UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-K

For the fiscal year ended December 31, 2014or

or

For the transition period fromto.

Commission File Number001-12917

REIS, INC.

                                             (212) 921-1122                                             

(Registrant’s Telephone Number, Including Area Code)

		(212) 921-1122
		(Registrant’s Telephone Number, Including Area Code)

Securities registered pursuant to Section 12(g) of the Act:

None

Indicate by check mark if the Registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.  Yes ¨    No þ

Indicate by check mark if the Registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.  Yes ¨    No þ

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.  Yes þ    No ¨

Indicate by check mark whether the Registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the Registrant was required to submit and post such files).    Yes þ    No ¨

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of Registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.  þ

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Act).  Yes ¨    No þ

The aggregate market value of the voting and non-voting common equity held by non-affiliates of the Registrant was approximately $184,000,000$201,000,000 based on the closing price on the NASDAQ Global Market for such shares on June 30, 2014.2015. (Please see “Calculation of Aggregate Market Value of Non-Affiliate Shares” within Item 5 of this report for a statement of assumptions upon which this calculation is based.)

The number of the Registrant’s shares of common stock outstanding was 11,221,40511,308,826 as of March 2, 2015.February 29, 2016.

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the Registrant’s definitive proxy statement for the 20152016 annual stockholders’ meeting are incorporated by reference into Part III of this Annual Reportannual report on Form 10-K.

TABLE OF CONTENTS

FINANCIAL STATEMENT SCHEDULES

All schedules have been omitted because the required information for such schedules is not present, is not present in amounts sufficient to require submission of the schedule or because the required information is included in the consolidated financial statements.

PART I

Item 1.  Business.

Organization

Reis, Inc. is a Maryland corporation. When we refer to “Reis” or the “Company,” we are referring to Reis, Inc. and its consolidated subsidiaries. The Company provides commercial real estate market information and analytical tools to real estate professionals, through its Reis Services subsidiary. For disclosure and financial reporting purposes, this business is referred to as the Reis Services segment.

Business

Reis Services

Reis Services, including its predecessors, was founded in 1980. Reis maintains a proprietary database containing detailed information on commercial properties in metropolitan markets and neighborhoods throughout the U.S. The database contains information on apartment, office, retail, warehouse/distribution, flex/research & development, self storage, seniors housing and seniorsstudent housing properties, and is used by real estate investors, lenders and other professionals to make informed buying, selling and financing decisions. In addition, Reis data is used by debt and equity investors to assess, quantify and manage the risks of default and loss associated with individual mortgages, properties, portfolios and real estate backed securities. Reis currently provides its information services to many of the nation’s leading lending institutions, equity investors, brokers and appraisers.

Product Overview

The Company’s product portfolio features:Reis SE, its flagship delivery platform aimed at larger and mid-sized enterprises;ReisReports, aimed at prosumers and smaller enterprises; andMobiuss Portfolio CRE,orMobiuss, aimed primarily at risk managers and credit administrators at banks and non-bank lending institutions. It is through these products that Reis provides online access to a proprietary database of commercial real estate information and analytical tools designed to facilitate debt and equity transactions as well as ongoing asset and portfolio evaluations. Depending on the product or level of entitlement, users have access to market trends and forecasts at metropolitan and neighborhood levels throughout the U.S. and/or detailed building-specific information such as rents, vacancy rates, lease terms, property sales, new construction listings and property valuation estimates. Reis’s products are designed to meet the demand for timely and accurate information to support the decision making of property owners, developers, builders, banks and non-bank lenders, equity investors and service providers. These real estate professionals require access to timely information on both the performance and pricing of assets, including detailed data on market transactions, supply, absorption, rents and sale prices. This information is critical to all aspects of valuing assets and financing their acquisition, development and construction.

Industry Dynamics

The size of the U.S. commercial real estate (“CRE”) market is estimated at $6.7 trillion; approximately 30% of annuala multi-trillion dollar asset class, and according to Prudential Real Estate Investors, real estate transaction volume is driven by institutional investors¹. Projections call forhas increased in each of the U.S. CRE market to grow to $10.7 trillion, an increasepast six years. While volume slowed in the second half of approximately 60%, by 2022².2015, about $880 billion of income-producing transactions, excluding land sales, were completed in 2015, up 8% from 2014. The relative health of the domesticU.S. economy relative to the rest of the world is expected to enticedrive an increasing number of market participants looking for a safe haven, sustaining market activity in U.S. CRE. Although lower energy prices have reduced the buying power of some sovereign wealth funds, capital flows into U.S. commercial real estate remain healthy. According to investPreqin, $91 billion of capital has been raised by private real estate funds over the past year, and an additional $240 billion is poised for deployment¹. Based on market expectations for a tick-up in the U.S., whileglobal economic growth abroadin 2016, market forecasters expect a 5% increase in CRE transaction volume to about $920 billion in 2016¹.

Most areas posing the greatest risk to the CRE market are non-domestic. China in particular has weakenedrecently experienced tremendous market turmoil, and the paucity of reliable data regarding the world’s second largest economy seems to stoke fears that more uncertainty is ahead. Sharply lower demand from China has had a deep impact on a number of emerging economies such as Brazil, Russia, South Africa and other commodity-exporting countries. Despite these international headwinds, economic and market conditions for investors in many places. Europe remainsU.S. commercial real estate remain attractive. Steady employment and household formation, signs of improving personal income growth, extensive monetary policy support, and multiple sources of domestic and international capital have increased the demand for U.S. property market acquisitions. Space market fundamentals continue to improve, although there is

¹  Prudential Real Estate Investors: Trends for 2016

significant variability across geography and property type. Robust rent growth in turmoil, stymieda number of gateway markets such as San Francisco, San Jose, Boston and New York have been typically accompanied by weak demandhigher investment volume.

Reis’s market data and high debt levels. Other major economies like China, Japan, Russia and Brazil have exhibited disappointing growth figures for various reasons. In contrast, U.S. GDP growth has been strong and payroll expansion is accelerating. With both occupancies and rental rates rising for most property types, theforecasts indicate a generally improving U.S. CRE market is expectedthat will continue to remain a significant draw for investors.

Traditionally, investorsstrengthen over at least the next five years and other professionalsencourage steady levels of development, finance and transaction activity. While the multifamily market has led all property types in the recent recovery, new construction in selected metropolitan markets will place upward pressure on vacancy rates and constrain rent growth over the next few years. Industrial market fundamentals continue to show signs of strength as trade ande-commerce expand across the nation. The U.S. office market continues to recover at a slow and healthy pace. By historical standards, new office construction remains moderate and vacancy rates should continue their modest pace of descent and support slightly faster rent growth, particularly in gateway cities with high concentrations of technology and business service firms. Retail is contending with oversupply and competition from e-commerce; however, new construction continues to be minimal and attractively-priced turn-around and repositioning opportunities still are able to source capital. Low interest rates and relative lack of product being brought to market, with the exception of selected multifamily markets, suggest that demand for high-quality, income-producing real estate assets will remain strong into 2016 and beyond. Stabilizing or tightening occupancies and rising rents and prices across all property types will generate higher volumes of underwriting, valuation and acquisition due diligence and stimulate increasing demand for Reis’s products.

Demand for Data and Analytical Tools

CRE marketprofessionals have been lesshistorically lacked the data intensive and analytical comparedtools available to their peers in other asset classes. This is changing rapidly, as varied market participantsWith changes in the regulatory climate brought on by Dodd-Frank and other post-recession reforms, the demand timelyfor thorough and highly disaggregatedaccurate CRE data and analytics to support all aspects of decision making throughout the commercial real estate lifecycle. Market professionals, such as property owners, developers and builders, banks and non-bank lenders, increasingly require access to information on supply, demand, asking and effective rents, lease terms, sales prices and detailed data on transactions. Reis has designed a suite of products and reports that are responsive to the decision support needs of CRE professionals during periods of healthy fundamentals and a high volume of transactions, as well as during market downturns when valuations and sales volumes are depressed.increased rapidly.

Since mid-2008,The regulatory requirements (such as mark-to-market policies, Basel II and Basel III) and guidance from theIII capital requirements), Federal Reserve and FDIC guidelines and other measures have increased the need among regulated banks for market and portfolio monitoring. These requirements have generated demandmonitoring for accurate and timely information, as well as access to valuation tools to evaluate the underlying collateral supporting mortgages and mortgage-related securities.CRE professionals. For example, example:

Reis’sThese requirements have generated demand for accurate and timely information, as well as access to valuation tools to evaluate the underlying collateral supporting mortgages and mortgage-related securities.

CRE professionals demand relevant market and transaction data to support effective decision-making and financial reporting throughout all stages of the commercial real estate transaction lifecycle. Access to information on supply, demand, asking and effective rents, lease terms, sales prices, new construction, cap rates and other detailed data across large and small metro areas is sought by property owners, developers, banks, non-bank lenders, brokers and asset managers across the country. To meet the growing demand for data and forecasts indicatecustom analytics, Reis has designed a generally improving U.S. CRE market that will continue to strengthen over at least the next five years and encourage heightened levelssuite of development, finance and transaction activity. The multifamily market has been on a torrid pace of construction, and though the supply pipeline continues to increase, demand is not expected to plummet anytime soon. Industrial market fundamentals are showing signs of strength, bolstered by firms building out their e-commerce capabilities. The office market remains in recovery mode, but fundamentals are improving and certain pockets of the country, particularly metropolitan areas with high concentrations of technology and business service firms, are performing extremely well. Retail is contending with oversupply and competition from e-commerce, but fundamentals are slowly improving and will benefit from the recent acceleration in job and income growth. Stabilizing products and/or tightening occupancies and rising rents and prices across all property types will generate higher volumes of underwriting, valuation and acquisition due diligence and stimulate increasing demand for Reis’s products.customized reports.

Operations

As commercial real estate markets grow in size and complexity, Reis continues to invest in the databases, technologies, intellectual capital and personnel critical to supporting the information needs of commercial real estate professionals. Specifically, Reis has:

These investments have established Reis as a leading provider of commercial real estate information and analytical tools to the investment community. Reis continues to develop and introduce new products, expand and add new markets and data, and find new ways to deliver existing information to meet client demand, as more fully described below under “— Products and Services.” The depth and breadth of Reis’s data and expertise are critical in allowing Reis to grow its business.

