The 2013 Arlington Real Estate Market Review and Forecast
02.26.2013
This Morning’s Presentation
• The Washington Area Economy
• The Office Market
• The Residential Market
• The Hotel Market
• The Retail Market
• Development Trends and Prospects
• The Silver Line
• Fiscal Status
• Challenges
The Washington Area Economy
“I’ve stopped looking for w ork, which, I believe, helps the economic numbers.”
Annual Job Change United States (000s)
Source: Bureau of Labor Statistics
-6,000
-4,000
-2,000
0
2,000
4,000
6,000
1940 1950 1960 1970 1980 1990 2000 2010
Annual Job Change Washington DC Metro Area (000s)
Source: Bureau of Labor Statistics
-60
-40
-20
0
20
40
60
80
100
120
140
1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011
Average = 36
Change in All Job Sectors Washington DC Metro Area (000s)
Source: Bureau of Labor Statistics
-60
-40
-20
0
20
40
60
80
2004
2006
2008
Jan
Mar
May
Jul
Sep
Nov
Jan
Mar
May
Jul
Sep
Nov
Jan
Mar
May
Jul
Sep
Nov
Annual 2012 2011 2010
Annual Month Over Year
Change in Professional & Business Services Jobs Washington DC Metro Area (000s)
Source: Bureau of Labor Statistics
-10
-5
0
5
10
15
20
25
30
35
2004
2006
2008
Jan
Mar
May
Jul
Sep
Nov
Jan
Mar
May
Jul
Sep
Nov
Jan
Mar
May
Jul
Sep
Nov
Annual 2012 2011 2010
Annual Month Over Year
Change in Hospitality Jobs Washington DC Metro Area (000s)
Source: Bureau of Labor Statistics
-10
-5
0
5
10
15
2004
2006
2008
Jan
Mar
May
Jul
Sep
Nov
Jan
Mar
May
Jul
Sep
Nov
Jan
Mar
May
Jul
Sep
Nov
Annual 2012 2011 2010
Annual Month Over Year
Change in Federal Jobs Washington DC Metro Area (000s)
Source: Bureau of Labor Statistics
-10
-5
0
5
10
15
20
25
30
2004
2006
2008
Jan
Mar
May
Jul
Sep
Nov
Jan
Mar
May
Jul
Sep
Nov
Jan
Mar
May
Jul
Sep
Nov
Annual 2012 2011 2010
Annual Month Over Year
Job Change by Sector 2011-2012 Washington DC Metro Area (000s)
-5.0 0.0 5.0 10.0 15.0
Education/Health Services State/Local Government
Leisure/Hospitality Professional/Business Services
Financial Construction/Mining
Transportation/Utilities Other
Manufacturing Information
Wholesale Trade Federal Government
Retail Trade
45.7
-9.3
Source: Bureau of Labor Statistics
Job Change by Sector 2012-2017 Washington DC Metro Area (000s)
-50.0 0.0 50.0 100.0 150.0
Professional/Business Services
Construction
Education/Health Services
Other Industries (3)*
Retail Trade
State/Local Government
Leisure/Hospitality
Information
Financial
Other
Federal Government
* Wholesales Trande, Manufacturing, and Transportation/Utilities Source: George Mason University, Center for Regional Analysis
Unemployment
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Arlington Virginia US
Note: Arlington through November 2012 Source: Bureau of Labor Statistics
Principal Employers
Government Jobs Private Jobs U.S. Department of Defense* 27,000 Deloitte 5,826
U.S. Department of State* 6,000 Accenture 4,200
U.S. Department of Homeland Security* 5,600 SAIC 2,380
U.S. Department of Justice* 5,200 Virginia Hospital Center 2,268
Arlington County School Board 3,937 Marriott International, Inc.* 1,885
County of Arlington 3,698 Booz Allen Hamilton* 1,400
FDIC* 2,900 Lockheed Martin Corp 1,194
National Science Foundation 2,237 Corporate Executive Board 1,157
U.S. Environmental Protection Agency* 2,100 CACI 1,095
U.S. Department of Interior* 1,200 SRA International 957
Total 59,872 Total 22,362
*Estimate
The Office Market
“Yes, I do make things, son. I make things called deals.”
