American residential real estate broker
Compass, Inc. operates a residential real estate
brokerage in the United States.
[4]
[5] It has approximately 29,000 agents, who are generally
independent contractors , on its platform.
[2]
In 2023, the company completed 178,848 transactions for a gross dollar value of $186.1 billion. It had a
market share in the U.S. of 4.5%.
[2]
SoftBank Vision Fund owns 30.1% of the company.
[3]
History
Compass was founded by Ori Allon,
Robert Reffkin , and Avi Dorfman as Urban Compass, Inc. in New York City in October 2012.
[2]
[6] Allon was a Director of Engineering at
Twitter , and previously founded companies acquired by
Twitter and
Google .
[7] Reffkin had previously served as the chief of staff to the president of
Goldman Sachs
[8] and worked in the
White House .
[9]
[10] Avi Dorfman had previously worked at
McKinsey & Company and
Lehman Brothers , and founded a startup.
The company raised $8 million of
seed funding .
[10]
[7] The initial business model employed full-time, salaried brokers
[11] and was focused only on rentals.
[12] The service was launched in May 2013.
[13]
[12]
In January 2014, Compass announced it would change its overall business model by contracting independent real estate agents, receiving a portion of the broker commission.
[14]
In July 2014, Compass signed a lease on 25,000 square feet of office space at 90 5th Avenue, which became its global headquarters.
[15]
In June 2014, Leonard Steinberg, previously with
Douglas Elliman , was named president of the company.
[16]
[17] At that time, the company had 125 agents and 70 staff members.
[18]
In July 2016, the company launched a
mobile app .
[19]
The company expanded into several markets, both organically and via acquisitions. By January 2017, the company operated in 9 U.S. markets: New York, Boston, San Francisco, Miami, Washington, the Hamptons, Los Angeles, Santa Barbara, and Aspen.
[20] At that time, it had 1,300 agents.
[21]
On April 1, 2021, the company became a
public company via an
initial public offering .
[22]
In November 2021, Compass settled with Avi Dorfman, ending an 8-year dispute, and acknowledging him as a member of the founding team.
[6] The company took a $21.3 million charge in connection with the matter.
[23]
The company announced several rounds of layoffs in 2022 and 2023.
[24]
[25]
Acquisitions
Date
Acquired
Description
Source
November 2014
Lindsay Reishman Real Estate
Washington, D.C.-based broker
[26]
[27]
April 2016
Shane Aspen Real Estate
Aspen-based broker
[28]
January 2017
Bushari Real Estate
Boston-based brokerage
[29]
April 2018
Conlon
Chicago-based brokerage
[30]
[31]
April 2018
Northwest Group Real Estate
Seattle-based brokerage
[32]
[33]
June 2018
The Hudson Company
Chicago-based brokerage
[34]
[35]
July 2018
Paragon Real Estate Group
San Francisco-based brokerage
[36]
[37]
August 2018
Avenue Properties
Seattle-based brokerage
[38]
[39]
August 2018
Pacific Union International
San Francisco-based brokerage
[40]
[41]
November 2018
Wydler Brothers
Washington, D.C.-based brokerage
[42]
[43]
February 2019
Contactually
CRM provider; shut down in March 2022
[44]
March 2019
Alain Pinel Realtors
San Francisco-based brokerage
[45]
[46]
April 2019
Stribling & Associates
New York-based brokerage
[47]
[48]
November 2019
Detectica
AI Startup
[49]
[50]
[51]
October 2020
Modus
Home closing startup, shut down in June 2022
[52]
[53]
February 2021
KVS Title
Title insurance and settlement services provider
[54]
[55]
April 2021
Glide Labs
Transaction management platform
[56]
[57]
September 2021
First Alliance Title
Title insurance and settlement services provider
[58]
[59]
September 2021
CommonGround Abstract
Title insurance and settlement services provider
[60]
[61]
May 2022
Consumer's Title Company
Title insurance and settlement services provider
[62]
[63]
April 2023
Launch Real Estate
Arizona-based brokerage
[64]
[65]
September 2023
Deasy Penner Podley/DPP
Pasadena-based luxury boutique brokerage
[66]
September 2023
Realty Austin and Realty San Antonio
Texas-based brokerages
[67]
[68]
[69]
January 2024
Attorneys Key Title
Fort Lauderdale-based title company
[70]
April 2024
Latter & Blum
Broker operating in Louisiana and Mississippi
[71]
[72]
May 2024
Parks Real Estate
Broker operating in Tennessee
[73]
Awards
Compass was named Mid-Sized Business of the Year by the
Manhattan Chamber of Commerce in 2015.