Proprietary Databases

Reis develops and maintains three highly curated, proprietary databases which include information on property performance, new construction and sales comparables.transactions. The significant characteristics of the Reis databases include:

The following table lists the number of metropolitan markets for each of the seveneight types of commercial real estate covered by Reis:

Reis programmatically expands its property level and market coverage by geography and property type. During 2014, Reis introduced coverage on its seventh property type, seniors housing, in 57 metropolitan areas and in February 2015 expanded this coverage by adding an additional 53 metropolitan areas, bringing its coverage in the seniors housing asset classsector to 110 markets. In May 2015, Reis will introduceintroduced coverage on its eighth property type, student housing, with information and reports on 100 student housing markets, and in August 2015 expanded this coverage by adding an additional 100 student housing markets, bringing its coverage of the student housing sector to 200 markets. In 2016, the Company expects to introduce twoone additional property types, medical office buildings andtype, affordable housing, which will bring our offering to up to 10nine distinct property types.types, with a tenth property type, medical office buildings, scheduled for coverage initiation in 2017.

Reis’s core property database contains information on competitive, income-producing properties in the U.S. apartment, office, retail, office, warehouse/distribution, flex/research & development, self storage, seniors housing and seniorsstudent housing sectors. On an ongoing basis, Reis surveys and receives data downloads from building owners, leasing agents and managers which include key building performance statistics including, among others: occupancy rates; rents; rent discounts and other concessions; tenant improvement allowances; lease terms; and operating expenses. In addition, Reis processes multiple data sources on commercial real estate, including: public filings databases; tax assessor records; deed transfers; planning boards; and numerous local, regional and national publications and commercial real estate websites. Reis screens and assembles large volumes of data into integrated supply and demand trends on a monthly basis at the neighborhood (submarket) and metropolitan market levels. All collected data are subjected to a rigorous quality assurance and validation process developed over many years. At the property level, surveyors compare the data collected in the current period with data previously collected on that property and similar properties. If any unusual changes in rents and vacancies are identified, follow-up procedures are performed for verification or clarification of the results. All aggregate market data at the submarket and market levels are also subjected to comprehensive quality controls.

In addition to its core property database, Reis develops and maintains a new construction database that identifies and monitors projects that are being added to our covered markets. Detailed tracking of the supply side of the commercial real estate market is critical to projecting performance changes at the market and submarket levels. This database is updated weekly and reports relevant information such as project size, property type, location, status, and estimated completion dates for projects that are planned, proposed or under construction.

Reis also maintains a sales comparablestransactions database containing transactions in up to 277 metropolitan markets. The database captures key information on each transaction, such as buyer, seller, purchase price, capitalization rate and financing details, where available, for transactions valued at greater than $250,000 in each market we cover, for our seveneight current property types, as well as for hotel properties. The depth of Reis’s transaction data allows it to track capital flows into commercial real estate markets by geography and property type. Reis has identified the expansion and enhancement of its sales transaction database as one of its primary engines of financial growth over the foreseeable future. Key investments will be made in supplying additional geographic coverage, property types, smaller transactions, licensed photographs, and tabular, graphic and textual analysis.

Reis’s long-standing relationships with thousands of data sources, including building owners, property managers and agents, represent a unique and highly valuable asset that has required decades of investment. The Company is recognized by the industry and the business and trade press as the premier source of objective, timely and granular market information, a reputation attributable to severaltwo key factors: (1) Reis is viewed as independent as it does not compete as a broker in the listings space; and (2) Reis information is used by owners and managers in the underwriting, due diligence and marketing of properties, mortgages and real estate backed securities at both the single asset and portfolio levels.

Products and Services

Reis has invested in a robust technology infrastructure to disseminate a number of market information products to meet the demands of a wide variety of commercial real estate professionals, from large financial institutions seeking an integrated commercial real estate portfolio management platform, to a single access user seeking local market intelligence. Reis is committed to consistently upgrading and expanding its product offering to reach new markets and new types of consumers of commercial real estate information.

Reis SE

Reis SE (“(or sometimes referred to as “Reis Subscriber Edition”), available atwww.reis.com, is the Company’s flagship product, designed to assist in market research, due diligence and support of commercial real estate transactions, including loan originations, underwriting, acquisitions, risk assessment (such as loan loss reserves and impairment analyses), portfolio monitoring, asset management and appraisal. Reports are retrievable by street address, property type (apartment, office, retail, warehouse/distribution, flex/research & development, self storage, seniors housing and seniorsstudent housing) or on the market/submarket level and are available as full color, presentation quality documents or in spreadsheet formats.

Key features ofReis SEinclude:

Access toReis SEis by secure password and can be customized to accommodate the geographic coverage, property type and analytical needs of subscribers. For example, the product can be tailored to provide access to all or only selected markets, property types and report combinations.

ReisReports

ReisReports is a product tailored to meet the needs of smaller enterprises and individuals, professional investors, brokers and appraisers, available atwww.ReisReports.com. Although providing subscribers with less content and a more limited number of reports,ReisReports utilizes the same proprietary database that supportsReis SE. ReisReports is available on a monthly or annual subscription basis at affordable price points.

The addressable subscriber market forReisReports includes hundreds of thousands of prosumers and small enterprises. To expand the total user base ofReisReports, the Company markets through various traditional and online media channels. Management believes that there is a significant opportunity to market monthly and annual subscriptionschannels to CRE professionals active in individual metropolitan areas.

Mobiuss Portfolio CRE and Other Portfolio Support Products and Services

Launched in the first quarter of 2013,Mobiuss enables clients to quickly and thoroughly assess portfolio risks and opportunities by integrating client loan and property information with Reis property and submarket data and third partywhich is processed through a credit analytics.model. The solution is delivered in a web-based, visually engaging interface.Mobiuss is targeted to both debt and equity capital providers active in U.S. commercial real estate and, specifically, to banks with significant CRE loan exposure.

As a loan-level analysis and surveillance platform,Mobiuss enables property valuation, credit analysis, stress testing, benchmarking and portfolio pricing. In addition to providing credit default metrics such as expected losses and probabilities of default at the loan and portfolio levels, outputs include forecasted collateral operating incomes and values under multiple economic scenarios. These features allow clients to integrate internal data to create customizable scenario forecasts to meet regulatory stress testing requirements, set loan loss reserves and monitor their collateral.

TheMobiuss platform is intended for both large and small lending institutions, Commercial Mortgage Backed Security, or CMBS, investors and equity investors, among others.Mobiuss has been designed in a modular fashion that allows banks of varying asset sizes to select the applications and price points most appropriate to the scale of their CRE portfolios.

The Company has been able to assist financial institutions (during 2015 and in prior years) in the evaluation of their CRE loan portfolios through other means besidesMobiuss,including custom data deliverables and providing data clean-up, advisory and other consulting services. Reis stands ready to assist all client and non-client financial services firms and other real estate professionals however they need information or services.

Data Redistribution / Marketing Alliances

The Company has established data redistribution agreements with information service providers as part of a strategy designed to raise brand awareness and generate sales leads for Reis’s information and services. Over time, third party users may enter into agreements with Reis directly in order to gain access to the full suite of reports and analytical modules. The Company’s data redistribution agreements are typically multi-year contracts in length, do not afford access to Reis’s proprietary database and provide limited views

of Reis’s market data. Reis has also established marketing alliances with the Appraisal Institute, the Certified Commercial Investment Member Institute (“CCIM”) and Building Owners and Managers Association (“BOMA”) International to promoteReisReports to its alliance partners’ members through discounts, e-mailemail outreach, website advertising and newsletter ads.

As an example, our data redistribution arrangement with Bloomberg allows for Bloomberg Professional subscribers to have access to Reis’s market information at {REIS < GO > } which is also integrated across property and credit valuation tools on Bloomberg’s Commercial Mortgage Backed Security (“CMBS”) product. Bloomberg subscribers can access Reis’s proprietary supply, demand and price data for the nation’s largest metropolitan apartment, office, retail and industrial markets.

Cost of Service

Reis’s data is made available in six ways, with price points that are reflective of the level of content being made available:

Reis’s revenue model is based primarily on annual subscriptions that are paid in accordance with contractual billing terms. Reis recognizes revenue from its contracts on a ratable basis; for example, one-twelfth of the value of a one-year contract is recognized monthly. In the case of custom data deliverables, revenue is recognized upon completion and delivery to the customers, provided that no significant Company obligations remain.

Subscribers

At December 31, 2014,2015, Reis had approximately 1,000 enterprise subscribers under signed contracts for its coreReis SEproduct. A subscribing entity may have one or many users entitled to accessReis SE. Nearly all of ourMobiuss subscribers are alsoReis SE subscribers. These numbers do not include users who pay for individual reports by credit card, subscribers to ourReisReports product or users of information available on third party platforms through our data redistribution relationships.

The vast majority of the Company’s largest subscribers have utilized Reis’s core product for many years and have represented a stable user and revenue base. Subscribers include banking institutions, property owners, brokers, lessors, builders, REITs, pension funds, insurance companies, developers, commercial banks, non-bank lenders, equity investors, appraisers, accountants, consultants, academia, and government institutions. At December 31, 2014,2015, approximately 79%86% of Reis’sReis SE customers (based on total customer dollars) are debt and equity capital providers, with banks and other financial institutions comprising approximately 54%52% and investment funds and equity owners comprising approximately 25%34%; service providers account for the remaining 21%14%.

Customer Service and Training

Reis focuses intensively on proactive training and customer support. Reis’s customer service team offers customized on-site training and web-based and telephonic support, as well as weekly web-based training seminars open to allReis SEsubscribers. The corporate training team also visits with a large proportion ofReis SE subscribers on an ongoing basis. Additional points of subscriber contact include mid-year service reviews, a web-based subscriber feedback program and account manager visits. All of these contacts are used to assist subscribers with their utilization ofReis SEand identify opportunities for product adoption and increased usage and to solicit subscriber input for future product enhancements. Similarly, support and training are available to ourReisReports andMobiuss subscribers.

Proprietary Rights

To protect our proprietary rights, we rely upon a combination of:

We protect our software’s source code and our databases as either trade secrets or under copyright law. We license our services under license agreements that restrict the disclosure and use of our proprietary information and prohibit the unauthorized reproduction,re-engineering or transfer of the information in our products and services.

We also protect the secrecy of our proprietary databases, our trade secrets and our proprietary information through confidentiality and non-competition agreements with our employees, vendors and consultants. Our services also include technical measures designed to detect unauthorized copying of our intellectual property. The Company’s compliance department monitors usage to ensure that all client usage is consistent with the terms of its contract.contract and has created analytic and other forensic tools to identify unauthorized access toReis SE as a result of password migration and sharing.

