- Grand & Co. has filed a class-action suit accusing CoStar of monopolizing the CRE listings market.
- The suit alleges CoStar controls about 80% of the online CRE listing segment.
- CoStar denies all monopoly allegations and cites competition from Crexi.
- The case demands a jury trial to assess potential damages to brokers and clients.
Brooklyn Brokerage Files Suit
Bisnow reports that Grand & Co., a New York-based boutique brokerage, is leading a new class-action lawsuit against CoStar Group. The complaint alleges anticompetitive conduct. It claims violations of the Sherman Antitrust Act. Specifically, CoStar allegedly restricts customers from using rival CRE listing platforms.
Grand & Co. says CoStar controls about 80% of the online commercial real estate listings market. This dominance, they argue, raises barriers for new entrants. It also allows CoStar to charge high subscription fees. Brokers must often pay these costs to market listings effectively online.
Industry Faces Market Power Question
The lawsuit claims CoStar requires every broker at a firm to hold an individual subscription. Each subscription reportedly costs between $300 and $1K per month per person. It also alleges CoStar signed long-term exclusive agreements with major brokerages like CBRE, JLL, and Cushman & Wakefield. These deals, the suit argues, limit competition across the market.
Grand & Co.’s attorneys describe CoStar as an industry “bully” that brokers feel forced to use due to limited alternatives. The suit also references prior legal actions, including CoStar’s acquisition of LoopNet in 2011 and ongoing litigation with Crexi. The pressure on listing platforms is not isolated, as another major CRE data firm is now advancing through the federal appeals process on similar antitrust claims.
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Responses and Industry Impact
CoStar strongly denies the allegations, highlighting the continued existence and use of competing platforms like Crexi. Company representatives argue their terms do not prevent customers from listing elsewhere and call the lawsuit’s claims unfounded.
Crexi, which is also litigating antitrust issues with CoStar, supports Grand & Co.’s claims regarding restrictive contracts and anticompetitive market behavior, citing industry-wide concern over CoStar’s practices in the CRE listings space.
What’s Next
The suit seeks class-action status and a jury trial to determine if CoStar’s business practices have damaged brokers and consumers. CoStar maintains that its contracts reflect industry norms and denies the existence of unlawful market restrictions in CRE listings.
