Quarterly Market Report
2nd Quarter 2019
Northern Virginia
lpcwashingtondc.com
2
Table of Contents
Metropolitan D.C. Market Overview .....................................3
Northern Virginia Quarterly Overview .................................5
Northern Virginia Top Ten Leases ........................................ 8
Northern Virginia Sales Transactions................................... 9
Market Spotlight, 2Q 2019:
Northern Virginia .................................................................. 11
Alexandria ............................................................................. 13
Crystal City ........................................................................... 15
Fairfax .................................................................................... 17
Loudoun County ................................................................. 19
Merrifield ............................................................................... 21
Old Town Alexandria / Eisenhower Avenue .............. 23
Reston - Herndon .............................................................. 25
Rosslyn - Ballston Corridor ..............................................27
Route 28 North ................................................................... 29
Route 28 South.................................................................... 31
Springfield ............................................................................ 33
Tysons Corner ..................................................................... 35r
13
Neil Alt Senior Vice President
[email protected] | 703.284.5868
Doug McLearn Senior Vice President
[email protected] | 703.284.5862
Gary Cook Senior Vice President
[email protected] | 703.284.3379
Chris Dyson Senior Vice President
[email protected] | 703.284.3633
Eamon McCrann Senior Vice President
[email protected] | 703.284.5861
Jae LeeSenior Vice President
[email protected] | 202.513.6700
Stoddie Nibley Vice President
[email protected] | 703.284.5884
Correll Caulfield Vice President
[email protected] | 703.284.5886
Jed Prossner Vice President
[email protected] | 703.284.5864
Jack Redmond Senior Associate
[email protected] | 703.284.5880
Brenda SosaLeasing Associate
[email protected] | 703.284.5881
Ben HickeyLeasing Associate
[email protected] | 703.284.3364
Ben Gallucci Market Research Associate
[email protected] | 703.284.3635
Sarah CasserlyMarket Research Associate
[email protected] | 703.284.3354
Northern Virginia Leasing & Market Research
Overall Market Summary
Metropolitan D.C. Market Overview 2nd Quarter 2019
The Washington, DC Metropolitan commercial real estate market is comprised of approximately 424.6 million square feet of rentable office space located in the District of Columbia, Northern Virginia, and Suburban Maryland.
The total vacancy rate remained flat at 14.0% at the end of the second quarter, while the market recorded 1,814,303 square feet of net absorption. Washington, DC posted the largest amount of net absorption with approximately 1.0 million square feet absorbed in the second quarter.
Leasing activity for the quarter totaled 7,720,934 square feet. The largest lease executed was a renewal by the Securities and Exchange Commission (SEC) for approximately 1.3 million square feet at Station Place I, II & III in the District.
At the end of the quarter, there was 9,272,085 square feet under construction, with 65% of the space pre-leased. Nine buildings, totaling 1,761,304
square feet, broke ground; while three buildings, totaling 1,324,552 square feet, delivered. The largest addition was 655 New York Avenue, NW delivering 756,000 square feet (73% leased) in DC’s East End.
There were twenty-two sale transactions in the second quarter, totaling $949.77 million. The largest sale was in the District with 1701 Rhode Island Avenue, NW trading for $105,652,551 ($1,037 psf).
Average asking rental rates increased $0.06 to $38.21 per square foot, Full Service.
From May 2018 - May 2019 the Washington, DC Metropolitan area had a net increase of 25,000 jobs (23,600 private sector, 1,400 government) representing 0.8% growth YOY, while the unemployment rate decreased to 3.1%.
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DC VA MDMetro Area (YTD)
Direct Vacancy (2Q 2019) 10.6% 13.5% 13.2% 13.3%
Total Vacancy (2Q 2019) 11.5% 14.1% 13.8% 14.0%
Total Net Absorption(YTD 2019) 706,940 1,150,776 -113,475 1.7 M SF
Leasing Activity (YTD 2019) 6,249,134 6,019,136 2,354,641 14.6 M SF
Outlook
Metropolitan D.C. Market Overview 2nd Quarter 2019
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National Landing BID (Business Improvement District) is being discussed. Coworking operators, (WeWork especially), continue to lease large blocks of space, not only in DC, but pre-leasing space at new developments in Northern Virginia and Suburban Maryland as well. In DC, large projects such as The Wharf Phase II (Southwest) and The Yards (Capitol Riverfront) broke ground in second quarter, and have already experienced strong pre-leasing. As it concerns Government leasing, the GSA will continue reducing the federal real estate footprint and begin to execute longer lease terms (15-20 year terms) while minimizing/eliminating short-term extensions to reduce costs. Proximity to Amazon and the new Metro stations for Phase II of the Silver Line in Virginia and the Purple Line in Maryland should continue to be a catalyst for demand (leasing and sales).
The Metropolitan Washington, DC office market posted a strong second quarter with market fundamentals trending in a positive direction. All three jurisdictions posted positive net absorption for the quarter and strong leasing velocity. DC had an impressive quarter with approximately 1.0 million square feet absorbed and edged out Northern Virginia in leasing with approximately 3.7 million square feet leased. Regional employment gains were solid as the DC Metro area experienced 0.8% of job growth YOY, while the unemployment rate ticked down to 3.1% (the national average is 3.6%). The DC Metro ranked 20th nationally for unemployment in metro areas with populations over 1 million.
Amazon continues to have a positive influence on Northern Virginia as the creation of a new
5lpcwashingtondc.com101 Constitution Ave., Suite 325 East | Washington D.C. | 202.513.67004300 Wilson Blvd., Suite 200 | Arlington, VA | 703.522.46008120 Woodmont Ave., Suite 560 | Bethesda, MD | 301.304.8300
Market Summary
Northern Virginia 2nd Quarter 2019
The Northern Virginia office market consists of 1,536 buildings over 25,000 square feet, totaling approximately 188.8 million square feet of rentable space.
The largest non-GSA lease signed during the second quarter was a 268,240-square-foot relet by Amazon Web Services at South Lake At Dulles Corner - 13820 Sunrise Valley Drive. The largest lease signed by the GSA was a 77,454-square-foot renewal for the GSA-Customs and Border Protection at Crystal Mall Office 4 - 1901 S. Bell Street.
Building sales volume totaled over $510,320,000 during the second quarter. The largest transaction was the sale of Presidential Tower - 2550 S. Clark Street in the Crystal City submarket. Starwood/Vanderbilt acquired the building from Beacon Capital Partners for $123,230,000 ($353 psf). The building was 95.2% occupied at the time of sale. The second largest sale was of the Fair Lakes Portfolio - 12450, 12500, 12600 & 12700 Fair Lakes Circle in the Fairfax submarket. Radix acquired the buildings from C-III for $78,500,000 ($168 psf). The buildings were 88.0% occupied at the time of sale and traded at a 10.00% Cap Rate. The third largest sale was of Parkridge V - 10780-17090 Parkridge Boulevard in the Reston-Herndon submarket. Sunwater Capital acquired the building from Atlantic Realty Companies for $56,250,000 ($278 psf). The building was 95.9% occupied at the time of sale and traded at a 6.25% Cap Rate.
Inside the Beltway, there were 40 buildings marketing 50,000 square feet or greater of contiguous space available at the end of the second quarter 2019, compared to 42 from the first quarter 2019. Outside the Beltway, there were 82 buildings marketing 50,000 square feet or greater of contiguous space available at the end of the second quarter 2019, compared to 78 from the first quarter 2019.
2Q 2019 1Q 2019 2Q 2018
Direct Vacancy 13.5% 14.3% 14.9%
Total Vacancy 14.1% 14.9% 15.8%
NetAbsorption (YTD)
1,150,776 SF 472,834 SF 125,261 SF
Leasing Activity (YTD)
6.0 M SF 2.9 M SF 7.3 M SF
Under Construction 3.2 M SF 2.6 M SF 2.3 M SF
Deliveries (YTD)
484,171 SF
438,169 SF
175,000 SF
Rental Rates $33.11 PSF
$33.02 PSF
$33.18PSF
U/C Percent Pre-Leased 71.1% 75.0% 75.9%
6 lpcwashingtondc.com101 Constitution Ave., Suite 325 East | Washington D.C. | 202.513.67004300 Wilson Blvd., Suite 200 | Arlington, VA | 703.522.46008120 Woodmont Ave., Suite 560 | Bethesda, MD | 301.304.8300
Deliveries vs. Under Construction
Deliveries | Net Absorption | Vacancy Rate
Absorption & Gross LeasingNorthern Virginia recorded 1,150,776 square feet of net absorption in the second quarter of 2019. Significant contributors to the positive absorption were a 62,241-square-foot move-in by iTG at Presidential Tower - 2550 S. Clark Street and a 57,140-square-foot move-in by National Industries for the Blind at 3000 Potomac Avenue.
Leasing activity at the end of the second quarter 2019 totaled 3,090,281 square feet bringing the year-to-date total to 6.0 million square feet, representing a 107% increase from the 2.9 million square feet leased through the first quarter of 2019. Eight of the top ten leases signed in the second quarter were by private sector tenants.
The ten largest leases signed during the first quarter ranged in size from 268,240 square feet to 53,589 square feet, three of these largest transactions were renewals.
The Crystal City submarket recorded the strongest absorption of the quarter with 203,548 square feet absorbed. The positive absorption for the quarter was driven by a 62,241-square-foot move-in by iTG at Presidential Tower - 2550 S. Clark Street.
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Delivery Direct Vacancy RateNet Absorption
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Vacancy Rate (%
)Northern Virginia 2nd Quarter 2019
Vacancy RateTotal vacancy in Northern Virginia decreased from 14.9% in the first quarter 2019 to 14.1% in the second quarter 2019, and has decreased from 15.8% since second quarter 2018. At the end of the second quarter 2019, 26.4 million square feet was vacant and available.
