Virginia providing $4.75M to online real-estate marketplace to assist move

Online real estate marketplace company CoStar Group is investing $20 million to relocate its global headquarters from Washington, D.C. to Arlington County.

The Virginia Economic Development Partnership and the office of Gov. Glenn Youngkin helped grease the skids. Youngkin approved a $1.25 million grant from the Commonwealth’s Opportunity Fund to assist with this project, and he also approved $3.5 million in funds from the Virginia Economic Development Incentive Grant program.

One more handout: funding and services to support the company’s employee training activities will be provided through the Virginia Jobs Investment Program.

CoStar Group has purchased 1201 Wilson Boulevard, a 560,000-square-foot office building in Rosslyn known as Central Place Tower, and will occupy 150,000 square feet of commercial office space in late 2024.

The move to the new headquarters will include 500 relocated jobs and 150 new jobs to the Commonwealth.

CoStar Group, founded in 1987, has grown to more than 6,200 employees in 14 countries and is included in the S&P 500 Index and in the NASDAQ 100.

CoStar Group established its headquarters for research and data analytics in the City of Richmond in 2016 and now employs more than 1,000 team members there, representing one of the top 25 largest employers in the city.

In 2021, CoStar announced plans to build a corporate campus in Richmond, creating an additional 2,000 new jobs.

The new campus will be approximately 750,000 square feet of new office and retail space and is expected to include a 26-story, LEED-certified office building and a six-story, multipurpose building to be used as a central location for employee amenities.

“The financially strategic acquisition of this building will provide the perfect home for the more than 500 employees at our current headquarters. We’re incredibly thankful for our 14 years calling Washington, D.C. home, and we will continue to be a part of this community even as we move across the river to Arlington County,” said Andy Florance, founder and CEO of CoStar Group.

“Virginia’s a great choice for a new corporate headquarters location, and we are excited that CoStar Group, a leading provider of online real estate marketplaces, information, and analytics in the property markets, sees the economic advantage in moving to the Commonwealth,” Youngkin said in a statement. “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. We are proud that CoStar has chosen Virginia as its home.”