We have registered the trademarks for “Reis,” “Reis Reports,” the Reis logo and “Your Window Onto the Real Estate Market.”

Competition

Despite its multi-trillion dollar size, the commercial real estate industry continues to be underserved by information resources. Compared to equity and fixed income professionals, CRE practitioners have fewer options in meeting their market information and analytical needs. The disparity in available information resources is due, in part, to the limited reporting requirements imposed on private CRE firms which represent the majority of the industry. However, real estate transactions involve multiple participants who all require accurate historical and current market information. Therefore, in order to provide comprehensive and value-added products for all CRE practitioners, a database of commercial properties must be largely built from proprietary sources over many years. Key

factors that influence the competitive position of commercial real estate information vendors include: the depth and breadth of underlying databases; ease of use; flexibility and functionality of the customer interface; the ability to keep the data up-to-date and accurate; frequency of reporting; scope of coverage by geography and property type; customer training and support; adoption of the service by industry leaders; consistent product innovation; recognition by general business and trade media; and price.

Reis’s senior management believes that, on a national level, only a small number of firms serve the market information needs of U.S. commercial real estate investors and lenders. Reis competes directly and indirectly for subscribers with online services or websites targeted to commercial real estate professionals such as CoStar Group, Inc. (or “CoStar”) (including its Property and Portfolio Research and LoopNet businesses), Real Capital Analytics, Inc., Xceligent, CBRE Econometric Realty Advisors (formerly known as Torto Wheaton Research),Research, a wholly-owned subsidiary of CB Richard Ellis,Ellis), and Moody’s Analytics, Inc., as well as with various local and regional data providers covering selected markets and in-house real estate research departments. Another source of information has been market reports published by brokerage firms, although the promotional nature of many of these publications and their irregular publishing schedule make them less reliable as an ongoing resource for many CRE practitioners.

Discontinued Operations – Residential Development Activities

Prior to May 2007, the name of the Company was Wellsford Real Properties, Inc., which we refer to as Wellsford. (“Wellsford”). Wellsford, which was originally formed on January 8, 1997, acquired the Reis Services business by merger in May 2007 which we refer to as the Merger.(the “Merger”). Wellsford’s primary operating activities immediately prior to the Merger, and conducted through its subsidiaries, were the development, construction and sale of three residential projects and its approximate 23% ownership interest in the Reis Services business. The Company completed the sale of the remaining residential units and homes at its projects or divested of the remaining residential projects in bulk sales by April 2011. In 2012, the Company settled construction defect litigation at its Colorado project.project, and in 2015 finalized its efforts to recover funds from other responsible parties as more fully described in Note 3 and Note 10 of the consolidated financial statements, included in this annual report on Form 10-K.

The Residential Development Activities segment, including certain general and administrative costs that supported that segment’s operations, are presented as a discontinued operation for 2015, 2014 2013 and 2012.2013.

See Note 3 and Note 10 of the consolidated financial statements, included in this filing, for additional information regarding the Company’s segments and the aforementioned litigation.

Corporate Information

The Company’s executive offices are located at 530 Fifth Avenue, Fifth Floor, New York, New York 10036; telephone: (212)921-1122; website:www.reis.comwww.reis.com; email:investorrelations@reis.com. Please note that information on the Company’s website is not part of this annual report on Form 10-K filing.10-K.

The reports we file with or furnish to the Securities and Exchange Commission, or SEC, including our annual report, quarterly reports and current reports, are available free of charge on our investor relations website (www.reis.com/investors) as soon as reasonably practicable after we electronically file such material with, or furnish it to, the SEC. You may review and copy any of the information we file with the SEC at the SEC’s Public Reference Room at 100 F Street, NE, Washington, DC 20549. You may obtain information regarding the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. The SEC also maintains a website (www.sec.gov) that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC.

The Company had 205272 employees as of December 31, 2014.2015.

The Company is a Federal government contractor and an equal opportunity employer. All qualified applicants will receive consideration for employment and will not be discriminated against on the basis of race, color, religion, sex, sexual orientation, national origin, age, disability, or protected veteran status. Reis takes affirmative action in support of its policy to employ and advance in employment individuals who are minorities, women, protected veterans, and individuals with disabilities.

Cautionary Statement Regarding Forward-Looking Statements

This annual report on Form 10-K contains “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements may relate to the Company’s or management’s outlook or expectations for earnings, revenues, expenses, margins, asset quality, or other future financial or business performance, strategies, prospects or expectations, or the impact of legal, regulatory or supervisory matters on our business, operations or performance. Specifically, forward-looking statements may include:

Forward-looking statements reflect management’s judgment based on currently available information and involve a number of risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. With respect to these forward-looking statements, management has made certain assumptions. Future performance cannot be assured. Actual results may differ materially from those contemplated by the forward-looking statements. Some factors that could cause actual results to differ include:

You are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date of this annual report on Form 10-K. Except as required by law, the Company undertakes no obligation to publicly update or release any revisions to these forward-looking statements to reflect any events or circumstances after the date of this annual report on Form 10-K or to reflect the occurrence of unanticipated events.

Item 1A. Risk Factors.

The following is a discussion of the risk factors that Reis’s management believes are material to Reis at this time. These risks and uncertainties are not the only ones facing Reis and there may be additional matters that Reis is unaware of or that Reis currently considers immaterial. Any or all of these could adversely affect Reis’s business, results of operations, profitability, financial condition and cash flows.

Risks Related to the Reis Services Business and the Information Services Industry Generally

A failure to attract and retain subscribers could harm our business.

We must acquire new subscribers and expand our business with our current subscribers in order to grow our business.Our ability to grow our business will be adversely impacted to the extent that current subscribers reduce or discontinue the use of our products and websites, includingReis SE, Mobiuss andReisReports, or if we are unable to locate and have prospects subscribe toReis SE, Mobiuss and ReisReports. This may occur due to budgetary constraints, which was particularly true during the height of the economic downturn in 2008 and 2009, or if our product offering is less competitive with those of other companies in our industry. Prior to 2008, our overall trailing twelve month renewal rates were above 94% for many years. In the latter part of 2008 and in 2009, we

experienced an overall decrease in the total number of our subscribers and a reduction in our trailing twelve month renewal rates. The overall trailing twelve month renewal rate fell to a low of 83% at September 30, 2009.

Our overall renewal rates were 87%88% and 91%87% for the trailing twelve months ended December 31, 20142015 and 2013,2014, respectively (for institutional subscribers, the renewal rates were 89%90% and 93%89% for the trailing twelve months ended December 31, 20142015 and 2013,2014, respectively). TheDuring 2014, the Company experienced a decline in the renewal rates reflects ourwhich reflected management’s decision to be more aggressive with our renewal pricing policies, particularly in instances where customer usage levels arewere significantly greater than what was initially estimated as annual usage for that customer. We believe that aligning client report consumption and value with appropriate annual fees, while remaining respectful of subscriber need for Reis information, is more important in the long-term, than a modest decline in the current renewal rate. While management believes, based upon pastIn management’s experience, that many non-renewing customers ultimately renew with Reis as their information and analytic needs may not be fully addressed by competitive offerings,offerings; however there is no certainty thatnon-renewing customers will ultimately renew with Reis.

There can be no assurance that we will be successful in continuing to identify and sell to additional subscribers, expand business from our existing subscribers, regain non-renewing customers, or either maintain or increase our renewal rates.

Our revenues are concentrated among certain key subscribers.

We have approximately 1,000 enterprise subscribers toReis SE at December 31, 2014.2015. The largest individual subscriber accounted for 2.9%10.6% and 3.4%2.9% of our revenue for the years ended December 31, 2015 and 2014, respectively. The 2015 revenue from our largest individual subscriber atypically included significant amounts of revenue from custom data deliverables, data clean-up and 2013, respectively.advisory and consulting services, as more fully described elsewhere in this annual report on Form 10-K. If we were to experience a reduction or loss of business from a number of our largest subscribers, it could have a material adverse effect on our revenues and, depending on the significance of the loss, our profitability, financial condition and cash flows. In addition, although we generally impose contractual restrictions limiting our immediate exposure to revenue reductions due to mergers and consolidations among our subscribers and potential subscribers and our pricing model is based on actual and projected usage, we may be impacted by consolidation among our subscribers and potential subscribers, as a result of their reduced usage on a combined basis or greater bargaining power.

We may be unable to compete successfully with our current or future competitors.

The market for information, analytics and decision support services in general is highly competitive and rapidly changing. We compete with (1) local companies that offer commercial real estate research with respect to their specific geographic areas and (2) national companies that offer national commercial real estate research. Specifically, certain of our products compete with those of CoStar (including both its Property and Portfolio Research and LoopNet businesses), Real Capital Analytics, Xceligent, CBRE Econometric Realty Advisors and Moody’s. Some of our competitors, either alone or with affiliated entities, may have greater name recognition, larger subscriber bases or greater financial, technical or marketing resources than we have. Future competition may come from large digital enterprises seeking to enter the CRE information space. These enterprises could have access to significantly more capital and technical expertise than Reis. At the same time, current and future competitors may seek to employ new technologies and approaches. Such innovations could potentially reduce the cost of data collection and analytics and improve the frequency and accuracy of CRE market information. Reis is also currently developing and completing emerging technologies to advance its data collection programs, improve products, and reduce costs; however, there can be no assurance that these efforts will be successful. In addition, some current or future competitors may be able to undertake more effective marketing campaigns, adopt more aggressive pricing policies, and make more attractive offers to potential employees and business partners or respond more quickly to new or emerging technologies or changes in subscriber requirements.partners. Competition could negatively impact our revenues, profitability, financial condition and cash flows.

We may not be able to maintain Reis Services’s historical rates of growth in revenues or EBITDA. In addition, multi-year contracts may negatively impact our growth rates.

Historically, Reis Services has experienced revenue and EBITDA growth (we define EBITDA as earnings (income (loss) from continuing operations), before interest, taxes, depreciation and amortization). Annual revenue grew by 14.9% from 2011 to 2012, by 11.2% from 2012 to 2013, and by 19.0% from 2013 to 2014.2014, and by 23.1% from 2014 to 2015. On a pro forma basis, revenue grew by 12.8% from 2011 to 2012 and by 13.2% from 2012 to 2013 after consideration of certain pro forma items in 2012 and by 14.9% from 2014 to 2015 after consideration of certain pro forma items in 2015, as more fully described in Item 7. The fourth quarter and annual 20142015 revenue was the highest quarterly and annual revenue in the Company’s history. It also marks the 19th23^rd consecutive quarterly increase in revenue over the prior year’s corresponding quarter. There can be no assurance that our revenues will continue to grow at or in excess of the pace of our recent performance, on a consecutive quarter basis, on a year-over-year basis, or at all in the future.