Direct vacancy decreased from 14.3% in the first quarter 2019 to 13.5% in the second quarter 2019, and has decreased from 14.9% since second quarter 2018. At the end of the second quarter 2019, 25.2 million square feet was vacant and available for direct lease.
The sublet vacancy rate in Northern Virginia remained flat at 0.7% from the first quarter 2019 to second quarter 2019, and has increased from 0.6% since second quarter 2018. At the end of the second quarter 2019, 1.2 million square feet was vacant and available for sublease.
Total vacancy for Class A product in Northern Virginia was 16.2% while Class B product was 12.5% for the quarter. Class A vacancy decreased from 16.4% in the first quarter 2019, while Class B vacancy remained flat at 12.5% from the first quarter 2019.
Vacancy by Building Class
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16.2%
12.5%
4.1%
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Northern Virginia 2nd Quarter 2019
A total of thirteen buildings were under construction in Northern Virginia at the end of the second quarter, totaling approximately 3.2 million square feet.
44921 George Washington Boulevard delivered this quarter in Loudoun. The 46,002-square-foot building is 23.4% occupied. Boro Loft - 1640 Boro Place in the Tysons Corner submarket is scheduled to deliver in 3Q 2019. The building is 82.1% pre-leased to Whole Foods and Spaces.
Buildings scheduled to deliver in 2020 include, Reston Station - Phase II - 1906 Reston Metro Plaza, 6595 Springfield Center Drive, a 634,000-square-foot building, that is 100% pre-leased to GSA-TSA, and 4040 Wilson Boulevard, a 240,000-square-foot building that is 51.3% pre-leased to Avalon Bay and Vita Fitness. Penrose II - 14401 Penrose Place and 17Fifty - 1750 Presidents Street are also projected to deliver next year. Two buildings that broke ground this quarter are Phase - II Broderick One at Loudoun Gateway - 22365 Broderick drive and General Dynamics HQ - 11011 Sunset Hills Road. Both are projected to deliver in 2020. Currently under renovation is the Loft Office at Market Common - 1650 Edgewood Street which is 19.8% pre-leased to Equinox. Buildings scheduled to deliver in 2021 include, Alexandria Gateway O2 - 4600 King Street, APTA Centennial Center - 3030 Potomac Avenue, and Reston Station - Phase III - 1902 Reston Metro Plaza. Reston Station - Phase III broke ground this quarter. Lastly, Office Bldg A - Sunset Hills Road @ Town Center Boulevard is expected to deliver 2022.
The second quarter 2019 was dominated by the private sector. Eight of the top ten leases signed were by private sector tenants.
The Northern Virginia region has experienced strong positive absorption this quarter, registering 677,942 square feet of net move-ins. Several notable move-ins contributed to this level of absorption during the quarter. iTG moved into 62,241 square feet at Presidential Tower - 2550 S. Clark Street and National Industries for the Blind moved into 57,140 square feet at 3000 Potomac Avenue. As a result of vacancy rates continuing to decline, asking rates are steadily increasing throughout the region.
Coworking has continued to expand across the Northern Virginia region as WeWork took 61,528 square feet at The Corporate Office Centre @ Tysons II - 1775 Tysons Boulevard and 29,379 square feet at Arlington Gateway - 901 N. Glebe Road this quarter. As well as, Spaces, who leased 51,422 square feet at Boro Loft - 1640 Boro Place.
The Northern Virginia region gained 19,000 net new jobs from May 2018 - May 2019, representing 1.3% growth YOY. Professional & Business Services had the most with 8,600 new jobs. The Government added 4,700 jobs. As of May 2019, the unemployment rate for Northern Virgina remained flat from the previous year at 2.4%. The national unemployment rate decreased to 3.7%.
OutlookConstruction
8 lpcwashingtondc.com101 Constitution Ave., Suite 325 East | Washington D.C. | 202.513.67004300 Wilson Blvd., Suite 200 | Arlington, VA | 703.522.46008120 Woodmont Ave., Suite 560 | Bethesda, MD | 301.304.8300
Northern Virginia 2nd Quarter 2019
Top Ten LeasesIncluded in the top ten leases of the second quarter 2019 were six relets, three renewals, and one new lease. The largest lease transaction of the quarter was a 268,240-square-foot relet signed by Amazon Web Services at South Lake at Dulles Corner - 13820 Sunrise Valley Drive in the Reston-Herndon submarket. The second largest lease of the quarter was a 163,000-square-foot relet by Perspecta at Plaza East I & II - 14295 & 14291 Park Meadow Drive in the Route 28 South submarket. The third largest lease of the quarter was a 151,949-square-foot relet by Freddie Mac at 1550 Westbranch Drive in the Tysons Corner submarket. Also, a 111,412-square-foot new lease was signed by Google at 1900 Reston Metro Plaza in the Reston-Herndon submarket. Constellis leased 106,737 square feet at Dulles Executive Plaza I - 13530 Dulles Technology Drive in the Reston-Herndon submarket. Additionally, the GSA-US Customs and Border Protection renewed for 77,454 square feet at Crystal Mall Office 4 - 1901 S. Bell Street and Accenture renewed for 63,324 square feet at Reston Metro Center Two - 12180 Sunrise Valley Drive in the Reston-Herndon submarket. WeWork also signed for 61,528 square feet at Corporate Office Centre @ Tysons II - 1775 Tysons Boulevard in the Tysons Corner submarket. Capital Caring signed for 53,812 square feet at 80 At Fairview - 3180 Fairview Park Drive in the Merrifield submarket. Lastly, GSA-US Federal Highway Administration renewed for 53,589 square feet at 21400 Ridgetop Circle in the Route 28 North submarket.
South Lake at Dulles Corner
13820 Sunrise Valley Drive
Tenant Amazon Web Services
Size 268,240 SF
Type Relet
21400 Ridgetop Circle
TenantGSA- US Federal Highway Administration
Size 53,589 SF
Type Renewal
Crystal Mall Office 4 1901 S. Bell Street
TenantGSA-US Customs and Border Protection
Size 77,454 SF
Type Renewal
Reston Metro Center Two
12180 Sunrise Valley Drive
Tenant Accenture
Size 63,324 SF
Type Renewal
Corporate Office Centre @ Tysons II
1775 Tysons Boulevard
Tenant WeWork
Size 61,528 SF
Type Relet
1550 Westbranch Drive
Tenant Freddie Mac
Size 151,949 SF
Type Relet
Dulles Executive Plaza I
13530 Dulles Technology Drive
Tenant Constellis
Size 106,737 SF
Type Relet
1900 Reston Metro Plaza
Tenant Google
Size 111,412 SF
Type New
80 At Fairview 3180 Fairview Park Drive
Tenant Capital Caring
Size 53,812 SF
Type Relet
Plaza East I & II 14295 & 14291 Park Meadow Drive
Tenant Perspecta
Size 163,000 SF
Type Relet
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Northern Virginia Sales Transactions
Northern Virginia 2nd Quarter 2019
Parkridge V10780-10790 Parkridge Boulevard
Submarket Reston-Herndon
Date Sold April-2019
Price $56,250,000($278 psf)
Buyer Sunwater Capital
Seller Atlantic Realty Companies
RBA 202,107 SF
Class A
Occupancy 95.9%
Cap Rate 6.25%
Presidential Tower 2550 S. Clark Street
Submarket Crystal City
Date Sold May-2019
Price $123,230,000($353 psf)
Buyer Starwood / Vanderbilt
Seller Beacon Capital Partners
RBA 349,303 SF
Class A
Occupancy 95.2%
Victory Center I 5001 Eisenhower Avenue
Submarket Alexandria
Date Sold May-2019
Price $43,000,000($71 psf)
Buyer Stonebridge Associates
Seller PGIM Real Estate
RBA 606,921 SF
Class A
Occupancy 0.0%
The Junction 11493 Sunset Hills Road
Submarket Reston-Herndon
Date Sold April-2019
Price $42,440,000($237 psf)
Buyer Carahsoft Technologies
Seller Rubenstein Partners
RBA 179,152 SF
Class A
Occupancy 60.4%
Fair Lakes Portfolio12450, 12500, 12600, & 12700 Fair Lakes Circle
Submarket Fairfax
Date Sold April-2019
Price $78,500,000($168 psf)
Buyer Radix
Seller C-III
RBA 468,458 SF
Class A
Occupancy 88.0%
Cap Rate 10.00%
201 N. Union Street
Submarket Old Town & Eisenhower Ave
Date Sold June-2019
Price $39,000,000($375 psf)
Buyer Boundary Companies
SellerRealco Group Asset Management
RBA 104,000 SF
Class A
Occupancy 75.0%
Village at Leesburg 1602 Village Market Boulevard
Submarket Loudoun
Date Sold May-2019
Price $25,900,000($216 psf)
Buyer The Seligman Group
Seller The Carlyle Group
RBA 120,132 SF
Class A
Occupancy 93.4%
Cap Rate 7.50%
Tysons Office Center
8133 Leesburg Pike
Submarket Tysons Corner
Date Sold June-2019
Price $30,250,000($204 psf)
Buyer David Schaeffer
SellerGarrett Development Corporation
RBA 148,482 SF
Class B
Occupancy 89.2%
Cap Rate 7.60%
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Northern Virginia Sales Transactions
Northern Virginia 2nd Quarter 2019
Dulles Trail Office Park I & II
22630 & 22636 Davis Drive
Submarket Route 28 North
Date Sold April-2019
Price $10,750,000($72 psf)
Buyer Interra Properties
Seller New Boston Fund, Inc.
