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SAN DIEGO-In a deal that may be worth nearly $1 million per year, CoStar Group Inc. has agreed to sublease 41,551 sf from Gateway Inc. in the University Town Center area to relocate and expand its West Coast operations center.

CoStar will occupy the entire 4535 Towne Center Court, a two-story, 41,551-sf office building in the Towne Center Tech Park. The property is owned by CarrAmerica and leased to Gateway Inc. CoStar declined to release the lease terms, but based on the company¹s own figures, the average sublet triple ret rate is $23.19 per sf per year. Such a figure would make the deal worth nearly $1 million per year.

CoStar has been operating in San Diego for more than 18 years through its February 2000 acquisition of COMPS.com. The company currently employs over 210 people at its facility in Scripps Ranch.

The firm is the leading provider of information services to the U.S. commercial real estate industry and the principal information provider for more than 350 San Diego commercial real estate firms.

Based in Bethesda, MD, CoStar’s West Coast operations center houses the professional research teams tracking office and industrial space availabilities, properties for sale and comparable sales transactions. About half of the company¹s software development team also is based in the San Diego facility.

“This new location moves us closer to our clients,” says Craig Farrington, vice president in charge of CoStar¹s West Coast operations.

Chris Hobson, Rick Reeder and Robert Kuzman of BRE Commercial/NAI represented CoStar in the transaction. Bill Cavangh of BRE Commercial/NAI and Jeffrey Lasky of Julien J. Studley jointly represented Gateway Inc.

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