Construction Underway on Hospital Expansion — “Shovels are in the ground and buildings are coming down as Virginia Hospital Center embarks on the nitty-gritty of a three-year, quarter-billion-dollar expansion effort.” [InsideNova]
Marymount Launches Intrapreneurship Initiative — “Marymount University’s School of Business and Technology (SBT) has launched an initiative to address one of the most significant talent gaps in the greater Washington region – a shortage of graduates who are prepared to use entrepreneurial skills to help employers grow and meet the challenges of an ever-changing world.” [Press Release]
Courthouse Office Building Sold — “Another Arlington office building has traded hands with the buyer citing Amazon HQ2 as a reason for optimism. American Real Estate Partners, in partnership with Rockwood Capital, announced Tuesday it acquired the Arlington Plaza office building at 2000 15th St. North.” [Bisnow]
Metro Seeking Feedback on Bus Changes — “Metro is proposing service changes to selected bus routes based on input from customers and local governments, to increase on-time performance and ridership, and respond to planning studies and market changes.” Changes are proposed for the 3Y, 7F and 7Y routes. [WMATA]
Why Hoskins Left for Fairfax — “Victor Hoskins may be done working on Amazon HQ2 in Arlington County, but he’s certainly not done talking about it. The former head of Arlington Economic Development, in an interview with Bisnow, cited post-Amazon fatigue as one of the reasons he decided to leave and take a new job as CEO of the Fairfax County Economic Development Authority. ” [Bisnow]
Road Closures for 9/11 5K — “The 18th annual Arlington Police, Fire & Sheriff Memorial 9/11 5K race will take place on the evening of Saturday, September 7, 2019. The Arlington County Police Department will close several roadways around the Pentagon and in Crystal City to accommodate the event.” [Arlington County]
Pentagon, Rosslyn Rank Among Busiest Stations — “In Virginia, the Pentagon [Metro] station averages around 14,000 entries and exits each weekday, ranking it and Rosslyn ahead of Pentagon City, Crystal City, Ballston, Vienna and Wiehle-Reston East.” [WTOP]
Hotel Occupancy Rate Going Down — “Arlington’s year-over-year hotel-occupancy rate is down from 2017 for the first seven months of the year, but the average room rate is higher, according to new data.” [InsideNova]
Even Shirlington Feeling Amazon Glow — “It might be a bit of a stretch to call it proximate to the e-commerce and cloud computing company’s second home in Arlington County, but a Shirlington office building with future ‘Amazon HQ2 upside’ is being offered for sale.” [Washington Business Journal]
Startup Moving After Big Funding Round — After raising a new $51 million funding round, Arlington-based Federated Wireless is moving its 80-person team to a new 20,000+ square foot space at 4075 Wilson Blvd in Ballston. [Washington Business Journal]
Metro’s Fire Hydrant Problem — “A fire safety advocate and a D.C. firefighter took to social media Tuesday to criticize the transit agency after a Metrobus was spotted parked in front of a hydrant in Pentagon City for about 10 minutes. They also said it’s a chronic problem.” [Washington Post]
Va. Was Amazon Oasis After NYC Debacle — “In late January, Holly Sullivan, the head of world-wide development at Amazon, returned to Washington, D.C., where she and some colleagues dined with executives from JBG Smith, the real-estate firm managing the Arlington County site.. A JBG Smith official remarked that Amazon’s team looked like it had come from a war zone. ‘How much more space can we get in Virginia?’ one of the Amazon executives joked.” [Wall Street Journal, Twitter]
Ballston Office Building Sold — “Hines Interests LP has acquired Ballston’s Two Liberty Center” — where ARLnow has its offices — “from New York-based real estate investment management company Westbrook Partners for $93.2 million. Jones Lang LaSalle Inc. (NYSE: JLL) brokered the Aug. 20 sale of the 178,000-square foot, nine-story building.” [Washington Business Journal]
APS Expanding Healthy Lunch Options — “In 2017, Café + Teria was originally introduced to high school students attending Arlington, Virginia’s three public high schools, Wakefield, Yorktown and Washington-Lee. Due to the success at these schools in Arlington it will also expand to The Heights (the new home of H-B Woodlawn) and the Arlington… Career Center on September 3.” [Press Release]
Clarendon nightlife mainstay Whitlow’s on Wilson is “actively negotiating” for a new lease, manager Jon Williams says.
