'Cybermarketing' small spaces.

Until now, businesses looking for smaller-sized space in Manhattan had to do most of the legwork, since big-space brokers generally were not interested. Stumbling upon the right space was not only time consuming and inefficient, but also a game of chance. Now, everybody can take the information highway and leave the walking to City-feet.com.

In just 10 months, Guy Shanon and Matt Shulman have built Cityfeet.com into one of the leading destinations for small businesses searching for space for lease in Manhattan.

"In 1999, over $200 billion in commercial leases were transacted, many of which were for spaces smaller than 5,000 square feet," points out Guy Shanon, CEO of Cityfeet.com. "Cityfeet.com helps smaller prospective commercial tenants in New York find space that fits their needs. It also assists property owners and real estate brokers in reaching these prospects in a time and cost effective manner."

Cityfeet.com, operational since May 1999, has become a leading destination for smaller businesses searching for the right commercial space. Cityfeet.com seeks to fill a void created by the dominance of national real estate firms that focus on larger transactions. Since it lists many properties under 5,000 square feet, the site lets prospects in that category do the legwork that brokers are unlikely to do in the currently overheated market.

Free to prospective tenants, visitor traffic has skyrocketed in the last several months, establishing the website as a valuable web-based marketing channel for owners and agents trying to reach small space users directly. The company is in the process of executing an extensive marketing campaign in New York City to further bolster prospective tenant traffic. Examples of its marketing efforts include outdoor advertisements on pay phones, in subway cars, and in a wide range of print publications aimed at real estate professionals and small business owners. The company intends to introduce local television commercials and radio spots during the next several months.

"Cityfeet.com is not a broker, we are simply an information provider that allows prospective tenants and property owners or agents to identify one another quickly and then focus on the terms of the transaction," continues Shanon. "We are leveraging the power of the Internet to connect people quickly and cheaply to make the commercial space leasing process for smaller spaces easier for everyone involved."

While recent real estate stories have been trumpeting the competition for large commercial space and brokerage firms have been highlighting their own websites, Cityfeet.com has quietly built a loyal customer base offering and looking for smaller space availabilities, especially among new medial/technology companies and small businesses looking for subtenants.

"In contrast to the stories about competition for large blocks of space, the competition for small space is fierce and very few brokers are willing to invest the time to put together one of these deals," notes Matt Shulman, CFO of Cityfeet.com. "There are many start-up and expanding businesses in the city that are willing to do the search for space on the Internet. That's where Cityfeet.com becomes an invaluable service we have the information on what is available and whom to contact."

Owners and agents give Cityfeet.com detailed descriptions of their space availabilities, including asking prices, measurements, costs, photographs, and floor plans. Cityfeet.com accumulates these listings in its database, thereby amassing an impressive supply of smaller commercial space availabilities. The company is also working closely with Internet Pictures Corporation (IPIX) to offer panoramic images of listed space interiors. Property representatives enter, edit, and cancel listings via a fast, easy-to-use account at the website and also receive 'hit' statistics showing the number of times each listing has come up in a space search. Cityfeet.com also offers local commercial real estate news, broker referral services, and useful email marketing features.

Prospective tenants visit the website, enter space search criteria, and receive a detailed list of spaces that match these criteria. "The website complements its comprehensive supply of listings with a wide range of useful search features and access to goods and services related to the move-in process, thereby rounding out the entire prospective tenant experience," explains Shulman.

The business plan seems to be working. Cityfeet.com expanded into Los Angeles earlier this month on the heels of its securing financing from Scripps Ventures, a $150 venture fund created by the E.W. Scripps Company. They have since opened an office in San Francisco and plan to be operational in Atlanta by mid-April. Paul Anderson, most recently with Propertyfirst.com, will spearhead the Los Angeles office while Fred Saint, previously with Banc of America's Investment Banking Real Estate Group, will lead the San Francisco operations.

Cityfeet.com plans to have an office in each of the cities where it lists space. Each local office will work to establish relationships with the area brokerages. This localized approach differentiates Cityfeet.com from most of its competitors. Admittedly, there are a number of websites offering commercial real estate listings, but Cityfeet.com has carved out a specialized niche by concentrating on local markets and listing smaller spaces for lease that large brokerages are less interested in serving.

"Technological innovations will continue to foster increasing numbers of small businesses," added Shanon. "We are confident our winning formula -- which starts with a local market focus -- will work well in other cities as we continue to expand our services into additional markets."