PRESS RELEASE DETAIL


Nov 16, 2011

CoStar Group Completes Integration of CoStar Data Into Property & Portfolio Research (PPR) Analytics

WASHINGTON, Nov. 16, 2011 -- CoStar Group, Inc. (Nasdaq:CSGP), commercial real estate's leading provider of information and analytic services, today announced it has completed the integration of CoStar's comprehensive commercial property database and PPR's best-in-class analytics and forecasting tools. PPR clients will be able to base their investment decisions on actual, verified data that is more accurate, timely and granular. This is a significant move away from the sample data method that is currently employed in the industry.

  • Depth, breadth, granularity and timeliness of CoStar data expected to yield significant benefits to PPR clients compared to traditional survey based methods
  • Integration significantly increases coverage to 210 metro areas and nearly 8,000 submarkets

WASHINGTON, Nov. 16, 2011 -- CoStar Group, Inc. (Nasdaq:CSGP), commercial real estate's leading provider of information and analytic services, today announced it has completed the integration of CoStar's comprehensive commercial property database and PPR's best-in-class analytics and forecasting tools. PPR clients will be able to base their investment decisions on actual, verified data that is more accurate, timely and granular. This is a significant move away from the sample data method that is currently employed in the industry.

"PPR clients can now stay ahead of the trends and be informed in a way that was not possible before," said Andrew C. Florance, Founder and Chief Executive Officer of CoStar. "They will be able to identify trends as they are developing, not learn about them after they have happened. We expect this will yield new insights and analysis for our clients. The integration of PPR moves us closer to offering a comprehensive data and analytics solution that gives clients the ability to choose the modules they need with consistency and accuracy from one trusted source."

"Combining the analytic capabilities of PPR's 45 real estate economists and CoStar's research platform, with granular data on over 80 billion square feet of inventory, is a really powerful combination," added Florance.

The integration also represents a significant increase in the depth and breadth of data available from PPR's analytic products, and greatly improves PPR's geographic coverage from 100 metro areas and 952 submarkets to 210 metro areas and approximately 8,000 submarkets in the integrated database. All major property types including office, industrial, retail and multifamily are now covered.

Prior to being acquired by CoStar, PPR relied on brokerage and other data from a variety of different sources. While these sources were sufficient for broader market analysis, none offered nearly the depth and detail CoStar provides. CoStar data is much more comprehensive and timely than survey based data.

"Historically, PPR has been very well respected for its forecasting, analytics and relative value analysis acumen, but clients wanted more granularity, such as smaller submarkets," stated PPR Managing Director Hans Nordby. "With the integration of CoStar data, PPR will cover more narrowly defined submarkets and provide more granular information, right down to the building and suite level. We are confident that no other firm in commercial real estate research can approach this level of detail."

Nordby added, "By tracking the entire market, we believe our analysis will get stronger. We expect to be able to identify new supply and demand trends and dig deeper into quality and property sub-types in local markets as we capture local market input from our forecasting and analysis team members. Our models are expected to include more accurate supply, vacancy and rent dynamics, better accounting for lease terms and cap ex and more direct linkage to the capital markets."

The current data integration completes the first phase of CoStar's planned integration of PPR.  CoStar also plans to integrate some of PPR's existing tools and applications into the CoStar platform and develop new tools for CoStar and PPR clients through continued collaboration.

About Property and Portfolio Research

Property and Portfolio Research (PPR) provides unparalleled expertise and objective thinking in analyzing and forecasting commercial real estate markets. PPR sets the pace in offering independent research, a unique set of analytic tools, and actionable insights to investors on hundreds of global markets in North America and Europe. Clients, both public and private investors, range from commercial banks and financial institutions to pension funds and insurance companies as well as government and rating agencies.

With a dedicated commitment to providing the best in commercial real estate research, PPR's widely respected knowledge of the markets allows clients to stay ahead of market trends, act decisively, and feel confident about their investment decisions. PPR is a Division of CoStar Group.




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