Private Office Market Comparisons
Submarket Office Inventory
SF Vacancy
Rate Average Asking
Rate
Downtown Philadelphia 44,202,474 14.7% $26.10
Chicago Central Loop 41,099,407 13.1% $31.54
Washington CBD 38,710,591 11.5% $48.52
Boston CBD 37,473,147 12.7% $43.79
Arlington County 36,735,543 16.1% $41.13
Houston CBD 36,514,081 13.7% $33.09
Los Angeles Downtown 31,125,339 18.0% $34.32
Dallas CBD 29,799,042 28.1% $18.93
Denver Downtown 25,608,414 14.1% $25.45
Minneapolis CBD 23,348,562 17.4% $12.46
Seattle CBD 20,267,129 14.4% $31.891
Atlanta Downtown 18,377,678 24.6% $18.09
1Class A only Source: CB Richard Ellis; Colliers International; 4th Quarter 2012
Regional Office Availability
Submarket Building Area
Total Available
Sublet Available
Total Vacant
Direct Vacant
Average Asking
Rate
Washington East End 47,112,991 6,281,031 648,645 9.9% 9.2% $52.60
Washington CBD 44,530,121 6,097,619 674.580 10.7% 9.9% $50.97
Tysons Corner 28,316,730 6,073,599 234,624 16.9% 15.9% $29.98
RB Corridor 24,259,464 5,251,945 653,667 14.5% 13.4% $41.24
Reston 18,678,964 4,491.914 784,301 19.1% 16.5% $28.42
Crystal City/ Pentagon City 12,561,065 2,714,767 204,618 19.9% 19.0% $39.48
Herndon 12,315,319 2,034,476 372,255 14.9% 13.4% $26.73
Bethesda/ Chevy Chase 12,017,129 1,507,536 243,840 10.1% 9.0% $35.80
NoMa 9,684,641 1,279,647 32,375 11.4% 11.0% $45.27
Capitol Hill 6,230,795 915,330 96,608 9.3% 8.7% $52.35
Capitol Riverfront 5,474,610 928,905 48,062 14.9% 14.5% $43.15
Source: CoStar 1/25/13
Arlington Office Availability
Submarket Building Area Total Available
Sublet Available
Total Vacant
Direct Vacant
Average Asking
Rate
Ballston 7,605,009 1,669,674 275,081 14.0% 12.7% $40.24
Clarendon/Courthouse 5,766,547 911,782 129,245 11.5% 10.0% $41.26
Crystal City 11,600,017 2,826,176 198,433 22.6% 21.8% $39.43
Pentagon City 1,232,333 17,546 0 1.4% 1.4% N/A
Rosslyn 8,927,502 2,281,687 242,012 17.1% 16.4% $42.32
Virginia Square 1,960,406 392,121 364,442 13.4% 12.0% $40.11
Outside Metro Areas 2,346,838 274,798 11,773 5.1% 4.6% $24.57
Arlington County 39,442,430 8,402,143 857,843 16.5% 15.4% $40.15
Source: CoStar 1/25/13
Building Address
Vacated (SF) Status
1400 Crystal Drive (1411 Jefferson Davis Hwy) 278,332
Redevelopment for 308,000 SF underway; Completion expected 06/2013
1900 Crystal Drive (1851 S Bell Street) 393,587 Proposed 730,000 SF building approved
220 20th Street 197,804 Redeveloped into 265 apartment units
Presidential Towers 2511 Jefferson Davis Hwy 307,685 Currently marketing
400 Army Navy Drive 202,434 Purchased by LCOR affiliate, plans for multifamily redevelopment
3701 Fairfax Drive 172,837 Currently marketing
223 23rd Street S 185,500 Preliminary planning
4040 N Fairfax Drive 184,211 Renovations underway
Total 1,922,390
Buildings Impacted by Federal Actions
Expiration of BRAC Leases
-
100
200
300
400
500
600
700
800
900
1,000
2013 2014 2015 After 2015
SF (0
00s)
