CoStar Group, Inc. (CoStar Group) operates in commercial and residential real estate information, analytics, and online marketplaces.
The company owns and operates online marketplaces for real estate in the U.S. and the U.K., based on the numbers of unique visitors and site visits per month; it provides more information, analytics, and marketing services than many of its competitors; it offers a comprehensive commercial real estate database available; and it has a commercial real estate researc...
CoStar Group, Inc. (CoStar Group) operates in commercial and residential real estate information, analytics, and online marketplaces.
The company owns and operates online marketplaces for real estate in the U.S. and the U.K., based on the numbers of unique visitors and site visits per month; it provides more information, analytics, and marketing services than many of its competitors; it offers a comprehensive commercial real estate database available; and it has a commercial real estate research department in the industry. The company has created and compiled a standardized platform of online marketplace services, information, and analytics where industry professionals, consumers of real estate, and the related business communities can continuously interact and facilitate transactions by efficiently accessing and exchanging accurate and standardized real estate-related information.
The company's major brands include CoStar, a provider of commercial real estate data, analytics, and news; Apartments.com, a platform for apartment rentals, based on total revenue; LoopNet, a trafficked commercial real estate marketplace; and Homes.com, the fastest-growing residential real estate marketplace, based on traffic.
CoStar Group’s brands include STR, a brand in hospitality data and benchmarking; Ten-X, an online platform for commercial real estate auctions and negotiated bids; and OnTheMarket, a residential property portal in the U.K.
Strategy
The company's strategy is to provide real estate industry professionals and consumers with critical knowledge to explore and complete transactions by offering comprehensive, timely, and standardized information on real estate, and the right tools to be able to effectively utilize that information. Over time, the company has expanded, and it continues to expand, its services for real estate online marketplaces, information, and analytics to continue to meet the needs of the industry as it grows and evolves.
CoStar Research
Research Department: The company's research professionals undergo an extensive training program. Its researchers collect and analyze commercial real estate information through phone calls, e-mails, and additional research methods, including field inspections, public records review, news monitoring, third-party data feeds, and user-entered content. The company has also set up direct feeds from apartment sites, owners, and brokers.
The company’s researchers are responsible for maintaining the accuracy and reliability of its database information, training clients to use CoStar Group products, and handling customer service questions, creating a ‘one-touch’ approach to customer care. Because of the importance commercial real estate professionals place on the company's data and its prominent position in the industry, many of these professionals routinely take the initiative and proactively report available space and transactions through its online tool, which is referred to as the Marketing Center, or directly to its researchers.
The company's field research efforts include physical inspections of properties to research new availabilities, find additional property inventory, identify new construction, collect tenant information, verify existing information, photograph properties, and create high-quality videos of interior spaces (including walk-through videos and 3-D virtual tours), amenities, and exterior features of properties. A typical site inspection of a commercial property consists of photographing the building, capturing interior images, videos, and 3-D tours, measuring the building, geo-coding the building, capturing ‘for-sale’ or ‘for-lease’ sign information, counting parking spaces, assessing property condition and construction, and gathering tenant information. Field researchers also canvass properties, collecting tenant data suite-by-suite. The company also utilizes a low-flying airplane and a fleet of drones to conduct aerial research of commercial real estate. It places researchers on the low-flying aircraft to scout new commercial developments and take aerial photographs and videos.
The company is leveraging its capabilities developed from its extensive commercial real estate research efforts to produce original, media-rich content of neighborhoods, schools, parks, and condominium buildings' amenities and common areas for its residential products using professional photographers and a fleet of drones to conduct aerial research of residential real estate.
Data and Image Providers: The company licenses a small portion of its data and images from public record providers and third-party data sources. Licensing agreements with these entities allow it to use a variety of commercial real estate information, including property ownership, tenant information, demographic information, maps, aerial photographs, and 3-D virtual apartment tours of apartment communities, all of which enhance its services. These license agreements generally grant the company a non-exclusive license to use the data and images in the creation and supplementation of its online marketplaces, information, and analytics.