Reis Services’s annual EBITDA grew by 17.8% from 2011 to 2012, by 12.1% from 2012 to 2013, and by 17.8% from 2013 to 2014.2014, and by 31.0% from 2014 to 2015. On a pro forma basis, Reis Services EBITDA grew by 12.5% from 2011 to 2012 and by 17.3% from 2012 to 2013, after consideration of certain pro forma items in 2012, and by 17.3% from 2014 to 2015 after consideration of certain pro forma items in 2015, as more fully described in Item 7. The fourth quarter of 20142015 marks the 1721^thst consecutive quarterly increase in Reis Services EBITDA over the prior year’s quarter. Expenses will increase in the future, including expenses for content maintenance, sales, marketing and product development, with the expectation that these expense increases will drive future revenue growth; however, such additional expenses could result in reduced margins or profitability, or negatively impact liquidity in the near term, and if not successful, may negatively impact margins, profitability and liquidity in the long term. There can be no assurance that future EBITDA or Adjusted EBITDA for the Reis Services segment, or on a consolidated basis will continue to grow at or in excess of

the pace of our recent performance, on a consecutive quarter basis, on a year-over-year basis, or at all. There can be no assurance that we will be able to maintain or expand our EBITDA or EBITDA margins for the Reis Services segment, or on a consolidated basis, in the future. EBITDA and Adjusted EBITDA arenon-GAAP financial measures within the meaning of the rules and regulations of the SEC. See Item 7 for reconciliations of EBITDA and Adjusted EBITDA to the most comparable GAAP measure, income from continuing operations, for both the Reis Services segment and on a consolidated basis.

As mentioned above, management is presenting revenue on a pro forma basis for 2015. The Company recognized significant revenue in 2015 for custom data deliverables, as well as custom portfolio and advisory services, for one of our existingReis SEsubscribers aggregating approximately $4,500,000 in 2015. These contracts called for a substantial volume of highly granular market, submarket and comparables data, as well as a one-time custom analysis of the institution’s commercial real estate portfolio. An additional delivery was made to this customer in February 2016 for which the Company will recognize revenue upon delivery, positively impacting results for the first quarter of 2016; however, we cannot determine at this time whether such custom deliverables to this particular customer will continue beyond February 2016. Although the Company believes that there could be additional opportunities to assist client and non-client financial services firms and other real estate investors with evaluating the health of their real estate portfolios, there can be no assurance that this subscriber or other subscribers will have continued demand for one-time custom data deliverables, portfolio and advisory services.

Over the past threefew years, Reis has made a concerted effort to negotiate and enter intoencourage multi-year contracts, when appropriate, with terms of two or three years, and in some cases, four years. Securing customers into contracts greater than 12 months allows for a stable revenue base and increased revenue visibility (as measured by our level of reported Aggregate Revenue Under Contract (see Item 7 for more

information on this performance metric)) and increased cash flow visibility, positively impacts our renewal rates and allows for a better allocation of account management and other personnel resources. However, multi-year subscriptions mute our revenue growth rates after the first year of the subscription. WeFor our subscription products we recognize revenue ratably over the related contractual period. Therefore any increases in the price of the subscription after the first year of a multi-year contract are considered in the total amount being straight-lined over the contract term. On any given multi-year contract, the biggest revenue growth will be reflected in the 12 month period following a negotiated renewal, with no further revenue growth generated from that contract after the first year. Although our cash collection increases year-over-year, multi-year contracts have a flattening effect on our overall revenue growth rate. This would also similarly impact our EBITDA growth rates. As of December 31, 2014, we have subscriptions with2015, approximately 240 institutionsone-third of our customers are signed to a multi-year deal.

If our growth rates decline, or if revenue and/or EBITDA decline, investors’ perceptions of our business may be adversely affected and the market price of our common stock could decline.

We must continue to obtain information from multiple sources.

The quality of our databases supporting our products depends substantially on information provided by a large number of sources, including commercial real estate brokers, agents and property owners, as well as from public sources, such as tax assessors, deed recorders, planning and zoning boards, corporate websites, the business and trade press, and selected third party vendors of business information. If we are unable to collect information from a significant number of these sources, or if the cost of collecting information becomes too expensive, our products could be negatively affected, potentially resulting in an increase in subscriber cancellations and a failure to acquire new subscribers.

Our revenues, expenses and operating results could be affected by general economic conditions or by changes in commercial real estate markets, which are cyclical.

Our business and the commercial real estate industry are sensitive to trends in the general economy and trends in local, regional and national commercial real estate markets, which are unpredictable. Therefore, our operating results, to the extent they reflect changes in the broader commercial real estate industry, may be subject to significant fluctuations. A number of factors could have an effect on our revenues, expenses, profitability or cash flows, such as:

If our subscribers choose not to useReis SE, Mobiuss orReisReports because of any of these factors, and we are not successful in attracting new subscribers, our revenues, expenses, EBITDA, margins, profitability, cash flows and/or stock price could be negatively affected.

Our success depends on our ability to introduce new or upgraded services or products.

To continue to attract new subscribers and renew our existing subscribers, we may need to introduce new products or services. The need for new products and services may be in response to or in anticipation of changing or developing customer needs or preferences as well as to remain competitive with other providers of market information. We may choose to develop new products and services independently or to license or otherwise integrate content and data from or with third parties. The introduction of new products and services could impose costs on our business and require the use of resources, and there is no guarantee that we will continue to be able to access new content and technologies on commercially reasonable terms or at all. If subscribers or potential subscribers do not recognize the value of our new services or enhancements to existing services, our operating results could be negatively affected. We may incur significant costs and experience difficulties in developing and delivering these new or upgraded services or products.

Efforts to enhance and improve the ease of use, responsiveness, functionality and features of our existing and newly developed products and services have inherent risks, and we may not be able to manage these product developments and enhancements successfully or in a cost effective manner. If we are unable to continue to develop new or upgraded services or products, then subscribers may choose not to use our products and services. Our growth and results of operations would be negatively impacted if we were unable to successfully market and sell any new services or upgrades.

OurDuring September 2015, Reis purchased the Intellectual Property (“IP”) associated with theMobiuss product is dependent upon the activities of another organization over which we do not exercise control.platform.    Revenue fromMobiuss has been developed with, and is being co-marketed with an unrelated third party. TheMobiuss product is a combinationfor contracts entered into after September 16, 2015 represents the Company’s 100% share of Reis’s commercial real estate market information and forecasts with risk analytics and web-based technologies provided by the unrelated third party. If this third party fails to devotevalue of the time, capital and resourcessubscription, compared to the continuing development and supportCompany’s 50% share of subscription value prior to the purchase of theMobiuss product, and ifIP. After completion of the transaction, Reis cannot either replace them with another party or performowns all of the functions for itself, sales ofMobiuss toIP, and will be solely responsible for any new subscribers orfunctionality development, maintenance of the renewal of subscriptions to existingMobiuss subscriberssystem and marketing and sales initiatives. Our operating results could be negatively impacted resulting in a reduction in revenue, and negatively impacting our EBITDA, margins, profitability and cash flows.affected if any of these efforts are not successful.

Our ReisReports and Mobiuss offerings, or other future products, may not be successful or may not result in increased revenues, which may negatively impact our business, results of operations and financial position.

During 2015,2016, we expect to continue to expand our sales and marketing efforts in connection with certain initiatives, including ourReisReports andMobiuss product offerings, as well as potential new products expected to be introduced in 2016, which could result in increased expenses. If our costs for these efforts exceed our expectations, our profitability and financial position could be adversely affected. In addition, if we incur additional costs to expand these products and we are not successful in marketing or selling these expanded services, this could have an adverse effect on our financial position by increasing our expenses without increasing our revenues, impacting margins, profitability and cash flows.

If we fail to protect confidential information against security breaches, or if subscribers are reluctant to use our products because of privacy concerns, we might experience a loss in profitability.

Pursuant to the terms and conditions of use on our websites, as part of our subscriber registration process, we collect and use personally identifiable information. Industry-wide incidents or incidents with respect to our websites, including theft, alteration, deletion or misappropriation of information, security breaches, malevolent activities by computer hackers, viruses (or anything else that may contaminate or cause destruction to our systems), or changes in industry standards, regulations or laws could deter people from using the Internet or our websites to conduct transactions that involve the transmission of confidential information, which could harm our business. Under the laws of certain jurisdictions, if there is a breach of our computer systems and we know or suspect that unencrypted personal subscriber data has been stolen, we may be required to inform any subscribers whose data was stolen and we may be subjected to liability, which could harm our reputation and business.

Certain state laws require businesses that maintain personal information in electronic databases to implement reasonable measures to keep that information secure. Various states have enacted different and sometimes contradictory requirements for protecting personal information collected and maintained electronically. We may face adverse publicity if we are not able to comply with laws requiring us to take adequate measures to assure the confidentiality of the personally identifiable information that our subscribers have given to us. This could result in a loss of customers and revenue. Even if we are in full compliance with all relevant laws and regulations, we still may face liability or disruption to our business if we do not comply in every instance or if the security of the customer data that we collect is compromised, regardless of whether our practices comply or not.

Our business could be harmed if we are unable to maintain the integrity and reliability of our data and forecasts.

Our success depends on our subscribers’ confidence in the comprehensiveness, accuracy, and reliability of the data and forecasts we provide. We believe that we take adequate precautions to safeguard the completeness and accuracy of our data and that the information is generally current, comprehensive and accurate. Nevertheless, we depend to a large degree on information provided to us on a voluntary basis by third parties, including commercial real estate brokers, agents and property owners. OurMobiuss product involves the delivery of portfolio analytics derived from the combined expertise of Reis and an unrelated third party; we are not in control of the unrelated third party’s technology, intellectual property or economic or financial models in connection with the delivery of its portion of theMobiuss product. Further, data is susceptible to electronic malfeasance including theft, alteration, deletion, viruses and malevolent activities by computer hackers. In addition, our reports and conference calls for the benefit of our subscribers may contain forecasts with respect to real estate trends. Although our contracts contain language limiting our liability if any of our data or forecasts are inaccurate or are later not borne out by actual results, for any of the above reasons, demand for our services could diminish and we may be exposed to lawsuits claiming damages resulting from inaccurate data and forecasts.

We may be unable to enforce or defend our ownership or use of intellectual property.