2521 S Clark Street 201 S 12th Street 1401 Wilson Blvd 2451 Crystal Drive
*Entire building will be available in 4Q ‘13 Source: Arlington Economic Development
1750 Crystal Drive 2521 S Clark Street 1400-1450 S Eads 2221 S Clark Street
3100 Clarendon Blvd* 200 S 12th Street 1101 Wilson Blvd 2450 Crystal Drive
2530 Crystal Drive 1700 N Moore Street 1225 S Clark Street 1515 Wilson Blvd
Net Office Absorption 2012
Firm Northern Virginia Arlington Avison Young (2,404,751) (1,562,487)
Transwestern (2,594,000) (2,146,000)
Cushman & Wakefield (2,509,225) (1,809,358)
Cassidy/Turley (2,015,257) (1,743,832)
CB Richard Ellis (2,007,059) (1,950,351)
Jones Lang LaSalle (2,318,642) (1,806,777)
CoStar (1,409,946) (1,523,419)
Source: Real Estate Firms
Top Lease Transactions 2012
Tenant SF Address
GSA - ONR 274,000 875 N Randolph Street CNA 173,309 3001 Washington Boulevard Raytheon 114,000 1100 Wilson Boulevard Corporate Executive Board 108,000 1777 N Kent Street E*Trade Financial 100,000 671 N Glebe Road DRS Technologies 92,000 2345 Crystal Drive US Department of Labor 91,438 1100 Wilson Boulevard GSA 74,000 251 18th Street South Pacific Architects and Engineers (PAE) 71,000 1320 N Courthouse Road GSA 68,000 1225 S Clark Street Rosetta Stone 65,000 1919 N Lynn Street Arlington County School Board 62,000 2110 Washington Boulevard National Electrical Manufacturers Associations 58,000 1300 N 17th Street Interstate Hotels & Resorts 49,000 4501 N Fairfax Drive Turner Construction 37,000 3865 Wilson Boulevard Strategic Investment Management 36,000 1001 N 19th Street Environ International Corporation 33,000 4350 N Fairfax Drive CRDF Global 26,883 1776 Wilson Boulevard Decisive Analytics Corporation 25,000 1235 S Clark Street
The Residential Market
“Hold everything! The P.R. department just sent over this chart.”
Housing Sales & Prices
Year Units Sold Avg. Price Units Sold Avg. Price Units Sold Avg. Price
2012 1,068 $776,044 288 $599,161 1,341 $408,142
2011 884 $750,019 236 $596,117 1,149 $385,080
2010 950 $742,406 276 $547,794 1,233 $371,937
2009 936 $701,059 254 $527,472 1,241 $363,989
2008 1,153 $736,673 284 $541,621 1,233 $392,948
2007 1,029 $804,352 268 $650,368 1,793 $404,591
2006 1,084 $767,858 328 $618,931 1,670 $396,931
2005 1,297 $773,007 386 $617,263 1,807 $384,222
2004 1,400 $641,826 438 $517,132 2,086 $325,521
2003 1,381 $527,910 377 $456,815 1,917 $261,657
Source: Real Estate Business Intelligence
Detached Attached Condo
Arlington Total Home Sales as a Percent of NOVA
Source: Northern Virginia Association of Realtors
11.4% 11.5%
16.0%
14.5%
10%
11%
12%
13%
14%
15%
16%
17%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Arlington Average Home Price as a Percent of NOVA
98%
120%
114%
95%
100%
105%
110%
115%
120%
125%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Source: Northern Virginia Association of Realtors
The Hotel Market
“We do all those old tricks electronically now.”
