Northern Virginia office space is most expensive to rent on Wilson Blvd in Rosslyn, according to a study.
Commercial real estate firm JLL found that rents on the street in Rosslyn average between $56 and $65 per square foot, and that those rents are increasing.
The study found that average rent increase is due to new high-end “trophy class” offices coming online, as well as the unobstructed views of Washington, D.C. and the Potomac River. Those “trophy” offices include top amenities, good views of their surroundings and are connected to transit options like Metro and bus routes.
“The new trophy buildings not only deliver high-end modern office space, but will help transform Rosslyn from a sleepy 9-5 business district into a vibrant live-work-play neighborhood,” Michael Hartnett, senior research manager in JLL’s Northern Virginia office, said in a statement.
Across the region, average rents on office space remain high even as jurisdictions battle with a high vacancy rate. Arlington County’s office vacancy rate is just over 17 percent, even with the likes of Nestle moving to Rosslyn.
“Despite the U.S. office market posting 81 million square feet of net absorption the past 24 months and posting rent growth of 8.2 percent, the Metro D.C. market has posted nearly 700,000 square feet of occupancy losses and a rent decline of 6.9 percent,” John Sikaitis, managing director of research at JLL, said in a statement. “In this challenging market, there are an equal mix of winners and losers and on the demand side, these nuanced high-priced corridors at the intersection of Main and Main have attracted the most demand and been some of the more resilient segments of the market.”
Photo via Monday Properties
Sponsored by Monday Properties and written by ARLnow.com, Startup Monday is a weekly feature that profiles Arlington-based startups and their founders, plus other local technology happenings. The Ground Floor, Monday’s office space for young companies in Rosslyn, is now open. The Metro-accessible space features a 5,000-square-foot common area that includes a kitchen, lounge area, collaborative meeting spaces, and a stage for formal presentations.
(Updated at 12:20 p.m.) It’s less than a year old, but media startup Axios is growing fast and ready to put down roots in Clarendon.
Axios will soon start the build-out process for its new space on the 13th floor of the office building at 3100 Clarendon Blvd. It expects to move out of MakeOffices and into the new space by mid-2018.
Roy Schwartz, who co-founded Axios with fellow Politico veterans Jim VandeHei and Mike Allen, says the new space will provide room for Axios’ growing team while also offering “monumental views” of D.C. and Northern Virginia.
The new office is expected to have all of the accoutrement of a startup company that bridges the media and technology worlds: bigger versions of its employee lounge, dubbed “Relaxios,” and its free snack bar, “Snaxios,” in addition to features like a video studio and a “live shot” camera for television interviews of its journalists.
Schwartz says Axios currently has 90 employees but will likely have 120 by the time of the move and 150 by the end of 2018. Last month the company announced that it had raised another $20 million from venture capital firms, NBC Universal, Laurene Powell Jobs and others.
Axios received an economic development grant from Arlington County to incentivize it to stay here, Schwartz told ARLnow.com. The amount of that grant was not immediately available.
There were other factors that led the company to launch and now stay in Arlington, according to Schwartz. For one, he and Allen live in the neighborhoods around Clarendon, while VandeHei lives in Alexandria, making for an easy commute. Beyond that, however, Schwartz praised Arlington and Clarendon for its proximity to bars and restaurants, ease of access to D.C., and comparatively lower rent and lower taxes than the District.
“We’re very excited to be in Arlington,” he said. The company also has satellite offices in New York City and San Francisco.
Axios covers a number of news verticals, including politics and policy, business, technology, media, healthcare, science, energy and the “future of work.” While plenty of other national news outlets cover the same topics, Schwartz said the secret to Axios’ success is its focus on “smart brevity.”
In a world where there is “too much noise” in people’s lives, Schwartz said, Axios stands out by publishing radically concise articles that include only the most important facts and no filler.
“We’re going to cut straight to the chase,” he said. “Here is the information and, even more importantly, here is why it matters.”
