ISSUE

The above-five-million-dollar commercial real estate market in the United States currently functions as a high demand/low supply market. Cap rates remain low while buyers compete for less than 6% of the actual volume of income producing commercial real estate available for purchase.

APPROACH

RIISnet has patented a web-based, transaction platform that enables commercial real estate assets to enter and exit the marketplace confidentially without the need for lengthy marketing programs. This advance significantly expands the supply of institutional grade commercial real estate. Top sellers gain confidential access to the strongest buyers of U.S. commercial real estate in the world, and active buyers achieve fast access to properties not publicly for sale yet confidentially available. RIISnet’s patented tools allow members to match their respective acquisition and disposition plans based on real-time data. The RIISnet MarketPlace™ provides a network of commercial real estate practitioners specially trained to access and share the rich, real-time data.

IMPACT: More supply, more speed, more transactions

UNIQUE SPECIFICS

CONFIDENTIAL CODING

The RIISnet MarketPlace™ allows sellers to offer their properties confidentially for sale, and enables buyers to search for these properties easily while maintaining anonymity.

Registration as a RIISnet member activates the confidential coding process. Using participant data, RIISnet aggregates industry supply, as well as current and annual acquisition and disposition plans for the most active commercial real estate industry participants. Individual assets are coded confidentially by criteria, including property type, region, price range, cap rate, percent occupancy, national/credit tenancy, average remaining lease term, market size and pertinent demographic criteria. Assets may be available for sale as individual properties, as part of a portfolio, or as single or multiple property exchanges. The supply is sorted into (1) assets owned but not for sale and (2) assets actively for sale.

RIISnet provides the Hold Box, a confidential folder for individual assets uploaded into the system. Only the owner of the asset and RIISnet can access Hold Box information. As each property is uploaded into a Hold Box, owners can see how many buyers are actively looking for the property and what prices those buyers are willing to pay. Owners also can determine the likelihood and capacity of each buyer to close the transaction, without being able to identify the specific buyer.

Buyers can quickly find properties confidentially available for sale by searching the coded property criteria. Buyers see all confidentially available properties within the database that meet any level of their search criteria.

Buyers can keep their searches active and are immediately notified when new properties meeting their criteria are confidentially offered for sale.

ENGAGEMENT

Confidentiality is created through the RIISnet coding system, and maintained with our patented, pre-contract, due diligence phase known as Engagement.

RIISnet performs as a streamlined, confidential, bidding thoroughfare, as the Seller selects from a list of pre-qualified confidential buyers requesting to engage their property. Prior to becoming engaged, the participants agree to honor confidentiality and non-circumvent agreements. Buyer and seller then proceed into the private Engagement phase, safe from uninvited outside interference, with ample time to perform due diligence and to construct contracts.

The RIISnet MarketPlace™ allows buyers and sellers to find each other based on specific buying and selling parameters, without identifying the property, the owner or the potential buyer. Buyers can engage sellers, and sellers can engage buyers in this confidential due diligence phase, offering participants the freedom of a letter of intent and a level of protection similar to that of a contract.

Full information on the buyer and on the property becomes available at the start of the Engagement phase. Engagement lasts for 21 days and can be extended by mutual agreement.

RESULTS

Improved Commercial Real Estate access becomes a powerful two way street between buyer and seller. Sellers go to market within seconds, while maintaining enforceable confidentiality throughout the transaction process. Buyers quickly access more top properties. Acquisition and disposition costs are reduced significantly. Industry supply is dramatically increased.

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