CREXI vs. LoopNet 101
When it comes to buying and selling commercial real estate, location stands true for both physical and digital strategy. Beside the fact that your property type should be strategically placed in a physical location, the website you market and sell your property on is equally as important.
Whether you are a seasoned CRE broker, or you are just starting in your career, when it comes to real estate websites, two names will most likely be at top of mind: CREXI and LoopNet. While this is an unsponsored, unbiased take on these two household names, we are speaking from the decades of experience we have marketing in the commercial real estate world.
There are dozens of sites used to market net lease properties, and maybe 5 or 6 that are actually good for getting deals done. That being said, CREXI and LoopNet stand head-to-head above the rest.
Let’s take a look at what makes these two key players on the internet, what sets them apart, what properties do best on each, and more.
According to SharpLaunch.com, LoopNet is a commercial real estate listing site dedicated to connecting tenants and buyers with properties for sale. LoopNet currently has more than 7 million registered members and 5 million unique monthly visitors, representing a large number of both tenants and buyers in commercial real estate.
Founded in 1995, basically as old as the internet itself, LoopNet was purchased by CoStar in 2011 for 860 million dollars. For name recognition, being more established, and being more than five times older, LoopNet gets a point in the history department.
Seasoned brokers who have been in the industry for a long time want to make sure their properties are posted on LoopNet, no questions asked. For the longest time, LoopNet was the only platform they knew. Interface wise, LoopNet is 25 years old and honestly, looks and runs like it. It can often be pretty slow and buggy and quite often get error messages.
HOW DOES IT WORK?
LoopNet has a very extensive database of properties for sale or lease. Nonetheless, the site has a very clean layout that makes it user-friendly.
You can search by keywords, neighborhoods/location, cities, counties, or zip codes. It’s also possible to search by price range, square footage, bedrooms, and bathrooms. From there, you can browse by category or view properties within certain categories such as offices, retail space, or industrial space.
All you need is to create your loopnet.com login and start searching for new opportunities or post properties.
As anything on the internet, LoopNet does not save itself from the critics. What are the top reasons why brokers choose to not use LoopNet?
- Being Fee-based: Not all brokers want to pay this additional fee to market their property. Brokers and others who have commercial real estate for sale simply do not want to pay the necessary fees to get their listing uploaded onto the site.
- The Broker Process: Many brokers have a method in place, one that includes giving first looks to their top three investors, who they know and trust to bring a fair price, have the means to close, etc. If one of their top three doesn’t bite, then they put it into a bidding process and place it on their rather lengthy email lists as they push it toward a best and final bid.
- The net cast is too wide: Anyone with WIFI can access LoopNet. There are no filters or other mechanisms on LoopNet by which brokers can discover if someone who expresses interest in a property is really a credible buyer. Not knowing if a buyer has the financial, legal, and other resources necessary to close a deal without a hitch keeps some brokers away from LoopNet.
LoopNet is gaining in popularity for buyers who are looking or commercial property that is for sale. It’s an online commercial real estate marketplace that provides listings that are for lease or for sale within the United States. We were interested in learning more about this business and so we checked it out. We were surprised by what we found and if you’re in the market for commercial real estate, either to buy or to sell, it may be a site worth checking out.
Newer, more streamlined and with no bugginess, CREXI is the “new kid on the block.” According to SharpLaunch.com, Commercial Real Estate Exchange, Inc. (CREXI) is a commercial real estate (CRE) marketplace based in Los Angeles, California. Since 2015, CREXi has become one of the most popular and fastest-growing CRE platforms.
CREXi is the most active CRE MLS in the industry with over 500,000 commercial listings with a property total worth more than $1 trillion. Millions of users consisting of buyers, tenants, and brokers use CREXi to easily transact and lease the user-friendly platform. Due to the platform’s continuing growth, CREXi now employs more than 175 workers. Its growth will likely produce more employment in the future.
HOW DOES IT WORK?
CREXi’s users can manage properties, including property sales, leases, and the closures of those properties as well. The site allows investors, real estate professionals, buyers, and sellers to utilize their services digitally, without requiring the user to leave their platform.
CREXi is for real estate professionals and users who wish to avoid the financial consequences of a recession. According to CEO Mike DeGiorgio, CREXi is recession-proof, primarily due to auction services that continuously generate the platform’s revenue.
CREXi offers a free plan that allows for communication with quality leads, accurate property analysis, timely auction alerts, and the ability to send and track emails. CREXi also offers a premium version called PRO. PRO allows real estate professionals to access more valuable ranks in leads and searches for their listings. PRO subscription is priced at $75 – $99 monthly.
What is the downside to CREXi?
- Inventory: At first glance, as a new user on both interfaces, it seems that LoopNet offers a larger array of all types of properties. On a side-by-side comparison, on LoopNet, you can’t see how many properties are listed for sale on net at this moment in total, but if you go to their information and marketing page they show that there’s been 1.1 million properties that have been marketed on their site and over 1 million properties sold. CREXi does have a live counter and currently show over 125,000 active sale listings on the site.
- Longevity: Brokers will often times go with LoopNet simply because it has been online longer. While CREXi is picking up traction and is becoming an established name, everyone and anyone knows the name LoopNet.
Overall, both platforms seem to provide a solid and similar service. It is always best to do your own research to ensure that you are picking the platform that best aligns with your internal goals and services.