Shopping Centers Today is the news magazine of the International Council of Shopping Centers (ICSC)
Issue link: http://sct.epubxp.com/i/479929
jumped at the chance. They spent the month leading up to the auction doing their homework, attending lots of auc- tions and studying the competition. On auction day the Riverside County Con- vention Center was packed, and they sold all 54 homes. That sale sparked the launch of the Real Estate Disposition Corp., in 1990. By 2007 the partners' business was heating up as both the residential and commercial real estate markets fell into deep recession. One client asked if they could deliver something different from the typical live, ballroom-style auction, desiring an online platform. "Because we had a lot of experience as live auc- tioneers, we were able to put a lot of the essence of a live auction on the online platform," said Friedman. Initially, Real Estate Disposition put about 10 percent of its properties online, and the format proved to be a big hit. The next step was negotiating to buy the Auction.com domain name. "That really helped to turn us from a company into a brand," said Friedman. "It's a great name: It's easy to market, it's easy to re- member, and it really helped us to get to the next level." Since 2007, Auction. com has sold upwards of $26 billion in commercial and residential real estate properties. The firm sold some $7.4 bil- lion in sales in 2013, and at press time the executives were projecting full-year 2014 sales in excess of that, though they supplied no precise figures. An impor- tant factor in that growth was the evolu- tion of the business from a mere means of disposing of distressed assets into an online market for selling market-rate res- idential and commercial properties. Al- most 40 percent of its current sales vol- ume in the commercial market involves nondistressed properties. "We are trying to make the commercial real estate sales process simpler, and people are using us as a marketplace," Friedman said. The online auction format is a much more efficient business model and much easier for clients to access, Friedman asserts. Auction.com now sells properties to investors from all over the world. "It has helped tre- mendously with the transparency and the exposure," said Friedman. "A lot more people see our properties that are for sale because of our large mar- keting budget and the large distribu- tion that the Internet allows us." S C T John T. Riordan School for Retail Real Estate Professionals Management • Marketing • Leasing • Development + Design + Construction • Specialty Leasing S C OT T S DA L E APRIL 12 – 16, 2015 The John T. Riordan School for Retail Real Estate Professionals, through its cutting-edge Institutes and world class faculty, offers a week of rigorous study. Attendees will deepen their knowledge of retail property and shopping centers, learn from experts, share ideas and identify successful strategies alongside colleagues from around the world. The program is designed to ensure that participants can master the fundamental concepts required of site selection, design, construction and tenant coordination required to develop (or redevelop) a shopping center while building knowledge of the industry's best practices. For more information and to register, please visit www.icsc.org/2015SAZ 80 S C T / A p r i l 2 0 1 5 Since 2007, Auction.com has sold upwards of $26 billion in commercial and residential properties.