Software company Qualtrics International Inc. (NASDAQ: XM) has inked a lease for a new East Coast hub in Reston, where it plans to create 400 jobs over the next five years, more than doubling its local headcount.
On the heels of its $1.13 billion acquisition of Reston-based Clarabridge Inc., Qualtrics, which specializes in experience management products, will take 85,000 square feet across three floors at Reston Station's 1906 Reston Metro Plaza, the third building Comstock Holdings Inc. (NASDAQ: CHCI) has developed at the Wiehle-Reston East Metro station.
The new office will open in the third quarter of 2022 with a major product innovation node where the company will be able to develop tools with artificial intelligence and machine learning, CEO Zig Serafin said. Qualtrics will get its own 5,400-square-foot outdoor patio in the space, Comstock said. The company is relocating from space at 1875 K St. NW in the District.
"With its strong talent pool, Virginia is a perfect place for us to grow,” Serafin said in a statement. “The investments we’re making today will put us in an even stronger position to help our customers build their next great customer, employee, product and brand experiences.”
Virginia is backing the Qualtrics move with a $1.4 million grant from the Commonwealth's Opportunity Fund and a $2 million Virginia Economic Development Incentive Grant, a pot Gov. Ralph Northam's office said is reserved for "exceptional economic development projects with largest numbers of employees and very high wages relative to average wages for that particular area."
Provo, Utah-based Qualtrics spun out of German software mainstay SAP AE in 2019 and has accrued 13,500 customers using its experience management tools, including 90 federal offices across every major federal agency, it said. The new jobs will include sales, engineering, operations and marketing. It is still in the process of integrating Clarabrige, whose AI-powered technology combs social media and customer channels to gather feedback about customer experience.
When it does, though, it says the company could add $100 million in revenue and year-over-year growth of at least 25%, thus prompting a need for new talent. Serafin said the company's push to enhance its experience management tools has been bolstered amid the "great resignation," as more companies are being proactive to keep aboard talent and retain customers.
Qualitrics is investing $15.9 million directly in the expansion, according to Northam's office, which added the company had also considered Ohio or Pennsylvania in its space search.
The company's lease fills out the building's 156,000 square feet of office space. The 1906 Reston Metro Plaza building also has a 9,825-square-foot conference center and meeting room, fitness center, 7,000-square-foot sky garden and rooftop deck.
At Reston Station, Qualtrics will join the likes of Google, Neustar, Rolls-Royce North America, ICF Global, CACI, Certipath, Solar Winds and Megaphone LLC.
"The addition of this global analytics provider is the perfect complement to our tenant roster of established and emerging tech brands," said Tim Steffan, executive vice president of asset management at Comstock, in a statement.
With the building fully leased, Comstock is well underway on plans to develop yet more of the 60-acre mixed-use development along the Silver Line corridor. Site work is underway for a J.W. Marriott hotel and 90 luxury residences, slated to deliver in 2024. The company recently obtained $350 million in refinancing to free up capital for that project.
Bob Veshancey, Herb Mansinne and Matt Gallagher of JLL manage leasing at Reston Station.
