CoStar Group explained

CoStar Group, Inc.
Type:Public
Industry:Commercial property
Founder:Andrew Florance
Hq Location:Washington, D.C.
Revenue: (2023)
Net Income: (2022)
Num Employees:6,152
Footnotes:[1]

CoStar Group, Inc. is an American provider of information, analytics, and marketing services to the commercial property industry in North America and Europe. Founded in 1987 by Andrew C. Florance and based in Washington, D.C., the company has grown to include the online database CoStar and several online marketplaces, including Apartments.com and Homes.com.

History

Origins

CoStar Group was founded in 1987 by Andrew C. Florance in Washington, D.C., as one of the first companies that digitized and aggregated property data before the Internet became widely available. In 1998, the company went public via an initial public offering on Nasdaq, raising $22.5 million.[2] In June 2004, the lawsuit CoStar Group, Inc. v. LoopNet, Inc. became a landmark case in copyright law about the role of an Internet service provider in monitoring copyrighted content posted on its servers.[3] In October 2009, the company acquired a building from the Mortgage Bankers Association for $41.3 million, which now serves as the company's headquarters. The building had sold for $97 million two years earlier, with CoStar Group claiming that it had used its analytics data to determine the right time to buy.[4]

Growth and expansion

Throughout the 2010s, CoStar Group expanded its footprint in the commercial property industry with a series of acquisitions in North America and Europe. In 2009, it acquired Property and Portfolio Research company Grecam, joining the company's existing Grecam service.[5] In 2012, it acquired the online marketing site LoopNet for $860 million.[6] [7] With the acquisition, CoStar Group also took over the Loopnet properties BizBuySell and LandsofAmerica.[8] Two years later, the company acquired Apartments.com for $585 million,[9] as well as Apartment Finder the following year.[10]

From 2017 through 2020, the company acquired the online marketplaces Westside Rentals,[11] ForRent.com (previously owned by Dominion Enterprises),[12] Cozy Services,[13] Off Campus Partners,[14] and Ten-X;[15] [16] in addition to the hotel research and analytics firm STR, the residential mobile application provider Homesnap.[17] In April 2021, it acquired Homes.com, a prominent residential real-estate website, from Dominion Enterprises for $156 million in cash.[18] In April 2024, CoStar announced plans to acquire the 3D spatial mapping company Matterport for $1.6 billion.[19] [20]

Overseas, its European division acquired the German real-estate business data company Thomas Daily and the Spanish online marketplace and information provider Belbex in 2016.[21] [22] From 2018 through 2023, it acquired the British online marketplace Realla,[23] the German real-estate data company Emporis,[24] the French online marketplace BureauxLocaux,[25] and the British property portal OnTheMarket.[26]

Other activities

In 2019, CoStar Group announced that Oxford Economics would provide the economic data and forecasts used in its products.[27] The company came under fire in 2022 when Business Insider reported that over 29 current and former employees claimed to have been excessively monitored and micromanaged, including with unscheduled check-in video calls made by the company's IT department, as well as being publicly berated and arbitrarily fired in some cases.[28] [29] The company made efforts to take down criticism of itself on various social media platforms. CoStar Group denied the allegations, contending that the discontent had stemmed from the company's high expectations. In 2024, CoStar Group purchased an estimated $35 million worth of airtime at Super Bowl LVIII for four Super Bowl commercials advertising its subsidiaries Homes.com and Apartments.com, which The New York Times described as an effort to rival competitor services such as Zillow and Realtor.com.[30]

CoStar has been criticized for anticompetitive and monopolistic business practices, often using aggressive litigation and "public-relations warfare" to "push [competitors] to the brink of collapse or weaken them enough to make them soft targets for an acquisition".[31] In February 2024, a proposed consumer class action lawsuit was filed against CoStar in multiple states, accusing the company of a price-fixing conspiracy in which it conspired with a group of luxury hotel chains—including Hilton, Hyatt, Marriott, InterContinental, Loews, and Accor—to keep room rental prices artificially high by sharing competitively sensitive information through the company's STR reports. These allegations were based in part on insider information shared by an STR software engineer.[32]

