CCRSI RELEAS SE APRIL 2013 d through Februa ary 2013) ) (With data

PRICIN NG RECOV VERY FOR R COMME ERCIAL PR ROPERTY Y CONTINU UES IN FEBRU UARY DES SPITE SEA ASONAL VOLATILIT V TY
WHILE BROADER R INDICES S GAVE BA ACK SOME E GAINS F FROM THE E END OF F 2012, ADVANC CES IN THE INVES STMENT GRADE G SE EGMENT, A ALONG W WITH IMPR ROVING MARKET FUNDA AMENTALS, SIGNAL POSITIVE E SHIFT IN PRICIN NG MOME ENTUM GOING FORWARD D This mo onth's CoSt tar Commercial Repea at Sale Ind dices (CCRSI) provide e the marke et's first look at February 2013 comm mercial rea al estate p pricing. Bas sed on 722 2 repeat s sales in February y 2013 and d more tha an 100,000 0 repeat sa ales since 1996, the CCRSI off fers the broades st measure of commercial real estate repeat t sales activ vity.

COSTAR C COMMERCIAL REPEA AT-SALE INDICE ES APRIL 2013 3 Release (With Data through FE EBRUARY 2013) )

February 2013 CCRSI National Results Highlights

PRICING RECOVERY CONTINUES DESPITE SEASONAL VOLATILITY: The two broadest measures of aggregate pricing for commercial properties within the CCRSIthe value-weighted U.S. Composite Index and the equal-weighted U.S. Composite Indexdipped by 0.7% and 1.4%, respectively, in the month of February 2013, reflecting a continuation of a seasonal pattern first observed in January, in which commercial real estate prices gave back some of the pricing gains from the surge in sales activity at the close of 2012. Despite the recent seasonal dip in activity, commercial real estate prices are still up significantly from year ago levels. The equal-weighted index increased 6.0% since February 2012, while value-weighted index expanded by 5.1% during the same period. INVESTMENT GRADE SEGMENT TURNED IN STRONGEST PERFORMANCE: Within the equalweighted version of the U.S. Composite Index, which weights each repeat-sale equally and therefore reflects the influence of smaller transactions, the Investment Grade segment was the first to shake off the seasonal slump of the previous months and increased 1.9% in February 2013. Following a spike in the investment grade pricing last year, the index gave back some of those earlier gains. However, with the February 2013 pricing gains, the Investment Grade segment has now recovered by 17.9% since prices reached a trough in October 2009. Pricing in the General Commercial segment has taken longer to recover, but it is now up nearly 6% from its recent nadir in the first quarter of 2011 as real estate investment activity has increasingly fanned out into more secondary markets and property types. ABSORPTION POSTS SOLID GAINS IN THE FIRST QUARTER: The relative performance of the General Commercial and Investment Grade indices is tied to market fundamentals. Net absorption of available space for the three major property types office, retail, and industrial has been positive over the past three years. However, for the majority of that period, absorption has been stronger among properties in the Investment Grade segment as reflected by the faster pricing growth in this index since 2009. More recently though, the General Commercial segment has posted more robust gains in absorption as well, indicating a broader and more sustained commercial real estate recovery. TRANSACTION VOLUME RETURNS TO MORE TYPICAL LEVELS: Following an impressive endyear spike in December 2012 when repeat sale transaction volume reached a new record high, transaction volume of $2.9 billion for the month of February 2013 was in line with first quarter average monthly totals over the previous two years. . DISTRESS SALES DECLINE WITH IMPROVING FUNDAMENTALS: The percentage of commercial property selling at distressed prices dropped to 15.9% in February 2013 from over 18% for the previous month.

