CoStar Group inked a cope with a longtime tenant of its new Arlington HQ, which leased 13 of the constructing’s 31 flooring. The tenant agreed to downsize to 2 flooring, giving CoStar sufficient house for the five hundred workers transferring to the brand new HQ.
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CoStar Group is crossing its t’s and dotting its i’s because it prepares to maneuver into its Arlington, Virginia, HQ originally of 2025.
The portal bought a 552,000-square-foot workplace tower in downtown Arlington in February. Nevertheless, analysis and consulting agency Gartner occupied 13 of the constructing’s 31 flooring — complicating CoStar’s plans to maneuver its 500 present workers and rent 150 new workers to occupy the brand new constructing.
Nevertheless, Gartner agreed on Friday to cede 11 of its 13 flooring at 1201 Wilson Boulevard. The agency paid a $48 million early termination charge and signed a brand new eight-year lease for the eleventh and twelfth flooring.
Andy Florance | Credit score: CoStar Group
“We’ve all the time meant for 1201 Wilson to turn into CoStar Group’s headquarters, however this settlement makes it doable for us to finish that course of even quicker and to raised accommodate our continued fast progress and growth,” CoStar Group CEO Andy Florance stated in a ready assertion.“I’m delighted we’ll be capable of extra absolutely faucet into the constructing’s in depth facilities and site in business-friendly Virginia forward of schedule and might’t wait to welcome workers, prospects and different constituents early subsequent yr.”
CoStar’s present headquarters are on L Road NW in Washington, D.C. The corporate bought the D.C. property for $41.25 million in 2011 and bought it for $101 million in 2019. The sale phrases included a leaseback settlement that ends subsequent yr.
CoStar’s new headquarters is in a first-rate location and comes with a number of main monetary advantages. The Related Press reported in February that Virginia Gov. Glenn Youngkin provided CoStar $4.75 million in financial incentives as the corporate is anticipated to create 150 new jobs. AP additionally stated CoStar inked a $14 million cope with Arlington County to buy the general public commentary deck atop the brand new HQ. The funds shall be used to renovate a park in Rosslyn.
“As states compete for enterprise and jobs, the Commonwealth’s numerous, world-class expertise, distinctive high quality of life and steady enterprise local weather continues to face out,” Gov. Youngkin stated in a public assertion. “We’re proud that CoStar has chosen Virginia as its residence.”
CoStar’s HQ venture comes three years after the growth of its Richmond campus. The $460 million venture included the addition of two buildings — a 26-story LEED-certified workplace tower and a six-story multipurpose constructing. The brand new buildings would allow the corporate to increase its workforce within the space from 1,500 to three,500 workers.
The corporate started building in November 2022 with a goal completion date of 2025. Richmond BizSense and WTVR 6 reported on the venture’s progress in June, noting building groups had positioned elevator shafts for each buildings.
The transfer to Arlington and the Richmond campus growth is anticipated to develop CoStar’s worker rely by 25 p.c from 6,400 to eight,000.
E-mail Marian McPherson
