CoStar Reportedly Nears Deal To Move HQ From D.C. To Virginia

CoStar is reportedly looking to buy one of Northern Virginia's largest office towers and move its headquarters out of the District. 

The real estate data giant has been headquartered for 14 years in Downtown D.C., half a mile from the White House. Now, CoStar is nearing a deal to acquire Rosslyn's Central Place office tower and move its headquarters there, the Washington Business Journal reported, citing sources familiar with the negotiations and public documents. 

Central Place, developed by JBG Smith in 2018 at 1201 Wilson Blvd., is one of the tallest towers in the region at 31 stories.

JBG Smith and CoStar declined to comment. 

CoStar moved to 1331 L St. NW in 2010, relocating from Bethesda and receiving a tax abatement incentive from the District. It purchased the 170K SF office building the same year for $41.25M and sold it in 2011 for $101M, but it has remained a tenant at the property, according to WBJ. 

The news comes as CoStar has been expanding its footprint further south in Richmond. The company announced in 2021 that it would develop two new office buildings in the city, totaling 750K SF, with plans to consolidate 300 regional employees there. The new offices would bring CoStar’s total footprint in the city to 1M SF. 

When the developments were announced, CoStar CEO Andy Florance cited the state’s business-friendly climate.

“Our decision to double down on investing in Virginia is driven by our confidence that with Governor-elect Youngkin’s successful commercial experience, Virginia will be open for business," Florance said in a 2021 release. 

If the headquarters move goes through, it would be another blow to downtown D.C., which is also bracing for Fannie Mae to exit its 700K SF headquarters space at Midtown Center. The city is also on the verge of losing the Capitals and Wizards to Northern Virginia, as Monumental Sports advances its plan to build a new arena and entertainment district in Potomac Yard. 

D.C.'s office vacancy has continued to reach new record highs, and a recent string of sales have revealed the dramatic drop in commercial property values that the downtown area is facing. 

CORRECTION, JAN. 31, 12:15 A.M. ET: An earlier version of this story misstated the year CoStar moved into 1331 L St. NW. It has been corrected.