Commercial real estate data giant CoStar Group Inc. (NASDAQ: CSGP) on Tuesday broke ground on its $460 million research and technology hub expansion in downtown Richmond.
The forthcoming campus at 600 Tredegar St. is part of the company’s plans to add 2,000 jobs to Richmond, where it first planted a flag for its research operations in 2016. Today, CoStar counts 1,500 employees in Virginia’s capital city.
CoStar said it plans to add positions in research, technology, operations, software development and marketing and sales roles for the new hub. When filled out, the company will be the largest tech firm in Richmond and one of the city’s largest private employers.
“Richmond boasts premier access to higher education, top-tier talent pools, strong community partnerships and unbeatable amenities, from riverfront views and ample green space to restaurant, retail and entertainment options,” CoStar founder and CEO Andy Florance said in a statement. “We’re committed to the growth and economic development of the region.”
The planned campus, first announced in late 2021, will total 750,000 square feet across two new buildings that will be paired with the CoStar's existing office overlooking the James River on South Fifth Street. The new structures will include a 26-story office tower and a six-story timber building — a building CoStar said would serve as a hub for employee and community amenities. The project will include conference space, fitness and wellness amenities, an auditorium, 50,000 square feet of green roof terraces, and retail and restaurant spaces.
CoStar said last year it considered a variety of alternatives for its expansion but settled on Richmond because of its pool of college-educated talent, as well as "efficiencies of scale with existing operations and state and local support for the project."
Virginia said it is supporting the project through $15 million in public infrastructure investments around the new campus.
CoStar was founded in 1987 and operates online services enables to advertise, sell and lease properties as well as analyze commercial and residential property values and market conditions. Its slate of services includes real estate auction platform Ten-X, hospitality real estate data platform STR, commercial real estate marketplace LoopNet and apartment websites Apartments.com, ApartmentFinder.com, ForRent.com, ApartmentHomeLiving.com, Westside Rentals, AFTER55.com, CorporateHousing.com, ForRentUniversity.com and Apartamentos.com.
In all, CoStar employs roughly 5,300 people across 80 global offices, including several hundred at its D.C. headquarters on L Street NW. D.C.'s staffing isn't expected to be affected by the Richmond expansion.
CoStar posted $557 million in revenue during the third quarter, up from $499 million in the third quarter of 2021. Net income was $72 million, up from $64 million in the third quarter of $64 million.
The company’s shares were trading at $80.54 on Wednesday morning. Its shares are up nearly 12% in the last month and 2.21% for the year to date.