Smart brevity extends to the business side of Axios. The company eschews programmatic banner ads, which Schwartz says are ineffective, and instead publishes very brief pieces of sponsored content on its site and in its popular email newsletters. Some recent clients include Morgan Stanley, Koch Industries, Fusion Media Group and Boeing.
Axios also holds sponsored events, which take advantage of smart brevity by featuring brief one-on-one interviews with newsmakers and subject matter experts, as opposed to long panel discussions.
Schwartz says its advertising has been working, producing audience engagement that is “off the charts.” Readers, he said, appreciate that in its coverage and its advertising, Axios is respectful of their time.
While BuzzFeed, Mashable and other venture capital-funded, online-only media companies have stumbled this year in their quest for growth, Axios is exceeding growth expectations. Schwartz credits smart brevity for that, in part, but also attributes Axios’ success to having the three pillars of its operation — the editorial, business and technology sides — working in concert.
Despite the challenges faced by others in the digital media industry, Schwartz he is “very confident” that Axios’ model is scalable and that its growth will continue.
County HQ to Be Named After Bozman — “The Arlington County Board today voted unanimously to name the County Office Building at 2100 Clarendon Boulevard for Ellen M. Bozman, the six-time Board Chair who served on the Board through some of Arlington’s most transformative years, and who died in 2009.” [Arlington County]
Blue, Yellow Line Service Disruption — Metrorail service on the Blue and Yellow lines was suspended earlier this morning due to “fire department activity” at the Pentagon station. Arlington County Fire Department units investigated the incident and turned the scene back over to Metro around 6 a.m. Service has since been restored. [Twitter, Twitter, Fox 5]
County Board Sets Stage for Va. Square Redevelopment — The Arlington County Board on Saturday took a first step towards the redevelopment of several properties at the corner of Washington Blvd and N. Kirkwood Road. New apartments and upgrades to the YMCA have been proposed for the site. The Board approved a General Land Use Plan Study and Concept Plan that will “serve as a long-range planning guide for potential redevelopment.” [Arlington County]
Arlingtonian Among Rhodes Scholars — Arlington native Matthew Chun, a senior at the Massachusetts Institute of Technology, has been named one of 32 Rhodes scholars in the U.S. Chun, who is also captain of the school’s wrestling team, is one of two Virginians among the latest group of Rhodes scholars. [Associated Press, MIT News]
Juvenile Hospitalized After Nauck Hit and Run — An individual under the age of 18 was reportedly struck by a car on the 2400 block of Shirlington Road, in the Nauck area, over the weekend. The car’s driver drove off after hitting the juvenile, who suffered non-life threatening injuries. [WJLA]
Nestle Lease Lauded in Commercial RE Awards — The lease of 1812 N. Moore Street in Rosslyn to serve as Nestle’s new U.S. headquarters was given the “Award of Excellence” in the Real Estate Transaction category at the 2017 NAIOP Northern Virginia commercial real estate awards. It was among six Arlington-related winners at the awards ceremony, including the new Marymount University Ballston Center development. [NAIOP]
Flickr pool photo by Chris Guyton
Beyer Blasts GOP Tax Bill — Says Rep. Don Beyer (D-Va.) regarding the tax bill that passed the House yesterday: “I am adamantly opposed to the House Republican tax bill, H.R.1. The bill will raise taxes on millions of middle class Americans in order to fund tax cuts for the wealthy, and yet still manages to explode the deficit.” [Rep. Don Beyer]
Crystal City Scores 320 Jobs — A Georgetown-based nonprofit is moving much of its staff to a new office in Crystal City, leasing 90,000 square feet and adding 320 jobs in Arlington County. The move was announced by Virginia Gov. Terry McAuliffe, who approved a $500,000 state grant to assist Arlington with the project. [Virginia Business, Bisnow]
Dems Seek Ways to Defeat Vihstadt — “John Vihstadt, who in 2014 broke the Democratic stranglehold on the Arlington County Board, is ready to go back to the voters in 2018. And Arlington Democrats already are strategizing on how to oust him from office.” [InsideNova]
Charges Dropped Against ‘Laughing Librarian’ — Arlington librarian and Code Pink activist Desirée Fairooz, who was arrested after laughing during the confirmation hearing of Attorney General Jeff Sessions, has had the case against her dropped by the Justice Department. [American Libraries, NPR]
Incident at Kenmore Middle School — A tipster tells ARLnow.com that a Kenmore Middle School student was arrested yesterday afternoon for assaulting a PE teacher. An Arlington Public Schools spokesman, however, did not confirm that an arrest was made, saying: “There was an incident earlier today between a student and a teacher. Staff is following normal disciplinary procedures. But beyond that, we can’t disclose anymore because it is a student matter.”
