CoStar Group sheds light on why it chose Rosslyn for corporate headquarters

CoStar Group announced today (Friday) an agreement to expand its presence in the Rosslyn office building as it moves forward with relocation plans.

Company, which announced The company plans to move its headquarters from DC to Arlington in February and plans to move in early 2025. Press release.

As part of this process, research and consulting firm Gartner agreed to sublet 11 floors of the office building at 1201 Wilson Boulevard. Gartner paid a $48 million early termination fee to occupy 49,000 square feet of space on the building’s 11th and 12th floors.

“I am delighted that we will be able to make greater use of the building’s extensive amenities and location in business-friendly Virginia ahead of schedule, and I look forward to welcoming employees, customers and other constituents early next year,” said Andy Florance. , Founder and Chief Executive Officer of CoStar Group.

The press release states that CoStar Group evaluated more than 25 other locations in Crystal City, D.C., and Tyson’s Corner before deciding on 1201 Wilson Blvd.

A key advantage of the building is its location above the Rosslyn Metro; “It offers excellent access to Ronald Reagan National Airport and Dulles International Airport and transportation around the greater Washington, DC area, including a network of five major roads.”

“The move to Rosslyn will provide employees with access to extensive retail and dining amenities, a network of biking and running trails, and the waterfront in a highly desirable, vibrant and safe environment,” the statement says.

CoStar Group also “believed that market conditions at the time of purchase provided an appropriate time to purchase a high-quality property at a significant discount.”

Arlington County agreed to a settlement package to secure the company’s relocation; This was a move by District Manager Mark Schwartz. in the name “The most impactful development project in the district since the Second Quarter.”

One of the controversial aspects of the agreement was the decision approved by the Arlington County Board to exchange public access rights. “View of DC” observation deck In exchange for a $14 million investment in planned renovations at 1201 Wilson Blvd. Nearby Gateway Park.

Below is CoStar Group’s full press release regarding its latest deal.

WASHINGTON–(BUSINESS WIRE)–CoStar Group (NASDAQ: CSGP), a leading provider of online real estate marketplaces, information and analytics in real estate markets, today announced an agreement with research and consulting firm Gartner to acquire back office space. Leased by Gartner in Arlington, Virginia. Located at 1201 Wilson Boulevard, the building is an award-winning 552,000-square-foot office tower with LEED Platinum certification. CoStar Group purchased the property earlier this year with the intention of relocating Washington, D.C. employees to Arlington as part of a transition of the company’s headquarters.

As part of the agreement, Gartner paid CoStar Group a $48 million early termination fee and signed a new lease for approximately 49,000 square feet on the 11th and 12th floors at 1201 Wilson Boulevard for a term through December 2032 at prevailing market rates. The deal unlocks enough space at 1201 Wilson Boulevard to allow CoStar Group to move its headquarters from Washington, D.C., in early 2025.

“We always intended for 1201 Wilson to be the headquarters of CoStar Group, but this agreement enables us to complete that process more quickly and better align with our continued rapid growth and expansion,” said Andy Florance, Founder and Chief Executive Officer. CoStar Group’s. “I am pleased that we will be able to take greater advantage of the building’s extensive amenities and location in business-friendly Virginia ahead of schedule, and I look forward to welcoming employees, customers and other constituents early next year.”

Because the company’s current lease in Washington, D.C. is scheduled to expire in 2025, CoStar Group evaluated more than 25 suitable spaces in Washington, D.C., 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 has a unique perspective on commercial property values ​​and believes that market conditions at the time of purchase provide an opportune time to purchase a high-quality property. A significant discount. The company previously purchased 1331 L Street, NW in Washington, DC, in 2011 and completed a sale and leaseback transaction that yielded over 140%. This deal was the most profitable recession-era sale of commercial real estate in Washington 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, as well as transportation throughout the greater Washington DC area, including a network of five major roads. The move to Rosslyn will offer employees access to extensive retail and dining amenities, a network of biking and running trails, and the waterfront in a highly desirable, vibrant and safe environment.

The deal comes at a time of significant growth and expansion for CoStar Group; revenue grew from $252 million in 2011 to $2.46 billion in 2023, and the number of employees grew from 1,000 in 2011 to more than 6,400 today. Founded in 1986, CoStar Group has digitized the real estate industry, allowing people to discover properties, insights and connections that will improve their business and lives. CoStar Group is included in the S&P 500 Index, one of the leading indicators of the U.S. stock market, and the NASDAQ 100, one of the world’s largest leading large-cap indices.