Last week I wrote about a disturbing trend of posts I was seeing on various portals regarding LoopNet’s recent price increases. My objective was not to lead a revolt — but simply to let the brokerage community know you are not alone, others are also frustrated with the lack of competitive alternatives in the property data industry. At the same time, I thought just maybe my message would get to LoopNet (and by matter of affiliation, CoStar) — and just maybe they would tune into what their customers are saying, before their customers tune them out.
While I certainly expected some feedback, the amount of feedback received far exceeded my expectations.
The comments shared on my post (and with me privately) came from: frustrated brokers, clients, peers, the general brokerage community, possible LoopNet competitors, and yes — even CoStar.
Once again, the brokerage reaction was strong – in both directions. Sample posts include:
- It’s a good business model. Don’t knock it!
- I use it because I have to. We get fewer leads from LoopNet every year.
- Nobody who relies on any Internet service to conduct business can control outcomes, which is truly what our clients deserve.
- Yes, seriously. LoopNet’s info in our region is so old and inaccurate it’s laughable. I can count on one finger the amount of times that I received an inquiry on listings that I posted…and that was before and after CoStar bought them.
- Our industrial division lists a ton of property, and our projected loopnet costs for the industrial group have tripled with the new pricing. They now count a property that is for sale and lease as TWO listings, among other things.
Which brings us to the competitors (or at least wannabe competitors) that have offered readers an alternative. Note, I am not endorsing any of these, and know little about them — I am simply sharing the posts.
- NAR has a free software system real property resource, but commercial brokers don’t use it.
- Yes we are mad as hell and I don’t see how that business model is sustainable. We are switching to CREXI
- The investor deck for ApartmentBuildings.com will be completed this week. We will be raising capital starting next week
- Shameless plug: QuantumListing.com
- Realnexmarketplace.com. Free list and search. Incredible advanced marketing, dashboards, CRM and deal room integrations.
And finally, there was a response from CoStar — which I won’t share with you (at least not yet). We are talking this week, I am looking forward to it.
There is no doubt that CoStar and LoopNet provide a service to the commercial real estate brokerage community. The value of their services are measured by what folks are willing to pay. As of now, they remain the king of the road — albeit, a road with seemingly only 1 lane.
Please leave us a comment below and tell us how you feel.
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