RBA 149,510 SF
Class A
Occupancy 34.0%
4401 Village Drive
Submarket Fairfax
Date Sold May-2019
Price $11,000,000($171 psf)
Buyer Marc-Jac Foundation
Seller Mavi Consulting
RBA 64,242 SF
Class B
Occupancy 100.0%
One Steeplechase 21700 Atlantic Boulevard
Submarket Route 28 North
Date Sold May-2019
Price $16,960,000($151 psf)
Buyer Turnbridge Equities
Seller UBS Realty Investors
RBA 112,593 SF
Class A
Occupancy 100.0%
Cap Rate 9.50%
Two & Three Vintage Park
45365 Vintage Park Plaza & 22894 Pacific Boulevard
Submarket Route 28 North
Date Sold May-2019
Price $16,500,000($100 psf)
Buyer Trust Realty
Seller Lerner Corporation
RBA 164,693 SF
Class A
Occupancy 50.0%
Belmont Executive Center Bldg A
19775 Belmont Executive Plaza
Submarket Loudoun
Date Sold April-2019
Price $16,540,000($138 psf)
Buyer Rooney Properties
Seller Toll Brothers
RBA 119,619 SF
Class A
Occupancy 91.7%
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HighlightsTotal vacancy in Northern Virginia decreased from 14.9% in the first quarter 2019 to 14.1% in the second quarter 2019, and has decreased from 15.8% since second quarter 2018. Direct vacancy has decreased from 14.3% in the first quarter 2019 to 13.5% in the second quarter 2019, and has decreased from 14.9% since second quarter 2018.
Northern Virginia recorded 677,942 square feet of net absorption in the second quarter of 2019, bringing the year-to-date absorption to 1,150,776 square feet. Significant contributors to the positive absorption were a 62,241-square-foot move-in by iTG at Presidential Tower - 2550 S. Clark Street and a 57,140-square-foot move-in by National Industries for the Blind at 3000 Potomac Avenue.
Leasing activity at the end of the second quarter 2019 totaled 6.0 million square feet, representing a 17.8% decrease from the 7.3 million square feet leased through the second quarter of 2018. Eight of the top ten leases signed in the second quarter were by private sector tenants.
Inside the Beltway, there were 40 buildings marketing 50,000 square feet or greater of contiguous space available at the end of the second quarter 2019, compared to 42 from the first quarter 2019. Outside the Beltway, there were 82 buildings marketing 50,000 square feet or greater of contiguous space available at the end of the second quarter 2019, compared to 78 from the first quarter 2019.
10 Year Averages (2009 - 2018)
Total Absorption 845,679 SF / Year
Deliveries (SF) 1.6 M SF / Year
Leasing Activity 12.8 M SF / Year
Market Stats
Inventory 188.8 M SF
Direct Vacancy 13.5%
Total Vacancy 14.1%
YTD 2019 Absorption 1,150,776 SF
YTD Leasing Activity 6.0 M SF
Under Construction 3.2 M SF
Percent Pre-Leased 71.1%
YTD 2019 Deliveries 484,171 SF
Asking Rental Rates (Full Service)
2009: $30.32
PSF
2018: $33.00
PSF
YTD 2019: $33.11
PSF
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Market Spotlight
2nd Quarter 2019Northern Virginia
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Under Construction
Market Spotlight
2nd Quarter 2019Northern Virginia
Property Submarket Building Size Available Pre-Leased Delivery Date Developer Major Tenants
Boro Loft1640 Boro Place Tysons Corner 143,606 SF 25,711 SF 82.1% 3Q 2019 Meridian
Whole Foods, Spaces
4040 Wilson Boulevard RB Corridor 240,000 SF 116,979 SF 51.3% 1Q 2020 ShooshanAvalon Bay & Vida Fitness
Reston Station - Phase II1906 Reston Metro Plaza Reston-Herndon 186,457 SF 175,780 SF 5.7% 2Q 2020 Comstock None
6595 Springfield Center Drive Springfield 634,000 SF 0 SF 100.0% 1Q 2020 Boston Properties GSA-TSA
Loft Office at Market Common 1650 Edgewood Street RB Corridor 138,871 SF 111,317 SF 19.8% 1Q 2020 Regency Centers Equinox
Phase - II Broderick One at Loudoun Gateway22365 Broderick Drive
Route 28 North 56,025 SF 56,025 SF 0.0% 1Q 2020 LGV Group None
Penrose II 14401 Penrose Place Route 28 South 125,000 SF 125,000 SF 0.0% 2Q 2020
Zumot Real Estate Management
None
17Fifty 1750 Presidents Street Reston-Herndon 276,000 SF 0 SF 100.0% 2Q 2020 Boston Properties Leidos
General Dynamics HQ11011 Sunset Hills Road Reston-Herndon 160,000 SF 0 SF 100.0% 2Q 2020 General Dynamics
General Dynamics
Alexandria Gateway 024600 King Street Alexandria 58,460 SF 53,632 SF 8.3% 1Q 2021 Weingarten Silver Diner
APTA Centennial Center - 3030 Potomac Avenue Crystal City 115,000 SF 0 SF 100.0% 1Q 2021
Meany & Oliver Companies
American Physical Therapy Association
Reston Station - Phase III1902 Reston Metro Plaza Reston-Herndon 260,000 SF 260,000 SF 0.0% 3Q 2021 Comstock None
Reston Gateway Office Sunset Hills Road @ Town Center Boulevard
Reston-Herndon 800,000 SF 0 SF 100.0% 1Q 2022 Boston Properties Fannie Mae
Totals
Broke Ground 2Q 2019 476,025 SF
Total Under Construction 3,193,419 SF
% Preleased (Does not include condos)
71.1%
2nd Quarter Start
13 lpcwashingtondc.com101 Constitution Ave., Suite 325 East | Washington D.C. | 202.513.67004300 Wilson Blvd., Suite 200 | Arlington, VA | 703.522.46008120 Woodmont Ave., Suite 560 | Bethesda, MD | 301.304.8300
10 Year Averages (2009 - 2018)
Total Absorption 150,970 SF / Year
Deliveries (SF) 251,419 SF / Year
Leasing Activity 774,678 SF / Year
Asking Rental Rates (Full Service)
2009: $33.37
PSF
2018: $33.87
PSF
YTD 2019: $34.72
PSF
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Leasing Activity Total Net Absorption
Market Spotlight
2nd Quarter 2019Alexandria
Market Stats
Inventory 18.1 M SF
Direct Vacancy 14.3%
Total Vacancy 14.8%
YTD 2019 Absorption 252,375 SF
YTD Leasing Activity 286,177 SF
Under Construction 58,460 SF
Percent Pre-Leased 8.3%
YTD 2019 Deliveries 0 SF
HighlightsDirect vacancy in Alexandria decreased from 14.6% in the first quarter 2019 to 14.3% in the second quarter 2019, and has decreased from 14.7% since second quarter 2018. Total vacancy decreased from 14.9% in the first quarter 2019 to 14.8% in the second quarter 2019, and has decreased from 15.1% since second quarter 2018.
The Alexandria submarket recorded 189,519 square feet of net absorption in the second quarter of 2019, bringing the year-to-date absorption to 252,375 square feet. Positive absorption was driven by a 57,140-square-foot move-in by National Industries for the Blind at 3000 Potomac Avenue and a 25,000-square-foot move-in by ALX Community at the Torpedo Factory Office Building - 201 N. Union Street. Two sales transactions occurred in the Alexandria submarket during the second quarter 2019. 5001 Eisenhower Avenue was purchased by Stonebridge Associates from PGIM Real Estate for $43,000,000 ($71 psf). The building was vacant at the time of sale. 201 N. Union Street was sold to Boundary Companies from Realco Group Asset Management for $39,000,000 ($375 psf). The building was 75.0% occupied at the time of sale.
The largest lease signed in the Alexandria submarket in the second quarter was a 45,000-square-foot relet by Oliff & Berridge at Canal Center 3 - 11 Canal Center Plaza. Also contributing to leasing activity this quarter was a 27,193-square-foot relet by Cotton & Company at Carlyle Gateway I - 333 John Carlyle Street.
14lpcwashingtondc.com101 Constitution Ave., Suite 325 East | Washington D.C. | 202.513.67004300 Wilson Blvd., Suite 200 | Arlington, VA | 703.522.46008120 Woodmont Ave., Suite 560 | Bethesda, MD | 301.304.8300
Major Leases
Under Construction
Sales
Market Spotlight
2nd Quarter 2019Alexandria
Property Submarket Building Size Available Pre-leased Delivery Date Developer Major Tenants
Alexandria Gateway O24600 King Street Alexandria 58,460 53,632 8.3% 1Q 2021 Weingarten Silver Diner
Carlyle Center 1925 Ballenger Avenue
Tenant Travel Leaders Group
Size 23,600 SF
Type Relet
Carlyle Overlook 2318 Mill Road
Tenant LeClairRyan
Size 24,655 SF
Type Renewal
Canal Center 3 11 Canal Center Plaza
Tenant Oliff & Berridge
Size 45,000 SF
Type Relet
Shirlington Tower 2900 S. Quincy Street
TenantNational Alcoholic Beverage Control Association, Inc
Size 16,340 SF
Type Relet
Property Submarket Date Sold Price Buyer Seller Class Occupancy Comments
Victory Center 5001 Eisenhower Avenue Alexandria May 2019
$43,000,000($71 psf)
Stonebridge Associates
PGIM Real Estate
A 0.0%
201 N. Union Street Old Town & Eisenhower Ave
June 2019$39,000,000 ($375 psf)
Boundary Companies
Realco Group Asset Management
A 75.0%
Carlyle Gateway I 333 John Carlyle Street
Tenant Cotton & Company
Size 27,193 SF
Type Relet
Torpedo Factory Office Building 201 N. Union Street
Tenant ALX Community
Size 25,000 SF
Type Relet
15 lpcwashingtondc.com101 Constitution Ave., Suite 325 East | Washington D.C. | 202.513.67004300 Wilson Blvd., Suite 200 | Arlington, VA | 703.522.46008120 Woodmont Ave., Suite 560 | Bethesda, MD | 301.304.8300
HighlightsDirect vacancy in Crystal City decreased from 14.5% in the first quarter 2019 to 13.2% in the second quarter 2019, and has decreased from 16.9% since second quarter 2018. Total vacancy decreased from 14.6% in the first quarter 2019 to 13.6% in the second quarter 2019, and has decreased from 17.2% since second quarter 2018.
