LoopNet
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Type of site | Subsidiary of CoStar Group |
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Founded | 1995 |
Headquarters | Washington, DC |
Key people | Andrew Florence, CEO |
Industry | Technology |
URL | www |
LoopNet is an online marketplace for commercial property, primarily providing commercial property listings for sale and for lease in the United States and is currently owned by CoStar Group.
History[]
LoopNet was founded in 1995 by Dennis DeAndre. Working alongside engineer Steve Midgley, the two built LoopNet into the internet's largest commercial real estate listing service. LoopNet underwent three rounds of private venture capital financing in 1997 (Indo Suez), 1998 (Trinity Capital & Partners)[1] and $20 million in 1999 from fourT5 real estate brokers.[2]
In 2001, the company merged with PropertyFirst.com.[3]
In June 2006, the company became a public company via an initial public offering.[4] At that time, the company had 360,000 commercial properties for sale or lease.[5]
LoopNet acquired BizBuySell (2004),[6] CityFeet (2007),[7] REApps (2008),[8] Land & Farm/Lands of America (2008) and Bizquest (2010).[9]
In April 2012, CoStar Group acquired LoopNet for approximately $860 million in cash and stock.[10][11]
In 2014, the company settled a trademark infringement lawsuit that it brought against Dotloop.[12]
In 2020, to address rapid changes occurring in the COVID-19 commercial real estate market, the company added significant virtual tour capabilities.[13]
Business[]
As of December 2019, LoopNet had more than 8 million registered members and five million unique monthly visitors.[citation needed]
LoopNet was an early venture in Internet-based user-created content. As early as October 1996 virtually all of its commercial property listings were being entered by its users directly. Over time, LoopNet added the capability to import listings in an automated manner. But the core principles of its business: connecting sellers with buyers over an open and free network have remained unchanged to the present day.[14]
LoopNet's current business model involves selling memberships to its site. Paid or Premium Membership confers benefits that free, non-members do not enjoy. This revenue model was launched in Q4 2001, and LoopNet was one of the first internet companies to successfully launch and scale a so-called "Freemium" model for its services. In 2008, LoopNet for the first time introduced a tiered pricing structure for its memberships.[15]
Legal issues[]
In CoStar Group, Inc. v. LoopNet, Inc. (2006), in which Loopnet prevailed, it was determined that Loopnet, as an operator of a website, was no different from Netcom, then an internet service provider, and was not responsible for copyright infringements by its users. This ruling established precedent for copyright liability protection for many websites. It followed the Religious Technology Center v. Netcom case (better known as Scientology vs. the Internet). LoopNet demonstrated that it policed any user violations after the fact. The court did not require the company to stop future violations before they occur. Such a ruling could have effectively shut down LoopNet's website as well as those of many application service providers. CoStar unsuccessfully argued that LoopNet was an active party to the violations and thereby guilty of copyright infringement.
References[]
- ^ "Startup muse". Forbes. 17 August 1999.
- ^ Robson, Douglas; Feuerstein, Adam (12 December 1999). "Real estate giants bankroll LoopNet". American City Business Journals.
- ^ Reagin, Misty (18 July 2001). "LoopNet and PropertyFirst.com complete merger". National Real Estate Investor.
- ^ "LoopNet, Inc. Prices Initial Public Offering" (Press release). Business Wire. 7 June 2006.
- ^ Gelsi, Steve (5 June 2006). "LoopNet undaunted, looking to IPO". MarketWatch.
- ^ Writer, | Staff. "LoopNet buys BizBuySell". Inman. Retrieved 15 September 2020.
- ^ "LoopNet Acquires Cityfeet.com, the Largest Distribution Network for Commercial Property Listings" (Press release). Business Wire. 2 August 2007.
- ^ "LoopNet Acquires REApplications, the Leading Provider of On-Demand Brokerage Operations Software" (Press release). Business Wire. 8 April 2008.
- ^ "LoopNet offers commercial real estate data, comps". Bradley Inman. 25 March 2011.
- ^ Sernovitz, Daniel J. (30 April 2012). "CoStar Group completes LoopNet deal". American City Business Journals.
- ^ www.bizjournals.com https://www.bizjournals.com/washington/news/2012/04/30/costar-completes-loopnet-deal.html. Retrieved 15 September 2020. Missing or empty
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(help) - ^ Brownfield, Andy (22 July 2014). "Dotloop settles trademark lawsuit". American City Business Journals.
- ^ "LoopNet Launches CoTour to Conduct Virtual Tours in Real-Time". www.businesswire.com. 4 May 2020. Retrieved 15 September 2020.
- ^ Cohen, Joyce (13 April 2007). "Finding a Vacant Lot to Buy". The New York Times. ISSN 0362-4331. Retrieved 23 April 2019.
- ^ Best Stock for 2008: LoopNet Motley Fool, December 31, 2007
External links[]
- 2006 initial public offerings
- 2012 mergers and acquisitions
- Companies based in San Francisco
- Online real estate databases
- Real estate companies established in 1995
- Real estate services companies of the United States