by Chad Massaker | Mar 9, 2026 | Commercial Real Estate, Commercial Real Estate News, Commercial Real Estate Vendors
In the world of Commercial Real Estate (CRE), two giants—CoStar and Crexi—are locked in a legal battle that feels less like a corporate disagreement and more like a high-stakes heavyweight boxing match.
While it might seem like just “lawyers doing lawyer things,” the outcome could fundamentally change how you list properties, who owns your data, and how much you pay for the privilege.
Before we get into this, I should say that these observations are my own and do not neccesarily reflect those of my broker EXP Commercial.
The Core Conflict: Photos vs. Fair Play
At its simplest, this case is a “he-said, she-said” regarding two different areas of law: Copyright and Antitrust.
1. CoStar’s Argument: “You’re Stealing Our Stuff”
CoStar (the established king of the industry) claims that Crexi (the fast-growing challenger) has been “industrial-scale” stealing. Specifically, CoStar alleges that Crexi used offshore teams to:
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Scrape images from CoStar’s site (LoopNet).
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Crop out the CoStar watermarks.
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Upload those photos to Crexi to make their own database look better.
In 2025, a federal judge agreed that the evidence of “copy and crop” was overwhelming, finding that Crexi had a deliberate policy to do this.
2. Crexi’s Argument: “You’re a Bully”
Crexi hit back with a countersuit. They argue that CoStar is a monopoly—a company so big it uses its power to crush competition. Crexi claims CoStar:
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Forces brokers into “de facto” exclusive deals.
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Uses technical barriers to prevent brokers from moving their own data to other sites.
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Hikes prices by 300–500% once they buy out a competitor.
In late 2025 and early 2026, appellate courts gave Crexi a win, allowing these antitrust claims to move forward despite CoStar’s attempts to dismiss them.
3. The “Invisible Fence”: De Facto Exclusive Dealing
While CoStar’s contracts might not say, “You are forbidden from using Crexi,” the courts are looking at “de facto” (in practice) exclusivity. Crexi alleges that CoStar creates a system where it is practically impossible or financially ruinous to use anyone else.
| Practice |
How it Works |
The Impact on You |
| The “Moat” (LoopLink) |
CoStar provides “LoopLink,” a tool that powers the listings page on a broker’s own website. |
Crexi alleges this tool contains hidden code that blocks competitors from seeing or “indexing” your listings, even though they are on your site. |
| Bundling & Lock-in |
CoStar often bundles services (e.g., you can’t get the data you need without buying the expensive marketing package). |
It makes the “cost of switching” too high. To try a competitor, you’d have to pay twice for the same service. |
| Restrictive Licensing |
Terms that may restrict how you export your own data or photos to other platforms. |
You might find yourself having to recreate your entire database from scratch just to list a property on a second site. |
What This Means for You
For Commercial Real Estate Brokers
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The “Ownership” Trap: Many brokers are shocked to learn that once they upload a photo to CoStar, CoStar often claims copyright ownership of it. This lawsuit may clarify whether you actually own the marketing materials you paid for.
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Software Freedom: If Crexi wins, it might become much easier for you to “multi-list” properties without CoStar’s software blocking you or their contracts punishing you.
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Pricing: Competition usually lowers prices. If CoStar’s dominance is limited, you might see more affordable subscription options.
For Real Estate Investors
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Data Accuracy: If the courts find that data is being “scraped” and modified, it raises questions about the integrity of the listings you’re seeing.
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Market Transparency: A more competitive market means more platforms fighting to give you the best data. If CoStar wins and shuts down challengers, the “gatekeeper” effect becomes even stronger, meaning you pay whatever they ask for the data you need to make deals.
The Verdict: Whose Case is Stronger?
Currently, CoStar has the stronger case on Copyright, while Crexi has the momentum on Antitrust.
CoStar has “smoking gun” evidence (internal emails and instructions) showing Crexi employees intentionally removing watermarks. It is very hard to win a copyright case when you’ve been caught “cropping and swapping.”
However, Crexi’s argument that CoStar is a monopoly resonates with a CRE industry that has grown tired of CoStar’s aggressive pricing and litigation-heavy business model. The fact that the Ninth Circuit revived Crexi’s claims suggests the courts are ready to look seriously at whether CoStar is “bullying” the market.
Here’s what happens if CoStar wins:
If CoStar wins, they will likely receive a massive payout (potentially millions in damages) and could even get an injunction that severely limits Crexi’s ability to operate. This would solidify CoStar’s “moat,” likely leading to continued high subscription costs and stricter control over how property data is shared across the internet.
Here’s what happens if Crexi wins:
If Crexi’s antitrust claims succeed, CoStar could be forced to change its business practices. This might mean “opening up” their data silos, removing restrictive clauses from broker contracts, and making it easier for new tech companies to enter the space. For the average broker, it would mean more choices, lower fees, and more control over their own listings.
