Claims:We Claim:
1. A computer-implemented distributed information management system for collecting, distributing, updating, and using real estate data comprising:
a. data sources that gather and generate the real estate data from a plurality of geographic locations;
b. a mobile information gathering system, the mobile information gathering system having a global positioning system and a data transmission link configured to communicate with data sources
c. data mining applications in communication with the data sources, wherein the data mining applications receive and organize the real estate data into separate interrelated databases, the interrelated databases comprising a property information database and a tenant information database
d. a contact management system in communication with the data sources and the data mining applications.
e. a core data warehouse in communication with the data mining applications
f. database processes in communication with the core data warehouse
g. network integration applications in communication with the database processes
2. The system of claim 1, wherein the network integration applications comprise at least one of a looks up property application, a search database application, and an add listing application.
3. The system of claim 1, wherein the data sources represent a vast network of entities generating information about commercial real estate
4. The system of claim 1, wherein the Property information application includes sales information on properties, such as physical characteristics, available space, selling price, and income expense statements.
, Description:Technical 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 cooperative 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.
Background of the Invention
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.
Object of the Invention
The present invention according to its embodiments is intended to provide a unified, robust, and unbiased Internet marketplace for commercial real estate.
Summary of the Invention
The system of the present invention according to its embodiments 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 system of the present invention according to its embodiments 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 As such, lenders, to reduce costs, have had to be very selective in choosing systems from which to pull data. 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 illustrative embodiment, the service is free for sellers and their brokers, while buyers and their brokers pay a subscription on a sliding scale from a month up to a month, depending on the size of the buying entities.
The system is intended to provide 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 can provide 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 according to its embodiments 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.
Brief description of Drawings:
Figure 1 shows the overall system architecture of an illustrative embodiment of the present invention.
Detailed Description of Invention:
As shown in Fig 1, the principal components of the system architecture include data sources, a contact management system, data mining applications, a core data warehouse, database processes, and Internet integration applications. Broadly stated, contact management system directs data mining applications to obtain commercial real estate information from data sources; data mining applications gather, organize, and transmit the information to core data warehouse ; database processes access the information from core data warehouse and organize it for manipulation by Internet integration application (e.g., by building database sets); and Internet integration application presents the information to the end user for review and manipulation by the user. In terms of input and output, data sources, contact management system, and data mining applications represent the input side of the system architecture, while database processes and Internet integration application represent the output side to which an end user of the system is connected. Data sources represent a vast network of entities generating information about commercial real estate. Each entity maintains information specific to the business or process in which it is involved. Contact management system directs the input systems of data mining applications to conduct continuous pollings of data sources. By conducting continuous, periodic polling of data sources, data mining applications ensures that core data warehouse contains up-to-date information.
Data sources include such data repositories as property managers, proprietary databases, Internet, site inspections, building owners, brokerage firms, REIT filings, tenant canvassing, public records, and comparable information research firms. Property managers, building owners, and brokerage firms maintain records on the individual properties in which they are involved, concerning such information as transaction histories and characteristics of a property. To obtain this information, contact management system supports communications (e.g., by telephone or email) between representatives operating the present invention and the personnel of property managers, building owners, and brokerage firms.
Proprietary databases, Internet, and REIT filings are data source entities that require review by personnel associated with contact management system and data mining applications. The personnel pull the pertinent information from these data sources for gathering by data mining applications and storage by core data warehouse.
Site inspections and tenant canvassing are data source entities that target specific regions or properties on which to obtain commercial real estate information. Typically, this information is obtained manually by visiting a location and recording observations and/or by using a mobile information gathering system.
Public records and comparable information research firm are automated data source services that digitally record information and automatically transmit the information to data mining applications.
Data mining applications receives the information from data sources into separate modules or applications, including, in a preferred embodiment of the present invention, property information application, market analytics application, tenant information application, assessment information application, and comparable information application.
Property information application and tenant information application receive information from property managers, proprietary databases, Internet, site inspections, building owners, brokerage firms, REIT filings, and tenant canvassing. Assessment information application receives information from public records. Comparable information application receives information from comparable information research firm. As sort of a hybrid of property information application and tenant information application, market analytics application receives information from data sources through property information application and tenant information application and conducts analyses of the data to present historical evaluations of transactions.
Property information application includes sales information on properties, such as physical characteristics, available space, selling price, and income expense statements. Tenant information application includes leasing information such as lease turnover dates, average price per square foot, and the types of tenant under lease. Market analytics application draws on information from property information application and tenant information application to analyze transactions over a long period of time (e.g., ten years) to provide valuable historical performance data. Assessment information application includes property valuations, e.g., tax assessments.
Comparable information application includes broad market information that enables accurate comparisons of property values based, for example, on type of building structure and geographic proximity.