Will the Supreme Court Weigh In on CoStar and CREXi?

• Supreme leader: CoStar’s Supreme Court petition has revived its long-running clash with CREXi.

• Norwegian good: Norway’s $2.1 trillion sovereign wealth fund declines to invest directly in data centers despite booming demand for AI infrastructure.

• FTC won’t let me be: The FTC’s warnings to rental software providers highlight growing scrutiny of digital leasing tools.

Editor’s Pick

Will the Supreme Court Weigh In on CoStar and CREXi?

CoStar’s petition to the U.S. Supreme Court has pushed a long-simmering rivalry back into the spotlight. The case stems from CREXi’s claim that CoStar used its size and influence to box competitors out of the commercial real estate data and listings market. Now the question is whether the nation’s top court will weigh in on what has become one of the sector’s most closely watched legal battles.

The dispute began when CREXi accused CoStar of limiting access to essential listing information through restrictive contracts, aggressive no-poach terms, and technical barriers that made it difficult for brokers or rival platforms to compete on equal footing. A district court originally dismissed the claims, but the Ninth Circuit revived most of them earlier this year, ruling that CREXi had presented enough detail to plausibly allege anticompetitive behavior. That decision opened the door for discovery and a potential trial, and it also set the stage for CoStar’s Supreme Court request.

Whether the Supreme Court will actually take the case is far from certain. The Court accepts only a tiny fraction of petitions, usually those involving constitutional questions, deep circuit splits, or issues with broad national implications. CoStar is trying to frame the case in national terms by arguing that allowing antitrust claims based on the refusal to share proprietary data weakens property rights and threatens innovation. CREXi, for its part, says this is simply a fact-specific dispute about market conduct and does not warrant the Court’s attention. If history is any guide, the Court is unlikely to intervene.

A win for CREXi, if the case moves forward in lower courts, would be significant for both companies. For CREXi, it would validate its long running argument that the commercial real estate listings and data business has room for real competition. It would also give the company leverage in negotiations and potentially open the door to damages or structural changes that make it easier to compete. For CoStar, a CREXi victory would introduce new uncertainty into a business model built on tightly controlled data, and it could force the company to adjust how it contracts with brokers, clients, and partners. Even the specter of that outcome may influence future strategy.

The Supreme Court may never touch this case, but the battle between CoStar and CREXi is already reshaping how both firms position themselves. The outcome, whatever path it takes, will define their relationship for years and signal how much pressure CoStar is willing to tolerate from a challenger that refuses to back down.

Overheard

Global Real Estate Capital Shifts as Norway’s Fund Skips Data Center Gold Rush

Norges Bank Investment Management (NBIM), steward of the world’s largest sovereign wealth fund, recently announced it will avoid direct investment in data centers even as demand spikes for AI and cloud infrastructure. The firm cited concerns over volatility and long-term sustainability in the sector as core to that decision.

That hesitation comes amid broader underperformance in NBIM’s real estate portfolio. In the first half of 2025, unlisted real estate returned modest gains, but overall real estate lagged behind equities and bonds—prompting the fund to broaden its property focus beyond major global cities and shift attention toward asset types viewed as more stable. By eschewing data centers, NBIM appears to be drawing a line between speculative infrastructure fueled by short-cycle technology demand and assets with more predictable long-term cash flow.

Data centers have increasingly been seen as a “safe bet” for institutional investors chasing yield in a tightening bond environment. NBIM’s decision suggests that even investors with long horizons see risks in rapid-growth infrastructure tied to uncertain regulatory, technological and energy dynamics. That may slow capital flow into new data center development or push investors to focus instead on traditional sectors such as housing, logistics, or stabilized office and industrial space. In time, this could complicate the narrative of data centers as a one-way upward trajectory in CRE investment allocations.

FTC Warns Rental Software Providers Over Hidden Fees in the Multifamily Market

The FTC has issued warning letters to 13 rental software providers after finding that some platforms may be encouraging or enabling landlords to hide mandatory fees from advertised rents. According to the agency, these tools can prevent property managers from displaying the actual monthly cost of a unit, leading renters to believe an apartment is cheaper than it really is. The action follows the agency’s recent settlement with Greystar over similar practices and shows that regulators increasingly view opaque pricing in the rental market as a broader industry issue rather than a one-off concern.

For renters, the FTC’s move is meant to restore basic transparency by ensuring that advertised rents reflect all unavoidable charges. For operators, the warning is a reminder that software-driven leasing workflows are now part of the regulatory lens. Property managers using listing or management systems that separate base rent from mandatory fees may have to update settings, renegotiate vendor contracts, or demand product changes to stay compliant. Software companies themselves may also face engineering and legal pressure to redesign workflows that could be construed as deceptive.

The larger takeaway for the multifamily industry is that regulatory attention is shifting from landlords’ actions to the digital systems that shape those actions. As pricing grows more automated, regulators are increasingly focused on how algorithms, integrations, and platform defaults influence consumer outcomes. Multifamily operators should expect tighter rules around price presentation, more oversight of the software tools they rely on, and greater scrutiny of any revenue-management or fee-bundling practices that obscure true costs. The industry may see higher compliance burdens in the short term, but the long-term effect will likely be a push toward clearer, more standardized pricing that reduces tenant disputes and stabilizes trust in digital leasing tools.

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