Meet the company that s looking to take on CoStar in New York Xceligent set to launch by May, but faces headwinds
CoStar s Andrew Florance and Xceligent s Doug Curry
Since the 1990s, New York brokers and investors have been dependent on a single data provider for commercial leasing information: CoStar. “We’ve all become addicted to it on some level, for better or for worse,” said Joel Herskowitz, COO of Lee Associates. But that could change now that CoStar’s only true national competitor is preparing to expand to New York City.
Xceligent, which has captured market share in numerous secondary markets, has been gathering data on New York properties for several months and aims to officially launch a New York database in May, the company’s CEO Doug Curry told The Real Deal. Local brokers say they would welcome a new entrant. “I believe by having two players in the game it’s going to up everybody’s game,” Herskowitz said. Still, Xceligent faces an uphill battle to unseat CoStar as the dominant player.
Like CoStar, Xceligent offers a subscription-based commercial property database with information collected by an army of researchers. It says it employs 1,300 people, with 325 of them working on building up the New York City database (around 140 will stay on permanently after the launch). The company is currently active in around 50 markets, according to Curry – mostly in the Midwest, South and California.
As TRD reported this month, many in New York’s real estate industry have a conflicted attitude towards CoStar. They credit it with making the industry more efficient and easier to navigate by making an unprecedented amount of data available online. But many balk at CoStar’s high prices, the lack of a real alternative and its often heavy-handed treatment of anyone it accuses of stealing its data. This ambivalence could be an opportunity for Xceligent. CompStak, a startup launched in New York in 2011, has carved out a niche for itself in the leasing comps space, and has raised at least $14.4 million in venture capital.
“I guess the question is ‘is competition good for the marketplace?’” said Michael Slattery, head of research at the Real Estate Board of New York. He argued that having another player in the data market could lead to both lower prices and better data.
“I think they’ve got all the elements for success, he said. They’ve got experience, they’ve got capital and they’ve got staff. The companies they deal with across the country are also in New York and supportive of the effort to come here.”
The main difference between CoStar and Xceligent is that the latter’s爱上海龙凤419桑拿