Commercial real estate information company CoStar Group recently released a statement to address some reporting it found to be inaccurate in a recent article The Real Deal published. The article covered CoStar’s second quarter earnings call and included statements attributed CoStars Chief Executive Office and the company it said were never made.
Due to concerned customers and investors contacting CoStar for clarification after the story was released, the company put out its own statement to set the record straight.
Clarification #1: LoopNet isn’t going anywhere.
Among those corrections was the fact that CoStar Group has no plans to shut down its online real estate marketplace LoopNet, where more than 65,000 real estate owners and brokers market properties, according to the company.
“(LoopNet) is the most successful online commercial real estate marketplace in the world,” the company wrote in its release. “It generates more than $120 million in revenue, it is growing rapidly, it is profitable and we continue to invest in it. LoopNet is extremely valuable to both the CRE Industry and CoStar Group.”
Clarification #2: ForRent.com is remaining its own entity.
CoStar Group also clarified it does not plan to fold ForRent.com into Apartments.com. The company stated the ForRent brands and its four websites are key parts of its Apartments.com network. CoStar acquired ForRent for $385 million earlier this year.
“More than 3.5 million renters visit ForRent.com each month,” the company wrote. “Apartment owners invest approximately $85 million a year to reach the millions of renters searching for apartments for ForRent.com. It is clear we are not planning to shut down ForRent.com.”
Clarification #3: CoStar is not suing its customers.
Finally, CoStar Group cleared up the report that it was planning to sue 30,000 customers. The company stated it was not in any company’s interested to do so, and it is not possible to do. CoStar group wrote what it said on its Q1 2018 earnings call was it believed there could be as many as 10,000, or perhaps two to three times that amount of people illegally accessing CoStar.
“We did not say we are suing them,” the company said in its release. “We never call the people stealing our product customers because people accessing CoStar without paying for it are not our customers. CoStar is working hard to stop theft because it drives up the cost of the product for the honest people who pay for the service.”
While The Real Deal published a corrected article acknowledging its mistakes, CoStar noted in its release the incorrect information came after the company announced it was hiring industry reporters from around the globe to build a competing real estate news service.