What is OpenComps?

OpenComps is a database open to all market participants aiming to keep track of commercial real estate transactions involving investment sales of office, retail, residential (multi-family) and hotel assets.

Why OpenComps?

OpenComps is born from the belief that information can be extremely powerful and useful when it is shared and improved upon openly by everyone, anywhere. This belief is strongly rooted in the Internet itself, the open source movement and open collaboration tools, such as Wikipedia, the open online encyclopedia, all of which liberated information and information sharing.

Like the stock market, prices of commercial real estate assets fluctuate. OpenComps aims to offer a web-based tool to market makers - brokers, buyers, sellers, consultants, and other participants - enabling them to record and analyze such movements in the market in an open format.

The responsibility for data collection and edit is designed to rest with the tool's biggest beneficiaries - the market participants that generate and utilize the data in their daily work.

What do you mean by open source?

OpenComps follows the principals of community-based web sites and online collaboration tools. Input and output of data is open to anyone, anywhere. There is no fee or subscription for access to the online tool. The data on the web site is entered, edited, updated and kept by a community of users who are most likely to consist of participants in all areas and fields of commercial real estate from around the globe.

Why should I contribute to OpenComps?

The intent of creating OpenComps is to make gathering and disseminating of basic transaction information simple and transparent. Currently, such information is fragmented throughout individually-kept Excel spreadsheets and databases, most of them kept by individual firms, in addition to closed-format, for-fee subscription services. Many of these tools are not overly sophisticated and generating meaningful information from them is difficult. OpenComps is a sophisticated database that is continually improved upon to better store and display information and statistics based on the transaction data.

Here are some benefits to different market participants:

• A sell-side or a buy-side broker - Today, there are hundreds of brokerage houses around the world. To stand out, it pays to openly advertise the firm's ability to close and its market niche expertise. Having a tool to showcase the ability to execute whether through a large network of offices or laser focus on a particular market or asset class is paramount in winning clients and assignments. OpenComps can produce lead tables on an annual basis as well as any custom period. The data can also be focused on particular market niches and thus highlight specific expertise. It becomes a benchmarking tool that one can easily use and audit for accuracy.
• A seller or a buyer - Contributing data to OpenComps can be part of your public relations strategy. Upon closing a transaction, your recognition in the marketplace will be immediate. Having the correct details of a transaction ensures consistency in communication and it may encourage direct approaches by other buyers/sellers that you may not have been exposed to previously.
• A consultant - If you are an asset manager, an appraiser, feasibility analyst, or any other real estate consultant, you can utilize OpenComps to gain market insight and understanding. By contributing data you enhance the overall volume and quality of the online tool.
• From the academia - OpenComps can provide priceless trove of data to analyze historical movement of asset prices and the impact of different parameters to a market transaction. By monitoring the industry news and contributing to OpenComps, you can act as an unbiased moderator and editor.

If I need to keep a transaction confidential, how would OpenComps impact my position?

Not unlike existing practice, if a client asks for confidentiality, no details need to be disclosed. However, let your client be aware that it is likely as talk gets around and information leaks into the general media that details of a transaction may show up on OpenComps. Ensuring that the information is correct can be important in preserving your public relations strategy and recognition in the marketplace.

While many transactions are information sensitive in the days leading to a deal or immediately afterwards, after a few months this sensitivity often disappears. Ensuring that proper historical record is kept may enhance your position in the marketplace and allow for the future use and analysis of the data.

How is the quality and integrity of data ensured?

OpenComps data is entered and modified openly by anyone, anywhere. Malicious and fraudulent input of data is monitored by higher-level users and is removed as needed.

This approach to entering and editing of data seeks to enhance the quality over time. OpenComps hopes to minimize errors and/or malicious activity through increased traffic. As the site attracts more users, any errors are likely to be spotted and corrected more quickly. Eventually, active and valuable participants can assume roles of moderators or administrators with added control over the activities of other registered or anonymous users, including the deletion of duplicate, inaccurate or bogus transactions.

Each transaction maintains a historical record of each individual field, displaying when each individual field's data was entered or modified and by who. If a user suspects that a transaction may have erroneous information, he or she can audit the history record. A user can also correct or edit a transaction, if he or she has more or better information than previously entered or if data is missing.

Tables on the latest additions, corrections and proposals for deletion are also integrated within the site for better monitoring of the data that is added to OpenComps. In addition, there are statistics on and ranking of the most active users, with associated public profiles, highlighting the individual contributions to the database.

Not unlike any other source, it is advisable that users "trust, but verify" its data.

Should I register for OpenComps and why?

The use of OpenComps is open and free. A user of OpenComps may utilize the site on an anonymous basis or as a registered user. Anonymous users' actions are tracked by IP addresses. Registered users' actions are tracked by their chosen screen name.

All data entered by a particular user, whether on an anonymous or registered basis, can be rolled back (deleted from the database) by an Admin if such data entry is deemed malicious.

Registered users can have a status of Normal, Moderator or Admin. There are many benefits to being a registered user, not the least being part of the community. Registering and creating a screen name opens advanced features of the web site, such as advance searching capabilities, creation of customized data sets and the exportation of Excel-ready data. More importantly, these users' contributions are recognized and can be awarded by the community.

Active and valuable Normal users can be upgraded to Moderators when approved by other Moderators and Admins. Moderators can clean the database by removing transactions flagged by other users as duplicate, inaccurate or bogus. Active and valuable Moderators can be further upgraded to Admins, when approved by other Admins. Admins can implement higher-level user management and database operations.

How would OpenComps impact private-source data providers?

Most of the data collected today rests with close-format, private-source providers. They specialize in gathering, scrutinizing, analyzing and reporting their data collection. Their role of screening data and advising clients is likely not going to change. Stock market data has been around for a long period of time and businesses organized around refining, dissecting and advising on such data have grown over the years. OpenComps aims to create a public domain tool to help market participants who are presently collecting data individually save time and money by taking advantage of the scalability and open source format of OpenComps.

Who owns the data on OpenComps?

As an open source web site, the ownership of OpenComps data falls into the realm of public domain. The founders of OpenComps have contributed initial data collected on their own as real estate professionals as part of launching the service and inviting others to follow. In principal, all users adding or editing transaction information on OpenComps are agreeing that they are contributing data to the public domain.

Would OpenComps pull out its database one day?

All data is or will be available, to registered users, for download into a Excel-ready format at all times. This ensures that data you and others contribute will never be lost. At the server level, data backup is performed each day. If OpenComps were to fail to cover its operating costs or for whatever reason be forced to shut down, all users will be notified ahead of time. We are covering the costs today and expect to continue doing so.

Who runs OpenComps?

OpenComps was envisioned and designed by Svetlin Ganchev. The site became reality with the technological expertise of Svetoslav Savchev, who set up the original database design, and Krikor Kirkorov, who put the main work of building the database connectivity and interface. The project also benefited from the substantial user input and expertise of Oggie Ganchev, Svetlin's brother. You can use the Suggestions/Contact Us form on the web site to contact the OpenComps team.

Would OpenComps ever impose a fee for the use of the site?

Never. OpenComps intends to support itself through advertising and sponsorships.