June 10 - 2021
You asked, we answered! We often get the question — How much does CompStak cost? People often remark — It’s too good to be true, how can CompStak’s data be more accurate while also being free?
These are reasonable questions, especially in the CRE space where it’s unusual to get free services. This is particularly so with data like confirmed lease comp details such as concessions and net effective rents, and non-public sale comp information like NOI and cap rates.
Sounds a bit complicated, right? Let’s dive into it and go through CompStak products, types of users, and how we are able to offer free services.
At CompStak, we have two products: CompStak Exchange and CompStak Enterprise. CompStak Exchange is free for brokers, appraisers, and researchers or CRE professionals working at commercial real estate brokerage and appraisal firms. CompStak Enterprise is a license-based platform for lenders, asset managers, private equity investors, portfolio managers, CMBS investors, and other CRE professionals.
The reason why we are able to offer our CompStak Exchange members free services is simple. It’s crowdsourcing. Our members share their data with us to get access to the comps they’re looking for.
Our users often think they get a comp for a comp, while in reality, they get access to multiple comps in exchange for their data. Because recency matters to you, it matters to us, so we award more credits to members who share recent data with us.
In addition to offering access to lease and sale comp data, we provide our members with a market-based research and productivity tool — Market Dashboard, which enables users to review and share key activity, insights, and trends at no cost. All CompStak Exchange members have access to the Market Dashboard simply by joining CompStak even without sharing any comps.
How were CRE brokers and appraisers gathering comps 10 years ago before tech entered the real estate sector? If you imagine people spending hours calling each other and exchanging comps, you won’t be mistaken. Even though the process was time-consuming, it was free. At CompStak, we replicated the free and fair “offline” practice of trading comps and brought it “online.” We then added other cool features such as property pages, custom exports, analytics, and more.
CRE professionals like you share their data with us. We verify, normalize, organize, and deliver this data to you for free because the data we have comes from YOU. And if our data comes from you, why would we charge you for it? Unlike other CRE data providers, we don’t view our 30,000+ members as a source of revenue. Instead, we focus on engaging and building relationships with our members that result in high-quality, accurate data.
Then, you might wonder how our data would be accurate if we don’t charge you for it? And how does CompStak make money? And how does our data compare to other providers?
Let’s dive into the details…
CompStak Exchange operates on a give-to-get basis so you can share comps to unlock other comps. We gather comps from confirmed CRE professionals, who go through a pre-qualification process before they’re allowed to submit their data to us and use the platform. Once a member has been confirmed and shares their comps, all data goes through a verification process.
CompStak has a robust data processing pipeline designed to ensure quality and allows for our data to be constantly reviewed, confirmed, and/or updated. Behind every one of our comps, there’s a well-documented history of each version we’ve received — and each underlying data field — as well as our own data analysts’ adjustments and notes.
Given their complexity, lease contracts go through an additional abstraction stage before the files enter our usual data processing pipeline, for which we contract with knowledgeable professionals trained specifically in commercial lease abstraction. Our system ensures you only get 1 version of the abstract no matter who is doing the abstracting.
Ok, now you understand how CompStak receives and verifies data, but how does CompStak make money?
On CompStak Enterprise we sell data licenses to investors, banks, hedge funds, and other enterprises. All enterprise prospects get a free trial and have access to our dedicated sales team. Enterprise clients get unlimited access to a specified set of data, and analytics and insights tools.
Learn more about how CompStak compares to other CRE data providers:
If you are a broker, appraiser, or researcher, you can request your free CompStak Exchange account here. We encourage you to use your work email address as it will help us to accelerate the approval process and get you on board as soon as possible. If you are working for a bank, hedge fund, or another enterprise, please set up a demo here and our sales team will be in touch with you shortly.