The Crystal City submarket recorded 203,548 square feet of net absorption during the second quarter of 2019, bringing the year-to-date absorption to 189,284 square feet. The positive absorption for the quarter was driven by a 62,241-square-foot move-in by iTG at Presidential Tower - 2550 S. Clark Street. One sales transaction occurred in the Crystal City submarket during the second quarter 2019. 2550 S. Clark Street was purchased by Starwood/Vanderbilt from Beacon Capital for $123,230,000 ($353 psf). The building was 95.2% occupied at the time of sale.
The largest lease signed in the Crystal City submarket in the second quarter was a 77,454-square-foot renewal by GSA-US Customs and Border Protection at Crystal Mall Office 4 - 1901 S. Bell Street. Also contributing to leasing activity this quarter was a 47,512-square-foot relet by Amazon at Crystal Park 4 - 2345 Crystal Drive, a 21,948-square-foot renewal by DACA at Crystal Square 2 - 1550 Crystal Drive, and an 18,322-square-foot sublease by Venesco at Potomac Gateway South - 2900 Crystal Drive.
10 Year Averages (2009- 2018)
Total Absorption -5,945 SF / Year
Deliveries (SF) 75,664 SF / Year
Leasing Activity 923,908 SF / Year
Asking Rental Rates (Full Service)
2009: $38.21
PSF
2018: $37.87
PSF
YTD 2019: $38.48
PSF
0.000
0.125
0.250
0.375
0.500
YTD '19'18'17 '16'15'14'13'12'11'10'09
SF (M
illio
ns)
Deliveries Under Construction
0
4
8
12
16
20
24
28
32
YTD '19'18'17'16'15'14'13'12'11'10'09
Direct Vacancy Rate Total Vacancy Rate Asking Rate
Vaca
ncy
Rat
e (%
) Asking Rate ($)
0
6
12
18
24
30
36
42
48
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
YTD '19'18'17'16'15'14'13'12'11'10'09
SF (M
illio
ns)
Leasing Activity Total Net Absorption
Market Spotlight
2nd Quarter 2019Crystal City
Market Stats
Inventory 11.5 M SF
Direct Vacancy 13.2%
Total Vacancy 13.6%
YTD 2019 Absorption 189,284 SF
YTD Leasing Activity 960,846 SF
Under Construction 115,000 SF
Percent Pre-Leased 100.0%
YTD 2019 Deliveries 0 SF
16lpcwashingtondc.com101 Constitution Ave., Suite 325 East | Washington D.C. | 202.513.67004300 Wilson Blvd., Suite 200 | Arlington, VA | 703.522.46008120 Woodmont Ave., Suite 560 | Bethesda, MD | 301.304.8300
Major Leases
Sales
Market Spotlight
2nd Quarter 2019Crystal City
Property Submarket Date Sold Price Buyer Seller Class Occupancy Comments
Presidential Tower 2550 S. Clark Street Crystal City May 2019
$123,230,000($353 psf)
Starwood/Vanderbilt
Beacon Capital Partners
A 95.2%Low vacancy
Under ConstructionProperty Submarket Building Size Available Pre-leased Delivery Date Developer Major Tenants
APTA Centennial Center 3030 Potomac Avenue Crystal City 115,000 0 100.0% 1Q 2021
Meany & Oliver Companies
American Physical Therapy Association
Crystal Square 2 1550 Crystal Drive
Tenant DACA
Size 21,948 SF
Type Renewal
Crystal Mall Office 4 1901 S. Bell Street
Tenant GSA-US Customs and Border Protection
Size 77,454 SF
Type Renewal
Crystal Park 4 2345 Crystal Drive
Tenant Amazon
Size 47,512 SF
Type Relet
Potomac Gateway South 2900 Crystal Drive
Tenant Venesco
Size 18,322 SF
Type Sublease
Jefferson Plaza 1401 S. Clark Street
Tenant Deloitte
Size 14,786 SF
Type Extension
17 lpcwashingtondc.com101 Constitution Ave., Suite 325 East | Washington D.C. | 202.513.67004300 Wilson Blvd., Suite 200 | Arlington, VA | 703.522.46008120 Woodmont Ave., Suite 560 | Bethesda, MD | 301.304.8300
HighlightsDirect vacancy in Fairfax has decreased from 18.2% in the first quarter 2019 to 17.9% in the second quarter 2019, and has decreased from 18.9% since second quarter 2018. Total vacancy decreased from 19.1% in the first quarter 2019 to 18.7% in the second quarter 2019, and has decreased from 19.5% since second quarter 2018.
The Fairfax submarket recorded 53,239 square feet of net absorption in the second quarter of 2019, bringing the year-to-date absorption to 41,370 square feet. The positive absorption for the quarter was driven by a 47,293-square-foot move-in by University of North America at Fair Lakes 5 - 12750 Fair Lakes Circle.
The second largest sales transaction in the second quarter occurred in the Fairfax submarket. The Fairlakes Portfolio - 12450, 12500, 12600, & 12700 Fair Lakes Circle - was purchased by Radix from C-III for $78,500,000 ($168 psf). The buildings were 88% occupied at the time of sale and traded at a 10.00% Cap Rate.
The largest lease signed in the Fairfax submarket was an 18,120-square-foot relet/expansion by Hazen and Sawyer, D.P.C. at Crown Ridge at Fair Oaks - 4035 Ridge Top Road. Also contributing to leasing activity this quarter was a 15,500-square-foot relet by All Native at WillowWood Plaza Building I - 10300 Eaton Place and a 10,205-square-foot relet by Everybody Fitness Center at 3903 Fair Ridge Drive.
10 Year Averages (2009 - 2018)
Total Absorption -56,443 SF / Year
Deliveries (SF) 28,763 SF / Year
Leasing Activity 868,926 SF / Year
Asking Rental Rates (Full Service)
2009: $26.56
PSF
2018: $27.08
PSF
YTD 2019: $27.04
PSF
0.00
0.04
0.08
0.12
0.16
0.20
YTD '19'18'17'16'15'14'13'12'11'10'09
SF (M
illio
ns)
Deliveries Under Construction
0
4
8
12
16
20
24
YTD '19'18'17'16'15'14'13'12'11'10'09
Direct Vacancy Rate Total Vacancy Rate Asking Rate
Vaca
ncy
Rat
e (%
) Asking Rate ($)
0
5
10
15
20
25
30
-0.5
0.0
0.5
1.0
1.5
YTD '19'18'17'16'15'14'13'12'11'10'09
SF (M
illio
ns)
Leasing Activity Total Net Absorption
Market Spotlight
Market Stats
Inventory 12.5 M SF
Direct Vacancy 17.9%
Total Vacancy 18.7%
YTD 2019 Absorption 41,370 SF
YTD Leasing Activity 538,887 SF
Under Construction 0 SF
Percent Pre-Leased 0.0%
YTD 2019 Deliveries 0 SF
2nd Quarter 2019
Fairfax (Fairfax Center, Fairfax City, Oakton)
18lpcwashingtondc.com101 Constitution Ave., Suite 325 East | Washington D.C. | 202.513.67004300 Wilson Blvd., Suite 200 | Arlington, VA | 703.522.46008120 Woodmont Ave., Suite 560 | Bethesda, MD | 301.304.8300
Major Leases
Under Construction
Sales
Market Spotlight
2nd Quarter 2019
Fairfax (Fairfax Center, Fairfax City, Oakton)
Property Submarket Building Size Available Pre-leased Delivery Date Developer Major Tenants
No new construction reported this quarter
Fairfax N/A N/A N/A N/A N/A N/A
Crown Ridge at Fair Oaks
4035 Ridge Top Road
Tenant Hazen and Sawyer, D.P.C.
Size 18,120 SF
Type Relet/Expansion
Property Submarket Date Sold Price Buyer Seller Class Occupancy Cap Rate
Fair Lakes Portfolio 12450, 12500, 12600, & 12700 Fair Lakes Circle
Fairfax April 2019$78,500,000($168 psf)
Radix C-III A 88.0% 10.00%
4401 Village Drive Fairfax May 2019$11,000,000 ($171 psf)
Marc-Jac Foundation
Mavi Consulting
B 100.0% N/A
WillowWood Plaza Building I 10300 Eaton Place
Tenant All Native
Size 15,500 SF
Type Relet
3903 Fair Ridge Drive
Tenant Everybody Fitness Center
Size 10,205 SF
Type Relet
19 lpcwashingtondc.com101 Constitution Ave., Suite 325 East | Washington D.C. | 202.513.67004300 Wilson Blvd., Suite 200 | Arlington, VA | 703.522.46008120 Woodmont Ave., Suite 560 | Bethesda, MD | 301.304.8300
HighlightsDirect vacancy in Loudoun County decreased from 9.8% in the first quarter 2019 to 9.5% in the second quarter 2019, and has increased from 9.0% since second quarter 2018. Total vacancy has decreased from 9.9% in the first quarter 2019 to 9.6% in the second quarter 2019, and has decreased from 9.8% since second quarter 2018.
Loudoun County recorded 40,133 square feet of net absorption in the second quarter of 2019, bringing the year-to-date absorption to 13,726 square feet. The positive absorption for the quarter was driven by multiple tenant move-ins.
One of the top sales in the Loudoun submarket was the purchase of The Village at Leesburg - 1602 Village Market Boulevard - by The Seligman Group from The Carlyle Group for $25,900,000 ($216 psf). The building was 93.4% occupied at time of sale and traded at a 7.50% Cap Rate. The largest lease signed in the Loudoun submarket was a 53,589-square-foot renewal by GSA-US Federal Highway Administration at 21400 Ridgetop Circle. Another top lease was a 31,565-square-foot renewal by Toll Brothers at Belmont Plaza I - 19775 Belmont Executive Plaza.
