Top Tech: CoStar

Top Tech: CoStar

In a recent series of blogs, we have been sharing some of our top technology tools for use in commercial real estate (CRE) – the kinds of tech we use to give us an edge. Please note, though, this is NOT a paid or sponsored blog. We are motivated only by sharing the tools of the trade with our wide network of partners and peers.

Here, in the third such post in the series, we are exploring CoStar – which bills itself as the largest commercial real estate information and analytics provider. Below we get into the specifics of just why we use them. You can find CoStar at www.costar.com.

What is CoStar?

CoStar is a supplier of information and information-powered tools, and they have the kind of data volume that can unlock nuanced analysis of trends and market movers – with 129 billion square feet of inventory tracked and data points on over six million commercial properties.

Their portfolio includes several products, offering a tool for just about any CRE stakeholder you can think of, including brokers, owners, lenders, appraisers, and more.

Established player

Currently being a “big data business” is very trendy, but CoStar are not a new operation. Rather, founded in 1987, they have been an information and research provider for over three decades.

The CoStar Group is listed on the NASDAQ and was recently included in Fortune Magazine’s top 100 Fastest-Growing Companies (in 29th position) – an annual list by the business-focused publication.

The information you need

The platform includes millions of CRE comparative statistics or “comparables”, such as transaction notes, rent, occupation, cap rates, and that ever-important pricing information. You can also use the tool to access data on the status of a property (for sale, under contract, or sold). They also offer the functionality of aerial and map overlays, so you can explore market activity data in direct relation to its location, so you have both content and context.

You can also customize reports, manage your own listings, and access their regular indices and research materials and forecasts.

The connections you want

Over and above crunching the numbers on all things CRE – like inventory, valuations, and more – CoStar maintains a professional directory on almost six million industry contacts in order to foster connections and enable collaborations. Through this, you can not only get the low down on a listing, but also link those deals with names, and those names with means to get in touch.

[Call for social] What are your go-to tools for commercial real estate? And what is the one set of property data you wish you could lay your eyeballs on? Share your ideas with us here.  

What’s happening in… Seoul, Korea?

A quick reminder to NAI Professionals and clients: NAI Global’s reach is, well, global. We are proud of all NAI Offices around the world as well as their regional and local insight. For today’s edition of the ‘What’s happening in…’ blogs, we turn our attention to Seoul, the capital of South Korea – and specifically its office real estate vertical.

Located in the north-west of the country, Seoul is home to some nine million people (including over 400,000 non-nationals), and is the largest city in Korea. It is strongly associated with technology, finance, and business, and some 14 companies from the Fortune Global 500 are headquartered here, including Samsung, Hyundai, and LG.

Changing lives

In Seoul, our local experts and partners describe a commercial real estate (CRE) and office space environment that is relatively stable despite the hardships of the Covid-19 pandemic, with a limited amount of new supply expected to come on to the market in 2021. In early Feb 2021, Korea, as a country, had some 80,000 infections and a death toll of 1464, and Seoul was a key concern for pandemic management because it is such a densely populated city.

Still, there have been considerable social and work-life changes in Seoul as a result of the pandemic. The Korean Herald reports that residents of Seoul worked less and relaxed more during 2020. This comes from the findings of a city government survey that shows a 12-minute decline in daily working time compared to 2019.

Seoul itself offers a vibrant and diverse community, and it is a regional center of economic activity, in easy travel distance of many of Asia’s highlights. Industrial action has however led to a decline in working days, and tourism has been greatly slowed by Covid-19 fears. As the vaccination efforts roll out, these are some of the economic areas where analysts are hoping for a recovery in 2021..

Latest data

Despite the pressures of lockdowns and distancing, 2020 was reportedly a record-breaker year for office investment volume. Analysts suggest that this is underpinned by a healthy investor appetite for stable real estate assets and see Seoul as offering this.