Our business depends in large measure on the intellectual property utilized in our methodologies, software and databases. We rely on a combination of trademark, trade secret, database protection and copyright laws, registered domain names, non-disclosure,non-competition and other contractual provisions with employees, vendors and consultants, work-for-hire provisions, restrictive license agreements with subscribers and technical security measures to protect our proprietary intellectual property rights. However, we do not hold Federal registrations covering all of our trademarks and copyrightable materials. We also do not own any patents or patent applications. In addition, current law may not adequately protect our databases and data, and legal standards relating to the validity, enforceability and scope of protection of proprietary rights in online businesses are uncertain and evolving. Our business could be significantly harmed if we do not continue to protect our intellectual property.

In addition, notwithstanding our efforts to protect our intellectual property, third parties may misappropriate our data through website scraping, robots or other means and aggregate this data on their websites with data from other companies. In addition, copycat websites may misappropriate data on our website and attempt to imitate the functionality of our website. We may not be able to detect all such websites in a timely manner and, even if we could, technological and legal measures may be insufficient to stop their operations. Available remedies

In protecting our intellectual property, we will enforce our rights against people and businesses that infringe our intellectual property, including through legal action. Taking such action may not be adequate to protect us againstcause the misappropriation of our data, and any measures that we may take could require usCompany to expend significant financial resources.resources, and we cannot ensure that such actions will be successful. Any unlawful use of our intellectual property, and subsequent legal action, could make it more expensive for us to do business and negatively impact Reis’s results of operations and financial condition.

We also could be significantly harmed if claims are made against us alleging infringement of the intellectual property rights of others. Any intellectual property claims, regardless of merit, could be expensive to litigate or settle, and could require the expenditure of substantial amounts of time and/or money.

If our websites or other services experience system failures or malicious attacks, our subscribers may be dissatisfied and our operations could be impaired.

Our business depends upon the satisfactory performance, reliability and availability of our websites. Problems with the websites could result in reduced demand for our services. Furthermore, the software underlying our services is complex and may contain undetected errors. Despite testing, we cannot be certain that errors will not be found in our software. Any errors could result in adverse publicity, impaired use of our services, loss of revenues, cost increases or legal claims by subscribers.

Additionally, our services substantially depend on systems provided by third party vendors and service providers, over whom we have little or no control. Interruptions in service could result from the failure of data providers, telecommunications providers, or other third parties, including due to break-ins, unauthorized access, computer viruses, vandalism, fire, floods, severe weather, earthquakes, power loss, telecommunications failures, terrorism, acts of war, and other similarly damaging events. We depend on these third party providers of

Internet communication services to provide continuous and uninterrupted service. We also depend on Internet service providers that provide access to our services. Any disruption in the Internet access provided by third party providers or any failure of third party providers to handle higher volumes of user traffic could harm our business.

Our internal network infrastructure could be disrupted or penetrated, which could materially impact both our ability to provide services and subscribers’ confidence in our services.

Our operations depend upon our ability to maintain and protect our computer systems. While we believe that our systems, most of which are redundant and independent systems in separate locations, are adequate to support our operations, our systems may be vulnerable to damage from break-ins, unauthorized access, computer viruses, vandalism, fire, floods, severe weather, earthquakes, power loss, telecommunications failures, terrorism, acts of war, and other similarly damaging events. Although we maintain insurance against fires, floods, and general business interruptions, the amount and types of coverage may not be adequate in any particular case. Furthermore, any damage or disruption could materially impair or block our ability to provide services, which could significantly impact our business.

Experienced computer programmers, or hackers, may attempt to penetrate our network security from time to time. Although we have not experienced any security breaches to date and we maintain a firewall, a hacker who penetrates network security could misappropriate proprietary information or cause interruptions in our services. We might be required to further expend significant capital and resources to protect against, or to alleviate, problems caused by hackers. We also may not have a timely remedy against a hacker who is able to penetrate our network security. In addition to purposeful security breaches, the inadvertent transmission of computer viruses or anything else manifesting contaminating or destructive properties could expose us to litigation or to a material risk of loss. Any of these incidents could materially impact our ability to provide services as well as materially impact the confidence of our subscribers in our services, either of which could significantly and adversely impact our business.

We may be subject to regulation of advertising and subscriber solicitation or other newly-adopted laws and regulations.

As part of our subscriber registration process, our subscribers agree to receive emails and other communications from us. In addition, we use email and other online marketing techniques to reach potential subscribers, particularly for ourReis SEandReisReports products.subscribers. We may be subject to restrictions on our ability to communicate through email and phone calls, even with existing subscribers. The U.S. and other jurisdictions have proposed or adopted laws that restrict or prohibit unsolicited email or spam. These laws may impose significant monetary penalties for violations. In addition, laws or regulations that could harm our business could be adopted, or reinterpreted so as to affect our activities, by Federal and state governments, regulatory agencies or foreign governments or agencies. This could include, for example, laws regulating the source, content or form of information provided on our websites, the information or services we provide, or our transmissions over the Internet. Violations or new interpretations of these laws or regulations may result in penalties, damage our reputation, increase our costs or make our services less attractive.

Litigation or governmental investigations in which we become involved may significantly increase our expenses and adversely affect our stock price.

From time to time, we are a party to various lawsuits. Any lawsuits, threatened lawsuits or governmental investigations in which we are involved could cost us a significant amount of time and money to defend, could distract management’s attention away from operating our business, could result in negative publicity and could adversely affect our stock price. In addition, if any claims are determined against us or if a settlement requires us to pay a large monetary amount or take other action that materially restricts our operations, our profitability could be significantly reduced and our financial position could be adversely affected. Our insurance may not be sufficient to cover any losses we incur in connection with litigation claims.

Reis develops and maintains three highly curated, proprietary databases of U.S. commercial real estate. On an ongoing basis Reis surveys and receives data from building owners, leasing agents and managers, as well as from multiple data sources. Nonetheless, we may be subject to legal liability for collecting, displaying or distributing information. We may also be subject to claims based on the content that is accessible from our website through links to other websites or information on our website supplied by third parties. We could also be subject to claims that the collection or provision of certain information breached laws and regulations relating to privacy and data protection. Even if these claims do not result in liability to us, we could incur significant costs in investigating and defending against any claims.

Our revenue, expenses, operating results, margins, financial condition and cash flows are subject to fluctuations.

Our revenues, expenses, operating results, margins, financial condition and cash flows have fluctuated in the past and are likely to continue to do so in the future. These fluctuations could negatively affect our results of operations during that period and future periods. Our revenues, expenses, operating results, margins, financial condition and cash flows may fluctuate from quarter-to-quarterquarter to quarter due to factors including, among others, those described below:

An impairment in the carrying value of goodwill or other intangible assets could negatively impact our consolidated results of operations.

Reis has $54,825,000 of goodwill at December 31, 2014,2015, which is not an amortizable asset and is tested for impairment at least annually, or after a triggering event has occurred, requiring such a calculation. In addition, the carrying amount of amortizable intangible assets at December 31, 20142015 aggregated $14,681,000.$15,687,000. There were no indications of impairment in any of the Company’s intangible assets or goodwill at December 31, 2014.2015. If, in the future, a determination is made that the carrying amount of the Company’s goodwill or amortizable intangible assets is less than the fair value of the respective asset, the Company would record an impairment charge in accordance with the applicable accounting literature. Any future impairment charge could negatively impact the Company’s results of operations, net worth, or the market price of our common stock.

Our business depends on retaining and attracting capable management, operating and operatingsales personnel.

The implementation and development of Reis’s business plan require the skills and knowledge of our senior executives, as well as our sales, technology and operational personnel. Reis may not be able to offset the impact of the loss of the services of these individuals or other key officers or employees because our business requires skilled management, as well as technical, product and technology, and sales and marketing personnel, who are in high demand and are often subject to competing offers. Competition for qualified employees is intense in the information industry, and the loss of a substantial number of qualified employees, or an inability to attract, retain and motivate additional highly skilled employees, could have a material adverse impact on Reis.

Although Reis uses various incentive programs to retain and attract key personnel, these measures may not be sufficient to either attract or retain, as applicable, the personnel required to ensure our success. In addition, grants and issuances pursuant to our equity incentive plans may result in dilution to Reis stockholders.

In order to support future revenue growth, we need to continue to expand, train and retain our sales force. Our ability to develop a strong and productive sales force may be adversely affected by: our ability to attract, retain and motivate new sales personnel; our ability to properly train our sales force; the capability of our sales force to sell an increasing number of potential new products and services while negotiating higher rates on existing services; the length of time for new sales personnel to become productive and quota carrying; competition from other companies in hiring and retaining sales personnel; and our ability to effectively structure our sales force. If we are unable to hire qualified sales personnel and develop and retain the members of our sales force, including sales management, or if our sales team is not successful, our revenues or growth rate could decline and our expenses could increase.

The loss of one or more of our senior executives, or our sales, technology or operational personnel, could have a material adverse impact on the continuing operations of Reis and could adversely affect the market price of our common stock.

We may be subject to tax audits or other procedures concerning our tax collection policies.

We do not collect sales or other similar taxes in states other than New York. However, one or more states (other than New York) may seek to impose sales tax collection obligations on out-of-state companies, such as Reis, which engage in online commerce. A successful assertion that we should collect sales, use or other taxes on the sale of our products or services into these states could subject us to liability for current or past taxes due, and could increase the effective price of our products and services, which could harm our business.

If we are not able to successfully identify or integrate future acquisitions, our business operations and financial condition could be adversely affected, and future acquisitions may divert management’s attention and consume significant resources.

We may in the future attempt to further expand our markets and services in part through acquisitions of complementary businesses, services, databases and technologies. Mergers and acquisitions are inherently risky, and we cannot assure you that future acquisitions, if any, will be successful. The successful execution of any future acquisition strategy will depend on our ability to identify, negotiate, complete and integrate such acquisitions. Acquisitions involve numerous risks and uncertainties, including the potential unavailability of financial resources necessary to consummate acquisitions, the potential inability to identify all of the risks and liabilities inherent in a target company, the diversion of management’s attention from the operations of our business and strain on our existing personnel. In addition, any acquired businesses would generally be subject to the other risks described under this “Risks Related to the Reis Services Business and the Information Services Industry Generally” section.

Failure to manage and successfully integrate acquired businesses could harm our business. Integration of acquired entities can involve significant difficulties, such as strain on our personnel, systems and operational and managerial controls and procedures, the need to modify systems or add management resources, possible adverse short-term effects on cash flows or operating results, diversion of management’s attention from the operations of our business and failure to obtain and retain key personnel of an acquired business. In addition, if we finance acquisitions by incurring additional debt, our financial condition or liquidity could be adversely impacted. If we finance or otherwise complete acquisitions by issuing equity or convertible debt securities, existing stockholders’ ownership may be diluted.