[8]
In 2018, Compass was named to Crain's Fast 50.
[74]
In January 2019, it was ranked 14th on
Glassdoor 's Best Places to Work.
[75]
In April 2019, Compass received a
Webby Award for Best Real Estate Website.
[76]
In August 2019, it was named one of the Best Workplaces for Innovators by
Fast Company .
[77]
Compass won the
2020 Webby Award in the real estate web category.
[78]
References
^ MCPHERSON, MARIAN (September 16, 2021).
"Avi Dorfman's 8-year battle with Compass is finally over" .
Bradley Inman .
^
a
b
c
d
"Compass, Inc. 2023 Annual Report (Form 10-K)" .
U.S. Securities and Exchange Commission . February 28, 2024.
^
a
b
"SCHEDULE 14A (Rule 14a-101) INFORMATION REQUIRED IN PROXY STATEMENT SCHEDULE 14A INFORMATION" .
U.S. Securities and Exchange Commission .
^ Delprete, Mike (May 1, 2019).
"How has Compass grown so fast? A look at the numbers" .
Bradley Inman .
^ Bourque, Andre (September 28, 2016).
"25 Inspiring Entrepreneurs Under 40 Who Are Creating the Next Big Thing" .
Entrepreneur .
^
a
b Mascarenhas, Natasha (November 16, 2021).
"Avi Dorfman's legal battle to be named founding member of Compass has ended in a settlement" .
TechCrunch .
^
a
b Popper, Ben (November 27, 2012).
"After cashing out to Google and Twitter, Ori Allon is going all in with Urban Compass" .
The Verge .
^
a
b TITLOW, JOHN PAUL (June 18, 2015).
"Why This Real Estate App Is Making New York Brokers Nervous" .
Fast Company .
^ ROBERTS, DANIEL (October 13, 2014).
"Modernizing the New York apartment hunt" .
Fortune .
^
a
b Lunden, Ingrid (December 16, 2012).
"With $8M in Seed Funding From Founders Fund, Goldman Sachs; Urban Compass Wants To Build A Hyper-Local, Human-Powered Database" .
TechCrunch .
^ Popper, Ben (May 7, 2013).
"Urban Compass: can a startup finally fix the nightmare of renting an apartment in NYC?" .
The Verge .
^
a
b SHEFTELL, JASON (May 7, 2013).
"High-tech start-up Urban Compass hopes to change how we rent and live in new york city" .
New York Daily News .
^ Lunden, Ingrid (May 7, 2013).
"Urban Compass Comes Out Of Stealth with a Hyperlocal Social Network, And A Disruptive Rental Portal That Will Serve As A Magnet" .
TechCrunch .
^ Wiggin, Teke (January 15, 2014).
"The big pivot: why Urban Compass has gone traditional" .
Bradley Inman .
^ DELAPORTE, GUS (July 22, 2014).
"Urban Compass Signs Lease at RFR's 90 Fifth Avenue" .
Observer Media .
^ Samtani, Hiten; Kussin, Zachary (June 2, 2014).
"Leonard Steinberg exits Douglas Elliman for Urban Compass" .
The Real Deal .
^ Taufen, Amber (June 24, 2016).
"The Real Trends/WSJ Thousand list for 2016 has been unveiled" .
Bradley Inman .
^ Hagey, Paul (November 15, 2014).
"Urban Compass launches nationwide expansion push with Washington, DC, acquisition" .
Bradley Inman .
^ McAlone, Nathan (July 20, 2016).
"This $800 million startup just launched an app to make buying a home easier" .
Business Insider .
^ Lunden, Ingrid (January 18, 2017).
"Maelle Gavet is the new COO at real estate startup Compass" .
