CoStar Moving HQ From D.C. To Northern Virginia Tower It's Buying
CoStar Group is officially moving its global headquarters from D.C. to Northern Virginia, the latest blow to the downtown office market.
The real estate data giant purchased the 31-story Central Place office tower in Arlington's Rosslyn neighborhood from JBG Smith, where it plans to relocate by late 2024, Virginia Gov. Glenn Youngkin announced Tuesday.
A sale price wasn't disclosed and the deal wasn't recorded with the County by the time of publication. JBG Smith declined to comment.
The company plans to occupy 150K SF at the 560K SF property and invest $20M in its new headquarters, which is expected to open later this year, according to Youngkin's release. The move will relocate 500 existing jobs and add 150 new jobs.
The announcement comes after the Washington Business Journal first reported that the company had been in talks for the deal last month.
“The financially strategic acquisition of this building will provide the perfect home for the more than 500 employees at our current headquarters,” CoStar founder and CEO Andy Florance said. “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.”
CoStar has been headquartered a few blocks from the White House at 1331 L St. NW since 2010.
Youngkin approved a $1.25M grant from the Commonwealth’s Opportunity Fund and a $3.5M Virginia Economic Development Incentive Grant for the relocation, according to the release.
“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,” Youngkin said in the release. “We are proud that CoStar has chosen Virginia as its home.”
Central Place, one of the tallest office buildings in the region, was developed by JBG Smith in 2018.
The move means another large tenant loss for D.C., which is also bracing for Fannie Mae to exit its 700K SF headquarters space at Midtown Center. It’s unclear where the company would relocate. Meanwhile, Monumental Sports, the owner of the Washington Capitals and Wizards, plans to move the teams from their home in Chinatown to Potomac Yard in 2028.
“We know that D.C. is a great place to do business and offers employers unparalleled access to talent, amenities, transit and all that makes the District a world-class city,” a spokesperson for D.C.’s Office of the Deputy Mayor for Planning and Economic Development told Bisnow. “We also recognize companies make decisions on where to locate based on a number of factors that align with their strategic priorities.”
