CoStar Group, a leading online real estate platform, has purchased a 552,000 square foot office building in Arlington, Virginia, for an undisclosed amount. The company plans to move its Washington, D.C. employees to the new location by 2025, taking advantage of nearly $7 million in tax and economic incentives.

The company, which has over 6,200 employees and $2.18 billion in revenue, said it chose the Arlington site after evaluating more than 25 options in the region. CoStar Group said it believes the current market conditions offer a great opportunity to acquire a high-quality property at a significant discount. The company has a history of profitable real estate deals, having sold its previous D.C. headquarters for over 140% return in 2011.

The Arlington building, located above the Rosslyn Metro station, provides easy access to transportation, retail, dining, and recreational amenities. CoStar Group said the move will benefit its employees and customers, as well as the local community and economy.

CoStar Group, founded in 1987, is a leader in the digital transformation of the real estate industry. The company provides online marketplaces, information, and analytics for the property markets. CoStar Group is part of the S&P 500 and the NASDAQ 100 indexes.

“Virginia is a great choice for a new corporate headquarters location, and we are excited that CoStar Group, a leading provider of online real estate marketplaces, information, and analytics in the property markets, sees the economic advantage in moving to the Commonwealth,” said Governor Glenn Youngkin. “As states compete for business and jobs, the Commonwealth’s diverse, world-class talent, exceptional quality of life and stable business climate continues to stand out. We are proud that CoStar has chosen Virginia as its home.”

Andy Florance, Founder and Chief Executive Officer of CoStar Group, said, “The financially strategic acquisition of this building will provide the perfect home for the more than 500 employees at our current headquarters. We’re incredibly thankful for our 14 years calling Washington, D.C. home, and we will continue to be a part of this community even as we move across the river to Arlington County.”

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