Feeling out of the loop when it comes to commercial real estate? LoopNet provides information services to the commercial real estate market through LoopNet.com. Its flagship LoopNet Marketplace includes some 788,000 property listings; it offers a free basic membership, as well as a subscription-based premium membership. LoopNet has more than 4 million registered members and about 68,000 premium members. The firm also offers LoopLink, which helps real estate brokers integrate LoopNet listings into their own websites; BizBuySell and BizQuest, online marketplaces for businesses that are for sale; and commercial real estate network CityFeet.com. Real estate data firm CoStar Group owns LoopNet.
CoStar Group acquired LoopNet in 2012 for about $860 million in cash and stock. The deal combined two complementary providers of marketing and information services to the commercial real estate market. It effectively doubled the size of CoStar's paid subscriber base to some 160,000. In addition, CoStar's software products, which allow clients to access its database of office and industrial space and tenant information, are bolstering LoopNet's offerings.
LoopNet and CoStar announced the deal in 2011, after revenues and net income increased for LoopNet in 2010. The positive earnings were in part due to due to stabilizing industry conditions as the commercial real estate market began to show signs of a recovery that year. LoopNet's growth strategy relies in part on increasing its base of registered members, which it aims to convert into premium members. LoopNet derives a majority of revenues (some 70%) from premium members, who pay about $65 per month.
Another component of LoopNet's growth strategy is making acquisitions in order to offer more products and expand into new markets. Such acquisitions include the 2010 purchase of BizQuest, a website that lists some 35,000 businesses for sale. LoopNet made the deal to compliment BizBuySell and further its growth in the business for sale industry. Also that year the company acquired Reaction Web, a purchase that added custom websites, deal rooms, and private property marketing tools to LoopNet's offerings. Later in 2010 the company acquired LandsofAmerica, the operator of an online marketplace specializing in land for sale. The deal expanded its leadership position within the land sector, which includes commercial land, agricultural and farm land, ranch land, hunting land, and rural land.
Other strategic efforts include enhancing the functionality of its marketplace through developing new products. In 2010 it launched the LoopNet Property Research Database, which consists of data on 7.5 million commercial properties, including retail, office, industrial, and multifamily real estate holdings across the US. Along with the launch, LoopNet introduced its LoopNet iPad App that integrates the LoopNet Property Research Database with the LoopNet Marketplace. – less
3 salaries reported
$47,965 per year