CoStar Inks Early $48M Lease Termination With Gartner at Virginia Office Tower
The deal paves the way for CoStar to move its HQ into the Arlington building next year.
By Nick Trombola November 4, 2024 2:33 pm
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Real estate analytics giant CoStar Group is one step closer to moving its headquarters across the Potomac from Washington, D.C., to the tallest building in Arlington, Va.
CoStar earlier this year acquired the Arlington building, dubbed Central Place Tower at 1201 Wilson Boulevard, for $339 million from JBG Smith, with the intention of setting up shop at the 31-story property. Connecticut-based consulting firm Gartner was the largest tenant at the building, leasing some 350,000 square feet since the building opened in 2018, per Bisnow.
Yet Gartner has now opted to exit that lease, paying a $48 million early termination fee to CoStar and re-signing for just 49,000 square feet through 2032. That freed-up space clears the way for CoStar to move in once its lease at 1331 L Street NW in D.C. expires in 2025. CoStar had previously owned its D.C. headquarters but sold it to Germany-based GLL Real Estate Partners in 2011.
CoStar, which also owns LoopNet, Homes.com and Apartments.com, plans to move into its new space early next year.
“We’ve always intended for 1201 Wilson to become CoStar Group’s headquarters, but this agreement makes it possible for us to complete that process even faster and to better accommodate our continued rapid growth and expansion,” Andy Florance, CoStar Group’s founder and CEO, said in a statement.
Representatives for Gartner did not immediately respond to a request for comment.
CoStar meanwhile is also paying nearly $14 million to Arlington County to close public access to Central Place Tower’s 12,000-square-foot observation deck. The county will use the funds to improve the nearby Gateway Park.
Nick Trombola can be reached at ntrombola@commercialobserver.com.
