June 2009-End of Year

At $500 a head for the software which is dedicated for the dying CRE brokerage business, Costar has a problem.

Ridiculous turnover (micromanagement, lack of commercial real estate professionals), and new commission disbursement system (pays salespeople throughout the term of contract, not upfront), they are losing their top talent.

Paired with a tough commercial real estate environment, new subscriptions are not being signed up because the salespeople also have to manage the account, which they are not rewarded. Average Costar researcher makes around $35K, average Costar sales rep makes around $45K + commission.

So....when the price of the stock stagnates at $10, I presume Costar will have a completely new look and new management/sales departments, believe me they are in need of it...now!