Business

CoStar Group provides commercial real estate information, analytics, and online marketplaces for real estate transactions. Its research services include online services and research for the rental home and hotel industry.[33]

its subsidiaries include:

External links

NASDAQ:

Notes and References

  1. CoStar Group . February 23, 2022 . CoStar Group Form 10-K . March 4, 2022 . Securities and Exchange Commission.
  2. Web site: Rothstein . Ethan . October 2, 2019 . Andy Florance On Buying STR, WeWork's Failed IPO And What CoStar Buys Next . live . https://web.archive.org/web/20200320101858/https://www.bisnow.com/national/news/hotel/andy-florance-wework-costar-str-ipo-101093 . March 20, 2020 . March 4, 2022 . Bisnow.
  3. Web site: June 22, 2004 . ISP not liable for copyright violations even after review of content . live . https://web.archive.org/web/20201024124920/https://www.rcfp.org/isp-not-liable-copyright-violations-even-after-review-content/ . October 24, 2020 . March 4, 2022 . Reporters Committee for Freedom of the Press.
  4. News: Hagerty . James R. . February 6, 2010 . Mortgage Bankers Association Sells Headquarters at Big Loss . subscription . live . https://archive.today/20160323172323/http://www.wsj.com/articles/SB10001424052748704829704575049111428912890 . March 23, 2016 . . 0099-9660.
  5. Web site: Kalette . Denise . July 21, 2009 . CoStar Acquires Property and Portfolio Research . live . https://web.archive.org/web/20130906143141/https://www.nreionline.com/finance-amp-investment/costar-acquires-property-and-portfolio-research . September 6, 2013 . March 4, 2022 . National Real Estate Investor.
  6. News: Sernovitz . Daniel J. . April 30, 2012 . CoStar Group completes LoopNet deal . live . https://web.archive.org/web/20120504035427/https://www.bizjournals.com/washington/news/2012/04/30/costar-completes-loopnet-deal.html . May 4, 2012 . American City Business Journals.
  7. Web site: May 1, 2012 . CoStar Completes LoopNet Acquisition . live . https://web.archive.org/web/20170923172713/https://www.nreionline.com/finance/costar-completes-loopnet-acquisition . September 23, 2017 . National Real Estate Investor.
  8. News: Sernovitz . Daniel J. . August 18, 2014 . Blind ambition: CoStar's Andy Florance opens up about competition, sacrifice and those pesky Glassdoor rankings (Video) . subscription . live . https://web.archive.org/web/20140805120852/https://www.bizjournals.com/washington/feature/real-estate-inc-extra/2014/08/blind-ambition-costar-s-andy-lorance-opens-up.html . August 5, 2014 . March 4, 2022 . Washington Business Journal.
  9. News: O'Connell . Jonathan . March 3, 2014 . CoStar Group buys Apartments.com for $585 million . limited . live . https://web.archive.org/web/20140303190455/https://www.washingtonpost.com/business/capitalbusiness/costar-group-buys-apartmentscom-for-585-million/2014/03/03/06ccbc74-a2e7-11e3-a5fa-55f0c77bf39c_story.html . March 3, 2014 . . 0190-8286.
  10. News: Sernovitz . Daniel J. . April 30, 2015 . CoStar makes another push into the digital apartments sphere with a $170M buy . subscription . live . https://web.archive.org/web/20150522043034/https://www.bizjournals.com/washington/breaking_ground/2015/04/costar-to-expand-reach-into-multifamily.html . May 22, 2015 . March 4, 2022 . Washington Business Journal.
  11. News: Ellingson . Annlee . February 2, 2017 . Westside Rentals finds new home at Apartments.com . subscription . live . https://web.archive.org/web/20170204020549/https://www.bizjournals.com/losangeles/news/2017/02/02/westside-rentals-finds-new-home-at-apartments-com.html . February 4, 2017 . L.A. Business First.
