What is CoStar?
CoStar is a commercial real estate information and analytics platform that provides data on properties, market trends, and comparable sales. It serves as a centralized database for brokers, investors, appraisers, and lenders who need access to detailed property information across the United States and select international markets.
The platform aggregates listing data, ownership records, tenant information, sales transactions, and property characteristics into a searchable online system. CoStar Group also owns related brands including LoopNet, Apartments.com, and BizBuySell.
How CoStar Was Founded
CoStar Group was founded in 1987 by Andrew Florance in Washington, D.C. Florance recognized that commercial real estate professionals lacked centralized access to property data and market intelligence, which was scattered across multiple sources or unavailable entirely.
He began by manually collecting property information and building a database that brokers could subscribe to for research purposes. Over the following decades, the company expanded through acquisitions and technology development.
CoStar went public in 1998 and has since grown to cover millions of commercial properties with a research team that verifies and updates information continuously.
What CoStar Offers and Supports
CoStar provides subscription-based access to its commercial property database, which includes office, retail, industrial, multifamily, hospitality, and land properties. The platform offers property details such as square footage, year built, occupancy rates, lease comparables, tenant rosters, and ownership history.
Users can access market analytics, generate reports, search for available spaces, track sales comps, and monitor new listings. The system also includes mapping tools, demographic data, and contact information for property owners and brokers.
CoStar Suite is the flagship product, while specialized versions exist for different user types, including CoStar for tenant representation and CoStar for property management companies.
CoStar Use Cases in Real Estate
Commercial brokers use CoStar to research properties when representing buyers or tenants, identify comparable sales for pricing analysis, and track inventory in specific markets. The platform helps them prepare proposals and market reports with verified data.
Appraisers rely on CoStar to pull comparable sales and lease transactions when valuing commercial properties for financing or acquisition purposes. Lenders use the platform to underwrite loans by reviewing property performance, tenant quality, and market conditions.
Investors and developers access CoStar to identify acquisition opportunities, analyze submarket trends, and evaluate competition. Property owners use it to monitor their portfolios and benchmark their assets against comparable properties.
