Analysis of data from leading real estate property management companies compares the cost and time associated with traditional telephone-, paper- and facsimile-based purchasing methods to that associated with purchasing through SiteStuff.com, the e-marketplace for the commercial real estate industry that commissioned the study. The Deloitte & Touche study found that the typical purchasing transaction cost was $51 for multifamily companies and $77 for commercial property companies. With the SiteStuff model, online supply procurement costs could be as low as $22.

Rick Carlson, National Managing Partner for Deloitte & Touche Real Estate Services, said, "Procurement via the Internet brings a multitude of benefits to the real estate industry--and the study verifies that.  Traditional real estate purchasing, which leaves buying decisions in the hands of local property managers, is decentralized and very labor intensive.  Internet-based procurement will allow the real estate industry to enjoy the benefits of centralized purchasing and it will cut a lot of time and costs out of the process."

"The owners, operators and investors who fuel and operate the commercial real estate industry spend nearly $300 billion each year on the goods and services they need to support property operations," said Raj Shah, co-founder of SiteStuff.  "Industry-wide fragmentation and inefficiencies in purchasing costs both real estate owners and investors hundreds of millions of dollars each year in profitability."

Although online purchasing provides many immediate advantages, the benefits will compound as Internet companies expand their offerings--and real estate companies move toward performing all of their purchasing online, the report predicts.  As Internet procurement becomes more pervasive, real estate companies will benefit from increased control over the procurement process, better compliance with standardized purchasing practices, centralized reporting and expanded access to industry benchmark data.

"The study shows that Internet-based purchasing will allow real estate companies to assemble the information needed to purchase more strategically.  Portfolio-wide reporting and benchmarking data will allow real estate companies to make decisions based on more comprehensive data," Carlson said.

About Deloitte & Touche:
Deloitte & Touche, one of the nation's leading professional services firms, provides assurance and advisory, tax, and management consulting services through 30,000 people in more than 100 U.S. cities.  The firm is dedicated to helping our clients and our people excel.  Known as an employer of choice for its innovative human resources programs, Deloitte & Touche has been recognized as one of the “100 Best Companies to Work For in America” by Fortune magazine for three consecutive years.  Deloitte & Touche is part of Deloitte Touche Tohmatsu, one of the world's leading professional services firms, with more than 90,000 people in over 130 countries.  Deloitte & Touche provides real estate operations and technology solutions, portfolio strategy, occupancy cost management services, and site selection and facilities consulting to manufacturing, retail and service corporations, public and private real estate operating companies, institutional investors, and developers. For more information, please visit Deloitte & Touche’s web site at www.us.deloitte.com/realest/.

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