Washington National Airport Annual Change in Passengers
-20%
-15%
-10%
-5%
0%
5%
10%
15%
2000 2002 2004 2006 2008 2010 2012
Source: Metropolitan Washington Airports Authority
Total Passengers 2012 = 19,579,384
Hotel Room Inventory
0
2,000
4,000
6,000
8,000
10,000
12,000
-400
-200
0
200
400
600
800
1,000
1,200
1,400
1981 1986 1991 1996 2001 2006 2011
Tota
l Roo
ms
Chan
ge in
Roo
ms
Source: Arlington Economic Development
Hotel Market Characteristics
Area 2012 Annual Change 2012
Annual Change 2012
Annual Change
Washington DC (CBD) 74.9% -0.4% $203.37 -1.3% $152.31 -1.7%
Arlington, VA 72.9% 0.8% $156.99 -2.1% $114.43 -1.3%
Dulles Airport Area 70.5% -1.0% $107.27 -0.6% $75.67 -1.5%
Fairfax/Tysons Corner 64.7% -0.4% $131.33 2.1% $85.02 1.7%
Alexandria 66.9% 0.6% $129.66 -0.4% $86.69 0.2%
Bethesda/College Park 64.9% 2.4% $123.96 -2.1% $80.41 0.2%
Washington, DC-MD-VA 67.5% 0.3% $143.84 -0.7% $97.09 -0.5%
South Atlantic 60.9% 2.5% $103.28 3.1% $62.86 5.7%
United States 61.4% 2.5% $106.10 4.2% $65.17 6.8%
Occupancy Average
Daily Rate RevPAR
Source: Smith Travel Research
The Retail Market
Consumer Revenues 12-month rolling average (000$)
$2,000
$2,200
$2,400
$2,600
$2,800
$3,000
$3,200
$3,400
Jan May Sep Jan May Sep Jan May Sep Jan May Sep
Retail Sales Tax Meals Tax
2009 2010 2011 2012
Development Trends & Prospects
“There, there it is again—the invisible hand of the marketplace giving us the f inger.”
Development Pipeline Summary
Stage No. of
Projects Office SF Retail SF Other SF Housing
Units Hotel
Rooms
Under Construction 18 1,621,413 192,259 21,031 3,261 183
Near-term Construction Starts 8 1,995,703 78,535 12,985 721 148
Awaiting Market or Phasing 15 2,186,598 173,905 389,072 1,986 0
Zoning Review 8 3,677,529 131,637 0 1,922 968
Total Pipeline 49 9,442,243 576,700 423,088 7,890 1,299
Source: Arlington Economic Development
Major Nonresidential Projects Completed
Source: Arlington Economic Development
Project Submarket 2009 2010 2011 2012 800 N. Glebe Rd. Ballston 0 0 0 309,281
900 N. Glebe Rd. Ballston 0 0 142,776 0
DARPA Building Ballston 0 0 0 355,530 Clarendon Center - North Clarendon 0 120,907 0 0 Clarendon Center - South Clarendon 0 161,392 0 0
Residence Inn Courthouse Courthouse 151,110 0 0 0 Marriott Renaissance & Residence Inn Crystal City 0 0 440,000 0 National Gateway 1 & 2 Crystal City 374,379 0 0 0 Marymount Univ. 26th Street Outside Metro 0 129,031 0 0 1776 Wilson Blvd. Rosslyn 0 0 0 136,749 Hilton Garden Inn Shirlington 111,222 0 0 0 Randolph Square Shirlington 195,000 0 0 0 GMU Founder's Hall Virginia Square 0 0 244,000 0 Total 831,711 411,330 826,776 801,560
Major Nonresidential Projects Under Construction
Source: Arlington Economic Development
Project Submarket Office SF Retail SF Hotel
Rooms Other SF Delivery
Founder's Square - Marriott Ballston 0 1,880 183 0 2Q/13
3001 Clarendon Blvd. Clarendon 284,012 22,479 0 0 1Q/14
1400 Crystal Drive Crystal City 302,765 0 0 0 1Q/13
Boeing Regional Headquarters Crystal City 453,422 0 0 0 3Q/14
