CoStar Group Strengths, Domain Expertise, and Key Differentiators
CoStar Group is a provider of information, analytics, and online marketplaces catering to commercial real estate and related sectors. Operating across the United States, the United Kingdom, Canada, Spain, Germany, and France, the company offers comprehensive databases and marketplaces for commercial properties, apartment rentals, land, and businesses for sale. It operates through two main segments: North America (including the U.S. and Canada) and International (covering the U.K., Spain, Germany, and France). Leveraging its suite of branded services, CoStar empowers customers with specialized tools for accessing, analyzing, and utilizing its extensive building-specific data. With multiple renowned brands including CoStar, LoopNet, Apartments.com, and BizBuySell, the company remains a key player in the global real estate market.
CoStar Group Recent Developments
In May 2023, CoStar Group announced the launch of STR Benchmarking, a market share product designed for the global hotel industry. Representing the evolution of STR, this new offering integrates hotel data benchmarking, analytics, and marketplace insights into CoStar's comprehensive information, analytics, and data-driven news platform. The initial release of STR Benchmarking focuses on property-level data and analytics, offering enhanced functionality based on the esteemed STAR Report. Featuring intuitive, multilingual software, the platform introduces new capabilities such as user and competitive set self-management, along with high-frequency data updates. Future enhancements, slated to commence later this year, include portfolio-level benchmarking, monthly profit and loss statements, average length of stay data, and forward-looking occupancy insights.
In June 2020, CoStar completed its acquisition of Ten-X for $190 million in cash. CoStar Group aims to integrate Ten-X's auction platform into both LoopNet and CoStar, leveraging its vast online commercial real estate audience, which garners 11 million monthly visits. This integration is expected to amplify the reach of Ten-X auctions by up to 40 times their current scope. With the largest global commercial real estate database and research operation, CoStar plans to enhance the buyer database for Ten-X auctions significantly. With 280,000 properties listed for sale on its platforms, CoStar intends to promote the Ten-X platform as an additional sales avenue for brokers, anticipating that increased property listings will attract more bidders.
CoStar Group Mergers and Acquisitions (M&A) Activities
In December 2023, CoStar Group finalized its acquisition of OnTheMarket. This acquisition merges CoStar Group's financial prowess, online marketplace expertise, and advanced technology with OnTheMarket's extensive network of agents. Together, they aim to challenge the dominance of established market leaders in the UK. The acquisition received strong backing from OnTheMarket shareholders, the majority of whom are agents.
In November 2020, CoStar finalized the acquisition of Homesnap, a platform designed to enhance workflow and marketing for residential real estate agents. Homesnap offers online and mobile software solutions that streamline agent tasks and strengthen client-agent connections. With over 300,000 agents across the nation utilizing the platform approximately 30 times monthly, Homesnap is widely adopted within the industry. Subsequently, in 2021, CoStar expanded its portfolio by acquiring Homes.com, intending to merge it with Homesnap. This strategic integration aims to deliver a unique service focused on optimizing the selling process, prioritizing faster sales and better prices over traditional agent fees.
In February 2020, CoStar completed the acquisition of RentPath’s business for $588 million in cash, amidst RentPath’s Chapter 11 bankruptcy proceedings. RentPath specializes in digital marketing for rental properties through various Internet listing websites such as Rent.com, ApartmentGuide.com, Rentals.com, and Lovely.com. According to comScore, RentPath's network of websites amassed over 21 million monthly visits and nearly 9 million monthly unique visitors in 2019, with approximately 28,000 properties advertised on its network as of December 2019. Based in Atlanta, Georgia, RentPath operates with around 770 employees.
CoStar Group Customers in ARTW Customer Database
Leveraging a rigorous data-centric research methodology, APPS RUN THE WORLD asks the simple question: Who’s buying CoStar Group applications and why? And we provide the answers – supported by decades of research – to our clients around the world. Our Customer database has over 100 data fields that detail company usage of CoStar Group and other enterprise apps by function, customer size, industry, location, implementation status, partner involvement, Line of Business Key Stakeholders and IT decision makers contact details. List of Verified CoStar Suite, Ten-X, CoStar Real Estate Manager customers.
CoStar Group Overview
1331 L Street, NW
Washington, DC, 20005, United States
1 888-226-7404
https://www.costargroup.com/
Ownership: - NASDAQ: CSGP
Number of Employees: 6152
Functional Markets: Analytics and BI, Content Management, CRM, eCommerce, ERP Financial, ERP Services and Operations, PPM,
Key Verticals: Aerospace and Defense, Automotive, Banking and Financial Services, Communications, Construction, Real Estate, Consumer Packaged Goods, Distribution, K12, Higher Education, Federal Government, State and Local Government, Public Safety, Healthcare, Life Insurance, P&C Insurance, Specialty Insurance, Leisure and Recreation, Hospitality, Life Sciences, Manufacturing, Media, Special Cause Nonprofit, Oil and Gas, Chemicals, Professional Services, Retail, Transportation, Utilities,
CoStar Group Key Enterprise and Cloud Applications
CoStar Suite, Ten-X, CoStar Real Estate Manager
CoStar Group Revenues, $M:
Type/Year | 2022 | 2023 | YoY Growth, % |
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Total Revenues, $M | Subscribe | Subscribe | Subscribe |
Enterprise Applications Revenues, $M | Subscribe | Subscribe | Subscribe |
Cloud Applications Revenues, $M | Subscribe | Subscribe | Subscribe |
* Enterprise Applications Revenues = License + Support & Maintenance + SaaS
** All revenue figures are estimates based on public records, Cloud and Non-Cloud business models in Apps Run The World's vendor database, and annual survey results including vendor feedback.
