Real estate brokerage is one of the many industries that the internet has changed. After altering how residential property is sold, the newest impact is occurring in commercial real estate. 42Floors is a new company that has developed a website to improve the process for tenants to locate office space.
42Floors is similar to Airbnb in its use of the web for linking companies to vacant commercial offices. Website listings show photos and list details of available units that are searchable by size, location, and cost. The site’s landing page provides a map showing units of unfilled spaces. Scrolling over the pins representing each location creates a text box giving general information, such as price per square foot.
Users of the site narrow their selections until an examination of details reduces the decision to a single location. The broker for that final choice is then involved in closing the acquisition. Web services like 42Floors ease the responsibility of brokers. A customer has already scrutinized places using the internet and makes a mental commitment before involving a broker. The expertise of a broker giving office tours is only necessary for customers who narrow their choices to several ideas instead of just one place.
42Floors takes a 20 percent commission. The new corporation has a target of $24,000 in revenue per transaction. As a business started with capital from angel investors, 42Floors has limited its initial deals to only lower-priced spaces. However, that segment of the office market comprises 80 percent of available locations.
The company has plans to expand with larger office complexes. In addition, 42Floors hopes to add other products and services for businesses moving into new office space. The company’s website provides a platform for future sale of office furniture and interior design. An ultimate goal is delivering premier services to meet the demands of relocating and startup companies.