CoStar Mulling Possible Office Consolidation?
Could the 800-pound gorilla of real estate data be eyeing a huge office requirement in Atlanta?
Sources tell us CoStar Group is exploring the possibility of consolidating its office holdings in Atlanta in light of its $170M acquisition last year of Atlanta-based Apartment Finder, which operates the popular multifamily listing website Apartments.com. The purchase means CoStar has offices scattered around the metro area—Phipps Tower in Buckhead, where CoStar's main Atlanta office is, and 2 Sun Court in Peachtree Corners, home to Apartment Finder. Sources say the exploration is preliminary and there is no official RFP in the market, which could exceed 100k SF. "CoStar does not have any current plans to move its offices. However, we are keeping our options open given the tremendous growth we are experiencing across the company," CoStar spokesperson Keosha Burns tells us.
CoStar made headlines in 2012 when it leased nearly 30k SF at Phipps Tower, the 500k SF skyscraper in Buckhead owned by John Hancock Real Estate. At the time, the firm signed an 11-year lease. That could complicate any plans for CoStar to move its offices. Details on Apartment Finder's digs were not available as of press time, but there's the potential it could consolidate out of its longtime Peachtree Corners home for the city. Cushman & Wakefield's Kirk Diamond (here) has been CoStar's rep in Atlanta for a number of years. He did not return calls seeking comment.