Services
The company's principal online commercial real estate information and analytics services and online marketplaces are:
CoStar
CoStar offers a subscription-based platform for commercial real estate intelligence with several key features:
Properties: Provides a comprehensive inventory of various property types, including office, industrial, retail, multifamily, hospitality, student housing, and land. It includes for-lease and for-sale listings, historical data, property analytics, building photographs, demographics, maps, and floor plans. Users can identify available space, evaluate opportunities, value assets, and analyze market conditions.
Leasing: Offers data on lease transactions and tools to manage user-entered lease data. Subscribers can analyze lease datasets and perform cash flow analysis from both landlord and tenant perspectives.
Sales: A database of commercial real estate sales transactions, useful for researching property comparables, identifying market trends, expediting appraisals, and supporting property valuations.
Tenants: Provides detailed tenant information, including lease expirations, occupancy levels, and growth rates, allowing users to target prospective clients.
Owners: Provides detailed portfolio information, including lease expirations, occupancy levels, and growth rates, allowing users to target prospective clients.
Markets: Enables viewing and reporting on market and submarket trends, including leasing, vacancy, rental rates, construction, investment sales, and economic conditions. It covers all major real estate sectors and provides forecasts.
Benchmarking: Provides hospitality benchmarking, allowing hotels to measure performance against competitors based on occupancy, ADR, and RevPAR.
Lender: Tools for lenders to manage loan portfolios and risk, including portfolio surveillance, concentration risk monitoring, stress testing, and expected credit loss modeling.
Information Services
The company provides real estate and lease management technology solutions, including lease administration, lease accounting, and abstraction services, through its CoStar Real Estate Manager service and the Visual Lease Acquisition. It provides information services internationally, through its Business Immo, Belbex, and Thomas Daily brands in France, Spain, and Germany, respectively.
Multifamily
Apartments.com, the flagship brand of the company's network of apartment marketing sites, provides a variety of subscription-based ad packages and enhancements that allow property managers and owners to showcase their apartment community through increased exposure and interactions that allow renters to view, engage, and connect with the community. Apartments.com also provides tools to facilitate the rental process, including online tenant applications with background and credit checks, and rental payment processing.
LoopNet
LoopNet.com, the flagship brand of the company's network of commercial property marketing sites, is a top commercial real estate marketing site where property owners, landlords, and brokers can advertise properties for sale or lease on a site that supplements their listing with CoStar Group's database of property information and content. Users can also access industry news from LoopNet’s editorial team as they search for properties. LoopNet offers a variety of subscription-based ad packages and enhancements. LoopNet Silver is designed for real estate professionals seeking maximum exposure and advanced marketing tools and markets listings to all LoopNet.com visitors. LoopNet Gold, Platinum, and Diamond Ads provide additional exposure on the LoopNet Network and retargeting across the web. The company provides commercial real estate marketing sites internationally through the following brands LoopNet.co.uk in the U.K., BureauxLocaux in France, and Belbex.com in Spain.
Residential
Homes.com and the acquisition of OnTheMarket have enabled the company to expand its offerings to the residential for-sale market. Homes.com is a homes-for-sale listings site that combines the company's proprietary research with listing information to allow homebuyers an informative and collaborative experience finding homes for sale or lease. In February 2024, the company began selling Homes.com memberships, which are subscription-based advertising services promoting an agent's profile and listings on its website. OnTheMarket is a property portal in the U.K. which primarily offers subscription-based advertising services to agents.
Other Marketplaces
Ten-X is an online auction platform for commercial real estate. The company's platform provides brokers, sellers, and buyers access to data-driven technology and marketing tools to expand market visibility and decrease time to close. The platform allows brokers and sellers to onboard assets, evaluate the results of complimentary marketing campaigns, and follow up on pre-qualified leads. Buyers can search for properties that meet their investment goals and are given access to market analysis and due diligence documents.
Land.com is a marketplace for rural land sales, where sellers pay to list their land and buyers can search listings.
BizBuySell is a marketplace for operating businesses and franchises for sale. Sellers pay to list their businesses, and buyers can search listings for free.
