CoStar doubling down in RVA is exactly the kind of momentum we love covering. New tower. New jobs. New demand across CRE. Richmond is moving.
Richmond just landed another major win for its commercial landscape. CoStar Group, one of the most influential players in commercial real estate data and technology, is officially lined up for millions in state and city incentives as it prepares to move forward with its new office tower on the riverfront. The move reinforces something the CRE community has felt building over the past few years: national-level companies are betting big on Richmond’s future.
A Significant Commitment to Downtown
CoStar’s expansion plans include a modern, high-rise office tower anchoring their growing campus along the James. The incentives package, supported at the state and city levels, is designed to accelerate construction, create thousands of jobs, and position Richmond as a long term innovation hub for CRE technology. For a market the size of Richmond, this level of investment is rare and meaningful.
Beyond the numbers, the commitment signals confidence in the city’s workforce pipeline, its cost advantages compared to larger metros, and the momentum building around the greater downtown corridor. Between the Manchester boom, the evolving Riverfront District, and the revitalization along 10th and 12th Streets, CoStar’s tower will land right in the middle of Richmond’s next major growth zone.
What This Means for Developers and Investors
The ripple effects of a headquarters expansion of this scale can reshape an entire submarket. Here’s what local developers, brokers, and investors should be watching:
Office Absorption Pressure
A new CoStar tower brings hundreds of daily workers into the core. Even if hybrid schedules remain common, the net effect is more downtown foot traffic and stronger demand for supporting services.
Retail and Hospitality Growth
As employment grows, so does the need for immediate-access retail. Restaurants, coffee, fitness, hotel space, and experiential concepts all benefit from increased density. This is especially true in Richmond, where walkable urban amenities continue to outperform.
Mixed Use and Multifamily Opportunity
More jobs downtown typically translate into increased demand for nearby living options. Expect developers to revisit stalled projects, evaluate infill sites, and lean into mixed use plans that support urban living close to the tower.
Investment Confidence
Institutional players take note when a national CRE giant doubles down on a midsized market. Expect more outside capital to evaluate Richmond deals, especially around the riverfront and in the Diamond District corridor.
Adding Fuel to Richmond’s Momentum
CoStar’s incentives approval arrives on the heels of several transformative Richmond projects: the Diamond District, ongoing Manchester infill, continued growth in Scott’s Addition, and expansions from regional employers. The upcoming tower adds another strong anchor to the narrative that Richmond is shifting into a new phase of long term development.
Whether you’re a CRE professional, developer, or investor watching the Central Virginia market, this move reinforces a clear message. Richmond isn’t just growing. It’s accelerating.