Giving New Meaning To The Words "Online Real Estate" by Lesley Hensell
While every real estate company out there throws an e-commerce site up and hopes it sticks, at least one firm is taking a traditional tack to profit from the Web. Lincoln Property Company Commercial, Inc., has been named the exclusive agent for GroceryWorks.com, an online grocer struggling to keep up with high demand for its services. Lincoln will be locating and negotiating commercial real estate for GroceryWorks' future fulfillment centers. Founded in 1999, GroceryWorks adheres to a “virtual inventory” business model, combining a sophisticated fulfillment and distribution system with strategic local vendor relationships to offer same-day delivery of high-quality groceries at prices comparable to traditional supermarkets. In January, GroceryWorks announced the appointment of former Electronic Data Systems (EDS) Corporation vice chairman Gary J. Fernandes as its chairman and chief executive officer. At that time, the company also announced the completion of its first round of venture capital financing totaling $48.5 million. The infusion of capital will enable the company to continue its aggressive growth strategy. Right now, GroceryWorks sells its wares in the Dallas area. The company was inundated with requests for service, which exposed the deep flaws in its technology systems. But now that those problems have been addressed, the company plans to begin expansion across the country. In May, the company will open a fulfillment centers to service the Fort Worth and Houston areas. “Our great success in Dallas has proven a very clear need to aggressively expand our coverage to serve customers in other markets,” said Gary Fernandes, Chairman and CEO of GroceryWorks. “Our goal is to be the leading home fulfillment business in each market we enter, and through our alliance with Lincoln, we can identify and pursue the best locations in those cities.” This business model points to great opportunities for realtors willing to work to meet the unique needs of dot-coms. When the amazon.com model displayed some initial success, some doomsayers (myself included) foretold of a decrease in traditional retail demand as online shopping became more popular. But with stronger-than-average consumer confidence and overwhelming demand, this has failed to materialize. Instead, as retail occupancies remain high, e-tailers are demanding large quantities of warehouse and distribution space. “An innovative company like GroceryWorks wants to have every competitive advantage, and as such, should have access to the best possible real estate in each potential market,” said Bill Duvall, president of Lincoln Property Company Commercial. “We are pleased to assist GroceryWorks in its national expansion efforts, and look forward to a long relationship with them.” The arrangement gives Lincoln the authority to research potential sites for new warehouse facilities in cities nationwide. The company will gather background information on the available properties, research the demographics of the surrounding communities and then make a recommendation to GroceryWorks. Once a site is agreed upon, Lincoln executives will assist in the negotiation for lease agreements. Perhaps the best e-business strategy for most realty firms out there is to stick to core competencies. After all, we aren't seeing other professional service groups like lawyers and accountants rush to spend money on an extensive online strategy. Rather than dive into an unstable and unknown online market, perhaps realtors should serve the innovative e-business savvy companies who will own the virtual space in their industries. | 