Flickr pool photo by Michael Coffman
Arlington County and seemingly every other place in North America is competing to host Amazon’s second corporate headquarters. But while the odds seem long, Crystal City actually has a good shot at being one of the finalists in Amazon’s search.
The D.C. area is widely regarded as a likely contender for “HQ2,” but sources tell ARLnow.com that the District itself is unlikely to get the headquarters, in part due to high taxes, high real estate costs, a lack of available contiguous space that meets Amazon’s expectations and a lack of congressional representation.
That would leave the areas surrounding D.C. as contenders, and none has the available space and is more accessible to downtown, transit and an airport than Crystal City.
Specifically, commercial real estate sources tell us, Crystal City and Potomac Yard are, in combination, regarded by many as the region’s best chance at landing HQ2. Among the advantages:
- Available contiguous office space and developable land, thanks to BRAC and the development of Potomac Yard.
- Only having to deal with one primary property owner, JBG Smith, which owns much of Crystal City and Potomac Yard. (The company did submit a bid, the Washington Business Journal confirmed this week.)
- Proximity to Metro’s Yellow and Blue lines.
- Close proximity to a major airport, Reagan National.
- An urban “downtown”-like setting with restaurants, hotels, shopping and other amenities within walking distance.
- Congressional representation.
- Low state taxes.
As outlined by Washingtonian, Crystal City also comes with all of the benefits of the D.C. region: ample tech talent and universities nearby, proximity to the federal government, and an easy drive for Amazon CEO Jeff Bezos from his new Kalorama mansion. It also comes with some of the negatives: higher real estate costs than smaller cities, high cost of living for workers and thus higher salary costs.
Fresh off of its big win in attracting Nestle’s U.S. headquarters, Rosslyn has also tossed its hat into the HQ2 ring, sources tell us. Rosslyn has many of Crystal City’s pluses but, we’re told, lacks developable space and would be tight quarters for the online giant.
Arlington Economic Development, meanwhile, is keeping its pitch to Amazon close to the vest, publicly revealing few details. Likewise Angela Fox, CEO of the Crystal City Business Improvement District, declined to comment for this article.
Family Still Searching for Missing Arlington Woman — Family and friends spent the weekend searching for Katherine Hawald, who went missing Thursday, last seen in Arlington. Volunteers checked places Hawald would hang out and handed out flyers, enlisting others to assist in the search effort. [Fox 5]
Veep Participates in Veterans Day Ceremony — Vice President Mike Pence participated in the annual Veterans Day ceremony at Arlington National Cemetery on Saturday. “From the hour of our nation’s birth, our best and bravest have stepped forward to defend our freedom,” Pence said. “And as we speak, a new generation of American veterans is being forged across the wider world.” [Dept. of Defense]
Millennials Moving Out = Lower Rents — “More millennials are leaving Greater Washington than moving in, and that could spell trouble for commercial real estate developers across the region. Those young professionals helped the region avoid oversaturation of new apartments, but the diminishing pool will likely shrink demand for those units, among other potential consequences.” [Washington Business Journal]
Which Restaurants Are Open on Thanksgiving — Those hoping to avoid the hassle of making a turkey at home have a few options for dining out in Arlington on Thanksgiving. [Patch]
Flickr pool photo by TheBeltWalk
Property: 5136 Leesburg Pike, Alexandria VA
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Complete financials and leases can be found on tranzon.com. 2% paid to registered brokers.