1812 N Moore St Rosslyn 569,739 11,020 0 21,031 4Q/13
Total 1,609,938 35,379 183 21,031
Major Nonresidential Projects Approved
Source: Arlington Economic Development
Project Submarket Office SF Retail SF Hotel
Rooms Other SF
Founder's Square North Office Ballston 418,810 7,670 0 0
2311 Wilson Blvd. Courthouse 150,002 7,812 0 14,900
1900 Crystal Drive Crystal City 719,704 11,290 0 0
National Gateway 3-4-5-6 Crystal City 1,064,298 41,325 0 0
Pentagon Centre Pentagon City 489,911 33,495 0 0
Central Place Rosslyn 570,459 44,554 0 9,555
Rosslyn Gateway (2 bldgs.) Rosslyn 490,056 18,689 148 0
3901 Fairfax Dr. Virginia Square 178,131 3,200 0 12,985
Total 4,081,371 168,035 148 37,440
Major Residential Projects Completed
*Condominium Source: Arlington Economic Development
Submarket 2009 2010 2011 2012 Projects Ballston 0 0 90 81 The Jordan, Buckingham Village Towns, Thomas St. Apts.
Clarendon 0 244 0 268 Clarendon Center S., Views at Clarendon, Garfield Park
Columbia Pike 423 0 299 0 55 Hundred, Siena Park, Penrose Square
Courthouse 89 0 0 0 Rhodes Hill Square*
Crystal City 266 184 0 0 220 20th Street, North Tract Lofts
East Falls Church 0 214 0 0 Crescent Apartments
Nauck 94 171 0 0 The Shelton, Shirlington Crest*
Pentagon City 0 300 0 0 The Millennium
Rosslyn 347 0 0 184 Hilltop House 100*, Turnberry Tower*, Gaslight Square*, Grayson Flats
Virginia Square 108 0 0 0 The Amelia
Outside Metro 234 217 58 460 The Madison, Alexan 24, Brompton's Cherrydale, The Macedonian, Buckingham Bldg. B, Mosaic at Clarendon
Total 1,561 1,330 447 993
Major Residential Projects Under Construction
Source: Arlington Economic Development
Project Submarket Units Retail SF Delivery Founder's Square - N. Residential Ballston 257 9,035 1Q/14
Beacon at Clarendon West Clarendon 187 18,450 2Q/14
19Nineteen Clarendon Blvd. Courthouse 198 24,657 4Q/13
2001 Clarendon Blvd. Courthouse 154 32,840 4Q/13
The Tellus Courthouse 254 4,354 2Q/14
Arlington Mill Columbia Pike 122 2,250 4Q/13
Pike 3400 Columbia Pike 301 15,443 2Q/14
Dominion Heights Lee Highway 66 8,420 1Q/13
Archstone Parkland Gardens Outside Metro 325 0 2Q/14
Acadia at Metropolitan Park Pentagon City 411 16,345 2Q/14
Sedona & Slate Rosslyn 479 12,635 1Q/13
Virginia Square Towers Virginia Square 540 12,815 2Q/14
Total 3,294 157,244
Major Residential Projects Approved
Source: Arlington Economic Development
Project Submarket Units Retail SF
650 N. Glebe Ballston 163 2,230
The Shell Columbia Pike 83 6,700
Wakefield Manor Courthouse 104 0
Airport Plaza IV Crystal City 198 0
Crystal House Lofts Crystal City 252 0
Brittany East Crystal City 360 16,503
Brittany West Crystal City 331 15,868
2145 Lee Highway Lee Highway 202 13,257
Central Place Rosslyn 350 0
Rosslyn Gateway (2 bldgs.) Rosslyn 273 7,687
Total 2,316 62,245
PEAK
Stage 1
Stage 2
Stage 3
Stage 4
Stage 5
Stage 6 Stage 1
Early Dow
nturn
Full Downturn BottomEarly Recovery
Early StableLate Stable Early Downturn
Current CycleStage
Future Cycle Stage[+12 Months]
Apt.
