CoStar Group, Inc. plans to invest more than $460 million to expand its operations in Richmond, VA. The Washington, DC-based real estate information, analytics, and online marketplace provider will establish a Corporate Campus that will include sales, marketing, software development, customer service and support functions on four acres adjacent to its current facility, which serves as the company’s headquarters for research and data analytics.
CoStar considered other states in the Mid-Atlantic and Southeast for the project, which is expected to create 2,000 new jobs in Virginia.
“Richmond is a growing community with access to a deep pool of diverse, highly-skilled workers, a vibrant culture of innovation and a wonderful quality of life for our existing and future employees,” said Andy Florance, Founder and CEO of CoStar Group. “The strong partnerships we have established with the Commonwealth of Virginia, the City of Richmond, and institutions of higher education such as VCU, will be critical for our continued growth. Virginia, Richmond, and Costar Group all have bright futures ahead, and we are excited to grow together.”
The new campus represents 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 multipurpose employee facility is expected to include conference facilities, fitness and wellness, auditorium, and mixed-use retail and restaurant spaces. Once completed, CoStar Group will occupy approximately one million square feet of office space in downtown Richmond.
“I am thrilled CoStar is investing yet again in Virginia,” said Governor Ralph Northam. “Their continued success is a direct result of our attractive business climate and dynamic workforce found across the state. CoStar has been a wonderful partner for the Commonwealth and I look forward to seeing what they accomplish next.”
The Virginia Economic Development Partnership (VEDP) worked with the City of Richmond, the Greater Richmond Partnership, and the General Assembly’s Major Employment and Investment Project Approval Commission to secure the project for Virginia. The project will leverage public infrastructure upgrades around the new campus to be funded by the Commonwealth through an investment approved by the Major Employment and Investment Project Approval Commission of up to $15 million, subject to approval by the General Assembly. These upgrades will address commuter and pedestrian access, roadway and traffic improvements, safety, and offsite utility extensions around the new campus.
“Today’s announcement demonstrates CoStar Group’s continued confidence in the many advantages that make Virginia the top state for business in the nation, and we thank the company for its major economic impact in the City of Richmond,” said Major Employment and Investment (MEI) Project Approval Commission Chair Senator Janet Howell. “I commend the team that worked to ensure CoStar selected the Commonwealth, and I am proud the MEI Commission could play a role in securing this important project.”
“Since locating its research headquarters in Richmond five years ago, CoStar has found the right type of experienced, diverse IT talent the companies of tomorrow are looking for,” said Jennifer Wakefield, President and CEO of the Greater Richmond Partnership. “We’re thrilled CoStar is continuing to invest in Greater Richmond.”
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