Apr 29, 2011
CoStar Group Announces Major Expansion of Analytic, Forecasting Tools
Upcoming Release Will Provide Most Comprehensive Detail Available on 4,000 Submarkets; CoStar's Census-Research Methodology, Analyst Coverage Help Investors Pinpoint Critical Changes in Local Market Conditions
WASHINGTON, April 29, 2011 -- CoStar Group, Inc. (Nasdaq:CSGP) today announced that it plans to release a major expansion of its online analytic and forecasting tools in the third quarter of 2011. The upcoming release is the first in a series of several planned enhancements to its suite of analytic products following the integration of CoStar and Property and Portfolio Research, Inc. (PPR).
CoStar's expanded analytic offering will provide unmatched capabilities for analyzing and forecasting investment and leasing trends in local markets. By offering enhanced historical and forecast time series for key market indicators, including construction, leasing, vacancy, rent, capitalization rates, investment trends, and changes in property sale prices, CoStar's analytic reports will provide a more comprehensive view of market conditions to help investors pinpoint market movements with greater precision and accuracy.
The number of submarkets available for analysis is expected to increase from approximately 1,000 today, to more than 4,000 submarkets, with detailed information available down to the individual building-suite or store-level. The Company believes no other competitor covers even half that number of submarkets, or provides that depth of granularity.
"CoStar takes a more rigorous approach to tracking commercial real estate information than other information providers and has much greater participation, cooperation and oversight from the commercial real estate community," stated CoStar Group Founder and CEO Andrew C. Florance.
As a result, CoStar's analytic data is much more comprehensive, both in amount and breadth of information being tracked, and yields supply and demand statistics that are much more timely, accurate and reliable than information providers such as REIS, which can only build their forecasts on a relatively small sample of the market.
"Timely, accurate information and analysis is critically important for investors, particularly those who are trying to time the market," Florance continued. "In order to take advantage of the old adage "buy low, sell high," an investor would need to know when the market had hit bottom to avoid buying into a market that was going to continue to decline. Similarly, if you're basing your decisions on a forecast that lags true market conditions, you risk missing the optimum time to buy."
The value of CoStar's comprehensive market insight and analysis has recently been recognized in several prestigious industry awards. In April 2011, The American Real Estate Society bestowed its top academic honor to CoStar when it selected a study co-authored by CoStar Group executives and published in the Journal of Real Estate Portfolio Management (JREPM) to receive its "Best Paper Award" for 2010. CoStar's comprehensive analysis was the first to use direct measurement to produce a much more accurate and precise valuation of the U.S. commercial real estate market as an asset class.
And yesterday CoStar was recognized by the Washington Business Journal with an award for "Best Real Estate Deal of 2010-Urban Office Sale" for its acquisition of 1331 L Street NW in Washington, DC. CoStar acquired the 169,429-square-foot office building in February 2010 for $41.3 million or $243 per square foot, less than half of the market rate average at the time of $518 per square foot. CoStar was able to take advantage of its market intelligence again in February 2011 when it sold the building to an affiliate of Munich-based GLL Real Estate Partners GmbH for aggregate consideration of $101 million in a sale-leaseback.
"We were able to capitalize on the recovery in investment grade real estate before the average investor was aware of it," stated Florance. "The awards and these transactions demonstrate the value that quality forecasting and analytical tools provide to owners and investors," Florance added. "They are a key part of our strategic roadmap and will continue to receive significant ongoing investment."
CoStar also plans additional vertical segmentation and specialized analytic sets oriented around specific customer segments such as multifamily, retail, owner/investor, financial institutions and appraisers.
About CoStar Group, Inc.
CoStar Group (Nasdaq:CSGP) is commercial real estate's leading provider of information and analytic services. Founded in 1987, CoStar conducts expansive, ongoing research to produce and maintain the largest and most comprehensive database of commercial real estate information. Our suite of online services enables clients to analyze, interpret and gain unmatched insight on commercial property values, market conditions and current availabilities. Headquartered in Washington, DC, CoStar maintains offices throughout the U.S. and in Europe with a staff of approximately 1,500 worldwide, including the industry's largest professional research organization. For more information, visit www.costar.com.