The company's services are typically distributed to its clients under subscription-based license agreements that typically renew automatically, a majority of which have a term of at least one year. To encourage clients to use its services regularly, the company generally charges a fixed monthly amount for its subscription-based services rather than charging fees based on actual platform usage or number of paid clicks. Depending on the type of service, contract rates are generally based on the number of sites, number of users, organization size, the client's business focus, the client's geographic location, the number and types of services to which a client subscribes, the number of properties a client advertises, and the prominence and placement of a client's advertised properties in the search results. The company's subscription clients generally pay contract fees on a monthly basis. Its transaction-based services primarily consist of auction fees from its Ten-X online auction platform for commercial real estate, which are generally calculated as a percentage of the final sales price for the commercial real estate property sold and recognized as revenue upon the successful closure of an auction.
Clients
A number of parties involved in commercial and residential real estate and the related business community use the services the company provides to obtain the information they need to conduct their businesses, including sales and leasing brokers, government agencies, property owners, mortgage-backed security issuers, property managers, appraisers, design and construction professionals, pension fund managers, real estate developers, reporters, real estate investment trust managers, tenant vendors, investment and commercial bankers, building services vendors, mortgage bankers, communications providers, mortgage brokers, insurance companies’ managers, retailers, institutional advisors, hospitality owners, investors and asset managers, and real estate agents.
Sales and Marketing
The company's sales strategy focuses on optimal service for existing customers, attracting new clients, and cross-selling its solutions. Its sales teams, primarily located in field offices across the U.S., Canada, the U.K., Spain, France, and Germany, sell multiple products. Inside sales teams in Arlington, VA, and Richmond, VA, work lead lists, prospect for new customers, and perform product demonstrations.
Local offices support field sales and research, providing clients with a local presence. Field sales teams handle customer service, client satisfaction, and relationship building. Local offices also serve as hubs for training, market insights, product feedback, and industry connections. The company manages client accounts through frequent meetings, product training, and updates on new enhancements.
In 2024, the company implemented sales initiatives targeting agents, brokers, property owners, and lenders in the U.S., continuing this focus into 2025. Its marketing methods include in-person and virtual demonstrations, targeted digital marketing, social media, direct marketing, corporate and campaign-specific websites, earned media, trade shows, company events, client referrals, and content marketing.
Digital and direct marketing, including SEO, paid advertising, social media, and display advertising, help the company find prospective clients. Service demonstrations are its effective sales method. The company sponsors and attends industry events to reinforce relationships with core user groups. For Apartments.com and Homes.com, it uses multi-channel marketing campaigns, including TV, radio, online ads, social media, email, public relations, and SEO. The company plans to continue these methods and apply similar strategies for LoopNet and Ten-X, optimizing marketing investments.
Expansion and Growth
The company acquired Visual Lease in November 2024.
Segments
The company operates in two reportable segments, which are North America, which includes the U.S. and Canada, and International, which primarily includes Europe, Asia-Pacific, and Latin America.
Proprietary Rights
The company maintains U.S. and international trademark registrations for CoStar Group’s core service names and proactively files U.S. and international trademark applications covering its new and planned service names. It owns the U.S. federally registered trademarks for its brands and services, including CoStar, CoStar Property, CoStar COMPS, CoStar Lease Analysis, LoopNet, Showcase.com, CityFeet.com, Apartments.com, Homes.com, Land.com, and Ten-X, among many others. In the U.S., trademarks are generally valid so long as they are in use and are capable of indicating CoStar Group as the source of services.
The company has seven patents in Canada, which expire in 2033 (1 patent), 2035 (2 patents), and 2036 (4 patents), covering, among other things, certain features of its field research methodologies and user interface features, and 12 patents in the U.S., which expire in 2025 (1 patent), 2032 (2 patents), 2036 (4 patents), 2037 (4 patents), and 2038 (1 patent), covering, among other things, certain features of its field research methodologies and user interface features.
History
CoStar Group, Inc., a Delaware corporation, was founded in 1987. The company was incorporated in 1998.