When the CoStar/LoopNet merger cleared regulatory hurdles early last year, I certainly wasn’t the only one who saw this as a potential opening for new players in the commercial real estate data space. Perhaps San Francisco-based 42Floors $12.3M in new capital announced today was a direct result of this consolidation and the opportunity it presented.
I’m pretty impressed with what Jason Freedman and his team have put together. Even though they are relatively unknown in real estate circles and their database is (at least on the Peninsula and in Silicon Valley) not nearly complete yet, they are already a factor in the evolving market for property information. I get more response on properties I post with 42floors than I do from their more established competitors– a lot more. They’ve clearly developed some traction with a certain class of tenant in pretty short order.
42Floors still has some work to do. I think they need to dramatically streamline the process for us listing brokers to enter information on our buildings. And what about mobile? CoStar’s mobile product for commercial real estate professionals is impressive, and LoopNet has a very solid consumer-side app– any new player in this space is playing catch-up right now in the critical mobile arena. Seems to me that 42Floors is very focused on the user interface and I think they’ve got a good shot at successfully mixing it up with the big boys.
Congratulations to the 42Floors team– looking forward to seeing whats next!