CoStar Group Revenue Breakdown By Type, $M:
CoStar Group Enterprise Applications Revenues By Functional Markets, $M:
CoStar Group Enterprise Applications Revenues By Verticals, $M:
CoStar Group Revenues By Region, $M
Region | % of Total Revenues | 2023 Total Revenues, $M | 2023 Enterprise Applications Revenues, $M | 2023 Cloud Applications Revenues, $M |
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Americas | Subscribe | Subscribe | Subscribe | Subscribe |
EMEA | Subscribe | Subscribe | Subscribe | Subscribe |
APAC | Subscribe | Subscribe | Subscribe | Subscribe |
Total | Subscribe | Subscribe | Subscribe | Subscribe |
CoStar Group Direct vs Indirect sales
Region | Direct Sales | Indirect Sales | Total |
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Type % | Subscribe | Subscribe | Subscribe |
Revenues, $M | Subscribe | Subscribe | Subscribe |
CoStar Group Customers - Breakdown by Geo, Size, Vertical and Product
List of Verified CoStar Group Customers
No. of CoStar Group Customers: 181000
No. of CoStar Group Enterprise Applications Customers: x
No. of CoStar Group Cloud Customers: x
No. of CoStar Group Cloud Subscribers: x
CoStar boasts a global subscriber base exceeding 181,000.
CoStar boasts a prestigious clientele that includes American Airlines, Charles Schwab, Verizon, Progressive Insurance, CBRE Group, Cushman & Wakefield, JLL, SJP Properties, and numerous other esteemed organizations.
CoStar Group Market Opportunities, M&A and Geo Expansions
In November 2023, CoStar Group introduced Sandra Roumi as its inaugural General Manager for France, charged with spearheading the company's expansion in the country. This strategic move aligns with CoStar Group's broader European growth strategy. With a presence in 15 countries worldwide, including the United Kingdom, Spain, Germany, and now France, CoStar Group is committed to its international expansion efforts.
In 2021, CoStar Group completed the acquisition of Emporis GmbH, a German company renowned for its international commercial real estate data and imagery. Emporis boasts a database of over 700,000 building records and 600,000 images, offering valuable research content spanning over 100 countries across major global regions. CoStar Group intends to seamlessly integrate Emporis' assets into its international platform. This acquisition represents CoStar Group's second major transaction in Germany, following its 2016 acquisition of Thomas Daily GmbH, an information provider specializing in the German real estate market.
The European expansion advanced through the acquisition of BureauxLocaux, a leading specialized property portal in France. With over 60,000 listings for sale and lease, and drawing over 425,000 monthly website visits, BureauxLocaux offers a subscription-based platform. It serves a clientele comprising more than 90% of France's premier commercial property brokers.
CoStar Group Risks and Challenges
The surge in apartment hunting, driving vacancy rates to unprecedented lows, has led to a decrease in demand for apartment advertising. This trend poses challenges for CoStar's online market platform, Apartments.com.
Coordinating the integration of recent acquisitions and consolidating various product suites presents a significant challenge for CoStar.
CoStar Group Ecosystem, Partners, Resellers and SI
In August 2023, CoStar Group proudly announced its sponsorship of the sixth annual Ultimate Backpack Supply Drive. This initiative aims to distribute over 35,000 backpacks filled with essential school supplies to students in Richmond public schools, ensuring they begin the school year fully equipped, at no cost to them. This donation underscores CoStar Group's enduring dedication to education and the Richmond community. Earlier this year, the company also pledged an $18 million partnership with VCU, demonstrating its commitment to supporting the development of VCU's planned Arts and Innovation Academic Building.
BDO USA and CoStar Real Estate Manager have announced a strategic partnership. Together, they will offer companies a comprehensive solution to address upcoming deadlines for compliance with new lease accounting standards established by the U.S. Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB).
CoStar Group has collaborated with the U.S. Department of Energy (DOE) to enhance awareness and accessibility of energy usage data for commercial and industrial buildings. As part of this partnership, CoStar intends to integrate building energy efficiency and performance information into its CoStar Property database.
CoStar Group Cloud Infrastructure Insights
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Research Methodology
Data used in research reports are derived from publicly available documents, continuous surveys of applications vendors, customers, resellers, Independent Software Vendors, systems integrators and other verifiable sources.
Vendor shares and market forecast results are based on a combination of existing databases as well as demand side and supply side research conducted throughout the year with validation from vendors, customers, channel partners and documentations such as earnings releases and 10Q and 10K filings, vertical industry studies, regional and country-level statistics from public and private institutions(i.e. colleges, universities, government agencies and trade associations).
For additional information on our methodologies, here's the link:
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