LoopNet Franchise Cost & Profit 2024

Are you interested in real estate and want to get involved in the industry without owning real estate? Marketplace businesses that work on the internet, like LoopNet, are great opportunities. They only put commercial real estate on their platform for other people to buy.

You might wonder whether LoopNet offers franchising and how much it costs. However, since LoopNet is an online marketplace platform without any physical location, franchising is not possible with LoopNet. In this article, we will go through the reasons why LoopNet is not franchising, talk to you about the company, and discuss the alternatives.

LoopNet Franchise

About LoopNet and LoopNet History

LoopNet is a commercial real estate marketplace helping investors connect with renters who would like to rent commercial properties. The company was founded in 1995 by two engineers, and they quickly raised investment rounds, where they became profitable for the first time in 2003.

Now, the company has over 500,000 properties actively listed on its website, which are collectively valued at around $425 billion. They are one of the world’s leading online commercial real estate marketplace platforms. Because they are an online business with no physical presence, their business does not allow for franchising, so they are not offering franchising or partnership opportunities.


Franchise Model Table

CostFees
FranchiseNO
Franchise-FeeNO
Estimated OutletsNO

How Much Does It Cost to Open a LoopNet Franchise?

How Much Does It Cost to Open a LoopNet Franchise

LoopNet is a digital website that helps people find commercial properties for sale and rent, have auctions, and sell franchise businesses. They help their customers find the best possible solution to their budget and needs. They are also only available digitally, and they don’t have physical branches, unlike many other companies.

That’s why LoopNet is not offering franchises because their business model is basically not a good fit for their line of business and how they operate. There were also no communications from the company to change that in the future.


Why Doesn’t LoopNet Offer Franchising?

Because LoopNet is a digital business, a website that offers services through there. They don’t have physical locations, and they don’t have official plans to do so. If you don’t have a physical location, traditionally, having franchises is also not possible or rather not feasible even if it was possible.

That’s why they don’t offer franchising because they are a digital company operating on their website only.


Profit & Revenue

Loopnet Profit & Revenue

LoopNet is owned by the CoStart Group, which collectively runs a lot of businesses, including LoopNet. They acquired the company in 2012, and they have been running it since. They have to share the financials since then because CoStart is a public company.

According to their financials, LoopNet made $230 million in 2022. This is around a 15% year-over-year increase in the total revenue. They don’t share the profit numbers, so we don’t know the net profit out of this total annual gross revenue.


What Are Some Alternatives to LoopNet?

LoopNet is an online marketplace. That’s why there aren’t any direct competitors that offer franchising. However, there are a lot of real estate companies that also offer online marketplaces in addition to their business franchises. Here are some of those companies that you can consider instead of LoopNet.

Hommati

Hommati is a digital service provider to real estate agents and companies. Their services include 3D tours, videos of the properties, both aerial and interior, and other similar technological services. They offer to sell real estate properties faster with their services to real estate agents. The company was founded in 2017 and started franchising a year later. They are still franchising.

The expected initial investment for a Hommati franchise is between $64,965 and $79,523, including the $39,900 franchise fee. You need $75,000 liquidity and $100,000 net worth to be eligible for a Hommati franchise. The royalty fee is between 6% to 8%.

Coldwell Banker

Coldwell Banker is a rather traditional real estate franchise that has been operating since 1906, with its website acting like a marketplace in addition to its physical operations. The company has more than 3000 offices globally and currently operates as a subsidiary of Anywhere Real Estate after its sale to Apollo Management in 2006. They also changed hands frequently before that, but the company has been offering franchising non-stop despite the changes.

The total average investment for a Coldwell Banker is between $30,375 and $497,175, including the $25,000 franchise fee and all other related startup costs. The royalty fee is 5.5%. It is also one of the best real estate franchises to own.

Sotheby’s International Realty

Sotheby’s International Realty is essentially a marketing and referral program for individual real estate brokers’ luxury listings. The company has a global presence with over 12,000 associates in over 600 offices, and the company actively places over 7,000 referrals through its platform. They currently offer franchising.

The franchise fee for a Sotheby’s is $25,000 and the total investment required varies between $153,500 and $566,000, including the franchise fee. The royalty fee is at 6%.


LoopNet Franchise Comparison

NameFranchise FeeRoyalty FeeInitial Investment
Keller Williams Realty$35,0006%$182.430-$335,697
Century 21$25,0006%$24,700-$459,250
LoopNetNONONO

LoopNet Franchise | Conclusion

LoopNet might be one of the biggest commercial real estate marketplaces in the world, with a big database and active listings, but they are an online business. Because they are an online business with no physical presence, their business model is not fit for franchising purposes. That’s why they don’t franchise.

Direct competitors of LoopNet also don’t offer franchising since they are also online businesses with no franchising possibility. However, you can go for similar alternatives in the real estate market that offer franchising.


LoopNet Franchise | FAQ

Is LoopNet a franchise?

No, LoopNet is an online marketplace with no physical locations. That’s why the company doesn’t offer franchising since it doesn’t fit into their business.

Who owns LoopNet?

LoopNet is owned by CoStar Group, which bought the company in 2012. They have been running it ever since. CoStar Group is an analytics and marketing company that owns several brands.

What is LoopNet’s revenue?

According to the last financial reports of CoStar Group, LoopNet’s revenue was $230 million in 2022 for the year.

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