Risks Related to Our Discontinued Operations (Residential Development Activities)Changes in accounting and reporting policies or practices may impact our financial results or presentation of results, which may adversely affect our stock price.

WeAny potential changes in accounting and reporting policies or practices (such as changes in revenue recognition or lease accounting rules) could impact the timing of the recording of revenue or expenses, could increase expenses, and could reduce our revenue, income from continuing operations, net income, EBITDA and Adjusted EBITDA, which results may be exposedindependent of changes in our operations. These increases in expenses, in conjunction with reductions in reported revenue, income from continuing operations, net income, EBITDA and Adjusted EBITDA could cause our stock price to risks associated with our prior development, construction and sale of residential units, and our prior ownership of real property generally.

Reis and certain of its subsidiaries were exposed to significant losses and other expenses associated with construction defect litigation at its Colorado condominium project during 2012. Reis may be exposed in the future to other claims associated with its discontinued residential development activities, including its involvement in the development, construction and sale of single family homes or lots, or claims related to environmental remediation, dissatisfaction by homeowners and homeowners’ associations with the construction of homes and amenities by us and/or our developer partners, or other matters, which could result in litigation costs, remediation costs, warranty expenses or settlement costs which could be material to Reis’s reported discontinued operations, financial condition and cash flows. See Note 10 to the Company’s consolidated financial statements for information relating to the Company’s Gold Peak condominium project in Colorado (“Gold Peak”).decline.

We may be unable to recover any cash from insurance companies or other potentially responsible parties.

We continue to evaluate the cost and benefits of pursuing cash recovery efforts from insurance providers, subcontractors, other professionals, our partners or other potentially responsible parties related to the Gold Peak project. During 2012, Reis and certain of its subsidiaries settled with, and used $17,000,000 of cash on the balance sheet to pay the Gold Peak homeowners association. No portion of the $17,000,000 was provided by any of the other defendants, potentially responsible parties or insurance companies. Our recovery efforts may include litigation, mediation, settlement or trials. Recovery efforts through December 31, 2014 resulted in cash collections aggregating $819,000, including $26,000, $80,000 and $713,000 in 2014, 2013 and 2012, respectively. During 2015, we may incur additional legal and expert costs and allocate resources to our recovery efforts, which may not result in any cash recoveries. As described in Note 10 to the Company’s consolidated financial statements, a trial in the comprehensive insurance action is scheduled for July 2015, and the trial in the subcontractor case is scheduled for October 2015. The amount of incurred costs related to these actions, without any cash recoveries, could negatively affect our discontinued operating results, financial condition and cash flow.

Risks Related to Ownership of Our Common Stock, Our Capital Structure and Reis Generally

Our common stock is thinly traded; there may continue to be little or no liquidity for shares of our common stock; and our Board of Directors may take actions with which you disagree, which affect the trading price of our common stock.

Historically, our common stock has been thinly traded, and a highly active trading market for our common stock may not develop. In the absence of a highly active public trading market, investors trying to sell their shares may find it difficult to find buyers for their shares at prices quoted in the market or at all.

Our Board of Directors, or Board, may authorize transactions with respect to our common stock. These transactions may include a reverse stock split or odd-lot or other share repurchase programs, or the declaration of a one-time or recurring dividend. Between December 2008 and August 2011, the Board authorized the repurchase of up to an aggregate amount of $5,000,000 of our common stock. Cumulatively, the Company utilized $4,449,000 through December 31, 2011, and repurchased approximately 8.1% of the common shares outstanding at the time of the Board’s initial authorization in December 2008. All future decisions regarding authorizations to repurchase stock will be at the discretion of our Board, will require authorization from the Board, and will be evaluated from time to time in light of the Company’s liquidity and anticipated cash needs, the price per share of our common stock, the number of shares of our common stock outstanding, applicable NASDAQ rules, debt covenant compliance requirements, applicable law and other factors deemed relevant. Amounts may be authorized by the Board whereby future purchases could be commenced or suspended at any time, or from time to time without notice. If we effect any such repurchases in the future, the liquidity of our common stock could be adversely affected due to the reduced number of shares that would be outstanding. In addition, a share repurchase program requires the payment of cash by Reis to stockholders, which could adversely impact our liquidity. If we effect a reverse stock split, there can be no assurance that the market price per share of our common stock after the reverse stock split will rise or remain constant in proportion to the reduction in the number of shares of our common stock outstanding before the reverse stock split.

WeThe Company commenced a quarterly dividend program in the second quarter of 2014 when weit declared and paid an initial quarterly cash dividend of $0.11 per common share in June 2014. Inshare. The Company increased the third and fourth quarters of 2014, wedividends declared and paid a quarterly cash dividend of $0.11to $0.14 per common share in eachfor all four quarters of September 2014 and December 2014, respectively. Aggregate dividends2015. Dividends paid by the Company during 2015 and 2014 approximated $3,698,000.aggregated approximately $6,338,000 and $3,698,000 respectively. On February 2, 2015, we16, 2016, the Company announced that we haveit has increased the dividend payable on March 18, 201516, 2016 to $0.14$0.17 per common share. Although we anticipate paying a quarterly dividend hereafter, future dividends are subject to approval by the Board. If the Board were to declare a special dividend, or increase the regular quarterly dividend pay rate, to an amount greater than $0.14 per share, the cash used for such a special dividend or dividend increase could adversely impact our liquidity. Conversely, if we were to reduce, or stop paying a quarterly dividend, it could result in a change in the investment profile of Reis and could cause certain stockholders with an investment criteria of investing in stocks that pay a dividend to sell our stock, potentially adversely affecting the market for and the market price of our common stock.

The Company may decide to sell shares of stock which could be dilutive to existing shareholders of Reis stock.

In order to continue to grow revenue, management may need to increase its spending to hire additional employees to build databases and improve our website functionality, or may identify the need to invest in additional or new technology or pursue an acquisition of tangible or intangible assets or a business. We may need additional cash, beyond what is generated by the business or available under existing debt arrangements, or if new credit is not available, to be able to fund certain objectives, and may decide to raise capital by selling additional shares of common stock or issuing other forms of equity in Reis. If we issue equity or convertible debt securities, existing stockholders’ ownership may be diluted. In addition, the price for which our shares trade may be reduced.

In June 2015, the Company’s shelf registration statement on Form S-3 was declared effective. The shelf registration statement permits the offering, issuance and sale of up to a maximum aggregate offering price of $75,000,000 of the Company’s stock from time to time for three years. Any determinations about the issuance of new common shares will be at the discretion of the Company’s Board and the use of proceeds, unless otherwise indicated, will be for general corporate purposes, which may include working capital, capital expenditures or acquisitions. Management will retain broad discretion in the allocation of the net proceeds. Although the Company has no immediate plans to issue shares under the shelf registration statement, any potential equity offerings in the future could dilute the ownership interest of our existing stockholders and could cause the Company’s stock price to decline.

Certain of our executive officers and directors own a significant percentage of our stock, have significant control of our management and affairs, and may favor transactions or policies with which you disagree.

The named executive officers and directors of Reis in the aggregate beneficially owned approximately 24.2%22.6% of Reis’s outstanding common stock as of December 31, 2014.2015. Of this total, Lloyd Lynford and Jonathan Garfield, each of whom is a founder, an executive

officer and a director of the Company, beneficially owned 12.4%11.4% and 8.8%8.2%, respectively, at December 31, 2014.2015. A significant concentration of share ownership may adversely affect the trading price of a company’s common stock because investors may perceive disadvantages in owning stock in companies where management holds a significant percentage of the voting power. A concentration of ownership may have the effect of delaying or preventing a change of control, including a merger, consolidation or

other business combination involving Reis, or discouraging a potential acquirer from making a tender offer or otherwise attempting to obtain control, even if such a change of control might be seen as beneficial to other Reis stockholders.

Executive officers, directors and employees may sell shares of Reis stock.

Certain of our executive officers, directors and employees currently have in effect or may establish selling plans in accordance with the rules and regulations of the SEC. These selling plans may be utilized to provide such employees with a degree of financial diversification, estate and family planning, as well as to assist in satisfying certain tax or other financial obligations. In the fourth quarter of 2014, both Lloyd Lynford and Jonathan Garfield established selling plans under Rule 10b5-1 which arewere designed to comply with selling limitations under Rule 144. Those plans expired in the second quarter of 2015. Mr. Garfield established a new selling plan in the fourth quarter of 2015. William Sander, the President and Chief Operating Officer of Reis Services, has had selling plans under Rule 10b5-1 in place for a number of years. In connection with the June 2015 registration statement on Form S-3, Lloyd Lynford and Jonathan Garfield also registered their shares, making them eligible for inclusion in an offering by the Company or for sale in the open market, privately negotiated transactions or other transactions. As of the date of this annual report on Form 10-K, neither individual has sold any shares under this registration statement. Messrs. Lynford and Garfield may also sell shares from time to time (other than pursuant to this registration statement) under Rule 144 or another exemption from the SEC’s registration requirements. The market may disfavor the adoption of Rule 10b5-1 trading plans by one or more of our officers or directors, or selling under the Form S-3 by Mr. Lynford and/or Mr. Garfield, perceiving that such a plan representsselling or plans to sell represent a decline in management’s confidence about our prospects or that the parameters for and trading under a Rule 10b5-1 sales plan or off of the Form S-3 or other selling could cause downward pressure on our stock price. In addition, as part

Separately, stock options were granted to certain named executive officers and other employees in 2007, which are set to expire during 2017. The exercise of those options, like any other equity award vesting or exercise, will create dilution and could exert downward pressure on the terms of the Merger in May 2007, both Messrs. Lynford and Garfield have certain rights, subject to some conditions, to require us to file registration statements covering their shares or to include their shares in registration statements that we may file for ourselves or other stockholders. Company’s stock price.

Selling of shares by employees, especially executives, could adversely affect the demand for our stock, could negatively impact the liquidity of our stock and could result in a decrease in the market price of our stock.

Our governing documents and Maryland law contain anti-takeover provisions that may discourage acquisition bids or merger proposals, which may adversely affect the market price of our common stock.

