CoStar Group Strikes Deal to Secure Relocation of Headquarters to Arlington, Virginia
WASHINGTON--(BUSINESS WIRE)--Nov 1, 2024--
CoStar Group (NASDAQ: CSGP), a leading provider of online real estate marketplaces, information, and analytics in the property markets, today announced an agreement with research and consulting firm Gartner to take back-office space previously leased by Gartner in Arlington, Virginia. Located at 1201 Wilson Boulevard, the building is a 552,000 square foot trophy office tower with LEED Platinum certification. CoStar Group purchased the property earlier this year with the intention of relocating its Washington, DC employees to Arlington as part of a corporate headquarters transition.
As part of the deal, Gartner paid CoStar Group a $48 million early termination fee and signed a new lease for approximately 49,000 square feet on floors 11 and 12 at 1201 Wilson Boulevard for a term through December 2032 at prevailing market rates. The deal unlocks sufficient space at 1201 Wilson Boulevard to allow CoStar Group to relocate its headquarters from Washington, DC in early 2025.
“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,” said Andy Florance, Founder and Chief Executive Officer of CoStar Group. “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.”
With the Company’s current lease in Washington, DC set to expire in 2025, CoStar Group assessed more than 25 viable sites across Washington, DC, Rosslyn, Crystal City and Tyson’s Corner before selecting 1201 Wilson Boulevard With the industry’s largest team of researchers, economists, software developers and analysts focused on real estate, CoStar Group enjoys a unique perspective on commercial property values and believed that market conditions at time of purchase provided an opportune time to acquire a high-quality property at a significant discount. The company previously acquired 1331 L Street, NW, in Washington, DC in 2011 and executed a sale and leaseback transaction for over a 140% return. That deal was the most profitable sale of Washington commercial real estate from the recession at the time.
1201 Wilson Boulevard is located directly above the Rosslyn Metro offering excellent access to Ronald Reagan National Airport and Dulles International Airport and transportation, including five major road networks, from around the greater Washington DC area. The move to Rosslyn will offer employees access to extensive retail and dining amenities, a network of biking and jogging trails and the waterfront in a highly desirable, vibrant, and safe environment.
The agreement comes at a time of significant growth and expansion for CoStar Group, with revenue growing from $252 million in 2011 to $2.46 billion in 2023 and employees growing from 1,000 in 2011 to over 6,400 today. Founded in 1986, CoStar Group has digitized the real estate industry, empowering people to discover properties, insights, and connections that improve their businesses and lives. CoStar Group is included in the S&P 500 Index, one of the premier benchmarks of the U.S. equities market, and in the NASDAQ 100, one of the world’s largest preeminent large-cap indexes.
About CoStar Group
CoStar Group (NASDAQ: CSGP) is a leading provider of online real estate marketplaces, information, and analytics in the property markets. Founded in 1987, CoStar Group conducts expansive, ongoing research to produce and maintain the largest and most comprehensive database of real estate information. CoStar is the global leader in commercial real estate information, analytics, and news, enabling clients to analyze, interpret and gain unmatched insight on property values, market conditions and availabilities. Apartments.com is the leading online marketplace for renters seeking great apartment homes, providing property managers and owners a proven platform for marketing their properties. LoopNet is the most heavily trafficked online commercial real estate marketplace with over thirteen million average monthly unique visitors. STR provides premium data benchmarking, analytics, and marketplace insights for the global hospitality industry. Ten-X offers a leading platform for conducting commercial real estate online auctions and negotiated bids. Homes.com is the fastest growing online residential marketplace that connects agents, buyers, and sellers. OnTheMarket is a leading residential property portal in the United Kingdom. BureauxLocaux is one of the largest specialized property portals for buying and leasing commercial real estate in France. Business Immo is France’s leading commercial real estate news service. Thomas Daily is Germany’s largest online data pool in the real estate industry. Belbex is the premier source of commercial space available to let and for sale in Spain. CoStar Group’s websites attracted over 163 million average monthly unique visitors in the third quarter of 2024. Headquartered in Washington, DC, CoStar Group maintains offices throughout the U.S., Europe, Canada, and Asia. From time to time, we plan to utilize our corporate website, CoStarGroup.com, as a channel of distribution for material company information. For more information, visit CoStarGroup.com.
View source version on businesswire.com:https://www.businesswire.com/news/home/20241101104056/en/
CONTACT: Investor Relations
Rich Simonelli
CoStar Group
(973) 896-8184
getrich@costar.comNews Media
Matthew Blocher
CoStar Group
(202) 346-6775
mblocher@costargroup.com
KEYWORD: DISTRICT OF COLUMBIA VIRGINIA UNITED STATES NORTH AMERICA
INDUSTRY KEYWORD: COMMERCIAL BUILDING & REAL ESTATE TECHNOLOGY CONSTRUCTION & PROPERTY FINANCE PROFESSIONAL SERVICES NETWORKS DATA ANALYTICS DATA MANAGEMENT OTHER CONSTRUCTION & PROPERTY RESIDENTIAL BUILDING & REAL ESTATE
SOURCE: CoStar Group
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