It’s no secret that any startup that is entering this space is looking to chip away at CoStar’s market share, or create a new model for how space is marketed and found. If I were CoStar, I would be very afraid. Their product is cumbersome and their data is rarely accurate.
The most reliable service CoStar provides is their ability to market available space within the brokerage community. The problem is, however, that everybody uses it and nothing else. This is a huge opportunity for startups.
Think about it. If there was a way to register interest in office space on the internet without having to speak with a broker, who (or what) would be the procuring cause of the interest in space? The listing broker or the website on which the interest was registered? The brokerage companies that partner with the new listing services first will be the ones that benefit from the eventual wave of internet tenant demand from tenants directly and brokers looking on behalf of tenants.
After all, brokers are the experts, but they might not be the best or most efficient source of demand.