Phase II of Broderick One at Loudoun Gateway - 22365 Broderick Drive broke ground this quarter. The 56,025-square-foot building is projected to deliver first quarter 2020. 44921 George Washington Boulevard delivered this quarter. The 46,002-square-foot building is 23.4% leased by multiple retailers on the 1st floor.
10 Year Averages (2009 - 2018)
Total Absorption 279,853 SF / Year
Deliveries (SF) 161,997 SF / Year
Leasing Activity 933,244 SF / Year
Asking Rental Rates (Full Service)
2009: $26.48
PSF
2018: $25.73
PSF
YTD 2019: $25.77
PSF
0.000
0.125
0.250
0.375
0.500
0.625
0.750
0.875
1.000
YTD '19'18 '17'16'15'14'13'12'11'10'09
SF (M
illio
ns)
Deliveries Under Construction
0
4
8
12
16
20
24
YTD '19'18 '17'16'15'14'13'12'11'10'09
Direct Vacancy Rate Total Vacancy Rate Asking Rate
Vaca
ncy
Rat
e (%
) Asking Rate ($)
0
5
10
15
20
25
30
-0.25
0.40
1.05
1.70
2.35
3.00
YTD '19'18'17'16'15'14'13'12'11'10'09
SF (M
illio
ns)
Leasing Activity Total Net Absorption
Market Spotlight
2nd Quarter 2019Loudoun County
Market Stats
Inventory 15.9 M SF
Direct Vacancy 9.5%
Total Vacancy 9.6%
YTD 2019 Absorption 13,726 SF
YTD Leasing Activity 286,890 SF
Under Construction 56,025 SF
Percent Pre-Leased 0.0%
YTD 2019 Deliveries 46,002 SF
20lpcwashingtondc.com101 Constitution Ave., Suite 325 East | Washington D.C. | 202.513.67004300 Wilson Blvd., Suite 200 | Arlington, VA | 703.522.46008120 Woodmont Ave., Suite 560 | Bethesda, MD | 301.304.8300
Major Leases
Deliveries
Sales
Market Spotlight
2nd Quarter 2019
Loudoun County
Property Submarket Building Size Available Pre-leased Delivery Date Developer Major Tenants
44921 George Washington Boulevard Loudoun 46,002 SF 35,258 SF 23.4% 2Q 2019
Clarke-Hook Corporation
None
Property Submarket Date Sold Price Buyer Seller Class Occupancy Cap Rate
Village at Leesburg 1602 Village Market Boulevard Loudoun May 2019
$25,900,000 ($216 PSF)
The Seligman Group
The Carlyle Group
A 93.4% 7.50%
Belmont Executive Center Building A 19775 Belmont Executive Plaza Loudoun April 2019
$16,540,000 ($138 PSF)
Rooney Properties
Toll Brothers
A 91.7% N/A
21400 Ridgetop Circle
Tenant GSA-US Federal Highway Administration
Size 53,589 SF
Type Renewal
45610 Woodland Road
Tenant Reinforced Earth
Size 29,637 SF
Type Relet
The Corporate Office Park @ Dulles Town Center
21000 Atlantic Boulevard
Tenant Sallie Mae
Size 27,256 SF
Type Relet
Under ConstructionProperty Submarket Building Size Available Pre-leased Delivery Date Developer Major Tenants
Phase II at Broderick One at Loudoun Gateway 22365 Broderick Drive
Loudoun 56,025 SF 56,025 SF 0.0% 1Q 2020 LGV Group None
Belmont Plaza I 19775 Belmont Executive Plaza
Tenant Toll Brothers
Size 31,565 SF
Type Renewal
21 lpcwashingtondc.com101 Constitution Ave., Suite 325 East | Washington D.C. | 202.513.67004300 Wilson Blvd., Suite 200 | Arlington, VA | 703.522.46008120 Woodmont Ave., Suite 560 | Bethesda, MD | 301.304.8300
HighlightsDirect vacancy in Merrifield decreased from 13.1% in the first quarter 2019 to 11.8% in the second quarter 2019, and has increased from 11.3% since second quarter 2018. Total vacancy has decreased from 13.9% in the first quarter 2019 to 12.5% in the second quarter 2019, and has increased from 12.0% since second quarter 2018.
The Merrifield submarket recorded 63,348 square feet of net absorption in the second quarter of 2019, bringing the year-to-date absorption to 37,745 square feet. The positive absorption was driven by a 16,584-square-foot move-in by Pinkston Group at Fairview Park - 3110 Fairview Park Drive.
The largest lease signed in the Merrifield submarket this quarter was a 53,812-square-foot relet by Capital Caring at 80 At Fairview - 3180 Fairview Park Drive. Also contributing to leasing activity this quarter was a 20,095-square-foot relet by Fairfax Radiological Consultants PC at Willow Oaks I - 8260 Willow Oaks Corporate Drive and an 18,516-square-foot relet by Evans Inc at 3110 Fairview Park Drive.
10 Year Averages (2009 - 2018)
Total Absorption 31,955 SF / Year
Deliveries (SF) 36,398 SF / Year
Leasing Activity 637,866 SF / Year
Asking Rental Rates (Full Service)
2009: $34.57
PSF
2018: $30.41
PSF
YTD 2019: $31.40
PSF
0.00
0.05
0.10
0.15
0.20
0.25
0.30
YTD '19'18 '17'16'15'14'13'12'11'10'09
SF (M
illio
ns)
Deliveries Under Construction
0
2
4
6
8
10
12
14
16
18
YTD '19'18'17'16'15'14'13'12'11'10'09
Direct Vacancy Rate Total Vacancy Rate Asking Rate
Vaca
ncy
Rat
e (%
) Asking Rate ($)
0
5
10
15
20
25
30
35
40
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
YTD '19'18 '17'16'15'14'13'12'11'10'09
SF (M
illio
ns)
Leasing Activity Total Net Absorption
Market Spotlight
2nd Quarter 2019Merrifield
Market Stats
Inventory 9.6 M SF
Direct Vacancy 11.8%
Total Vacancy 12.5%
YTD 2019 Absorption 37,745 SF
YTD Leasing Activity 197,164 SF
Under Construction 0 SF
Percent Pre-Leased 0%
YTD 2019 Deliveries 0 SF
22lpcwashingtondc.com101 Constitution Ave., Suite 325 East | Washington D.C. | 202.513.67004300 Wilson Blvd., Suite 200 | Arlington, VA | 703.522.46008120 Woodmont Ave., Suite 560 | Bethesda, MD | 301.304.8300
Major Leases
Market Spotlight
2nd Quarter 2019Merrifield
Under Construction
Sales
Property Submarket Building Size Available Pre-leased Delivery Date Developer Major Tenants
No new construction reported this quarter
Merrifield N/A N/A N/A N/A N/A N/A
Willow Oaks 1 8260 Willow Oaks Corporate Drive
Tenant Fairfax Radiological Consultants
Size 20,095 SF
Type Relet
Property Submarket Date Sold Price Buyer Seller Class Occupancy Cap Rate
No new sales reported during the quarter Merrifield N/A N/A N/A N/A N/A N/A N/A
80 At Fairview 3180 Fairview Park Drive
Tenant Capital Caring
Size 53,812 SF
Type Relet
3110 Fairview Park Drive
Tenant Evans Inc
Size 18,516 SF
Type Renewal
23 lpcwashingtondc.com101 Constitution Ave., Suite 325 East | Washington D.C. | 202.513.67004300 Wilson Blvd., Suite 200 | Arlington, VA | 703.522.46008120 Woodmont Ave., Suite 560 | Bethesda, MD | 301.304.8300
HighlightsDirect vacancy in the Old Town Alexandria and Eisenhower Ave submarket decreased from 10.0% in the first quarter 2019 to 9.5% in the second quarter 2019, and has stayed consistent with second quarter 2018. Total vacancy decreased from 10.5% in the first quarter 2019 to 10.2% in the second quarter 2019, and has increased from 10.0% since second quarter 2018.
The Old Town Alexandria and Eisenhower Ave submarket recorded 85,863 square feet of net absorption in the second quarter of 2019, bringing the year-to-date absorption to 132,347 square feet. Positive absorption was driven by a 25,000-square-foot move-in by ALX Community at the Torpedo Factory Office Building - 201 N. Union Street. One sales transaction occurred in the Old Town Alexandria and Eisenhower Ave submarket during the second quarter 2019. 201 N. Union Street was purchased by Boundary Companies from Realco Group Asset Management for $39,000,000 ($375 psf). The building was 75.0% occupied at the time of sale
The largest lease signed in the Old Town Alexandria and Eisenhower Ave submarket was a 45,000-square-foot relet by Oliff & Berridge at Canal Center 3 - 11 Canal Center Plaza. Also contributing to leasing activity was a 27,193-square-foot relet by Cotton & Company at Carlyle Gateway I - 333 John Carlyle Street.