COSTAR COMMERCIAL REPEAT-SALE INDICES APRIL 2013 Release (With Data through FEBRUARY 2013)

 Monthly CCRSI Results, Data through February 2013 1Month Earlier 0.7% 1.4% 1.9% 1.8% 1Quarter Earlier 0.3% 3.1% 0.6% 3.7% 1Year Earlier 5.1% 6.0% 8.6% 5.7% Troughto Current 36.7%1 7.1%2 17.9%3 6.0%4

ValueWeightedU.S.CompositeIndex EqualWeightedU.S.CompositeIndex U.S.InvestmentGradeIndex U.S.GeneralCommercialIndex

1

TroughDate:January,20102TroughDate:March,20113TroughDate:October,20094TroughDate:March,2011

Monthly Fundamentals, Data through March of 2013

NetAbsorption(inmillionsofsquarefeet)
2011 Aggregate InvestmentGrade GeneralCommercial 292.7 207.1 85.6 2012 315.0 226.5 88.6 2013Q1 87.8 56.9 30.9

Note:"NetAbsorption"isthechangeinoccupiedspace,calculatedbasedonthreetypesofproperties:office, retail,andindustrial.

U.S. Composite Indices: Equal- and Value-Weighted, Data through February of 2013

U.S.CompositeValueWeighted 225 200 IndexValue(2000Dec=100) 175 150 125 100 75 50 25

U.S.CompositeEqualWeighted

0 COSTAR COMMERCIAL REPEAT-SALE INDICES APRIL 2013 Release (With Data through FEBRUARY 2013) 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

 U.S. Equal-Weighted Indices by Market Segment, Data through February of 2013

U.S.InvestmentGrade 225 200 IndexValue(2000Dec=100) 175 150 125 100 75 50 25 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 U.S.GeneralCommercial

Market Fundamentals, Data through March of 2013

GeneralCommercialNetAbsorptionRate 0.7% 0.6% 0.5% 0.4% NetAbsorptionasPercentofStock 0.3% 0.2% 0.1% 0.0% 0.1% 0.2% 0.3% 0.4% Mar07 InvestmentGradeNetAbsorptionRate

Mar08

Mar09

Mar10

Mar11

Mar12

Mar13

COSTAR COMMERCIAL REPEAT-SALE INDICES APRIL 2013 Release (With Data through FEBRUARY 2013)


U.S. Pair Count, Data through February of 2013
U.S.GeneralCommercialPairCount U.S.InvestmentGradePairCount

U.S. Pair Volume, Data through February of 2013

U.S.GeneralCommercialPairVolume U.S.InvestmentGradePairVolume

2,500

$12 $10 BillionsofDollars $8 $6 $4 $2 $0 2003 2004

2,000 NumberofSalePairs

1,500

1,000

500

0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

2005

2006

2007

2008

2009

2010

2011

2012

2013

U.S. Distress Sale Pairs Percentage, Data through February of 2013 U.S.InvestmentGradeDistressPair% DistressedSalePairsasPercentageofTotal 40% 35% 30% 25% 20% 15% 10% 5% 0% Jan08 Apr08 Jul08 Jan09 Apr09 Jul09 Jan10 Apr10 Jul10 Jan11 Apr11 Jul11 Jan12 Apr12 Jul12 Oct08 Oct09 Oct10 Oct11 Oct12 Jan13 U.S.GeneralCommercialDistressPair%

COSTAR COMMERCIAL REPEAT-SALE INDICES APRIL 2013 Release (With Data through FEBRUARY 2013)

About the CoStar Commercial Repeat-Sale Indices

The CoStar Commercial Repeat-Sale Indices (CCRSI) are the most comprehensive and accurate measures of commercial real estate prices in the United States. In addition to the national Composite Index (presented in both equal-weighted and value-weighted versions), national Investment Grade Index and national General Commercial Index, which we report monthly, we report quarterly on 30 sub-indices in the CoStar index family. The sub-indices include breakdowns by property sector (office, industrial, retail, multifamily, hospitality and land), by region of the country (Northeast, South, Midwest, West), by transaction size and quality (general commercial, investment grade), and by market size (composite index of the prime market areas in the country). The CoStar indices are constructed using a repeat sales methodology, widely considered the most accurate measure of price changes for real estate. This methodology measures the movement in the prices of commercial properties by collecting data on actual transaction prices. When a property is sold more than one time, a sales pair is created. The prices from the first and second sales are then used to calculate price movement for the property. The aggregated price changes from all of the sales pairs are used to create a price index.

