LoopNet

LoopNet, Inc.
Type of site
Subsidiary of CoStar Group
Founded1995; 29 years ago (1995)
Headquarters
Washington, DC
Key peopleAndrew Florence, CEO
IndustryTechnology
URLwww.loopnet.com

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 commercial property data company 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]

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. [citation needed]

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]

In 2014, the company settled a trademark infringement lawsuit that it brought against Dotloop.[11]

In 2020, to address rapid changes occurring in the COVID-19 commercial real estate market, the company added significant virtual tour capabilities.[12]

Business

LoopNet connects tenants and buyers with owners over an open and free network.[13] As of April 2023, LoopNet had more than 12 million unique monthly visitors.[citation needed]

LoopNet's business model involves selling memberships to its site to those that lease or sell Commercial Real Estate. Paid or Premium Membership confers additional benefits with a free model existing but only showing those listings to groups with CoStar membership.[14]

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

  1. ^ "Startup muse". Forbes. 17 August 1999.
  2. ^ Robson, Douglas; Feuerstein, Adam (12 December 1999). "Real estate giants bankroll LoopNet". American City Business Journals.
  3. ^ Reagin, Misty (18 July 2001). "LoopNet and PropertyFirst.com complete merger". National Real Estate Investor.
  4. ^ "LoopNet, Inc. Prices Initial Public Offering" (Press release). Business Wire. 7 June 2006.
  5. ^ Gelsi, Steve (5 June 2006). "LoopNet undaunted, looking to IPO". MarketWatch.
  6. ^ Writer, | Staff. "LoopNet buys BizBuySell". Inman. Retrieved 15 September 2020.
  7. ^ "LoopNet Laces Up CityFeet Shoes". Motley Fool. 14 November 2016. Retrieved 4 March 2022.
  8. ^ "REApplications Acquired By LoopNet". SoCAl Tech. 9 April 2008. Retrieved 4 March 2022.
  9. ^ "LoopNet offers commercial real estate data, comps". Bradley Inman. 25 March 2011.
  10. ^ Sernovitz, Daniel J. (30 April 2012). "CoStar Group completes LoopNet deal". American City Business Journals.
  11. ^ Brownfield, Andy (22 July 2014). "Dotloop settles trademark lawsuit". American City Business Journals.
  12. ^ "LoopNet Launches CoTour to Conduct Virtual Tours in Real-Time". www.businesswire.com. 4 May 2020. Retrieved 15 September 2020.
  13. ^ Cohen, Joyce (13 April 2007). "Finding a Vacant Lot to Buy". The New York Times. ISSN 0362-4331. Retrieved 23 April 2019.
  14. ^ Best Stock for 2008: LoopNet Motley Fool, December 31, 2007