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CoStar on Tuesday continued its ongoing campaign for real estate dominance, announcing that it is acquiring lease management software maker Visual Lease.
In a statement, CoStar described the move as a “strategic acquisition” that will be a boon to “corporations of all sizes.” Visual Lease will, the statement added, specifically “enhance” CoStar’s own rental management platform, which is designed to help managers automate and streamline tasks such as rent collection and accounting.
CoStar announced the acquisition the same day that it published its third-quarter earnings, which showed that revenue grew 11 percent year over year to $693 million.
Visual Lease was founded in 1996 and, according to CoStar, is used today by more than “1,500 organizations across the business services, construction, healthcare, manufacturing, and retail sectors.” The statement adds that the company provides support for clients’ teams via a “seamless platform that encourages strategic financial and operational outcomes for organizations.”
CoStar CEO Andy Florance celebrated the acquisition in the statement.
Andy Florance
“Bringing Visual Lease into the CoStar Group family will allow us to create the best possible experience for our customers,” Florance said. “By combining CoStar Group’s industry expertise with Visual Lease’s diverse customer base, deep lease portfolio management expertise, and leading sustainability solutions, we are well positioned to offer a more comprehensive service offering and continue growing both nationally and internationally.”
CoStar has made headlines — and enemies — in recent years for its aggressive push into the residential real estate industry. That push began with acquisitions of companies such as Homesnap and Homes.com, and more recently has involved an intense battle for supremacy in the consumer-facing portal space. CoStar has invested significant resources in its residential efforts and currently claims to be the second-most-visited portal in the U.S. after Zillow.
In Tuesday’s earnings report, CoStar reported that Q3 traffic to the Homes.com Network (i.e., Homes Network, the Apartments Network and the Land Network) reached 130 million average monthly unique visitors.
CoStar’s push into the residential space has happened simultaneously with additional high-profile acquisitions, including that of 3D imaging company Matterport earlier this year.
The Visual Lease purchase aligns with CoStar’s modus operandi of expansion-via-acquisitions. But with Visual Lease’s focus on corporate clients, the move also harkens back to CoStar’s roots as a commercial, rather than residential, real estate giant.
Marc Betesh
In Tuesday’s statement, Marc Betesh — Visual Lease’s founder and executive chairman — said that being acquired by CoStar “marks an exciting new chapter” for his company.
“This partnership with CoStar Group,” Betesh continued, “will allow us to propel our vision to even higher levels. I am incredibly proud of everything we have achieved since we began on this journey almost 30 years ago and am excited for all that is ahead.”