National Composite CRE Price Index All Properties

National Indices by Property Type Office

Regional Indices

Regional Indices by Property Type Northeast: Office, Multifamily, Industrial, Retail Midwest: Office, Multifamily, Industrial, Retail South: Office, Multifamily, Industrial, Retail West: Office, Multifamily, Industrial, Retail

Prime Market Indices by Property Type

Northeast

Office

General Commercial

Retail

Midwest

Multifamily

Investment Grade

Industrial

South

Industrial

Multifamily

West

Retail

Hospitality

Land

COSTAR COMMERCIAL REPEAT-SALE INDICES APRIL 2013 Release (With Data through FEBRUARY 2013)


Prime Office Markets CBSA Listed Alphabetically Boston Los Angeles New York Orange County San Francisco Seattle Washington DC Prime Industrial Markets CBSA Listed Alphabetically Atlanta Chicago Dallas Houston Los Angeles Northern New Jersey Riverside Seattle Prime Retail Markets CBSA Listed Alphabetically Boston Los Angeles New York Orange County San Diego San Francisco San Jose Washington DC Prime Multifamily Markets CBSA Listed Alphabetically Boston Chicago Houston Los Angeles New York Orange County San Francisco San Jose Seattle Washington DC

CONTACT:
For more information about the CCRSI Indices, including a detailed methodology, fact sheet, legal notices and disclaimer, and an archive of previous releases, please visit http://www.costar.com/ccrsi.

ABOUT COSTAR GROUP, INC.

CoStar Group (Nasdaq:CSGP) is commercial real estate's leading provider of information, analytics and marketing services. Founded in 1987, CoStar conducts expansive, ongoing research to produce and maintain the largest and most comprehensive database of commercial real estate information. Our suite of online services enables clients to analyze, interpret and gain unmatched insight on commercial property values, market conditions and current availabilities. Through LoopNet, the Company operates the most heavily trafficked commercial real estate marketplace online with more than 6.7 million registered members. CoStar operates websites that have over 10 million unique monthly visitors in aggregate. Headquartered in Washington, DC, CoStar maintains offices throughout the U.S. and in Europe, including the industry's largest professional research organization. For more information, visit http://www.costar.com.

COSTAR COMMERCIAL REPEAT-SALE INDICES APRIL 2013 Release (With Data through FEBRUARY 2013)

This news release includes "forward-looking statements" including, without limitation, statements regarding CoStar's plans, objectives, expectations, beliefs, intentions or strategies regarding the future. These statements are based upon the current beliefs and expectations of management of CoStar and are subject to many risks and uncertainties that could cause actual results to differ materially from these statements. The following factors, among others, could cause or contribute to such differences: the risk that the trends represented or implied by the indices will not continue or produce the results suggested by such trends; the risk that investor demand and commercial real estate pricing levels will not continue at the levels or with the trends indicated in this release; the risk that pricing momentum will not shift as expected; and the possibility that a sustained commercial real estate recovery will not be realized as expected. More information about potential factors that could cause actual results to differ materially from those discussed in the forward-looking statements include, but are not limited to, those stated in CoStar's filings from time to time with the Securities and Exchange Commission, including CoStar's Form 10-K for the year ended December 31, 2012, under the heading "Risk Factors." All forward-looking statements are based on information available to CoStar on the date hereof, and CoStar does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

COSTAR COMMERCIAL REPEAT-SALE INDICES APRIL 2013 Release (With Data through FEBRUARY 2013)