10 Year Averages (2009 - 2018)
Total Absorption 44,508 SF / Year
Deliveries (SF) 81,419 SF / Year
Leasing Activity 601,930 SF / Year
Market Stats
Inventory 12.4 M SF
Direct Vacancy 9.5%
Total Vacancy 10.2%
YTD 2019 Absorption 132,347 SF
YTD Leasing Activity 221,025 SF
Under Construction 0 SF
Percent Pre-Leased 0.0%
YTD 2019 Deliveries 0 SF
Asking Rental Rates (Full Service)
2009: $34.03
PSF
2018: $36.22
PSF
YTD 2019: $36.77
PSF
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
YTD '19'18 '17'16'15'14'13'12'11'10'09
SF (M
illio
ns)
Deliveries Under Construction
0
4
8
12
16
20
YTD '19'18'17'16'15'14'13'12'11'10'09
Direct Vacancy Rate Total Vacancy Rate Asking Rate
Vaca
ncy
Rat
e (%
) Asking Rate ($)
0
8
16
24
32
40
-1.0
-0.5
0.0
0.5
1.0
YTD '19'18 '17'16'15'14'13'12'11'10'09
SF (M
illio
ns)
Leasing Activity Total Net Absorption
Market Spotlight
2nd Quarter 2019Old Town/Eisenhower Ave
24lpcwashingtondc.com101 Constitution Ave., Suite 325 East | Washington D.C. | 202.513.67004300 Wilson Blvd., Suite 200 | Arlington, VA | 703.522.46008120 Woodmont Ave., Suite 560 | Bethesda, MD | 301.304.8300
Market Spotlight
2nd Quarter 2019Old Town/Eisenhower Ave
Major Leases
Under Construction
Sales
Property Submarket Date Sold Price Buyer Seller Class Occupancy Comments
201 N. Union Street Old Town & Eisenhower Ave
June 2019$39,000,000($375 psf)
Boundary Companies
Realco Group Asset Management
A 75.0%
Property Submarket Building Size Available Pre-leased Delivery Date Developer Major Tenants
No new construction reported during the quarter
Old Town & Eisenhower Ave
N/A N/A N/A N/A N/A N/A
Canal Center 3 11 Canal Center Plaza
Tenant Oliff & Berridge
Size 45,00 SF
Type Relet
Carlyle Overlook 2318 Mill Road
Tenant LeClairRyan
Size 24,655 SF
Type Renewal
Carlyle Center 1925 Ballenger Avenue
Tenant Travel Leaders Group
Size 23,600 SF
Type Renewal
1920 Ballenger Avenue
Tenant OrthoVirginia
Size 16,496 SF
Type Relet
Carlyle Gateway I 333 John Carlyle Street
Tenant Cotton & Company
Size 27,193 SF
Type Relet
Torpedo Factory Office Building 201 N. Union Street
Tenant ALX Community
Size 25,000 SF
Type Relet
25 lpcwashingtondc.com101 Constitution Ave., Suite 325 East | Washington D.C. | 202.513.67004300 Wilson Blvd., Suite 200 | Arlington, VA | 703.522.46008120 Woodmont Ave., Suite 560 | Bethesda, MD | 301.304.8300
HighlightsDirect vacancy decreased from 13.3% in the first quarter 2019 to 11.1% the second quarter 2019, and has decreased from 12.3% since second quarter 2018. Total vacancy has decreased from 14.1% in the first quarter 2019 to 12.0% the second quarter 2019, and has decreased from 13.4% since second quarter 2018. Year-to-date direct vacancy for Reston was 10.5% and total vacancy was 11.2%. Year-to-date direct vacancy for Herndon was 12.2% and total vacancy was 13.2%.
The Reston-Herndon submarket recorded -170,154 square feet of net absorption in the second quarter of 2019, bringing the year-to-date absorption to -46,108 square feet. The negative absorption for the quarter was driven by a 99,474-square-foot move-out by Lockheed Martin at Dulles Executive Plaza I - 13530 Dulles Technology Drive.
The third largest sale transaction of Northern Virginia for the second quarter 2019 was in the Reston-Herndon submarket. Sunwater Capital acquired Parkridge V - 10780-10790 Parkridge Boulevard, from Atlantic Realty Companies for $56,250,000 ($278 psf). The building was 95.9% occupied at the time of sale and traded at a 6.25% Cap Rate. The largest lease signed in Northern Virginia this quarter was a 268,240-square-foot relet by Amazon Web Ser-vices at South Lake at Dulles Corner - 13820 Sunrise Val-ley Drive.
Reston Station - Phase III - 1902 Reston Metro Plaza broke ground this quarter. The 260,000-square-foot building is 0.0% pre-leased. General Dynamics HQ - 11011 Sunset Hills Road also broke ground this quarter. The 160,000 square foot building is 100.0% pre-leased by General Dynamics.
10 Year Averages (2009 - 2018)
Total Absorption 102,334 SF / Year
Deliveries (SF) 94,848 SF / Year
Leasing Activity 2.7 M SF / Year
Asking Rental Rates (Full Service)
2009: $28.07
PSF
2018: $31.60
PSF
YTD 2019: $32.26
PSF
0.0
0.4
0.8
1.2
1.6
2.0
YTD '19 '18'17'16'15'14'13'12'11'10'09
SF (M
illio
ns)
Deliveries Under Construction
0
5
10
15
20
25
YTD '19'18'17'16'15'14'13'12'11'10'09
Direct Vacancy Rate Total Vacancy Rate Asking Rate
Vaca
ncy
Rat
e (%
) Asking Rate ($)
0
7
14
21
28
35
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
YTD '19'18 '17'16'15'14'13'12'11'10'09
SF (M
illio
ns)
Leasing Activity Total Net Absorption
Market Spotlight
2nd Quarter 2019Reston-Herndon
Market Stats
Inventory 31.7 M SF
Direct Vacancy 11.1%
Total Vacancy 12.0%
YTD 2019 Absorption -46,108 SF
YTD Leasing Activity 1.2 M SF
Under Construction 1,807,457 SF
Percent Pre-Leased 31.0%
YTD 2019 Deliveries 0 SF
26lpcwashingtondc.com101 Constitution Ave., Suite 325 East | Washington D.C. | 202.513.67004300 Wilson Blvd., Suite 200 | Arlington, VA | 703.522.46008120 Woodmont Ave., Suite 560 | Bethesda, MD | 301.304.8300
Under Construction
Sales
Market Spotlight
2nd Quarter 2019Reston-Herndon
Property Submarket Date Sold Price Buyer Seller Class Occupancy Cap Rate
Parkridge V 10780-10790 Parkridge Boulevard
Reston-Herndon April 2019$56,250,000 ($278psf) Sunwater Capital
Atlantic Realty Companies
A 95.9% 6.25%
The Junction 11493 Sunset Hills Road
Reston-Herndon April 2019$42,440,000 ($237psf)
Carahsoft Technologies
Rubenstein Partners
A 60.4% N/A
Property Submarket Building Size Available Pre-leased Delivery Date Developer Major Tenants
Reston Station - Phase II1906 Reston Metro Plaza
Reston-Herndon 186,457 SF 175,780 SF 5.7% 2Q 2020 Comstock None
17Fifty - 1750 Presidents Street Reston-Herndon 276,000 SF 0 SF 100.0% 2Q 2020Boston Properties
Leidos
General Dynamics HQ11011 Sunset Hills Road
Reston-Herndon 160,000 SF 0 SF 100.0% 2Q 2020General Dynamics
General Dynamics
Reston Station - Phase III 1902 Reston Metro Plaza Reston-Herndon 260,000 SF 260,000 SF 0.0% 3Q 2021 Comstock None
Reston Gateway Office Bldg A - Sunset Hills Road @ Town Center Boulevard
Reston-Herndon 800,000 SF 0 SF 100.0% 1Q 2022Boston Properties
Fannie Mae
Major Leases
Two Halley Rise 12018 Sunrise Valley Drive
Tenant Accenture
Size 63,324 SF
Type Renewal
1900 Reston Metro Plaza
Tenant Google
Size 111,412 SF
Type New
South Lake at Dulles Corner
13820 Sunrise Valley Drive
Tenant Amazon Web Services
Size 268,240 SF
Type Relet
Dulles Executive Plaza I
13530 Dulles Technology Drive
Tenant Constellis
Size 106,737 SF
Type Relet
27 lpcwashingtondc.com101 Constitution Ave., Suite 325 East | Washington D.C. | 202.513.67004300 Wilson Blvd., Suite 200 | Arlington, VA | 703.522.46008120 Woodmont Ave., Suite 560 | Bethesda, MD | 301.304.8300
HighlightsDirect vacancy in the Rosslyn-Ballston Corridor decreased from 17.0% in the first quarter 2019 to 16.6% in the second quarter 2019, and has decreased from 18.1% since second quarter 2018. Total vacancy decreased from 18.5% in the first quarter 2019 to 17.9% in the second quarter 2019, and has decreased from 19.6% since second quarter 2018.
The Rosslyn-Ballston Corridor recorded 137,480 square feet of net absorption during the second quarter of 2019, bringing the year-to-date absorption to 76,219 square feet. The primary driver for positive absorption was an 83,294-square-foot move-in by WeWork at Central Place - 1201 Wilson Boulevard.
The largest lease signed in the Rosslyn-Ballston Corridor submarket was a 41,130-square-foot renewal by PAE at 1320 N. Courthouse Road. Other top leases include a 30,366-square-foot renewal by National Telecommunications Cooperative Association at Ballston Exchange II - 4121 Wilson Boulevard and a 29,379-square-foot relet by WeWork at Arlington Gateway - 901 N. Glebe Road.
The Loft Office at Market Common - 1650 Edgewood Street, is currently under renovation. The 138,871-square-foot property is expected to deliver 1Q 2020 and is currently 19.8% pre-leased. Another building currently under construction is 4040 Wilson Boulevard. The 240,000-square-foot building is also expected to deliver 1Q 2020 and is 51.3% pre-leased.