Readers tipped ARLnow off to a commercial real estate website listing the Whitlow’s space at 2854 Wilson Blvd as available for lease starting on July 1, 2021.
Per the listing:
Total street-level, enclosed area of approximately 8,450sf; plus 350sf of sidewalk seating area; plus 500sf of outside dining area (under tent); plus 4,100sf of Rooftop area; plus 2,500sf of Basement area (storage and walk-ins); and a private driveway for storage, parking and loading.
Fans of Whitlow’s and its rooftop tiki bar shouldn’t start breaking out the hankies just yet. Williams said the listing is part of the lease negotiation process.
“We plan on being here for years to come,” he said.
Storms Expected Today — “Strong to locally severe thunderstorms are in the forecast Tuesday afternoon and evening, and the potential exists for this to be a significant severe weather event.” [Capital Weather Gang]
ACPD: Expect Police at Fair — “As in years past, the [Arlington County Fair] will have dedicated police staffing and resources and fairgoers can expect to see a visible police presence… There are no known threats to Arlington County, however, the public is encouraged to remain aware of your surroundings at all times.” [Arlington County]
Local Volunteer Firefighting Legacy — “Tucked inside the Clarendon fire station on N. 10th St. is a special closed-off room. By long-standing arrangement with the county, it is dedicated to honoring the station’s decades of reliance on volunteer firefighters. Today’s professionally staffed Fire Station 4 deploys ‘no active volunteers, but retains a volunteer presence.'” [Falls Church News-Press]
Hotel Near HQ2 Sells For Big Bucks — “Host Hotels & Resorts sold the Residence Inn Arlington Pentagon City, a 299-room high-rise property at 550 Army Navy Drive, for $99.1M in a deal that closed July 1, according to Arlington County property records.” [Bisnow]
Deer Rescued from Fence — “Last week, Officer Solano and several neighbors were able to safely untangle this juvenile deer from a soccer net in a resident’s backyard. The deer immediately ran away, uninjured, back into the woods nearby.” [Twitter]
Man Brings Loaded Shotgun to Pentagon — “A Kentucky man taken into custody at the Pentagon last week had a shotgun, ammunition and a machete in his pickup truck, according to court documents… While speaking to the officers, [the man] made ‘incoherent statements about being in the area for ‘liberty business.”” [Fox 5]
New Coworking Space Coming to Ballston — “Piedmont Office Realty Trust signed a 29K SF lease with WeWork at its Arlington Tower office building at 901 North Glebe Road in Ballston, the REIT said in its Q2 earnings release Wednesday evening. The coworking giant will take the entire fifth floor and plans to open before the end of the year, Piedmont Director Chris Poppell tells Bisnow.” [Bisnow]
Disaster Declaration May Be Coming Soon — “A disaster designation based on damage assessments in Arlington County would allow homeowners and businesses in Alexandria, Arlington and Fairfax County to apply for low-interest federal loans beginning as soon as next week to help pay for repairs. Fairfax County Emergency Management Coordinator Seamus Mooney expects the designation to be approved within the next two weeks.” [WTOP]
Changes Proposed for Pentagon City Hotel — “The owner of the DoubleTree by Hilton in Crystal City is gearing up for a play to capitalize on the 627-room hotel’s proximity to Amazon.com Inc.’s second headquarters. Tom Baltimore, CEO of the hotel’s owner, Park Hotels & Resorts (NYSE: PK), told analysts on its second-quarter earnings call Thursday that the hotel is one of several the company is evaluating as possible redevelopment opportunities.” [Washington Business Journal]
Video: Dark Star Park Day — A timelapse video captured the moment on Thursday morning when the shadows lined up at Rosslyn’s Dark Star Park, as happens once a year on Aug. 1. [Twitter]
Arlington Boy Lives Dream in Boston — “There was a special visitor to the WBZ Weather Center on Thursday. Noah Coon from Arlington, Virginia is a big weather fan and stopped by the studio thanks to Dream On 3. Noah has cerebral palsy and was in Boston to visit the Red Sox. Because he’s also a fan of meteorology, he came to visit the WBZ weather team.” [WBZ]
