Company will infuse a quarter billion dollars into the local economy
RICHMOND, VA – The Greater Richmond Partnership (“Partnership”) announces CoStar Group Inc., the leading provider of commercial real estate information, analytics and online marketplaces, will open a research center in the City of Richmond. The company will invest nearly $8.2 million in the center, which will be located in the Foundry Park building on the city’s riverfront at 501 South Fifth Street, infusing $250 million into the local economy. The location will host 732 positions for the company.
“CoStar is excited to become an essential business partner to the City of Richmond and the state of Virginia,” said Andrew Florance, CoStar Founder and Chief Executive Officer. “This is an opportunity that allows us to expand our research and software development capabilities in a city that provides a highly educated labor pool, a superior quality of life for our employees and a culture that aligns to our business model.”
CoStar will lease the top three floors of the building, sharing the space with WestRock, a pre-existing tenant. Both companies plan to adorn the co-branded building with new signage.
Headquartered in Washington, D.C., CoStar maintains offices throughout the US and in Europe and Canada with a staff of approximately 2,600 worldwide, including the industry’s largest professional research organization. The center will host three main functions focused on tenant research, portfolio research and software development.
Brian Berkey, SVP for Cushman & Wakefield | Thalhimer, contacted the Partnership regarding the project in June. The Richmond Region competed against several other cities spanning the Southeast and Midwest. There were a number of real estate options available throughout the Richmond Region, however CoStar was attracted to the city’s central, downtown location. Additionally, the proximity to the company’s headquarters helped in the attraction effort.
“The company hires many young professionals and several factors weighed in on the location decision,” said Rowena Fratarcangelo, Vice President of Business Development at the Partnership. “CoStar was looking for a downtown location, which attracts employees who enjoy living, working and playing in the same vicinity.”
“This project moved very quickly,” said Barry Matherly, President/CEO of the Partnership. “We hosted company representatives in late June and they fell in love with the building, its view and location in the central business district. We’re excited that large office spaces in the Richmond Region are attracting companies such as CoStar.”
“The fact that CoStar, the world’s leader in commercial real estate information, has chosen the City of Richmond as the location of its new research headquarters, says a lot about the quality of our workforce and our real estate,” said City of Richmond Mayor Dwight Jones.
The Greater Richmond Partnership worked with the City of Richmond and the Virginia Economic Development Partnership to secure this project. Gov. Terry McAuliffe approved a $4 million grant from the Commonwealth’s Opportunity Fund to assist the City of Richmond with the project. CoStar Group is eligible to receive state benefits from the Virginia Enterprise Zone Program, administered by the Virginia Department of Housing and Community Development. Funding and services to support the company’s employee training activities will be provided through the Virginia Jobs Investment Program.
Brokers Ken Campbell and Kit Tyler with Colliers International handled leasing of the Foundry Park building.
Founded in 1987, CoStar conducts expansive, ongoing research to produce and maintain the largest and most comprehensive database of commercial real estate information. The group operates LoopNet, the most heavily trafficked online commercial real estate marketplace, as well as Apartments.com, the most trafficked apartment listing site.
About the Partnership
The Greater Richmond Partnership, Inc. was launched in 1994 as a pioneering regional public-private initiative to serve as the regional economic development group for the City of Richmond and counties of Chesterfield, Hanover and Henrico. Over the course of 22 years, the 501(c)(3) non-profit organization has assisted more than 485 companies that have invested $11 billion in capital investment in the Richmond Region. For more information, please visit www.grpva.com.
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