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 area for the five hundred staff 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. Nonetheless, analysis and consulting agency Gartner occupied 13 of the constructing’s 31 flooring — complicating CoStar’s plans to maneuver its 500 present staff and rent 150 new staff to occupy the brand new constructing.
Nonetheless, Gartner agreed on Friday to cede 11 of its 13 flooring at 1201 Wilson Boulevard. The agency paid a $48 million early termination payment and signed a brand new eight-year lease for the eleventh and twelfth flooring.
Andy Florance | Credit score: CoStar Group
“We’ve always intended for 1201 Wilson to become CoStar Group’s headquarters, but this agreement makes it possible for us to complete that process even faster and to better accommodate our continued rapid growth and expansion,” CoStar Group CEO Andy Florance mentioned in a ready assertion.“I’m delighted we’ll be able to more fully tap into the building’s extensive amenities and location in business-friendly Virginia ahead of schedule and can’t wait to welcome employees, customers and other constituents early next year.”
CoStar’s present headquarters are on L Avenue NW in Washington, D.C. The corporate bought the D.C. property for $41.25 million in 2011 and offered it for $101 million in 2019. The sale phrases included a leaseback settlement that ends subsequent 12 months.
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 mentioned CoStar inked a $14 million cope with Arlington County to buy the general public commentary deck atop the brand new HQ. The funds will likely be used to renovate a park in Rosslyn.
“As states compete for business and jobs, the Commonwealth’s diverse, world-class talent, exceptional quality of life and stable business climate continues to stand out,” Gov. Youngkin mentioned in a public assertion. “We are proud that CoStar has chosen Virginia as its home.”
CoStar’s HQ challenge comes three years after the growth of its Richmond campus. The $460 million challenge 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 broaden its workforce within the space from 1,500 to three,500 staff.
The corporate started development in November 2022 with a goal completion date of 2025. Richmond BizSense and WTVR 6 reported on the challenge’s progress in June, noting development 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.