  12. News: Neibauer . Michael . February 20, 2018 . Growing CoStar to close its latest buy, this one for nearly $400M . live . https://web.archive.org/web/20180315214113/https://www.bizjournals.com/washington/news/2018/02/20/growing-costar-to-close-its-latest-buy-this-one.html . March 15, 2018 . American City Business Journals.
  13. Web site: Morphy . Erica . November 9, 2018 . CoStar Group Acquires Cozy Services Ltd., with Plans to Integrate its Innovative Renter Screening and Rent Payments Solutions into Apartments.com . live . https://web.archive.org/web/20190213023126/https://www.globest.com/2018/11/09/costar-group-buys-cozy-services-for-68m/ . February 13, 2019 . March 4, 2022 . GlobeSt.com.
  14. News: Neibauer . Michael . June 21, 2019 . CoStar buys again, this time in the off-campus student housing space . subscription . live . https://web.archive.org/web/20220305010605/https://www.bizjournals.com/washington/news/2019/06/21/costar-buys-again-this-time-in-the-off-campus.html . March 5, 2022 . March 4, 2022 . Washington Business Journal.
  15. News: Grant . Peter . May 14, 2020 . CoStar Acquires Ten-X in $190 Million Deal . subscription . live . https://archive.today/20200514000944/https://www.wsj.com/articles/costar-on-verge-of-purchasing-ten-x-in-190-million-deal-11589405076 . May 14, 2020 . March 4, 2022 . . 0099-9660.
  16. Web site: Lane . Ben . January 11, 2016 . Auction.com rebrands as Ten-X, the 'future of real estate' . live . https://web.archive.org/web/20160112150920/https://www.housingwire.com/articles/35989-auctioncom-rebrands-as-ten-x-the-future-of-real-estate/ . January 12, 2016 . March 4, 2022 . HousingWire.
  17. News: Grant . Peter . November 22, 2020 . CoStar to Buy Homesnap for $250 Million . subscription . live . https://archive.today/20201123082923/https://www.wsj.com/articles/costar-in-advanced-talks-to-buy-homesnap-for-250-million-11606068000 . November 23, 2020 . March 4, 2022 . . 0099-9660.
  18. Web site: Dominguez . Liz . April 15, 2021 . CoStar Group to Acquire Homes.com for $156M . live . https://web.archive.org/web/20210415142447/https://www.rismedia.com/2021/04/15/costar-group-acquire-homes-for-156m/ . April 15, 2021 . March 4, 2022 . RISMedia.
  19. Matterport, the Global Leader in 3D Digital Twins, to be Acquired by CoStar Group . April 22, 2024 . . April 22, 2024 . live . https://web.archive.org/web/20240422154802/https://investors.matterport.com/news-releases/news-release-details/matterport-global-leader-3d-digital-twins-be-acquired-costar . April 22, 2024.
  20. CoStar Group to Acquire Matterport, the Global Leader in Immersive 3D Digital Twins and Artificial Intelligence for the Real Estate Industry That Makes Properties Intuitive and Interactive Online . April 22, 2024 . CoStar Group . April 22, 2024 . live . https://web.archive.org/web/20240422154802/https://investors.costargroup.com/news-releases/news-release-details/costar-group-acquire-matterport-global-leader-immersive-3d . April 22, 2024.
  21. Web site: O'Connell . Jonathan . May 5, 2016 . CoStar Group buys Apartments.com for $585 million . live . https://web.archive.org/web/20201204185456/https://www.spglobal.com/marketintelligence/en/news-insights/trending/7tm23brbwictpk_9jjjjua2 . December 4, 2020 . March 4, 2022 . S&P Global.
  22. Web site: Lima . Alexandre . March 16, 2017 . Belbex finalises its integration with CoStar Group . live . https://web.archive.org/web/20220305010606/https://www.iberian.property/news/archive/belbex-finalises-its-integration-with-costar-group/ . March 5, 2022 . March 4, 2022 . Iberian Property.
