CoStar Group is buying the commercial real estate division of Ten-X for $190 million in a deal designed to increase the data company’s role in the transaction process, according to the Wall Street Journal. CoStar is looking to seize on the volume of distressed properties due to hit the market.
- The backdrop: Ten-X was struggling and laid off half of its workforce in November 2019.
- Be Smart: Competitors such as LSpire and CREXi are well positioned to take advantage of the economic downturn. These end-to-end platforms help streamline and optimize the antiquated sales process.
- Why it matters: Traditional brokerage firms must find a way to make their business models work. Seismic events don’t cause disruption –– they simply accelerate change and adoption.
- Worth Noting: The Ten-X commercial division is being sold by private-equity firm Thomas H. Lee Partners, which purchased a controlling interest in the company in 2017. That deal valued the entire company, including its residential business, at $1.6 billion. [WSJ]