The Fenty administration is romancing CoStar fiercely, offering the Bethesda-based commercial real estate company millions in tax breaks to set up shop in the District.
The High Technology Commercial Real Estate Database and Service Providers Tax Abatement Act would give up to $700,000 a year in property tax breaks to CoStar for 10 years and was part of a promise Mayor Adrian Fenty made to CoStar Chief Executive Officer Andy Florance to lure his agency away from its Montgomery County digs.
Called the “Bloomberg of real estate,” CoStar tracks trends in commercial real estate for more than 83,000 subscribers in the U.S., Britain and France. In October, Forbes magazine named CoStar one of its 200 Best Small Companies.
“The Bloomberg of Real Estate”
CoStar
» Founded 1987
» At least 1,000 employees
» Market value: $778 million
» Sales, October 2008-October 2009: $208 million
Source: Forbes
According to the Washington Business Journal, which was first to report the courtship, Fenty and Florance sat together on a flight back from a Las Vegas convention earlier this year. The mayor tried to sell Florance on moving his company to D.C. but Florance balked, citing the high real estate taxes in the District.
“We could try to solve that problem for you,” Fenty reportedly responded.
The tax abatement, sponsored by Council Chairman Vincent Gray, is now being weighed by the city council. CoStar would have to commit to a five-year lease and promise to keep at least 250 employees at their D.C. offices.
