The commercial real estate data sector is rapidly and fundamentally changing before our eyes. Startups like VTS, Reonomy and CompStak are launching new services, charting nationwide expansions, landing venture capital investments and securing institutional partnerships. As they widen their product offerings and user bases, these companies are beginning to resemble young versions of the industry’s Goliath: CoStar. But don’t tell them that.
The CEO of each company tells Bisnow they see their offerings and business models as materially different than CoStar’s. They see the December shutdown of Xceligent as a warning against taking on CoStar head-to-head at its own game, and instead say they are approaching the space with newer technologies and more efficient strategies than the industry’s 30-year-old giant. CoStar CEO Andy Florance, in an interview Thursday evening, said he does not see any competitors with more innovative technology than what his $15B company offers, and he is not worried about startups in the industry taking away his market share. He sees the commercial real estate data space continuing to grow exponentially as the industry further adopts technology and believes there is room for plenty of companies to coexist.