Are You in the Loop(Net) Yet?

Dennis DeAndre

This Is a True Story... Just over six years ago, in January 1996, I met Dennis DeAndre, the founder of LoopNet, for the first time. DeAndre then occupied an executive "suite" in downtown San Francisco -- actually, a single office large enough for two desks, his and a part-time data entry assistant. LoopNet was already four months old. (PikeNet's web site was three months from launch.) The Internet Bubble was still three or four years away. But DeAndre had the powerful idea that his service could spread listing information around the industry more efficiently. Hence, everybody would be "in the loop."

Nobody would say that the intervening years have been easy (or inexpensive!). In fact, at times it's been a little bumpy with LoopNet merging with PropertyFirst and shifting to a subscription-based revenue model, both within the last two years. But today LoopNet claims to operate "the largest commercial real estate listing, marketing and search service online with an inventory of property listed for sale over $100 billion and an inventory of space for lease exceeding two billion square feet."

In April this year, LoopNet sold its ten thousandth Premium Membership (and this week, its eleven thousandth), which is priced at $39.95 a month, with volume pricing available. According to CEO Rich Boyle, 67% of Premium Subscribers are brokers (sales and leasing) and roughly 33% are principal owner-investors and corporate space users. Over 50% reside in the top 50 MSAs (Metropolitan Statistical Areas) with the balance in smaller market areas. LoopNet states that total membership, which includes the free Basic Membership, exceeded 300,000 at the end of March this year, and that over 340,000 unique individuals visited LoopNet's web site during the month. Wow, that's a long way from one office and two desks.

--Peter Pike