Arlington Kicking Off Budget Process Early — Normally it is a conversation that starts later in the year, but for the upcoming Fiscal Year 2019 budget process Arlington County is holding “an earlier-than-ever-before series of roundtable discussions on budget priorities and challenges.” The first is scheduled to take place at Westover Library on Friday, Sept. 29. [Arlington County]
More Renovations for Crystal House — The second phase of an extensive renovation process at the massive, historic Crystal House apartment complex in Crystal City is complete: “Some of the amenities include two rooftop ‘sky decks’ with billiard tables, rooftop grilling and dining areas, and a fitness center with a yoga studio. There is also an Olympic-sized swimming pool, new lobbies with Wi-Fi, a clubroom, and a conference room.” [Curbed]
Arlington’s Little League Coach of the Year — Arlington Little League coach Larry Patent beat out 276 other coaches in the league to win the honor of Coach of the Year. “What makes Larry Patent special,” writes a reporter for TV station WUSA 9, “is that he coaches a team made up of players with mental and physical disabilities.” [WUSA 9]
County to Issue New Bonds — Arlington County is expected to sell tens of millions of dollars worth of revenue bonds next month. The bonds will fund the acquisition of the Buck property across from Washington-Lee High School, the “acquisition, design and construction of an office building at 2920 S. Glebe Road,” and “upgrades to the County’s Assessment and Collection system and Enterprise Payments System.” The bonds will also refinance older bonds and save up to $3.8 million. [Arlington County]
Jimmy Carter Can’t Help Local Office Market — Despite the protestations of a local civic activist, Arlington County officials say they cannot successfully sue the federal government over a 1970s-era executive order from President Jimmy Carter that gave D.C. and Arlington “priority in the location of federal agencies in the Washington area.” Federal offices have been moving out of Arlington for cheaper office space farther away from the District. [InsideNova]
Photo courtesy Joe Cashwell
Amazon, the giant online retailer/streaming video producer/cloud services provider, is searching North America for a second headquarters, and Arlington says it is submitting a proposal to put the county in the running.
The new headquarters, according to Amazon, will bring up to 50,000 well-paying jobs and $5 billion in investment to whichever city the company chooses. In return, Amazon is seeking enough space to build up to 8 million square feet of office in a concentrated area, and tax breaks and other economic incentives.
The Crystal City area and the Rosslyn-Ballston corridor fit the bill for many of the things Amazon is seeking, especially a talented workforce and transit connections, though the real estate is likely a bit more expensive than Amazon is hoping for.
Would you like to see Amazon come to one of those Arlington neighborhoods, with all the economic benefits that come with it, or would you prefer the company look elsewhere?
Online retail behemoth Amazon just announced that it is searching for a place to build a second headquarters, and Arlington officials say the county is tossing its hat in the ring.
Amazon is looking to build its “HQ2” in North America, in a metropolitan area with a population over 1 million and room to build up to 8 million square feet of transit-accessible office space in a pedestrian-friendly setting. The new headquarters is expected to come with $5 billion worth of investment and will create up to 50,000 jobs, with an average salary north of $100,000.
Other requirements include being within 30 miles of a population center and no more than 45 minutes away from an international airport.
Arlington, officials say, could fit the bill — and the county is planning to respond to Amazon’s request for proposals.
“Yes, we will be pursuing the opportunity,” said Arlington Economic Development spokeswoman Cara O’Donnell, adding that it is “too early to say which specific locations would be under consideration.”
One potential option is Arlington’s Crystal City neighborhood, which has a burgeoning tech scene and an existing plan to build up to 9.7 million square feet of office space, partially through the demolition of aging, vacant office buildings. It is also transit and highway accessible, within walking distance of Reagan National Airport and much of its office space is owned by one company.
