Virginia Gov. Ralph Northam announced that CoStar Group, Inc., a leading provider of real estate information, analytics, and online marketplaces, expects to invest more than $460 million to expand in Richmond. CoStar plans to 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.
Virginia successfully competed with other states in the Mid-Atlantic and Southeast for the project, which is expected to create 2,000 new jobs.
“I am thrilled CoStar is investing yet again in Virginia,” said Governor 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 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.
Founded in 1987, CoStar Group conducts expansive, ongoing research to produce and maintain the largest and most comprehensive database of real estate information. The company’s online services enable clients to analyze, interpret, and gain insight on commercial property values, market conditions, and current availability. CoStar Group’s brands include CoStar, Apartments.com, LoopNet, and Homes.com, and its websites attract hundreds of millions of unique monthly visitors. Headquartered in Washington, D.C., CoStar maintains offices throughout the U.S. and in Europe, Canada, and Asia with a staff of approximately 4,800 worldwide.
“Richmond has become a technology hub with a diverse tech workforce, and CoStar Group’s continued expansion demonstrates how a region’s infrastructure and talent powers the growth and success of businesses,” said Secretary of Commerce and Trade Brian Ball. “We thank the company for creating 2,000 high-quality jobs and look forward to continuing our long-term partnership with CoStar.”
“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 Chief Executive Officer 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 Virginia Economic Development Partnership 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 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.”
“We thank CoStar Group for its major investment and creating 2,000 new jobs in the Commonwealth,” said Major Employment and Investment Project Approval Commission Vice Chair Delegate Luke Torian. “The company’s new world-class Corporate Campus will significantly expand CoStar’s footprint in the City of Richmond, and I am pleased the MEI Commission could collaborate with our state, regional, and local partners on this tremendous project.”
“Since arriving in 2016, the CoStar Group and its employees have been priceless additions to our community,” said Mayor Levar Stoney. “Now, five years later, the company’s decision to invest more than $460 million and create 2,000 new jobs in Downtown Richmond along the riverfront speaks not only to past success, but also to its confidence to grow and prosper in our city in the future. Richmond’s talent pipeline, business climate, infrastructure improvements, and quality of life make it the perfect home for the global leader of commercial real estate information and analytics. We’re excited for CoStar Group’s significant expansion, and look forward to continuing our positive and productive partnership.”
“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.”
“CoStar Group, Inc. has been an impactful source of employment for Virginians,” said Congressman Donald McEachin. “The announcement that CoStar will continue its operations in Richmond and establish a Corporate Campus is exciting and will help further stimulate our local economy while providing important opportunities to Virginians. The company’s decision is also a testament to the Commonwealth’s strong economic climate and competitive, qualified workforce. I look forward to this expansion as we continue working to strengthen and grow Virginia’s economy.”
“This is a significant boost for job creation in downtown Richmond,” said Senator Jennifer McClellan. “The creation of nearly 2,000 new jobs will help provide economic opportunity for Richmond residents and will support continued growth in the fields of software development and data analytics. I’m pleased to see CoStar continue to grow and establish a Corporate Campus here in Richmond.”
"CoStar's Center of Excellence is just the latest example of Richmond attracting companies who are at the forefront of innovation,” said Delegate Jeff Bourne. “CoStar's expansion is a welcome addition, and I look forward to welcoming their new employees to our city."