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Star-studded Super Bowl ads aren’t the only thing CoStar Group is spending money on.
The 37-year-old company announced this week that it purchased a 552,000-square-foot office building in Arlington, Virginia, that will serve as its new headquarters. CoStar’s current headquarters is on L Street in northwest Washington, D.C. The company purchased the property for $41.25 million in 2011 and sold it in 2019 for $101 million. The sale included a leaseback agreement that ends in 2025.
Andy Florance | Photo credit: CoStar
“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 in a prepared statement. “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’s new headquarters is in a prime location and comes with several major financial benefits. The Associated Press reported on Wednesday that Virginia Gov. Glenn Youngkin has offered $4.75 million in economic incentives as the company is expected to create 150 new jobs. AP also said CoStar has inked a $14 million deal with Arlington County to purchase the public observation deck atop its new HQ. The funds will 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 said in a public statement. “We are proud that CoStar has chosen Virginia as its home.”
CoStar’s HQ project comes three years after the expansion of its Richmond campus. The $460 million project included the addition of two buildings — a 26-story LEED-certified office tower and a six-story multipurpose building. The new buildings would enable the company to expand its workforce in the area from 1,500 to 3,500 employees.
The company began construction in November 2022 with a target completion date of 2025. Although the new spaces aren’t ready, the company has charged forward on its hiring plans. Florance told the Richmond Times-Dispatch in May 2023 that CoStar has purchased a small office building near its current campus to accommodate the influx of new talent.
“I don’t want the completion of a building to be what regulates our growth,” he said. “We’ll make do until it’s ready.”
If both projects go as planned, it would bring CoStar’s employee count to nearly 8,000.
