CoStar breaks ground on $460M research facility

The CoStar Group is a real estate data giant, but Chief Executive Officer Andy Florance thinks the company can still grow — literally.

On Tuesday, the firm broke ground on a $460 million research and technology center next to its Fifth Street office space in Richmond, Virginia, WWBT reported. Several major political officials attended the event, including Gov. Glenn Youngkin.

The 26-story, 750,000-square-foot project is an expansion of CoStar’s previous research and technology facility. At 425-feet tall, it will be one of the tallest buildings in Richmond.

The campus will include a conference space, fitness amenities, retail and restaurants. The project is expected to create 2,000 jobs and 3,000 CoStar employees will call the hub home. Florance said that he expected the expansion’s appeal would bring employees back to the office.

Once the expansion is completed, CoStar’s footprint in Richmond will extend beyond 1 million square feet. The project is scheduled to be completed in 2024.

Florance founded CoStar in 1987, building a database that tracks roughly 6 million commercial properties. This year, he and CoStar have been under a harsh spotlight from the press.

In June, the company took an ex-employee to arbitration after he created an Instagram account that mocked the company. At the same time, CoStar reportedly terminated a number of employees, leaving some to suspect it was because they engaged with the social media account that criticized the firm.

Insider also published a report this year with claims that Florance was demanding and prickly, and once allegedly brandished a black semiautomatic pistol during a video meeting. The company also came under fire for its alleged draconian managerial style, that is said to include surveilling employees.

In February, police responded to an alleged arson at the company’s Richmond headquarters, where two cars were set on fire.

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— Holden Walter-Warner