TechCrunch .
^ KALFUS, MARILYN (February 5, 2017).
"Luxury real estate startup Compass expands to Newport Beach, scores top agent Rob Giem" .
Orange County Register .
^ Podder, Sohini (April 1, 2021).
"SoftBank-backed Compass valued at $8.22 bln in NYSE debut" .
Reuters .
^
"EX-99.1" .
U.S. Securities and Exchange Commission .
^ Turner, Matt; Geiger, Daniel; Parker Erb, Jordan; Bullock, Hallam (December 18, 2022).
"Compass is reeling from a horrible year, from financial losses to tech troubles to mass layoffs" .
Business Insider .
^ C, Priyamvada (January 5, 2023).
"Real estate broker Compass to cut more jobs to deal with housing downturn" .
Reuters .
^ Haynes, Dion (November 13, 2014).
"New York realty firm to open office in D.C."
The Washington Post .
^
"Urban Compass Takes First Milestone Step in National Expansion by Acquiring Lindsay Reishman Real Estate in Washington, D.C. Market" (Press release).
PR Newswire . November 13, 2014.
^ Glendenning, Lauren (April 1, 2016).
"Tech company Compass acquires Shane Aspen Real Estate" .
The Aspen Times .
^ Sims, Stephanie; Terchek, Natalie (January 19, 2018).
"Compass acquires Bushari Real Estate" . Boston Agent Magazine .
^ Rodkin, Dennis (April 25, 2018).
"Compass acquires Chicago brokerage Conlon Christie's" .
Crain's Chicago Business .
^ SOUTH, GILL (April 25, 2018).
"Compass acquires Chicago's Conlon Real Estate" .
Bradley Inman .
^ Solomont, E.B.; Blake, Matthew (March 2, 2020).
"Compass faces a reckoning" .
The Real Deal .
^ Stiles, Marc (April 25, 2018).
"$2.2 billion real estate tech company enters the Puget Sound region market" .
American City Business Journals .
^ Lynch, Dennis (June 25, 2018).
"Compass buys Hudson Company, continuing Chicago expansion effort" .
The Real Deal .
^ Kearns, Patrick (June 25, 2018).
"Compass acquires Chicago indie brokerage The Hudson Company" .
Bradley Inman .
^
"Paragon Real Estate of SF acquired by Compass to form city's largest brokerage" .
San Francisco Chronicle . July 10, 2018.
^ Kearns, Patrick (July 9, 2018).
"Compass acquires Paragon, seeks San Francisco market supremacy" .
Bradley Inman .
^ Stiles, Marc (August 14, 2018).
"Avenue Properties joins real estate tech company Compass" .
American City Business Journals .
^ Kearns, Patrick (August 14, 2018).
"Compass takes over Avenue Properties' Seattle offices" .
Bradley Inman .
^
"Compass buying Pacific Union – its second SF real estate acquisition in two months" .
San Francisco Chronicle . August 22, 2018.
^ Norman, Hannah (August 29, 2018).
"Compass acquires Pacific Union" .
American City Business Journals .
^
"Compass acquires DC indie brokerage" .
The Real Deal . November 13, 2018.
^ Kearns, Patrick (November 12, 2018).
"Compass Acquires D.C. Indie Wydler Brothers Real Estate" .
Bradley Inman .
^ Lunden, Ingrid (February 27, 2019).
"Compass acquires Contactually, a CRM provider to the real estate industry" .
TechCrunch .
^ Pender, Kathleen (March 5, 2019).
"Compass buys Alain Pinel to create Bay Area real estate behemoth" .
San Francisco Chronicle .
^ Kelliher, Fiona (March 4, 2019).
"Alain Pinel turned down Compass' acquisition offer last year. Now, it's changed its mind" .
American City Business Journals .
^ Solomont, E.B. (April 3, 2019).
"Compass strikes deal to buy Stribling" .
The Real Deal .
^ Kearns, Patrick (April 3, 2019).
"Compass to acquire Stribling & Associates" .
Bradley Inman .
^ Council, Jared (November 19, 2019).
"Real-Estate Brokerage Compass Buys AI Startup Detectica" .
