Weigh-In on the CoStar Acquisition of LoopNet

by CoyDavidson on April 28, 2011

If you are in the commercial real estate industry and unless you were under a rock yesterday or taking a much needed vacation, you heard all the buzz regarding the announcement that CoStar Group has agreed to acquire rival service provider LoopNet in a $860M transaction. The buzz on twitter following the announcement was significant and many in the CRE industry have a definitive opinion. I did tweet that I would not be blogging with my thoughts on the news, but I didn’t say that I wouldn’t post a poll question.

Let’s see what the industry thinks, weigh-in with your thoughts in the comments section.

 

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  • Anonymous

    If CoStar and LoopNet are allowed to become the Google of CRE will anyone even attempt to be the Bing or Yahoo? No choice, no innovation, no price competition. Yesterday I read an article that essentially said information arbitrage as a business plan for CRE professionals is a non-starter but if you have monopoly control of all the information you can dole it out or withhold it as you please.

  • Chris Clark

    Biggest concern is that they over-price LoopNet which is high enough as it is – even if they do add more functionality. There is an opportunity for smaller aggregators, though, but all the major brokers would have to bail on LoopNet

  • I see Costar beefing up subscription levels on Loopnet with too much information that smaller brokerages won’t necessarily need but will be forced to pay for…

  • I think Loopnet subscribers will be worse off for the merger.

  • Darbin Skeans

    This is really bad for the industry. Sounds like a monopoly to me. CoStar was already arrogant and difficult to deal with, as well as overpriced for the brokerage community. Now I can just imagine what they will be like. Time for Commercial Brokers to really get behind local Information Exchange platforms or perhaps start their own in conjunction with Realtor organizations. That’s what brokers did in Columbus, Ohio. Remember brokers control much of this data already.

  • What’s one more market being destroyed by one more oligopoly?
    ‘People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy against the public or in some contrivance to raise prices.’ (Adam Smith, The Wealth of Nations, 1776

    Oligopolies destroy free markets. Until we do something about their destructiveness we will never bring back the glory of our economy to the heights of yesteryear. Below is a list of some of things that happen as a result of our government failing to do its job as protector of our “free markets” http://www.freeourfreemarkets.org/2011/01/dstructiveness-of-oligopolies.html#more

  • Guest

    If I were an advisor to CoStar, I would give them one, simple piece of advise: Get people to like you. The rest is easy.

  • I tend to agree, I believe a big contributing factor to any negative sentiment that exists towards CoStar is rooted in the perceived customer service experience. The core product.CoStar Property is an excellent product. I understand everyone wants it cheaper but I can defend CoStar’s pricing structure. I believe they would encounter less resistance to their pricing structure if they were a little more savvy in the customer service arena.

    That being said the CoStar researcher assigned to our account of late is excellent. If they had more employees like her, many more would be willing to endorse their brand.

  • ABC

    I see price increases across the board.

  • Ken Falk, CCIM

    The recent 27April16 LoopNet rate increase is just how a monopoly works, and monopoly’s are illegal. It seems they certainly should be, and can be sued. I am a one-man office and just yesterday LoopNet raised my dues from an original $350,00/year, before they were bought-out by CoStar, to $2,351.52/year – and LoopNet said that’s a 20% discounted rate from $2,939.40/year. That’s a $2,000/year increase without providing added benefits or services! I need the service, but we are being gouged. Is anyone aware of alternative services that we have access to?

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