nex-i.com that provides a complete Web site and e-commerce solution to small business tenants in commercial office buildings wired by nex-i.com.

Gari Cheever, president and CEO of kinzan.com says, “A real estate business park can better compete for tenants by offering a turnkey Internet environment complete with advanced and affordable data services, networking capabilities, and applications. With the kinzan.com application delivered by nex-i.com, building owners are able to provide tenants with the tools and services they need for competing in the new economy.”

Nex-i.com offers a full array of communications capabilities for small businesses, including voice, data networking, Internet access, remote access, file sharing, application hosting, and now, with kinzan.com, web design, hosting and e-commerce services. Ira Basseman, CEO and president says, “Our plug-in approach to networking solutions coupled with kinzan.com’s Web site application makes it incredibly easy for any e-commerce user to take full advantage of the late technology available simply by plugging their PC into our wall jack.” Through a wall jack, nex-i.com delivers a full package of advanced network and data services that are fixed in costs and scalable with the demands of the individual business.

Founded in 1999, kinzan.com was spun off from iXL, a strategic Internet services company. Kinzan.com’s customers include AutoTrader.com, Carlson Wagonlit Travel, Knight Ridder and others.

For more information, visit the companies’ Web sites or call: www.nex-i.com, 609-497-9400; www.kinzan.com, 760-602-2900.

NAIOP Survey Reflects Acceptance of New Technologies

A recent survey by the National Association of Industrial and Office Properties (NAIOP) reflects a trend by its members to tap into new technologies. Results show that 92 percent of those polled use the Internet or e-mail routinely in their businesses, primarily for research. Two years ago fewer than half of the respondents were proficient on the Internet.

Along with increased usage of new technology is a major growth spurt in the total square footage of both owned and managed properties for NAIOP members. Since the last membership survey in 1997, members have tripled their property base with 13.6 million sq.ft. of owned property and 10.4 million sq.ft. under management.

Urban areas have shown the most dramatic growth benchmarks, where industrial ownership is expected to rise by 47 percent over the next two years. Office property management in cities will boom, with an expected growth rate of 71 percent. Raw land, though scarce in urban venues, can be expected to sustain a 44 percent jump in ownership.

The biggest growth rate in suburban areas is expected in the management of raw land, which should increase by 72 percent. Both industrial ownership and property management will see gains of more than 20 percent in the suburbs.

Merger activity has reached a plateau. While actural merger activity remained constant with 18 percent of respondents indicating that their companies had been involved in a merger or acquisition during the past 24 months, that is down significantly from projections of two years ago when 22 percent said that they expected their companies to be involved in mergers. Currently, only 13 percent of NAIOP members expect future mergers or acquisitions for their companies.

Tax issues-- capital gains, tax treatment of tenant improvements, and the depreciation recapture tax rate-- are deemed to have the biggest negative impact on the business of development, according to the survey. Developers are also concerned about wetland permits and delays in securing project approvals.

Thomas J. Bisacquino, NAIOP president, comments, “The data paint a picture of a robust industry adapting to current trends and optimistic about the future.”

NAIOP is the trade association for developers, owners, investors and asset managers in office, industrial and related commercial real estate. It comprises over 8,000 members in 46 North American chapters and offers business and networking opportunities, education programs, research on trends and innovation, as well as legislative advocacy.

For more information, visit the organization’s Web site, www.naiop.org or call 800-666-6780.

OnSite Access to Provide Communications Services to 31 Newmark-owned Buildings

OnSite Access, Inc., a building-centric integrated communications provider, will provide high-bandwidth broadband services and infrastructure to 31 buildings owned and operated by Newmark & Company Real Estate Inc., a privately-held full-service com-mercial real estate firm based in the New York metropolitan area.

Through this agreement, OnSite Access will gain access to more than seven million square feet of commercial building space owned by Newmark & Company throughout the New York metropolitan area. The company will deploy a fiber optic and copper-based broadband network that allows tenants to take advantage of advanced communications services, including high-speed Internet, data, Web-based information and digital voice. In addition, this infrastructure will provide Newmark & Company with a value-added amenity and technology upgrade, at no cost, giving them a unique marketing and leasing tool to attract and retain quality tenants.

“At Newmark, we recognize the increased challenges our small- and medium-size tenants face when competing with larger companies,” says Barry M. Gosin, vice chairman and chief executive officer of Newmark & Company. “OnSite Access provides these businesses with broadband services that can grow with each individual tenant, while putting in a state-of-the-art communications infrastructure that increases the marketability of each of our properties.”

In addition to this agreement, Newmark & Company was also instrumental in assisting OnSite Access with real estate agreements for commercial properties where Newmark serves as leasing agent, including portfolios owned by Denholtz Associates, Goldman Sachs, GE Capital Realty, Washington Group, The Winter Organization, and Zar Realty Management Corporation.

OnSite Access, Inc. serves small- and medium-sized business customers within multi-tenant commercial office buildings. OnSite Access offers a suite of communications products, including local and long distance voice services, data, high-speed Internet access and enhanced services to its customers through its broadband communications networks and building-centric approach. Investors in OnSite Access include FrontLine Capital Group (Nasdaq: RSII), Spectrum Equity Investors, Crosspoint Venture Partners, J.P. Morgan Investment Corporation, AT&T Venture Fund and Veritech Ventures.

Headquartered in New York City, OnSite Access is expanding into or operational in the following markets: Baltimore, MD; Boston, MA; Chicago, IL; Dallas, TX; Ft. Worth, TX; Hartford, CT; Houston, TX; Long Island, NY; Los Angeles, CA; New York, NY; Northern New Jersey; Oakland, CA; Orange County, CA; Philadelphia, PA; Riverside, CA; Sacramento, CA; San Francisco, CA; San Jose, CA; Stamford, CT; Ventura, CA; Washington, D.C.; and Westchester, NY.

For more information, visit the company’s Web site at www.onsiteaccess.com or call 888-347-4800.