  23. News: Evans . Judith . October 12, 2018 . US real estate giant CoStar buys UK commercial property portal . subscription . live . https://archive.today/20220321032046/https://www.ft.com/content/02764aee-ce04-11e8-9fe5-24ad351828ab . March 21, 2022 . . 0307-1766.
  24. Solomont . E.B. . October 27, 2020 . CoStar plots international push with Emporis buy . live . https://web.archive.org/web/20201031045315/https://therealdeal.com/2020/10/27/costar-plots-international-push-with-emporis-buy/ . October 31, 2020 . March 4, 2022 . The Real Deal.
  25. October 1, 2021 . CoStar Group Acquires BureauxLocaux, a Leading Commercial Property Digital Marketplace in France . live . https://web.archive.org/web/20211001131725/https://www.businesswire.com/news/home/20211001005444/en/CoStar-Group-Acquires-BureauxLocaux-a-Leading-Commercial-Property-Digital-Marketplace-in-France . October 1, 2021 . October 1, 2021 . Business Wire.
  26. Web site: Johnson . Katie . October 25, 2023 . CoStar acquires OnTheMarket for £100m . live . https://web.archive.org/web/20240318114933/https://todaysconveyancer.co.uk/costar-acquires-onthemarket-100m/ . March 18, 2024 . October 25, 2023 . Today's Conveyancer.
  27. August 13, 2010 . CoStar appoints Oxford Economics as data partner for new Investor product . subscription . live . https://web.archive.org/web/20240923203547/https://www.propertyweek.com/finance/costar-appoints-oxford-economics-as-data-partner-for-new-investor-product/5004236.article . September 23, 2024 . March 4, 2022 . Property Week.
  28. Web site: Geiger . Daniel . Nicoll . Alex . February 22, 2022 . Inside the mass exodus at CoStar, real estate's biggest data firm, where 29 current and former staffers say the company surveilled and humiliated them . limited . live . https://web.archive.org/web/20220222102024/https://www.businessinsider.com/working-at-costar-employee-turnover-pandemic-remote-work-andrew-florance-2022-2 . February 22, 2022 . February 22, 2022 . Business Insider.
  29. February 22, 2022 . Employee surveillance, humiliation and exodus at CoStar . live . https://web.archive.org/web/20220222182536/https://therealdeal.com/2022/02/22/employee-surveillance-humiliation-and-exodus-at-costar/ . February 22, 2022 . February 22, 2022 . The Real Deal.
  30. News: Kamin . Debra . February 12, 2024 . CoStar Group's Super Bowl Debut: Dan Levy, Heidi Gardner and Jeff Goldblum . limited . live . https://web.archive.org/web/20240212193725/https://www.nytimes.com/2024/02/12/realestate/costar-group-super-bowl-ads.html . February 12, 2024 . October 16, 2024 . . 0362-4331.
  31. Web site: Putzier . Konrad . Jeans . David . Bautista . Christian . Carvajal . Nancy C. . Search and destroy: How CoStar became a $15B juggernaut . live . https://web.archive.org/web/20231004141332/https://therealdeal.com/magazine/new-york-september-2018/how-costar-became-a-15-billion-dollar-juggernaut/ . October 4, 2023 . May 5, 2024 . The Real Deal.
  32. News: Scarcella . Mike . February 21, 2024 . CoStar, luxury hotels hit with US consumer price-fixing lawsuit . limited . live . https://archive.today/20240223160524/https://www.reuters.com/legal/government/costar-luxury-hotels-hit-with-us-consumer-price-fixing-lawsuit-2024-02-21/ . February 23, 2024 . February 2, 2024 . Reuters.
  33. Web site: CoStar, Group Inc. . subscription . live . https://web.archive.org/web/20240517162257/https://www.bloomberg.com/profile/company/CSGP:US . May 17, 2024 . March 4, 2022 . Bloomberg L.P..

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