CoStar and Zillow’s Feud Is Starting to Hurt Everyone

• Zillow fight: CoStar and Zillow’s long-simmering rivalry has erupted into a full-blown battle for control of real estate’s digital future.

• D.C. disposal: Washington D.C. faces more empty buildings as the federal government moves to sell eight more properties.

• Tall order: China’s high-rise boom has created an unusual job—delivery runners who navigate tall towers to deliver food to the top floors.

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CoStar and Zillow’s Feud Is Starting to Hurt Everyone

The rivalry between CoStar and Zillow has officially entered its most explosive phase. What began as a war of words has turned into a struggle over the very framework of online real estate. This is no longer about listings or traffic. It is about who will own the digital infrastructure that powers the property marketplace.

The latest flare-up came when Zillow removed Matterport 3D tours from its listings, blaming CoStar for refusing to renew its API deal. CoStar responded by accusing Zillow of misleading customers and making a unilateral decision. The move comes just months after CoStar acquired Matterport, giving it control of one of the most valuable visual technologies in the industry.

Behind the statements lies a deeper risk of fragmentation. If these platforms keep closing off access, brokers and consumers could lose tools that make real estate more transparent and efficient. The battle for dominance may decide who leads the next era of proptech, but it also raises the question of whether innovation will move the industry forward or pull it apart.

Overheard

When the Building Is Too Tall for Takeout

n China’s tallest towers, food delivery has become an architectural problem. Some skyscrapers are so massive that new workers, known as “runners,” have been hired to sprint from elevator banks up dozens of floors just to keep meals warm. It’s an almost absurd reminder that buildings are systems of movement, not just monuments of glass and steel. As cities build higher and denser, design often stops at the skyline—but the real challenge lies in how people and services move inside these vertical neighborhoods.

These logistical breakdowns point to a broader issue in modern tower design. The same precision given to optimizing rentable area or maximizing views rarely extends to the day-to-day needs of occupants. Food, mail, packages, maintenance, even waste removal—each of these basic functions strains the capacity of vertical circulation systems. Future high-rises may need redesigned service cores, new zoning for elevators, and even dedicated delivery hubs built into their mid-sections. Skyscrapers can no longer treat everyday logistics as an afterthought, they must build for it as intentionally as they do for aesthetics or sustainability.

The runners weaving through China’s towers reveal what happens when efficiency on paper meets human reality. Their jobs exist because architects, engineers, and owners haven’t yet reconciled the pace of vertical living with the systems that support it. As cities continue to rise, the best buildings won’t just be the tallest, they’ll be the ones that make living or working on the 80th floor feel as seamless as it does on the street.

Federal Properties Across D.C. Poised for Redevelopment as Government Sells Off Real Estate

The federal government’s push to offload surplus real estate in the Washington, D.C. region has gained new momentum, beginning when the General Services Administration (GSA) briefly posted, and then withdrew, a sweeping list of properties targeted for disposal. The Trump administration’s real estate agenda has since accelerated, with several major assets already on the market despite disruptions caused by government shutdowns. The effort signals a broader shift toward reducing the federal footprint in the capital, transforming long-held government properties into potential mixed-use developments, offices, or housing as part of a larger vision to modernize and monetize federal assets.

Among the most notable properties poised for redevelopment are some of the city’s most recognizable federal buildings. The James V. Forrestal Building, a nearly vacant 1.8 million-square-foot Department of Energy headquarters, could be demolished to reconnect the National Mall and The Wharf, potentially making way for thousands of housing units and cultural spaces. Likewise, the Marcel Breuer–designed Robert C. Weaver Building, longtime home to the Department of Housing and Urban Development, faces over $500 million in maintenance needs and is slated for disposal as HUD relocates to Virginia. Other large sites, such as the Wilbur J. Cohen Building and the Agriculture Department’s 2.1 million-square-foot South Building, illustrate the complex balancing act between historic preservation, costly maintenance, and redevelopment opportunity. Each holds immense value in both real estate potential and urban renewal impact.

In addition to central D.C. landmarks, several properties in surrounding areas have also been identified for sale or repurposing, including the Regional Office Building near L’Enfant Plaza, the J. Edgar Hoover FBI headquarters on Pennsylvania Avenue, and the Center at Riverside in Prince George’s County. Collectively, these assets represent millions of square feet that could be converted into residential, commercial, or mixed-use developments. As agencies consolidate and vacate aging facilities, the D.C. region stands on the brink of a massive physical transformation—one that could redefine the city’s urban fabric while closing a significant chapter in the federal government’s architectural legacy.

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Propmodo Daily is written and edited by Franco Faraudo with contributions from readers like you and the Propmodo team.

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