Reis’s articles of amendment and restatement and bylaws contain provisions designed to discourage attempts to acquire control of Reis by merger, tender offer, proxy contest, or removal of incumbent management without the approval of our Board. These provisions may make it more difficult or expensive for a third party to acquire control of Reis even if a change of control might be seen as beneficial by other Reis stockholders. This could discourage potential takeover attempts and could adversely affect the market price of Reis’s common stock. Reis’s governing documents:

In addition, under Maryland law, certain “business combinations” (including certain issuances of equity securities) between a Maryland corporation and any person who beneficially owns 10% or more of the voting power of the corporation’s shares or an affiliate thereof are prohibited for five years after the most recent date on which the interested stockholder becomes an interested stockholder, unless waived by the then existing board. Our Board may approve certain transactions or exempt certain interested stockholders at any time prior to a party becoming an interested stockholder. At December 31, 20142015 and through the date of this annual report on Form 10-K, the Board has not approved any exemptions from the Maryland statute.

Increases in interest rates could increase our interest expense.

In October 2012, Reis Services, as borrower, and the Company, as guarantor, entered into a loan and security agreement with Capital One, National Association, as lender, for a $10,000,000 revolving credit facility, which we refer to as the 2012 Revolver. The 2012 Revolver hashad a three year term expiringscheduled to expire on October 16, 2015,2015; however, the expiration date was extended to January 31, 2016. On January 28, 2016, Reis Services and anyCapital One executed an amended and restated loan and security agreement for a $20,000,000 revolving credit facility with terms substantially similar to the 2012 Revolver (the “2016 Revolver,” and collectively with the 2012 Revolver, the “Revolver”). The 2016 Revolver expires on January 28, 2019. Any borrowings on the Revolver bear interest at a rate of LIBOR + 2.00% per annum (for LIBOR loans) or the greater of 1.00% or the bank’s prime rate minus 0.50% per annum (for base rate loans) and is subject to an unused facility fee of 0.25% per annum.

As of December 31, 2014,2015, we had no debt outstanding; however, we may borrow amounts under the Revolver in the future. There have been instances in the past when we purchased interest rate caps on our outstanding debt to limit our exposure to significant interest rate increases. In deciding whether to purchase interest rate caps or other hedging instruments, we may weigh the value of protection against significant increases in interest rates against the cost of such instruments. The Company does not have any interest rate caps or other hedging instruments at December 31, 2014.2015. Therefore, if interest rates increase, our interest costs on any outstanding

borrowings would also increase, which may have a material adverse effect on our results of operations, financial condition and cash flows.

The Company may seek to extend, modify or replace the Revolver.

The Revolver is scheduled to expire on October 16, 2015. We may consider, based upon market conditions and business needs, refinancing or otherwise amending or replacing the Revolver with a new facility. There can be no assurance that we will be able to do so, or be able to do so on terms that are acceptable to us.

Our Revolver contains and a modified or replacement facility will likely contain, covenants that restrict our operations, which may negatively affect our ability to operate our business and limit our ability to take advantage of potential business opportunities. Declines in our operational performance could cause financial covenants to be violated on our outstanding debt.

Provisions in the Revolver or a modified or replacement facility may impose restrictions on the Company’s ability to, among other things:

The Revolver also contains other customary covenants, including covenants which require the Company to meet specified financial ratios and financial tests. If the Company were not able to comply with these covenants in the future, the failure to do so may result in the declaration of an event of default. Furthermore, certain events, such as the voluntary or involuntary filing by Reis under any bankruptcy, insolvency or similar law (which is not stayed or dismissed within certain time periods), will cause an event of default. In addition, an event of default, if not cured or waived, may result in the acceleration of the maturity of indebtedness outstanding under the Revolver, which would require the Company to pay all amounts outstanding. If an event of default occurs, the Company may not be able to cure it within any applicable cure period, if at all. If the maturity of this indebtedness is accelerated, Reis Services or Reis may not have the ability to borrow or obtain sufficient funds to replace the accelerated indebtedness on terms acceptable to us, or at all. Furthermore, the Revolver is secured by Reis Services’s assets and, therefore, these assets would not be available to secure additional credit.

The Company may decide to sell shares of stock which could be dilutive to existing shareholders of Reis stock.

In order to continue to grow revenue, management may need to increase its spending to hire additional employees to build databases and improve our website functionality, or may identify the need to invest in additional or new technology or pursue an acquisition of tangible or intangible assets or a business. We may need additional cash, beyond what is generated by the business or available under the Revolver, to be able to fund certain objectives, and may decide to raise capital by selling additional shares of common stock or issuing other forms of equity in Reis. If we issue equity or convertible debt securities, existing stockholders’ ownership may be diluted. In addition, the price for which our shares trade may be reduced.

Our ability to use our net operating loss carryforwards will be subject to limitation and the generation of taxable income in the future.

The Company has significant Federal, state and local net operating loss, or NOL, carryforwards at December 31, 2014.2015. The aggregate Federal NOLs were approximately $61,165,000$46,018,000 at December 31, 2014.2015. These NOLs include NOLsamounts generated subsequent to the Merger, losses from the Reis Services business prior to the Merger and the Company’s operating losses prior to the Merger. Approximately $20,317,000$13,300,000 of these Federal NOLs are subject to an annual limitation of $2,779,000 per year, whereas the remaining balance of approximately $40,848,000$32,718,000 is not subject to such a limitation. All of these losses may be utilized against consolidated Federal taxable income in the future. The actual ability to utilize the tax benefit of any existing NOLs will be dependent upon the Company’s ability to generate taxable income in the future, if at all. A

During March 2014, New York State enacted a law to (1) reduce corporate tax rates, effective in future years and anticipated conforming changes to(2) change the method of determining the availability and use of NOLs existing at December 31, 2014. In April 2015, New York City enacted a law which substantially conforms with the New York State changes. The Company expects, in the future, that it will be subject to cash payments for a portion of its state and local income taxes as the changed New York State and New York City law in 2015 willlaws limit the amount of existing NOLs which could be used each year in those jurisdictions; however, althoughyear. Although the lossesamount of NOLs in New York State and New York City are limited for any particular year, we expect to fully utilize all of our NOLs in the future.

Federal, state and local tax audits may result in the payment of additional taxes, penalties and interest.

Our tax returns are subject to audit by Federal, state and local tax authorities. Currently, Reis’s Federal tax returns are open for 20112013 and 2013. The 2012 Federal tax return is currently under audit.2014. Reis’s and a subsidiary’s New York State and New York City tax returns are under audit for the years 2004 to 2006 and are open, as a result of signed waiver,waivers which extended the statute of limitations for the years 2007 to 2013. Reis’s and a subsidiary’s New York City tax returns are also open for the years 2004 to 2013 as well.2014. The tax returns of another Reis subsidiary are open in Colorado for 20102011 to 2013.2014. All other tax years are closed. However, prior year tax returns giving rise to an NOL may be reviewable in connection with the audit of a later tax year when such loss is utilized. The ultimate resolution of the current audits and open tax years for New York State and New York City, as well as open tax years for Federal purposes, could result in the payment of additional tax, penalties and interest, which could negatively affect our profitability and cash flows.

Item 1B.  Unresolved Staff Comments.

None.

Item 2.  Properties.

At December 31, 2014,2015, the Company leased approximately 38,000 square feet of space in New York, New York under two leases, both of which expire in September 2016 and approximately 10,00048,000 square feet of space in White Plains, New York, under one lease, which expires in June 2023. The Company is currently evaluating its options in advance of the September 2019.2016 expirations.

Item 3.  Legal Proceedings.

As disclosed in Note 10 to the Company’s consolidated financial statements, the Company is engaged in certain legal matters, and the disclosure set forth in Note 10 is incorporated herein by reference.

Item 4.  Mine Safety Disclosures.

Not applicable.

PART II

Item 5.  Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.

Market Information

The Company’s common shares trade on the NASDAQ Global Market under the symbol “REIS.” As of December 31, 2014,2015, there were 237230 holders of record of our common stock. Since certain of our shares are held by brokers and other institutions on behalf of shareholders, the foregoing number is not representative of the number of beneficial owners.

The high and low sales prices per share for our common stock for each quarter in the years ended December 31, 20142015 and 20132014 are as follows:

Common Stock Price Performance Graph

The following graph compares the cumulative total stockholder return on Reis’s common stock, which is represented below by “REIS,” for the period commencing December 31, 20092010 through December 31, 2014,2015, with the cumulative total return on the Russell 2000 Index, which we refer to as the Russell 2000, and the S&P 500 Index, which we refer to as the S&P 500, for the same period. Reis has chosen the Russell 2000 based on the market capitalization of the issuers contained in that index. Reis has not identified a peer group for stock price performance purposes, due to the limited number of issuers in businesses similar to ours. Total return values were calculated based on cumulative total return assuming (1) the investment of $100 in the Russell 2000, the S&P 500 and Reis common stock on December 31, 2009,2010, and (2) reinvestment of dividends. The total return for Reis common stock from December 31, 20092010 to December 31, 20142015 was a gain of approximately 331.5%250.6% versus a gain of approximately 105.9%80.6% for the Russell 2000S&P 500 and a gain of approximately 105.0%55.2% for the S&P 500.

Comparison of Cumulative Five Year Total ReturnRussell 2000.

Dividends

The Company commenced a quarterly dividend program in the second quarter of 2014 when it declared and paid an initial quarterly cash dividend of $0.11 per common share in June 2014. Inshare. The Company increased the third and fourth quarters of 2014, the Companydividends declared and paid a quarterly cash dividend of $0.11to $0.14 per common share in eachfor all four quarters of September 2014 and December 2014. Aggregate dividends2015. Dividends paid by the Company during 2015 and 2014 approximated $3,698,000.aggregated approximately $6,338,000 and $3,698,000 respectively. On February 2, 2015,16, 2016, the Company announced that it has increased the dividend payable on March 18, 201516, 2016 to $0.14$0.17 per common share. Although the Company anticipates paying a quarterly dividend hereafter, future dividends are subject to approval by the Board. The Company did not declare or distribute any dividends during the yearsyear ended December 31, 2013 and 2012.2013.

Recent Sales of Unregistered Securities

The Company has not sold any unregistered securities within the past three years.

Issuer Purchases of Equity Securities

During the fourth quarter and year ended December 31, 2014,2015, the Company did not repurchase any shares of common stock.

Authorization from the Board will be required for any stock repurchases in the future. Depending on market conditions, financial developments and other factors, amounts may be authorized by the Board whereby future purchases could be commenced or suspended at any time, or from time to time, without prior notice.

Other Security Information

For additional information concerning the Company’s capitalization, see Note 8 to the Company’s consolidated financial statements.

