(Updated at 10:20 a.m.) With half of its planned HQ2 now open in Pentagon City, Amazon is planning to leave most of its leased spaces in Crystal City.
Once the leases expire for temporary Amazon offices at 1800 S. Bell Street and 2100 Crystal Drive, in 2023 and 2024, respectively, JBG Smith intends to “take off-line and entitle [them] for alternate uses,” per a new report.
One of the buildings, 1800 S. Bell Street, could get the redevelopment treatment as early as 2026, the report says. JBG Smith included the property at the tail end of its near-term development pipeline for National Landing, the area composed of Crystal City, Pentagon City and Potomac Yard. It appears slated to remain for office use.
Amazon has always planned to consolidate its office space and move employees to its permanent HQ2, the first phase of which — Metropolitan Park — opened in June. There is still no word from the company on when the stalled second phase, Pen Place, could begin, though the delay may only be a year or so.
The tech company’s departure from two of its three leased offices will pile on more vacancies in JBG Smith’s portfolio, according to the real estate company’s report.
By the end of 2024, the company anticipates 1.2 million square feet of office space in National Landing will be vacated. Amazon currently occupies about half that square footage.
Amazon plans to continue to occupy 1770 Crystal Drive, located near the Alamo Cinema Drafthouse, the taqueria Tacombi and the proposed second entrance to the Crystal City Metro station, at the northwest corner of Crystal Drive and 18th Street S.
Excluding Amazon, JBG Smith says its current retention rate between now and the end of 2024 is about 50%, versus an annual average of about 70%. To bring the rate up, the company will focus on filling more up-to-date buildings going forward.
“Our efforts to re-lease certain spaces will be targeted toward buildings with long-term viability,” wrote Matthew Kelly in the report. “We expect to repurpose older, obsolete, and vacant buildings for redevelopment, conversion to multifamily, or another specialty use, ultimately reducing our competitive inventory in National Landing.”
JBG Smith declined to elaborate on what other specialty uses it envisions as well as properties it plans to either retain for tenants or develop.
Its report, however, outlines when each of its commercial holdings in Crystal City was built and when it was last renovated.
Of the four built in the late 1960s, three have not been updated since the mid-2000s. Another 10 were built in the 1980s and were renovated over the course of 15 years starting in 2006.
The report also provides a timeline for forthcoming redevelopment plans. It says Crystal City is slated to get new apartments in the following places:
- 2250 Crystal Drive and 223 23rd Street S., where an office building and the former Jaleo restaurant once stood
- “Block W,” currently composed of a parking lot, an off-ramp and a JBG-owned workout park
- 1415 S. