CoStar Group, a company specialising in information and analysis of commercial real estate transactions, released Q1 revenue and profit outlooks below Wall Street expectations as uncertainty weighs on commercial property. Shares of the Arlington-based group were down 6.95% in US trading.

CoStar expects Q1 revenue of between $890m and $900m, below the $905.1m forecast by LSEG. Adjusted EPS is seen at between 16 and 19 cents, versus the consensus of 25 cents. The group is trying to offset the persistent weakness in corporate real estate by expanding its residential platform Homes.com.

This push into the consumer segment comes with heavy spending that is weighing on margins, as competition from Zillow intensifies. In Q4 ended December 31, however, CoStar beat expectations with revenue of $900m and adjusted EPS of 31 cents, above analysts' forecasts.