Video: Yorktown vs. W-L — Just published online: “Long-lost footage of the famous Nov. 5, 1970, mud bowl football game between the Yorktown High School Patriots and the Washington-Lee Generals. Yorktown was favored with a 9-0 record but W-L won 12-0 and earned the Potomac District championship. [YouTube]
(Updated on 07/22/19) Office Vacancy Rate Dropping — “The commercial vacancy rate in the County continues to improve. The vacancy rate as of the second quarter of 2019 stands at 16.6%, down nearly 5% from its historic high of 21% in 2015. Arlington Economic Development also announced it successfully closed 26 deals in FY 2019, representing 7.2 million square feet of office space and 43,000 jobs.” [Arlington County]
County Adopts New Bathroom Policy — “The Arlington County government has adopted what amounts to a […] policy for government-building restrooms and locker rooms. The policy, outlined to County Board members on July 16, will formally allow any individual to use a male or female restroom ‘that corresponds with gender identity or expression,’ county staff said.” [InsideNova]
Human Remains Found Near GW Parkway — Human remains, in a skull, have reportedly been found near the GW Parkway and Reagan National Airport, in the same area where a D.C. cadaver dog was hurt earlier this week, prompting a medevac flight. The dog is now recovering from serious injuries. U.S. Park Police are investigating the source of the remains. [Fox 5, Washington Post, WTOP]
New Provost, Plans for Marymount — “Marymount is proud to welcome the university’s new Provost, Hesham El-Rewini, Ph.D., P.E., who officially begins his duties on campus this week… ‘We have bold plans for the future of Marymount as we strive to become an elite Catholic institution that is nationally recognized for innovation,’ said Dr. Irma Becerra, President of Marymount University.” [Marymount University]
GoFundMe for Westover Residents — A GoFundMe campaign has been launched to benefit residents of Westover whose homes were damaged by flash flooding last week. So far more than $8,000 has been raised. [GoFundMe]
Big Crane Assisting With DCA Project — “A 250 ft. crane is being used to lift and put steel into place for a new 14-gate concourse that will replace Gate 35X” at Reagan National Airport. [Twitter]
Pentagon City Apartment Sold for Big Bucks — “Dweck Properties Inc. has picked up another multifamily property in Pentagon City, not far from where Amazon.com Inc. is settling into its second home. A Dweck affiliate paid $117 million July 9 for the Park at Pentagon Row, a 299-unit apartment building at 801 15th St. S.” [Washington Business Journal]
Flickr pool photo by Kevin Wolf
Family Sues Metro for Va. Square Death — “A family has filed a $25 million lawsuit against the Washington Metropolitan Area Transit Authority (WMATA), claiming negligence in the death of a man who lay down on the tracks at the Virginia Square rail station in July 2017.” [NBC Washington]
Jury Duty Process Starting Soon — “The Arlington Circuit Court… will soon begin its annual juror qualification process. Juror questionnaires will be mailed in early August to randomly selected residents of Arlington County and Falls Church City.” [Arlington County]
Tech Company Relocating to Arlington — “Still fresh off of raising millions in venture capital funding, Amify Inc. is leaving Alexandria for a larger space in Arlington just a few blocks from Amazon.com Inc.’s second headquarters. The company, which markets, sells and ships products for other companies on Amazon, has signed a three-year lease with JBG Smith Properties to take over the Crystal City space that was last rented by Trustify Inc., an embattled tech company that’s now in bankruptcy.” [Washington Business Journal]
Plaque Proposed for Wilson School — “Gone but not forgotten. That’s the hope of historic-preservation advocates when it comes to the Wilson School in Rosslyn… Plans for an historic marker noting the school’s provenance are wending their way through the county government’s approval process.” [InsideNova]
Arlington Exec Tapped as Accenture CEO — “Accenture Inc.’s board of directors has promoted Julie Sweet, a Greater Washington executive who now serves as the company’s North American CEO, to the top job of global chief executive effective Sept. 1. Her ascension makes Sweet, based in Arlington County, the 34th female CEO of a Fortune 500 company.” [Washington Business Journal]