#DataOwnership #RealEstateLaw #ListingTech #CREBroker #CREMarketUpdate #CoStar #Crexi #BrokerLife #MarketInsights2026 #CommercialRealEstate #CRE #PropTech #Antitrust #RealEstateInvesting
by Chad Massaker | Sep 5, 2025 | Commercial Real Estate, Commercial Real Estate Investment, Industrial, Land, Leasing, Multifamily, New Construction, Office, Retail, Vacant
With the signing of the “One, Big, Beautiful Bill Act” (OBBBA) into law, the real estate landscape has shifted. While the headlines focus on the broader tax and spending policies, the real implications for commercial property owners and investors are in the details. This bill isn’t just beautiful—it’s complex, and understanding its nuances is key to maximizing your returns and minimizing your tax burden.
Let’s break down the most significant changes for commercial real estate and what you should be doing right now.
1. Bonus Depreciation is Back, and It’s Permanent
This is perhaps the biggest win for commercial property owners. The OBBBA permanently reinstates 100% bonus depreciation for qualifying property. This is a game-changer. Bonus depreciation allows you to immediately deduct the full cost of eligible property, rather than depreciating it over many years. This applies to a wide range of improvements, including interior build-outs, lighting, HVAC systems, and other non-structural upgrades.
What this means for you:
Immediate Cost Recovery: You can now accelerate your tax deductions, putting cash back in your pocket in the year you make the investment.
A Catalyst for Capital Improvements: This provision makes it more financially attractive to upgrade your properties. Whether you’re a landlord looking to attract new tenants with a state-of-the-art office space or an owner-operator modernizing your facility, the tax benefits are substantial.
Increased Asset Value: By investing in these upgrades and taking advantage of the tax savings, you’re not only improving the functionality and appeal of your property but also enhancing its long-term value.
2. The Qualified Business Income (QBI) Deduction is Now Permanent
For many of you who operate your real estate ventures as pass-through entities (LLCs, partnerships, S-Corps), the 20% QBI deduction has been a major benefit. Before the OBBBA, it was scheduled to expire at the end of 2025, creating a great deal of uncertainty. The new law makes this deduction a permanent fixture in the tax code.
What this means for you:
Long-Term Tax Certainty: You can now plan for the long term with confidence, knowing that this significant tax break is here to stay.
More Favorable Business Environment: This provides a stable and beneficial tax environment for real estate professionals and investors, encouraging continued investment and growth.
3. Opportunity Zones Are Here to Stay
The Qualified Opportunity Zone (QOZ) program, designed to incentivize investment in economically distressed communities, has been extended and made permanent. This is a massive boost for development and redevelopment projects in designated areas.
What this means for you:
Continued Investment Vehicle: The permanence of the program ensures that it remains a viable and attractive way to defer and potentially eliminate capital gains taxes.
New Development Opportunities: With the program’s long-term certainty, investors can confidently pursue larger, multi-phase projects that require a longer investment horizon. The bill also introduces new incentives for rural communities, broadening the scope of potential projects.
4. Expanded Incentives for Energy-Efficient Upgrades
While the OBBBA is not the Inflation Reduction Act (IRA) of 2022, it does include its own set of provisions for energy efficiency. The bill provides significant incentives for commercial building owners to invest in sustainable and energy-efficient systems.
What this means for you:
Stackable Benefits: You can combine these new incentives with the benefits of bonus depreciation, making energy-saving retrofits even more profitable.
The Green Advantage: As tenants and investors increasingly prioritize ESG (Environmental, Social, and Governance) goals, a building with modern, energy-efficient systems is a major competitive advantage. The tax credits for things like solar installations and HVAC upgrades directly reduce your project costs while making your asset more attractive in the market.
5. What Didn’t Happen is Just as Important
In early discussions of the bill, there were rumblings of changes that would have had a devastating impact on commercial real estate, including:
Elimination of 1031 Like-Kind Exchanges: The 1031 exchange is a cornerstone of real estate investment, allowing for the deferral of capital gains taxes on the sale of investment property. Its preservation is a huge relief.
Changes to the Tax on Carried Interest: The current tax treatment of carried interest for real estate professionals was maintained, which is a major positive for developers and fund managers.
New Taxes on Inbound Investment: The bill avoided creating a retaliatory tax that could have hindered foreign investment, a vital source of capital for the U.S. market.
The fact that these provisions were not included in the final bill is a testament to the real estate industry’s strong advocacy and removes significant potential headwinds.
The Bottom Line
The One, Big, Beautiful Bill Act is, on the whole, a net positive for commercial real estate. It provides a level of stability and certainty that has been missing from the tax landscape for years. By making key tax provisions permanent, it encourages long-term planning and investment.
For you, my clients, this is a call to action. It’s time to review your portfolio with a new lens. Are there capital improvements you’ve been putting off that are now financially more attractive? Are you considering a new development in an Opportunity Zone? Now is the time to leverage these new rules to your advantage.
Please don’t hesitate to reach out. We can work together to craft a strategic plan that aligns with these new legislative realities and ensures your real estate investments continue to thrive.
