Driven in part by Amazon’s HQ2, demand for office space in Arlington is on the rise.
That’s according to a new quarterly Northern Virginia market report from commercial real estate services firm JLL, which says “tech demand across the Herndon-to-Crystal City corridor” is leading to more office space being leased than is being built.
Here are some key takeaways and quotes from that report:
1. Metro ridership may be dropping, but office tenants still want to be near a Metro station
The Silver Line corridor, from the RB Corridor through Tysons to the Toll Road, continues to capture a disproportionate share of leasing activity, driven by tenants favoring Metro access…
Metro access continues to drive pricing, with newer Class A product on-Metro commanding a 35% premium over newer Class A product off-Metro; Class B/C saw an overall jump in asking rents this quarter driven by increases in Crystal City.
2. Technology is driving office demand, including in Arlington, but much of the tech talent is in Fairfax and Loudoun counties
Northern Virginia dominates the region’s tech office market and will continue to grow its leadership position, with a tech corridor solidifying from Data Center-centric Loudoun County, through the Toll Road and Tysons, and into RB Corridor and Crystal City…
Driven by the origins of tech in this market, neighborhoods west of Tysons offer the most access to talent, primarily along the Toll Road and into Loudoun County.
3. The Rosslyn-Ballston corridor has higher office rents, but “National Landing” — Crystal City, Pentagon City and Potomac Yard — has a bigger office development pipeline
Tysons and the Toll Road offer the most scale for future ground-up development, holding 50% of the proposed office pipeline; meanwhile, inside the Beltway, greater Crystal City will form as a development hub for obvious reasons, while the RB Corridor’s future pipeline is minimal.
4. Expect rent increases to accelerate, as office buildings fill up following a decade of high vacancy
Submarkets continue to see minimal to no net effective rent growth versus a decade ago, driven by concessions remaining at peak levels, particularly as tenants are cross-shopping more than ever; however, we believe this trend is nearly over, particularly in Crystal City, RB Corridor and the Toll Road, due to market demand and tightening.
5. Defense contractors, a usual staple of Northern Virginia office demand, are not having as much of an impact on the market
The defense budget declined by $111 billion from 2011 to 2016, driving significant occupancy losses. However, the budget is surging again, up 16% since 2017…
Historically, when defense spending surges, absorption surges, and when it declines, occupancy declines; while this cycle is still early, it is already different. One reason – the major contractors all rightsized during the downturn and remain focused on efficiency in their space utilization.
In loving memory of Joseph Robert Kapacziewski, who passed away in 2023 at the age of 41.
In loving memory of James Stuart Edmonds, who passed away in 2023 at the age of 84.
A man was shot in front of a lounge on Columbia Pike early this morning, continuing a string of violent incidents.
Good Friday evening, Arlington. Today we published articles that were read a total of 17124 times… so far. 📈 Top stories The following are the most-read articles for today —…
YULA’s ultimate frisbee spring season is now open for registration. We offer programs for middle and high schoolers – open to all players, whether they are new or have previous experience.Middle SchoolIn the Middle School league, mixed-gender teams practice once during the week and have games on Sunday afternoons. Spring league is a fun, safe, and positive environment. The season begins mid-March and wraps up with a tournament in early June. There are several options for practice days, so we can often work around schedule conflicts with other sports & activities.High SchoolThe High School program is organized by school of attendance and teams are classified by gender. New players will learn the basics in a supportive, welcoming environment. Experienced players will continue to develop their skills, and enjoy competition with other high school programs. The season concludes with a state level championship tournament in late May.All players are guided by experienced coaches who emphasize sportsmanship and good spirit. Ultimate is a fun sport with great camaraderie!YULA does not want finances to limit anyone from participating. Our middle school program offers a “Pay What You Can” cost structure and our our high school program is offering a $50 discount to new players.Visit our website to register and learn more. Sign up with a friend, but don’t delay, the season starts in March!http://www.yula-ulti.org
The Arlington-Aachen High School exchange is returning this summer and currently accepting applicants.
The sister-city partnership started in 1993 by the Arlington Sister Cities Association, which seeks to promote Arlington’s international profile through a variety of exchanges in education, commerce, culture and the arts. The exchange, scheduled June 17th to July 4th, includes a two-week homestay in Aachen plus three days in Berlin. Knowledge of the German language is not required for the trip.
Former participants have this to say:
_”The Aachen exchange was an eye-opening experience where I was fully immersed in the life of a German student. I loved biking through the countryside to Belgium, having gelato and picnics in the town square, and hanging out with my German host student’s friends. My first time out of the country, the Aachen exchange taught me to keep an open mind, because you never know what could be a life changing experience.” – Kelly M._
Valentine gifts for someone special or for yourself are here at George Mason University from noon -4pm on February 14, 2023. Satisfy your sweet tooth with Kingsbury Chocolates, find a handmade bag from Karina Gaull, pick up treats from Village