Yelp is opening up a 500-person sales and marketing office in Gallery Place, the company and the mayor’s office announced today.
“We’ve been building a vibrant community of locals and business owners in D.C. for many years, and we can’t wait to add our own employees to the mix,” Yelp CEO Jeremy Stoppelman said in a blog post.
The company currently has offices in Scottsdale, New York City, Chicago, London, and Hamburg. Yelp cited “proximity to other East Coast locations, top-notch public transportation, and a thriving technology community” as among its reasons for choosing D.C. (guess nobody told them about Metro).
Construction on the D.C. office will begin in the coming weeks and hiring for the new positions later this year.
The Deputy Mayor’s Office for Planning and Economic Development worked with Yelp on a slate of incentives under two city programs. Under the Qualified High Technology Companies program, the company will be entitled to tax credits for things like hiring and training, a freeze on real estate taxes, and a zero percent corporate income tax rate for five years.
Yelp also qualifies for the Creative and Open Space Modernization Amendment Act of 2015, which allows for a rebate of up to $1 million for qualified office improvements. The total amount that the company will get back is based on both the cost of the build-out and their tax liability, which are not currently known. DMPED did not provide an estimate or a range for what Yelp is expected to get back, though DMPED chief of staff Andrew Trueblood said it is not likely to hit the $1 million mark.
The same program helped incentivize Blackboard to stay in the city in 2015.
“We’ve done an number of important retention of business in the city, and that has set the stage for this,” Trueblood says. “But we really see this as an important sign to the marketplace at large about how D.C. is a great place to do business.”
Such incentives will not have to be approved by the D.C. Council, unlike a $32.5 million tax deal with Living Social in 2012 that the company ultimately failed to meet the requirements for.
The Washington Business Journal reported in May that the company was considering sites in both D.C. and Northern Virginia.
“We applaud Yelp’s decision, which means good-paying, 21st century jobs for District residents,” Mayor Muriel Bowser said in a release today.
The company will set up shop in 52,000 square feet of the historic Terrell Place building in Gallery Place, just next to the Verizon Center (possibly soon-to-be the Capital One Center).
Terrell Place lost the law firm that served as its anchor tenant earlier this year, but building may be turning into something of a local tech hub. Facebook is reportedly moving its D.C. offices from its office in the Warner Building to Terrell Place.
And the historic building has already revamped the decor accordingly, with a motion-activated, digital wall art installation that changes with the day and season.
Rachel Sadon