Senior Senior
Indu Indus.
Hote Hotel
For-S For-Sale
Land Land
Retail Retail
Resort Resort
Office Office
PEAK
RCLCO
Development Cycles
The Silver Line
“My contractor told me Rome w ould only take a day.”
Office Construction 1980-2012 Arlington and Tysons Corner
Period Sq Ft %
Metro Sq Ft %
Metro Sq Ft %
Metro Sq Ft %
Metro
1980-1990
8,901,705 5.3%
6,410,358 3.8%
14,266,734 8.5%
168,258,530 100.0%
1991-2000
3,972,728 6.7% - 0.0%
3,944,016 6.6%
59,712,715 100.0%
2001-2006
3,504,482 5.7%
621,824 1.0%
3,780,588 6.2%
61,278,972 100.0%
2007-2012
2,250,149 5.8%
409,744 1.0%
966,739 2.5%
39,032,654 100.0%
Subtotal 1980-2012
18,629,064 5.7%
7,441,926 2.3%
22,958,077 7.0%
328,282,871 100.0%
2012 Base
24,259,464 5.1%
13,071,653 2.8%
28,316,730 6.0%
475,237,990 100.0%
Rosslyn-Ballston Corridor
Jefferson Davis Corridor Tysons Corner Washington Metro
Source: CoStar
Submarket 2010 2011 2012 2013 2014
Arlington 171,301 144,000 765,943 858,274 203,365
Tysons Corner 0 0 0 0 524,432
Northern Virginia 837,701 359,000 1,403,936 1,609,171 727,797
Arlington Share of NOVA 20.4% 40.1% 54.6% 53.3% 27.9%
Source: Cassidy Turley
Office Construction 2010-2014 Arlington and Tysons Corner
Arlington and Tysons Share of Northern Virginia Occupied Office Space
0%
5%
10%
15%
20%
25%
Current 2011 2009 2007 2005 2003
Arlington Tysons
Source: CoStar
Arlington and Tysons Share of Washington Metro Occupied Office Space
0%
5%
10%
15%
20%
25%
Current 2011 2009 2007 2005 2003
Arlington Tysons
Source: CoStar
Job Projections 2005-2030 Arlington and Tysons Corner
Rosslyn-Ballston Corridor
Jefferson Davis Corridor
Tysons Corner
Washington Metro
2005 Jobs
80,963
41,435
92,603
3,050,600
2030 Jobs
115,961
68,365
143,036
4,236,900
# Change
34,998
26,930
50,433
1,186,300
Regional Share 3.0% 2.3% 4.3% 100.0%
Source: Metropolitan Washington Council of Governments
Summary of Tax Rates (FY 2013) Arlington and Tysons Corner
Rosslyn Crystal City Ballston Tysons
Real Property Tax $0.958 $0.958 $0.958 $1.075
Business Improvement District Taxes 0.078 0.045 0.043 0.000
Commercial Transportation Tax 0.125 0.125 0.125 0.110
Stormwater Management Fees/Taxes 0.013 0.013 0.013 0.020
Dulles Rail Phase I - - - 0.220
Pest Infestation - - - 0.001
Tysons Corner Service District1 - - - 0.070
$1.174 $1.141 $1.139 $1.496
Per $100 Assessed Value (AV) 1Estimated
Source: Arlington Economic Development
Household Projections 2005-2030 Arlington and Tysons Corner
Rosslyn-Ballston Corridor
Jefferson Davis Corridor
Tysons Corner
Washington Metro
2005 Households
5,897
8,934
7,879
1,871,300
2030 Households
10,114
14,888
17,589
2,531,300
# Change
4,217
5,954
9,710
660,000
Regional Share 0.6% 0.9% 1.5% 100.0%
Source: Metropolitan Washington Council of Governments
Development Intensities Arlington and Tysons Corner
Rosslyn Ballston/
Virginia Square Crystal City/
Pentagon City Tysons Corner
Acres