Nearby: Update on Flooded Commuter Routes — “After time-consuming repairs, the District Department of Transportation reopened Canal Road between Reservoir and Foxhall roads late Monday morning…. In McLean, a rain-swollen [Pimmit] Run undermined a large section of Kirby Road. VDOT said the work to repair the road and embankment will take weeks.” [WTOP]
Flickr pool photo by John Sullivan
Latest Flood Stats — “As of Tuesday morning, the Department of Environmental Services had received 151 calls about damage to private property, storm drain backups, indoor flooding and roadway flooding; The County also investigated more than 30 drainage complaints.” [Arlington County]
Record-Setting Rain Rate — “The 3.30 [inches of rain] recorded between 8:52-9:52 a.m [at Reagan National Airport] was Washington, D.C.’s highest hourly precip report in records dating back to 1936.” [Twitter]
Flooded Scooters Removed from Service — “Bird, Jump, and Lime, three of the city’s five operators, told The Verge that their employees were actively engaged in removing scooters from the flooded areas.” [The Verge]
ACPD Crime Map Goes Down — “ACPD is aware of system issues with the Online Community Crime Map and is working with the third-party vendor, LexisNexis, to resolve the issue. If you are looking for information regarding crime in your neighborhood, please view the Daily Crime Report.” [Twitter]
D.C. Office Vacancy Rises as N. Va. Declines — “Office vacancy is reaching new heights in the District as new supply continues to outpace demand, but market conditions are much better for landlords in neighboring Northern Virginia.” [Bisnow]
Trailers to Take Out Tree — “In a community where the destruction of even a single tree can mobilize residents, there may be another skirmish in the offing on July 13. That’s the date that Arlington County Board members will be asked to approve the placement of new portable (‘relocatable’) classrooms on the campus Arlington Traditional School, designed to ease overcrowding.” [InsideNova]
Ballston Office Building Sold — “The first building developed in Ballston’s Liberty Center complex has just traded hands. Carr Properties sold the One Liberty Center office building at 875 North Randolph St. to USAA Real Estate, the JLL brokerage team announced Monday. Property records show the sale closed June 26 for about $153M.” [Bisnow]
Flickr pool photo by Lisa Novak
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.
Arlington Gets Best View of Fireworks — On a hazy night, Arlington — particularly Rosslyn — had the best view of the expanded D.C. fireworks. Smoke obscured the viewing for many parts of the District. [Twitter, Twitter, Raw Story]
JBG Trying to Lure Big Tech to Arlington — “JBG Smith Properties CEO Matt Kelly recently met with “a handful” of big West Coast tech firms in a bid to entice them to come to National Landing now that Amazon.com Inc. has chosen the area for its second headquarters.” [Washington Business Journal]
Police Chase Ends in Arlington — A high-speed police chase along I-66 ended in Arlington, near the N. Glebe Road exit. Virginia State Police say a woman fled from police at speeds of up to 120 mph while her three children were in the car. [WJLA, Twitter]
A Modest Proposal for Arlington — In a letter to the editor published by the Arlington Sun Gazette, a man apparently upset by the renaming of Washington-Lee High School to Washington-Liberty suggests also renaming Arlington “Amazon’s bitch.” [InsideNova]
Ebbin Cast as NRA’s ‘Boogeyman’ — “[State Sen. Adam] Ebbin, when told of [state Sen. Bryce] Reeves’s remarks at the town hall, said he never made any of the comments attributed to him. ‘Apparently I’m a radical homosexual who’s misquoted,’ Ebbin said sarcastically.” [Washington Post]
Checking Car Seats in Arlington — Writing about the new Virginia law requiring rear-facing car seats for children under two and below a certain weight, the Arlington County Fire Department noted on social media: “ACFD no longer does child seat safety inspections. Arlington County Police Department offers regular inspections to ensure the child seat is safely installed and secured in your vehicle.” [Twitter]
Warner Highlights Sept. 11th Memorial Trail — “U.S. Senators Pat Toomey (R-Pa.) and Mark Warner (D-Va.) are working together to further honor the heroes of September 11th, 2001. In a bipartisan resolution, Senators Toomey and Warner highlight the significance of the September 11th National Memorial Trail,” which runs through Arlington. [Press Release]
Photo courtesy Dennis Dimick/Twitter