Another option is Arlington’s millennial-heavy Rosslyn-Ballston corridor, along the Orange Line. Rosslyn recently scored Nestle’s U.S. headquarters and Ballston has been active in trying to attract tech companies and fill soon-to-be-vacated office space.
O’Donnell declined to say what Arlington’s pitch to Amazon will be, but the transit accessibility and skilled, young professional workforce is likely to be a selling point. Economic incentives and tax breaks from the county and the state will also undoubtedly be involved — Amazon has stated that will be a determining factor.
Competition for the new headquarters will be intense, as the winning jurisdiction will be instantly transformed into a formidable technology center. In the Washington region alone, D.C., Loudoun County and Prince George’s County have already indicated that they will also be pursuing Amazon.
NSF Starting Its Move to Alexandria — “Moving day for the first group of National Science Foundation workers relocating from the agency’s Ballston headquarters to Alexandria starts this weekend, more than four years — and more than a bit of controversy — after selecting the site for its new home.” [Washington Business Journal]
TSA Moving to Springfield — The headquarters of the Transportation Security Administration will be moving from Pentagon City to Springfield, after the GSA awarded a new 15-year, $316 million lease. The move is expected to take place in 2020. [Washington Business Journal]
‘Doc’ Muse Dies — “Leonard ‘Doc’ Muse, who for 65 years – from the era of Jim Crow to the election of an African-American president – watched over the Nauck community from his perch behind the counter of the Green Valley Pharmacy, died the weekend of Aug. 19-20. He was 94 years old.” [InsideNova]
Local Senior Completes Alcatraz Swim — Arlington resident Mary Schade, 71, completed the 1.5-mile Alcatraz Escape from the Rock swim in San Francisco, placing first in her age group. She was the second-oldest swimmer in the race, which featured choppy, 59-degree water and a stiff wind. [InsideNova]
Arlington History Books — “Our Man in Arlington” Charlie Clark has found a number of “out-of-the-mainstream histories of our fair county,” including one book, first published in 1957, that “summarizes two centuries of legal boundary changes” involving Arlington County or its geographic predecessors. [Falls Church News-Press]
Shirlington Apartment Building Bought, Rebranded — Waterton, a real estate investment firm, has acquired the 404-unit Windsor at Shirlington Village apartment complex and rebranded it as “The Citizen at Shirlington Village.” The purchase price for the apartment building at 3000 S. Randolph Street was a reported $144 million. The new Chicago-based owners plan to upgrade the apartment units, outdoor spaces and the fitness center. [Washington Business Journal, BusinessWire]
Teachers Explore New Commuting Options — With the encouragement of Arlington Public Schools, some teachers are switching from a solo driving commute to carpooling or biking, as seen in a new video from Arlington County’s Mobility Lab. [YouTube, Mobility Lab]
More School Boundary Changes Ahead — The always-controversial process of changing school boundaries in Arlington is on the School Board agenda during the next school year. The School Board plans to tackle middle school boundaries in the fall and elementary school boundaries in the spring. [InsideNova]
Arlington’s Energy Lending Program Lauded — “Arlington County’s Energy Lending Library program has received the Virginia Association of Counties (VACo) 2017 Achievement Award… Through the program, residents can borrow free energy efficiency tools from their local library, along with the information needed to identify and act on energy efficiency opportunities. These tools include: a thermal camera, a sampler kit of 10 different LED lightbulbs, an energy meter to manage home electricity use, and Do-It-Yourself energy retrofit books.” [Arlington County]
Vornado Trying to Offload Rosslyn Plaza — Vornado, which recently spun off most of its Arlington properties to the newly-renamed JBG Smith, retained ownership interests in a number of local properties. Among them is Rosslyn Plaza, which was approved for a massive development last year. Vornado is now trying to sell its share in the 7.65 acre property. [Washington Business Journal]
