CoStar will invest $460 million to build a corporate campus in downtown Richmond, which will bring 2,000 jobs. Rendering courtesy CoStar
Washington, D.C.-based CoStar Group Inc., a commercial real estate data and analytics provider, will build a $460 million corporate campus in Richmond, creating 2,000 jobs, Gov. Ralph Northam announced Friday.
The new campus will include a 26-story, 510-foot, LEED-platinum-certified skyscraper that will be the tallest building in Virginia, rising two feet taller than the Westin Virginia Beach Town Center building.
“I am thrilled CoStar is investing yet again in Virginia,” Northam said in a statement. “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.”
CoStar’s riverfront campus will feature 750,000 square feet of new office and retail space and a six-story multipurpose building with conference facilities, fitness and wellness, an auditorium and mixed-use retail and restaurant spaces. Plazas and retail areas will front Tredegar Street, facing Brown’s Island.
CoStar already has a significant Richmond presence, with more than 1,000 employees at the former WestRock building at 501 S. 5th St., but the expansion will give CoStar 1 million square feet of downtown Richmond space.
The new campus will include sales, marketing, software development, customer service and support functions on four acres adjacent to its current facility, where its headquarters for research and data analytics is located.
CoStar acquired Homes.com, a division of Norfolk-based Dominion Enterprises, in April for $156 million. The firm has more than 4,800 employees worldwide and manages a portfolio of online services that provide information on the hospitality, rental properties and commercial real estate sectors. CoStar also runs Apartments.com and Loopnet. Its headquarters are in Washington, D.C., and it has offices throughout the country and in Europe, Canada and Asia.
“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 CoStar Group founder and CEO Andy Florance in a statement. “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 Richmond, the Greater Richmond Partnership and the General Assembly’s Major Employment and Investment Project Approval Commission to secure the project. It 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, with the General Assembly’s approval. The upgrades will address commuter and pedestrian access and roadway and traffic improvements.
The planned campus will be on the James River and the company says it will incorporate on-site energy generation, energy-efficient building systems and enclosures and a reduced carbon footprint. It will have 50,000 square feet of “occupiable green roof terraces, retail and a variety of restaurants and dining options” and will incorporate more than 2.65 acres of outdoor green space.
“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 in a statement. “We thank the company for creating 2,000 high-quality jobs and look forward to continuing our long-term partnership with CoStar.”
Virginia competed with other states in the mid-Atlantic and the Southeast for the 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, in a statement. “We’re thrilled CoStar is continuing to invest in Greater Richmond.”