10 Year Averages (2009 - 2018)
Total Absorption -31,302 SF / Year
Deliveries (SF) 269,242 M SF / Year
Leasing Activity 2.1 M SF / Year
Asking Rental Rates (Full Service)
2009: $40.68
PSF
2018: $42.73
PSF
YTD 2019: $43.04
PSF
0.0
0.2
0.4
0.6
0.8
1.0
1.2
YTD '19 '18 '17'16'15'14'13'12'11'10'09
SF (M
illio
ns)
Deliveries Under Construction
0
3
6
9
12
15
18
21
24
27
YTD '19 '18'17'16'15'14'13'12'11'10'09
Direct Vacancy Rate Total Vacancy Rate Asking Rate
Vaca
ncy
Rat
e (%
) Asking Rate ($)
0
5
10
15
20
25
30
35
40
45
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
YTD '19 '18'17'16'15'14'13'12'11'10'09
SF (M
illio
ns)
Leasing Activity Total Net Absorption
Market Spotlight
2nd Quarter 2019Rosslyn-Ballston Corridor
Market Stats
Inventory 25.4 M SF
Direct Vacancy 16.6%
Total Vacancy 17.9%
YTD 2019 Absorption 76,219 SF
YTD Leasing Activity 460,491 SF
Under Construction 378,871 SF
Percent Pre-Leased 39.7%
YTD 2019 Deliveries 0 SF
28lpcwashingtondc.com101 Constitution Ave., Suite 325 East | Washington D.C. | 202.513.67004300 Wilson Blvd., Suite 200 | Arlington, VA | 703.522.46008120 Woodmont Ave., Suite 560 | Bethesda, MD | 301.304.8300
Major Leases
Under Construction
Sales
Market Spotlight
2nd Quarter 2019
Rosslyn-Ballston Corridor
Property Submarket Building Size Available Pre-leased Delivery Date Developer Major Tenants
4040 Wilson Boulevard RB Corridor 240,000 SF 116,979 SF 51.3% 1Q 2020 Shooshan Avalon Bay & Vida Fitness
Loft Office at Market Common - 1650 Edgewood Street
RB Corridor 138,871 SF 111,317 SF 19.8% 1Q 2020Regency Centers
Equinox
Property Submarket Date Sold Price Buyer Seller Class Occupancy Cap Rate
No new sales reported during the quarter RB Corridor N/A N/A N/A N/A N/A N/A N/A
Ballston Exchange II 4121 Wilson Boulevard
TenantNational Telecommunications Cooperative Assoc.
Size 30,366 SF
Type Renewal
2311 Wilson Boulevard
Tenant Industrious
Size 25,063 SF
Type New
1320 N. Courthouse Road
Tenant PAE
Size 41,130 SF
Type Renewal
Colonial Place III 2107 Wilson Boulevard
Tenant EJF Capital
Size 22,184 SF
Type Renewal
Two Liberty Center 4075 Wilson Boulevard
Tenant Raytheon
Size 20,742 SF
Type Renewal
Arlington Gateway 901 N. Glebe Road
Tenant WeWork
Size 29,379 SF
Type Relet
29 lpcwashingtondc.com101 Constitution Ave., Suite 325 East | Washington D.C. | 202.513.67004300 Wilson Blvd., Suite 200 | Arlington, VA | 703.522.46008120 Woodmont Ave., Suite 560 | Bethesda, MD | 301.304.8300
HighlightsDirect vacancy in the Route 28 North submarket decreased from 12.1% in the first quarter 2019 to 11.0% in the second quarter 2019, and has decreased from 11.3% since second quarter 2018. Total vacancy decreased from 12.3% in the first quarter 2019 to 11.2% in the second quarter 2019, and has decreased from 12.2% since second quarter 2018.
The Route 28 North submarket recorded 4,763 square feet of net absorption in the second quarter of 2019, bringing the year-to-date absorption to -37,187. Positive absorption was driven by multiple tenant move-ins.
One Steeplechase - 21700 Atlantic Boulevard was acquired by Turnbridge Equities from UBS Realty Advisors for $16,960,000 ($151 psf). The building was fully occupied at the time of sale and traded at a 9.50% Cap Rate. Two & Three Vintage Park - 45365 Vintage Park Plaza & 22894 Pacific Boulevard were purchased by Trust Realty from Lerner Corporation for $16,500,00 ($100 psf). The buildings were 50.0% occupied at the time of sale.
The largest lease signed in the Route 28 North submarket this quarter was a 52,589-square-foot renewal by GSA-US Federal Highway Administration at 21400 Ridgetop Circle.
Phase II - Broderick One at Loudoun Gateway - 22365 Broderick Drive broke ground this quarter. The 56,025-square-foot building is 0.0% pre-leased.
10 Year Averages (2009 - 2018)
Total Absorption 104,548 SF / Year
Deliveries (SF) 45,747 SF / Year
Leasing Activity 675,363 SF / Year
Asking Rental Rates (Full Service)
2009: $25.15
PSF
2018: $25.26
PSF
YTD 2019: $25.35
PSF
0.0
0.1
0.2
0.3
0.4
0.5
0.6
YTD '19 '18 '17'16'15'14'13'12'11'10'09
SF (M
illio
ns)
Deliveries Under Construction
0
5
10
15
20
25
YTD '19'18'17'16'15'14'13'12'11'10'09
Direct Vacancy Rate Total Vacancy Rate Asking Rate
Vaca
ncy
Rat
e (%
) Asking Rate ($)
0
6
12
18
24
30
-0.25
0.40
1.05
1.70
2.35
3.00
YTD '19 '18 '17'16'15'13'13'12'11'10'09
SF (M
illio
ns)
Leasing Activity Total Net Absorption
Market Spotlight
2nd Quarter 2019Route 28 North
Market Stats
Inventory 9.6 M SF
Direct Vacancy 11.0%
Total Vacancy 11.2%
YTD 2019 Absorption -37,187 SF
YTD Leasing Activity 158,651 SF
Under Construction 56,025 SF
Percent Pre-Leased 0%
YTD 2019 Deliveries 0 SF
30lpcwashingtondc.com101 Constitution Ave., Suite 325 East | Washington D.C. | 202.513.67004300 Wilson Blvd., Suite 200 | Arlington, VA | 703.522.46008120 Woodmont Ave., Suite 560 | Bethesda, MD | 301.304.8300
Market Spotlight
2nd Quarter 2019Route 28 North
Under ConstructionProperty Submarket Building Size Available Pre-leased Delivery Date Developer Major Tenants
Phase II - Broderick One at Loudoun Gateway22365 Broderick Drive
Rt 28 North 56,025 SF 56,025 SF 0.0% 1Q 2020 LGV Group None
Major Leases
SalesProperty Submarket Date Sold Price Buyer Seller Class Occupancy
Cap Rate
One Steeplechase21700 Atlantic Boulevard Rt 28 North May 2019
$16,960,000($151 psf)
Turnbridge Equities
UBS Realty Advisors
A 100.0% 9.50%
Two & Three Vintage Park45365 Vintage Park Plaza & 22894 Pacific Boulevard
Rt 28 North May 2019$16,500,000($100 psf)
Trust RealtyLerner Corporation
A 50.0% N/A
Dulles Trail Office Park I & II22630 & 22636 Davis Drive
Rt 28 North April 2019$10,750,000($72 psf)
Interra PropertiesNew Boston Fund, Inc.
A 34.0% N/A
The Corporate Office Park @ Dulles Town Center
21000 Atlantic Boulevard
Tenant Alpha Corporation
Size 16,316 SF
Type Relet
The Corporate Office Park @ Dulles Town Center
21000 Atlantic Boulevard
Tenant Sallie Mae
Size 27,256 SF
Type Relet
21400 Ridgetop Circle
Tenant GSA-US Federal Highway Administration
Size 52,589 SF
Type Renewal
45610 Woodland Road
Tenant Reinforced Earth
Size 29,637 SF
Type Relet
31 lpcwashingtondc.com101 Constitution Ave., Suite 325 East | Washington D.C. | 202.513.67004300 Wilson Blvd., Suite 200 | Arlington, VA | 703.522.46008120 Woodmont Ave., Suite 560 | Bethesda, MD | 301.304.8300
HighlightsDirect vacancy in the Route 28 South submarket has decreased from 14.3% in the first quarter 2019 to 13.8% in the second quarter 2019, and has decreased from 14.4% in the second quarter 2018. Total vacancy has decreased from 15.1% in the first quarter 2019 to 14.0% the second quarter 2019, and has decreased from 15.6% since second quarter 2018.
The Route 28 South submarket recorded 62,306 square feet of net absorption in the second quarter of 2019, bringing the year-to-date absorption to 68,730 square feet. Positive absorption was driven by a 20,020-square-foot move-in by Tetra Tech at Newbrook I - 14151 Newbrook Drive.
The second largest lease signed in Northern Virginia this this quarter was a 163,000-square-foot relet by Perspecta at Plaza East I & II - 14295 & 14291 Park Meadow Drive. Also contributing to leasing activity this quarter was a 48,811 square-foot sublease by CACI at Lincoln Park II - 3080 Centreville Drive, a 42,700 -square-foot relet by Novetta Solutions at Lincoln Park I - 13900 Lincoln Park Drive, and a 39,335-square-foot relet by AT&T Services at Ridgewood 1 - 14800 Conference Center Drive.
Penrose II - 14401 Penrose Place, is currently under construction. The 125,000-square-foot property is expected to deliver 2Q 2020.