According to the NAI Korea [HM1] monthly data analysis focusing on its market, published in January 2021, the average vacancy rate of office buildings in Seoul’s central business district (CBD) is 7.62%, with the average net occupancy cost (NOC) at $52.39 as of December 2020. NOC is the cost that 1㎡ of gross floor area incurs to a tenant who rents the property. NOC can be useful to compare different types of office buildings.

On the residential side, driven by low supply, there has been strong growth in prices, and this is likely to see policymakers relaxing some restrictions.

For a detailed breakdown of NAI Korea’s Seoul data, click here.


Simpler Times

By Alec J. Pacella for Properties Magazine, March 2021

This month marks an anniversary of sorts. I’m sure you can remember exactly what even made you realize that COVID-19 was going to be a much bigger deal than originally thought. Most likely, this event happened sometime in the first two weeks of March 2020.

For the complete article, click here.

Pants on Fire

by Alec Pacella for February 2021, Properties Magazine, Financial Strategies

The 2020 election will long be remembered for a host of reasons. If you can put aside all of the noise and focus specifically on the numbers, an interesting thing occurred. The Republican candidate garnered over 72 million votes, which is the most votes ever cast in the history of the U.S. election. Except, of course, for the Democratic candidate in this year’s election, who garnered over 81 million votes.

Click here for the full article.

3 Ways to Embrace Green Building

In contemporary developments, environmental building has gone from being a ‘nice touch’ to a nearly mandatory consideration. Today’s consumer culture is passionate about choosing brands and companies that make eco-conscious choices, which have put the pressure on professionals to take tangible (and marketable) steps towards going green.

Resultantly, this has fueled a major trend in the world of commercial real estate. As their clientele demand all things green, our tenants and investors are hitting the commercial markets with green building in mind.

With success on the line, CRE pros need to start incorporating the green building module into their strategies. Fortunately, there are tons of different ways this can be accomplished – many of which won’t break the bank.


Let’s take a deeper look at green building and review some tips that will help CRE embrace this lasting trend.

Green Building Defined

Green buildings place strong importance on sustainability, waste reduction, and lessening a property’s carbon footprint. Successful green buildings are given the official stamp of approval by the Leadership in Energy and Environmental Design (LEED). There are more than 200,000 LEED-certified buildings globally and the trend is only growing.

It’s safe to say that nearly every commercial sector is taking steps to become more environmentally-friendly. Retail, multifamily, office, hospitality, and even industrial are all being pushed towards a greener outlook. This development is having a big impact on the physical spaces they inhabit.

The commercial industry is shifting its focus towards an eco-conscious building module. Data analysts anticipate that commercial property owners around the world will be spending $960 billion in eco-conscious investments by 2023.

However, that’s not to say that all green upgrades will rack up a big price tag. Here are a few great tips to help you achieve a building that’s good for both the planet and your bank accounts.

Keep Your Eyes on These 3 Trends

Apply these 3 environmentally-friendly tips to your commercial portfolio to seamlessly transition your buildings into a greener future. 

Include Green-Thinking In Daily Habits

Sometimes, it’s the little things that matter most.

It doesn’t always take a huge effort to cultivate a greener building. Instead, property owners can add a few easy-to-do daily habits to your regular maintenance routine. Get serious about recycling efforts, install a bike rack for tenants, and educate building users about cutting back on wasted water.

Green Leasing

Have you heard of the green leasing trend? If not, you’re missing out on an eco-friendly practice that’s not only helpful but also nearly cost-free. When writing the lease document, draft up energy-efficient reports, create recommended-use directions to reduce waste, and add in green requirements.

Energy-Efficient Everything

Whether it’s appliances, tools, or lighting; green buildings employ eco-efficient products as much as possible. A great way to get started at a low cost is by replacing the building’s older lights with LED lighting. LED lighting lets off more light and less heat, meaning less energy is being wasted.

Wasting less means spending less. Watch utility bills reduce after applying energy-saving tools throughout the commercial property.

Stay tuned for more CRE tips and news.