The Wall Street Journal .
ISSN
0099-9660 .
^
"Compass Acquires Detectica, Deepening Artificial Intelligence and Machine Learning Capabilities Across The Compass Real Estate Platform" (Press release).
PR Newswire . November 19, 2019.
^ Rosacia, Pam (November 19, 2019).
"Home trading platform Compass buys AI company Detectica" .
S&P Global .
^ SOPER, TAYLOR (October 5, 2020).
"Real estate brokerage Compass to acquire Seattle-based home closing startup Modus" .
GeekWire .
^ SOPER, TAYLOR (June 16, 2022).
"Real estate giant Compass shuts down Modus, the Seattle-based title business it acquired in 2020" .
GeekWire .
^
"Compass Acquires KVS Title" (Press release).
PR Newswire . February 25, 2021.
^ Kearns, Patrick (February 25, 2021).
"Compass moves deeper into closing services with KVS Title acquisition" .
Bradley Inman .
^ James, Cordilia (April 26, 2021).
"Compass buys Glide, RE transaction management platform" .
The Real Deal .
^
"Compass Agrees to Acquire Real Estate Transaction-Management Platform Glide" (Press release).
PR Newswire . April 26, 2021.
^
"Compass Agrees to Acquire First Alliance Title" (Press release).
PR Newswire . September 22, 2021.
^ DALRYMPLE II, JIM (September 22, 2021).
"Compass scoops up yet another title company" .
Bradley Inman .
^
"Compass Agrees to Acquire CommonGround Abstract" (Press release).
PR Newswire . September 28, 2021.
^ DALRYMPLE II, JIM (September 28, 2021).
"Compass acquiring third title company in less than a month" .
Bradley Inman .
^
"Compass Agrees to Acquire Consumer's Title Company of California" (Press release).
PR Newswire . May 3, 2022.
^ VERDE, BEN (May 3, 2022).
"Compass acquires Consumer's Title Company of California" .
Bradley Inman .
^ Gonzales, Angela (April 6, 2023).
"Scottsdale's Launch Real Estate joins national giant, introducing it to metro Phoenix" .
American City Business Journals .
^ DALRYMPLE II, JIM (April 6, 2023).
"Compass scoops up 300-agent indie brokerage in Arizona" .
Bradley Inman .
^ Asch, Andrew (September 19, 2023).
"Compass acquires Pasadena firm DPP" .
The Real Deal .
^ Baird, Cody (September 27, 2023).
"Compass buys Realty Austin, Realty San Antonio" .
American City Business Journals .
^ MCPHERSON, MARIAN (September 27, 2023).
"Compass acquires No. 1 indie brokerage in Central Texas" .
Bradley Inman .
^ Lovinger, Joe (September 27, 2023).
"Compass Acquires Realty Austin, Realty San Antonio" .
The Real Deal .
^ Hinsche, Kate (January 16, 2024).
"Compass to acquire Fort Lauderdale-based Attorneys Key Title" .
The Real Deal .
^ RIEGEL, STEPHANIE; DAIGLE, ADAM (April 3, 2024).
"Louisiana's dominating Latter & Blum sells to country's largest brokerage" .
The Times-Picayune/The New Orleans Advocate .
^ DALRYMPLE II, JIM (April 3, 2024).
"Compass acquires 3,100-agent Gulf Coast giant Latter & Blum" .
Bradley Inman .
^
"Compass Strengthens Footprint in Southeastern U.S., Welcoming the Top Brokerage in Tennessee" .
PR Newswire (Press release). May 13, 2024.
^ ANUTA, JOE (October 14, 2018).
"Compass" .
Crain Communications .
^ Renzulli, Kerri Anne (January 8, 2019).
"WORK: The 15 best tech companies to work for in 2019, according to Glassdoor" .
CNBC .
^ Liao, Shannon (April 23, 2019).
"Here are all the winners of the 2019 Webby Awards" .
The Verge .
^
"The 50 best workplaces for innovators" .
Fast Company . August 5, 2019.
^ Kastrenakes, Jacob (May 20, 2020).
"Here are all the winners of the 2020 Webby Awards" .
The Verge .
External links
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