Commercial real estate leads are highly sought after by brokers everywhere, and this is for good reason. Commercial real estate leads are very hard and take a lot of time to generate. Think about how brokers generate leads of tenants & buyers they can represent or to fill vacant listings:
These things take a lot of time an energy. The average sales appointment rate is 2%. That means that if you want to generate 1 to 2 appointments, you have to make 100 cold calls. The average phone call length is 7.5 minutes. That means that to get these 2 appointments you have to spend almost 12 hours cold calling. That’s a lot of time.
Cold emails to tenant & buyer prospects can be more efficient, but finding email addresses can be just as time consuming as making cold calls.
Networking takes a lot of time too. You spend time driving to the destination to meet networking buddies, spend hours socializing, then spend days and months keeping in touch and asking them if they have any tenants or buyers leads in the market for commercial real estate.
The problem with these commercial real estate lead generation tactics is that it takes too much damn time. The solution is for sure to work smarter, not harder.
So how do you work smarter to generate more commercial real estate leads with less time and effort?
Xceligent bankruptcy – It’s a sad day in the commercial real estate data technology world, as CoStar’s biggest (and pretty much only) competitor, Xceligent, has filed for Chapter 7 bankruptcy and decided to close its doors effectively immediately.
If you try to visit www.xceligent.com, you’ll be presented with a dead page that looks like this:
When CoStar acquired LoopNet in 2012, it was required that CoStar sell some assets to Xceligent in order for CoStar to have a worthy competitor in the marketplace and not become a monopoly. However, this was not enough. The commercial real estate data business is brutal and extremely capital expensive. Just look at CoStar’s public financial filings and you’ll notice just how many resources go into researching, collecting data in order to provide the service. Xceligent and Digsy AI were working on a partnership and during the many of the conversations we had, we talked about how hard they work and the many financial-and-human resources that go into providing the service. CoStar sued Xceligent claiming that Xceligent was illegally getting data from their CoStar data suite. When the judge found evidence of fault with Xceligent, it forced Xceligent to pay up to $20,000 per incident. That’s a crazy fine considering how many listings and buildings there are — so naturally, it’s no surprise to see Xceligent go. After this, Xceligent booted Doug Curry as CEO, and replaced him with Frank Anton.