Calculation of Aggregate Market Value of Non-Affiliate Shares

For purposes of calculating the aggregate market value of shares of common stock of the Company held by non-affiliates, as shown on the cover page of this annual report on Form 10-K, it has been assumed that all of the outstanding shares at June 30, 20142015 were held by non-affiliates except for shares held by directors and officers of the Company. However, this should not be deemed to constitute an admission that all of such directors and officers are, in fact, affiliates of the Company, or that there are not other persons who may be deemed to be affiliates of the Company. For further information concerning shareholdings of officers, directors and principal stockholders, see “Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.”

Item 6.  Selected Financial Data.

The following table presents selected financial data for the Company and should be read in conjunction with “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and the consolidated financial statements included herein starting at page F-1. For the periods presented, this information conforms with the current financial statement presentation which segregates the assets and liabilities, as well as the operating results of the Company’s discontinued operations segment.

Item 7.  Management’s Discussion and Analysis of Financial Condition and Results of OperationsOperations..

The following discussion should be read in conjunction with the consolidated financial statements and notes thereto appearing elsewhere in this annual report on Form 10-K.

Management Summary

The Company’s 2014 financial performance reflects management’sin 2015 was significantly attributable to two factors: the essential nature of our products and the new and expanded contracts that have resulted from the enforcement of our intellectual property rights.

Product

Management continued its long-standing commitment to innovation and providing commercial real estate investors with industry leading market information and innovative analytical tools.tools in 2015. The continuing adoption of our products and reliance on our data, both by new customers and within our existing customer base, was a significant contributing factor to our 2015 results. We have invested heavily in our databases and our websites over many years; we increased that investment to a record level in 2015 as we introduced meaningful product enhancements and extensions. The goal of ever-greater granularity guides Reis’s strategic plan with respect to: property type; geographic markets; and building level and transaction detail. The investments made in 2015 include an increase to our employee ranks by 33% during calendar 2015 and using approximately $5.8 million in cash to expand our databases and websites.

During 2015 we expanded our portfolio-related offerings. We provided a major financial institution with custom data deliverables, as well as portfolio and advisory services for an aggregate contract value of $5,775,000. A contract for data and services of this nature is reflecteda testament to our proprietary databases and the quality, depth and breadth of Reis’s coverage in multiple CRE sectors. We seek to continue to provide custom data deliverables and other related services to this institution, as well as to client and non-client financial services firms and other real estate investors.

Our 2016 plans include further significant expansion of staffing in our data collection and product teams and an expected historic level of spending by Reis on the development of new sectors, market segments, and transactions. We will launch our ninth property type, affordable housing, an especially complex property type because of the necessity of capturing data on a wide array of Federal and state programs. We will continue to significantly augment our sales transaction database by adding more property types, geographies, licensed photos and analytical context.

Intellectual Property

The protection of our intellectual property (“IP”) takes multiple forms. First, we have worked to ensure that customers are paying for our information in proportion to the value they receive and/or their level of usage. In our annual report on Form 10-K for the year ended December 31, 2014 and in subsequent quarterly report filings on Form 10-Q, we documented our approach and disclosed that our renewal rates may temporarily decline as we optimize related revenue opportunities. Our policy is to negotiate first-time and renewing contracts to reflect a reasonable relationship among price, usage and value. The second attribute of Reis’s IP protection has been to ensure that our subscribers’ usage conforms with the contract’s terms and conditions. Thirdly, we have developed a compliance team that is charged with identifying unauthorized access to our website,Reis SE. Such unauthorized access primarily occurs through password sharing (either within a subscribing firm, or to individuals outside the subscribing firm) or password migration (a user at a subscriber leaves that firm and continues to utilize their password at their new job), or unauthorized consultant usage (a consulting firm illicitly gains access to our system or reports under the guise of being an employee of a licensed firm, including but not limited to international outsourcing, seconded employees and contract/third party underwriting services). We have developed tools to identify unauthorized usage which is pursued by our compliance team. During 2015, we initiated multiple litigations related to unauthorized access of our products in the 19.0% annualU.S. District Court for the Southern District of New York. There have also been dozens of instances in which we have reached negotiated settlements in regards to unauthorized use of our products, resulting in new contracts and revenue growth rate recordedin 2015 from 2013converting unlicensed users into paying subscribers. Overall, the protection of our IP remains a top priority in 2016 and we will continue to rigorously pursue such cases.

Metrics

Revenue grew to $50,890,000 in 2015, an increase of $9,555,000, or 23.1% in 2015 over 2014. EBITDA of the Reis Services business grew 17.8%31.0% over that same period, resulting in an EBITDA margin for the Reis Services business of 40.8%43.4%. Adjusted EBITDA, on a consolidated basis, grew 36.0% from 2014 to 2015 and resulted in an Adjusted EBITDA margin of 38.3%. On a pro forma basis, revenue was $47,504,000 for the year ended December 31, 2015 which resulted in pro forma revenue growth of

$6,169,000 or 14.9% for the year ended December 31, 2015 over the actual reported 2014 amount. Defined terms and reconciliations to the most comparable GAAP financial measures in this Management Summary are presented elsewhere in this Item 7.

Our cash balance has grown by $7.2$10.9 million in 2014.2015. This growth occurred while we invested approximately $3.8$5.8 million in our website and databases, and commencedcontinued a dividend program that returneddistributed approximately $3.7$6.3 million to shareholders in the last three quarters of the year. We expect to continue to generate significant cash in 2015. We will continue to prioritize growth through the introduction of new geographic markets and property types. On February 1,shareholders. The 2015 we launched coverage of 53 seniors housing markets, bringing our total coverage of this sector to 110 metropolitan areas. In May 2015, we will publish market reports and comparable property data on 100 student housing markets, Reis’s eighth property type. Development work is underway to launch two new property types in 2016: medical office buildings and affordable housing. Weresults have demonstrated that we can invest prudently, grow revenues, EBITDA and our cash balance, while simultaneously rewarding our shareholders. On February 2, 2015For 2016, we announced an increaseexpect to our quarterly dividend from $0.11 per sharecontinue to $0.14 per share.generate additional cash as we prioritize growth through the introduction of new geographic markets, property types and increased granularity.

Based upon several factors, including historical and anticipated report consumption, our account managers determine whether Reis and a subscriber are best served by an annual or multi-year commitment. Over the past threefour years, in order to increase the predictability of fees from our subscribers and Reis’s own revenue and cash flow, we have made a concerted effort to encourage multi-year contracts when appropriate, with terms of two or three years, and in some cases, four years. The average life of multi-year contracts signed in each of the last three years is approximately 2.2 years. Based upon several factors, including historical and anticipated report consumption, our account managers determine whether Reis and a subscriber are best served by an annual or multi-year commitment. There are significant benefits, to adopting and expanding our program, on a selective basis, of lengthening the duration of client contracts, including locking in recurring revenue for longer periods, thereby increasing the predictability of our renewal rates and future revenues. From an operational perspective, multi-year contracts free up account management resources to focus on subscribers requiring a higher level of attention and upselling opportunities across our account base. Finally, multi-year deals also insulate us from competitive pressures and increase the likeliness that Reis data and analytics will become embedded in the work flow of our clients.

In accordance with GAAP, our revenue recognition policy is to record revenue ratably over the life of a subscriber contract. Therefore any increases in the price of the subscription after the first year of a multi-year contract are considered in the total amount being straight-lined over the contract term. If a multi-year contract includes pricing steps are built in on and after the first anniversary, of a multi-year contract, there will be increasing cash flow from the contract, but no growth in revenue during the subsequent years under that contract. At December 31, 2014, there are2015, approximately 240 institutionsone-third of our customers were signed to multi-year contracts, including many of our largest subscribers. The reported levels of deferred revenue and Aggregate Revenue Under Contract of $22,885,000$25,291,000 and $45,402,000,$48,014,000, respectively, suggest strong financial performance during 2015.2016. However, the effect of having such a significant segment of our subscriber base under multi-year agreements willmay result in annual revenuevariability in our growth in 2015 that is more in line with the reported annual growth rates we generally experienced from 2010 through 2013. Moreover, the anticipated renewal of multi-year contracts signed in 2013 and 2014 is expected to result in incremental growth in the latter part of 2015 and in 2016.rates.

Operationally, we will continueexpect to investfurther accelerate our investing in technology and build databases. Our employee headcount in the sales and operational groups will increase in 20152016, and we will further accelerate ourseveral marketing initiatives that were set in placeinitiatives. The effects of 2015’s headcount increases of 33% and the 2016 expected growth in the latter partnumber of 2014. These are sound investments thatemployees by a similar rate have made it necessary to lease additional space. In addition, with the expiration of approximately 38,000 square feet of space in New York City, we will further differentiate Reis in the worldbe seeking a new lease which will increase our occupancy costs from rent increases and may cause a period of U.S. commercial real estate market information providers.overlapping rent expense. These continuing investments mayand occupancy related costs will negatively impact our annual EBITDA and Adjusted EBITDA growth rates for 2016 and cause temporary declines in our EBITDA and Adjusted EBITDA margins in 2015, but we believe that any declines will be short term as we expect that these investments will result2016. Variability in additional revenue opportunities for Reis.growth rates and margins could occur quarter to quarter in 2016.

Please read the remainder of this Item 7 for additional detail about our critical business metrics, reconciliations of income from continuing operations to EBITDA and Adjusted EBITDA and reconciliations of deferred revenue to Aggregate Revenue Under Contract, results of operations, our liquidity and capital resources, changes in cash flows and selected significant accounting policies.

Critical Business Metrics of the Reis Services Segment

Management considers certain metrics in evaluating the performance of the Reis Services segment.segment and our consolidated results. These metrics are revenue, revenue growth, EBITDA (which is earnings (defined as income (loss) from continuing operations) before interest, taxes, depreciation and amortization), EBITDA growth, EBITDA margin, Adjusted EBITDA (which is earnings before interest, taxes, depreciation, amortization and stock based compensation) and Adjusted EBITDA margin. Other important metrics that management considers include the cash flow generation of the Reis Services business as well as the visibility into future performance as supported by our deferred revenue and other related metrics discussed in this Item 7.

Following is a presentation of revenue, EBITDA and EBITDA margin for the Reis Services segment and revenue, EBITDA, Adjusted EBITDA and the related margins on a consolidated basis (excluding discontinued operations) (see below for a reconciliation of income from continuing operations to EBITDA and Adjusted EBITDA for both the Reis Services segment and on a consolidated basis for each of the periods presented here).