Real Estate InvestorsBeat totally wrote up an awesome article all about CompStak! We're making waves!
Comps are highly valuable because they give a true picture of what’s really going on in the market. How much are tenants paying in rent? Who’s leasing from who? What types of concessions are landlords providing? While this information can be useful, it’s not always easy to find. CompStak is the first ever crowd-sourced platform where users can gather and share commercial real estate information.
CompStak CEO, Michael Mandel was a commercial real estate broker in New York when he realized that lease comps were very difficult to come by. Director of Operations and Marketing, Danny Shachar says, “Brokers traded comps with their peers, but the trading was often inefficient and slow and there was always a lot of guesswork and wasted time in trying to find the information that was relevant.”
Although some companies maintained their own databases, there wasn’t a central place to find lease information about deals done by brokers from other firms. So, Michael partnered up with software engineer, Vadim Belobrovka to create Compstak, a platform where brokers, appraisers and researchers trade information about completed commercial lease deals, also known as lease comps.
Before this website, a large part of CRE professionals’ time was spent trying to find data and because the information was difficult to obtain, industry professionals were never able to get a clear picture of the market. With CompStak, the data is available in seconds. Designed to help investors and managers make better decisions, they can provide the information they have and in return receive the information they need.
Compstak stands for efficiency and transparency in commercial real estate. Danny says, “We believe that the information available to participants in commercial real estate markets should be as readily available as to those participating in the securities markets.”
Brokers can better advise their clients, negotiate from an informed position and close deals faster. Appraisers and researchers can focus on accurate analysis instead of spending half their days chasing information and landlords and lenders can use the data to make projections, invest, price out properties and underwrite loans.
The website first went live in 2012 with one market in Manhattan. Since then, they’ve expanded to cover Manhattan, San Francisco Bay Area, greater Los Angeles, greater Washington DC, greater Chicago and Twin City markets with plans of launching in Dallas soon.
In 2014, they hope to double or even triple the number of markets they cover and increase the number of memberships and records in all of the markets. Because of the platform’s model, it also allows them to gather a lot of information quickly and they are looking into adding services that fit the idea of increased transparency in commercial real estate.Commercial real estate brokers, researchers and appraisers can become members at no cost and investors and financial institutions can access the data through a paid subscription. For more information, visit CompStak.com.