Flickr pool photo by John Sonderman
Arlington Man’s Dog Found Days After Fatal Crash — Ten days after 57-year-old Arlington resident William F. Schlesinger died in a crash on I-95 in North Carolina, his dog has been found alive. Nellie is being called a “miracle dog” after she wandered into a convenience store late at night with a broken leg and numerous bug bites. She had been riding in the pickup truck with Schlesinger when he reportedly fell asleep, veered off the highway and slammed into a tree. [Fayetteville Observer]
Local Election Fundraising Very Light — The frontrunners for Arlington County Board and School Board only have a few thousand dollars apiece in the bank as of the beginning of the month. Their opponents have even less. “It may turn out to be one of the least costly County Board general elections in recent history,” the Sun Gazette reports. [InsideNova]
State Dept. Office Staying in Arlington — The U.S. State Department is keeping its footprint in Rosslyn for another decade-and-a-half. The GSA signed a lease worth just over $200 million over 15 years for nearly 350,000 square feet of office space in central Rosslyn. The lease extends over two buildings, with one of the buildings also housing a private State Department contractor. [Washington Business Journal]
Update: W-L Expected to Reopen Next Week — Washington-Lee High School is expected to reopen for summer school classes next week after an air conditioning issue closed the school this week. W-L’s summer school classes were temporarily moved to Yorktown High School this week. [Arlington Public Schools]
‘Capital Bikeshare Fiesta’ in Nauck — “Arlington’s Dieta Cero-Auto program will be promoting Capital Bikeshare this Saturday at Drew Sprayground (3514 22nd Street S.) from 2-5 p.m. Stop by and purchase your CaBi membership for 50% off!” [Event Calendar]
Discovery Named ‘Green Ribbon School’ — “Discovery Elementary School is being recognized as a U.S. Department of Education Green Ribbon School… Discovery is one of 45 schools being honored for their innovative efforts to reduce environmental impact and utility costs, improve health and wellness, and ensure effective sustainability education.” [Arlington Public Schools]
County Opts to Acquire Hospital Site — Arlington County Board members on Tuesday voted to formally seek a large tract of land along S. Carlin Springs Road in a land swap with Virginia Hospital Center. In exchange, the county is offering to VHC county-owned land next to the hospital, which would allow it to expand. [Arlington County, InsideNova]
Bike Thefts Up in Arlington — Bike thefts were up for the first 6 months of 2017, compared to a year prior. No one seems to be safe from the prolific bike thieves, who often target high-end bikes parked in garages and bike lockers; among those reporting recent thefts were Henry Dunbar, the director of BikeArlington and Capital Bikeshare in Arlington, and an ABC 7 employee. [WJLA]
Gondola Project Not Dead — Though Arlington County has moved on from it, D.C. is still budgeting money to advance the proposed Rosslyn-to-Georgetown gondola project, including $250,000 for an environmental review of a potential gondola site near the C&O canal. One other intriguing factor: should the gondola run north of the Key Bridge, as shown in renderings, it may reach Arlington at the Key Bridge Marriott property, which is in the early stages of a potentially large-scale, mixed-use redevelopment. [Bisnow]
County Buys Office Building — As expected, the Arlington County Board has voted to purchase a low-slung office building at 2920 S. Glebe Road, to house Arlington’s head start program. The program is currently housed in the Edison Center next to Virginia Hospital Center, which is slated to be transferred to VHC in a land swap (see above). Arlington is paying $3.885 million for the Glebe Road property, nearly $1.5 million above its assessed value. [Arlington County]
JBG Has Big Plans for Crystal City — JBG Smith, the newly-formed combination of JBG and the Washington properties of Vornado, says repositioning and enhancing its 7 million square foot portfolio in Crystal City is a “top priority.” Among the changes in the works for the Bethesda-based firm: expanding the vacant office building at 1750 Crystal Drive, converting it to residential, and adding an Alamo Drafthouse Cinema and a grocery store. [Washington Business Journal]