10 Year Averages (2009 - 2018)
Total Absorption 204,298 SF / Year
Deliveries (SF) 183,501 SF / Year
Leasing Activity 770,115 SF / Year
Asking Rental Rates (Full Service)
2009: $26.81
PSF
2018: $26.61
PSF
YTD 2019: $26.49
PSF
0.0
0.2
0.4
0.6
0.8
1.0
YTD '19'18 '17'16'15'14'13'12'11'10'09
SF (M
illio
ns)
Deliveries Under Construction
0
5
10
15
20
25
YTD '19 '18 '17'16'15'14'13'12'11'10'09
Direct Vacancy Rate Total Vacancy Rate Asking Rate
Vaca
ncy
Rat
e (%
) Asking Rate ($)
0
6
12
18
24
30
-0.5
0.0
0.5
1.0
1.5
YTD '19'18 '17'16'15'14'13'12'11'10'09
SF (M
illio
ns)
Leasing Activity Total Net Absorption
Market Spotlight
2nd Quarter 2019Route 28 South
Market Stats
Inventory 13.7 M SF
Direct Vacancy 13.8%
Total Vacancy 14.0%
YTD 2019 Absorption 68,730 SF
YTD Leasing Activity 588,728 SF
Under Construction 125,000 SF
Percent Pre-Leased 0%
YTD 2019 Deliveries 0 SF
32lpcwashingtondc.com101 Constitution Ave., Suite 325 East | Washington D.C. | 202.513.67004300 Wilson Blvd., Suite 200 | Arlington, VA | 703.522.46008120 Woodmont Ave., Suite 560 | Bethesda, MD | 301.304.8300
Major Leases
Market Spotlight
2nd Quarter 2019Route 28 South
Ridgewood 1 14800 Conference Center Drive
Tenant AT&T Services
Size 39,335 SF
Type Relet
Lincoln Park I 13900 Lincoln Park Drive
Tenant Novetta Solutions
Size 42,700 SF
Type Relet
Hallmark Building 13873 Park Center Road
Tenant Israel Aerospace Industries - North Am
Size 30,000 SF
Type Relet
Under Construction
SalesProperty Submarket Date Sold Price Buyer Seller Class Occupancy Cap Rate
No new sales reported during the quarter Rt 28 South N/A N/A N/A N/A N/A N/A N/A
Property Submarket Building Size Available Pre-leased Delivery Date Developer Major Tenants
Penrose II - 14401 Penrose Place Route 28 South 125,000 SF 125,000 SF 0.0% 2Q 2020Zumot Real Estate Management
None
Trinity Centre 1 5870 Trinity Parkway
Tenant Riverside Research Institute
Size 13,429 SF
Type Relet/Expansion
Lincoln Park II 3080 Centreville Road
Tenant CACI
Size 48,811 SF
Type Sublease
Ridgewood 1 14800 Conference Center Drive
Tenant Northrop Grumman
Size 23,702 SF
Type Relet
Lincoln Park I 13900 Lincoln Park Drive
Tenant Raytheon
Size 18,644 SF
Type Extension
Plaza East I & II 14295 & 14291 Park Meadow Drive
Tenant Perspecta
Size 163,000 SF
Type Relet
33 lpcwashingtondc.com101 Constitution Ave., Suite 325 East | Washington D.C. | 202.513.67004300 Wilson Blvd., Suite 200 | Arlington, VA | 703.522.46008120 Woodmont Ave., Suite 560 | Bethesda, MD | 301.304.8300
Highlights
Direct vacancy in the Springfield submarket remained flat at 19.1% in the first quarter 2019 to the second quarter 2019, and has decreased from 21.5% since second quarter 2018. Total vacancy remained flat at 19.3% in the first quarter 2019 to the second quarter 2019, and has decreased from 21.8% since second quarter 2018.
The Springfield submarket recorded 33,137 square feet of net absorption in the second quarter of 2019, bringing the year-to-date absorption to 25,978 square feet. The positive absorption was driven primarily by multiple tenant move-ins.
6595 Springfield Center Drive is currently under construction. The Boston Properties 634,000-square-foot building is fully pre-leased to the GSA-TSA.
10 Year Averages (2009 - 2018)
Total Absorption 55,030 SF / Year
Deliveries (SF) 139,150 SF / Year
Leasing Activity 311,645 SF / Year
Asking Rental Rates (Full Service)
2009: $28.20
PSF
2018: $29.33
PSF
YTD 2019: $29.38
PSF
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
YTD '19 '18 '17'16'15'14'13'12'11'10'09
SF (M
illio
ns)
Deliveries Under Construction
0
6
12
18
24
30
YTD '19 '18 '17'16'15'14'13'12'11'10'09
Direct Vacancy Rate Total Vacancy Rate Asking Rate
Vaca
ncy
Rat
e (%
) Asking Rate ($)
0
7
14
21
28
35
-0.25
0.00
0.25
0.50
0.75
1.00
YTD '19'18 '17'16'15'14'13'12'11'10'09
SF (M
illio
ns)
Leasing Activity Total Net Absorption
Market Spotlight
2nd Quarter 2019Springfield
Market Stats
Inventory 5.7 M SF
Direct Vacancy 19.1%
Total Vacancy 19.3%
YTD 2019 Absorption 25,978 SF
YTD Leasing Activity 102,039 SF
Under Construction 634,000 SF
Percent Pre-Leased 100.0%
YTD 2019 Deliveries 0 SF
34lpcwashingtondc.com101 Constitution Ave., Suite 325 East | Washington D.C. | 202.513.67004300 Wilson Blvd., Suite 200 | Arlington, VA | 703.522.46008120 Woodmont Ave., Suite 560 | Bethesda, MD | 301.304.8300
Major Leases
Market Spotlight
2nd Quarter 2019Springfield
Major Leases
Under Construction
Sales
Property Submarket Building Size Available Pre-leased Delivery Date Developer Major Tenants
6595 Springfield Center Drive Springfield 634,000 SF 0 SF 100.0% 1Q 2020Boston Properties
GSA-TSA
Property Submarket Date Sold Price Buyer Seller Class Occupancy Cap Rate
No new sales reported during the quarter Springfield N/A N/A N/A N/A N/A N/A N/A
No major leases this quarter
Tenant N/A
Size N/A
Type N/A
35 lpcwashingtondc.com101 Constitution Ave., Suite 325 East | Washington D.C. | 202.513.67004300 Wilson Blvd., Suite 200 | Arlington, VA | 703.522.46008120 Woodmont Ave., Suite 560 | Bethesda, MD | 301.304.8300
HighlightsDirect vacancy in the Tysons Corner submarket decreased from 12.3% in the first quarter 2019 to 11.5% in the second quarter 2019, and has decreased from 15.2% the second quarter 2018. Total vacancy decreased from 12.9% in the first quarter 2019 to 12.0% in the second quarter 2019, and has decreased from 15.8% the second quarter 2018.
The Tysons Corner submarket recorded 65,386 square feet of net absorption in the second quarter of 2019, bringing the year-to-date absorption to 491,457 square feet. A significant contributor to the positive absorption was a 44,517-square-foot move-in by Hogan Lovells at Boro Tower - 8350 Broad Street.
Tysons Office Center - 8133 Leesburg Pike was acquired by David Schaeffer from Garrett Development Corporation for $30,250,000 ($204 psf). The building was 89.2% occupied at the time of sale and traded at a 7.60% Cap Rate.
The largest lease signed in the Tysons Corner submarket this quarter was a 151,949-square-foot relet by Freddie Mac at Centerstone at Tysons - 1550 Westbranch Drive. Also contributing to leasing activity this quarter was a 61,528-square-foot relet signed by WeWork at The Corporate Office Centre @ Tysons II - 1775 Tysons Boulevard and a 51,422-square-foot pre-lease by Spaces at Boro Loft - 1640 Boro Place.
10 Year Averages (2009 - 2018)
Total Absorption 161,986 SF / Year
Deliveries (SF) 294,220 SF / Year
Leasing Activity 2.1 M SF / Year
Asking Rental Rates (Full Service)
2009: $29.75
PSF
2018: $35.87
PSF
YTD 2019: $34.71
PSF
0.0
0.5
1.0
1.5
2.0
YTD '19'18 '17'16'15'14'13'12'11'10'09
SF (M
illio
ns)
Deliveries Under Construction
0
4
8
12
16
20
YTD '19'18'17'16'15'14'13'12'11'10'09
Direct Vacancy Rate Total Vacancy Rate Asking Rate
Vaca
ncy
Rat
e (%
) Asking Rate ($)
0
6
12
18
24
30
36
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
3.0
YTD '19 '18 '17'16'15'14'13'12'11'10'09
SF (M
illio
ns)
Leasing Activity Total Net Absorption
Market Spotlight
2nd Quarter 2019Tysons Corner
Market Stats
Inventory 29.5 M SF
Direct Vacancy 11.5%
Total Vacancy 12.0%
YTD 2019 Absorption 491,457 SF
YTD Leasing Activity 905,465 SF
Under Construction 143,606 SF
Percent Pre-Leased 82.1%
YTD 2019 Deliveries 438,169 SF
36lpcwashingtondc.com101 Constitution Ave., Suite 325 East | Washington D.C. | 202.513.67004300 Wilson Blvd., Suite 200 | Arlington, VA | 703.522.46008120 Woodmont Ave., Suite 560 | Bethesda, MD | 301.304.8300
Major Leases
Market Spotlight
2nd Quarter 2019Tysons Corner
Under Construction
Sales
Property Submarket Building Size Available Pre-leased Delivery Date Developer Major Tenants
Boro Loft1640 Boro Place Tysons Corner 143,606 SF 25,711 SF 82.1% 3Q 2019 Meridian Whole Foods
Property Submarket Date Sold Price Buyer Seller Class Occupancy Cap Rate
Tysons Office Center8133 Leesburg Pike Tysons Corner June 2019
$30,250,000 ($204 psf)
David Schaeffer
GarrettDevelopment Corporation
B 89.2% 7.60%
Boro Loft 1640 Boro Place
Tenant Spaces
Size 51,422 SF
Type Pre-Lease
Centerstone at Tysons 1550 Westbranch Drive
Tenant Freddie Mac
Size 151,949 SF
Type Relet
7925 Jones Branch Drive
Tenant Preferred Systems
Size 21,966 SF
Type Renewal
Spring Hill Metro Place 1577 Spring Hill Road
Tenant JDM Title
Size 15,334 SF
Type Renewal
Towers Crescent/A 8000 Towers Crescent Drive
Tenant Offit Kurman
Size 21,201 SF
Type Renewal
Highline 2 8405 Greensboro Drive
Tenant CollabraLink Technologies, Inc.
Size 22,416 SF
Type Renewal
8150 Leesburg Pike
Tenant Next Tier Concepts, Inc.
Size 15,024 SF
Type Relet
The Corporate Office Centre @ Tysons II 1775 Tysons Boulevard
Tenant WeWork
Size 61,528 SF
Type Relet