302
534
646
2,412
Jobs Change (2005-2030)
14,717
13,608
26,930
50,433
Household Change (2005-2030)
4,217
4,526
5,864
9,710
Intensity 2005 111.4 78.8 78.1 41.7
Intensity 2030 174.1 112.8 128.9 66.6
Intensity Change 2005-2030 62.7 34.0 50.8 24.9
Source: Arlington Economic Development; Metropolitan Washington Council of Governments
Projects Under Construction
0.0
1.0
2.0
3.0
4.0
5.0
6.0
Arlington Capitol Riverfront NoMa Tysons
Hotel Retail Residential Office
3.2
5.3
1.6
3.0
GSF
(mill
ions
)
Sources: Washington DC Economic Partnership data as of 08/12; Fairfax County Department of Planning & Zoning data as of 10/12.
Development Pipeline
0.0
5.0
10.0
15.0
20.0
Arlington* Capitol Riverfront NoMa Tysons*
Hotel Retail Residential Office
15.6 15.0
GSF
(mill
ions
)
18.3
*Arlington has an additional 6.6M and Tysons 36.7M GSF currently in zoning review
Sources: Washington DC Economic Partnership data as of 08/12; Fairfax County Department of Planning & Zoning data as of 10/12.
7.3
Fiscal Status
Real Estate Tax Base
49%
52% 53%
56%
59% 60%
58%
55% 54%
57%
54%
51% 51%
51%
48% 47%
44%
41% 40%
42%
45% 46%
43%
46%
49% 49%
35%
40%
45%
50%
55%
60%
65%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Residential Commercial/Apartment
Source: Arlington County Department of Management and Finance
Real Estate Tax Base Northern Virginia
Source: Arlington Economic Development
0% 20% 40% 60% 80% 100%
Alexandria City
Arlington County
Fairfax City
Fairfax County
Falls Church City
Loudoun County
Prince William County
Commercial/Apartments Residential
Taxes from Business
Tax Revenue
($Mil) % of
Total Taxes
Real Estate $286.0 32.8%
Gross Receipts 61.5 7.0
Personal Property 34.3 3.9
Sales Tax 38.5 4.4
Meals Tax 32.8 3.8
Transient Occupancy 21.8 2.5
Commercial Utility 12.9 1.5
Other 17.2 2.0
Subtotal $505.2 57.9%
Source: Arlington County Department of Management and Finance
Major Sales Transactions
Address Year Built Size (SF) Sales Price Price/SF Sale Date
1005 N Glebe Road 1988
147,880 $52,250,000 $353 2Q12
1010 N Glebe Road 1986 142,833 $48,992,000 $343 3Q12
400 Army Navy Drive 1964
253,723 $39,000,000 $154 4Q12
2511 Jefferson Davis Highway 1972
383,524 $48,324,000 $126 3Q12
Address Year Built Units Sales Price Price/Unit Sale Date
320 23rd Street South 1971 451 $175,000,000 $388,000 1Q12
Office
Residential
Challenges
Challenges in 2013
• Residual BRAC Space 25 Buildings Still Occupied (65 Leases)
• Unpredictable Federal Market - OMB; GSA; Politics
• Soft Private Market - Space Utilization; Less Contract Volume; Consolidation
• Space Utilization - Changed Workplace Practices
• Labor Shortages in High End Labor - Migration & Immigration; Federal Retirements
• Increased Potential Office Supply - Crystal City; Tysons; NOMA; S. Capitol
• Competitiveness - Taxes; Regulations; Incentives
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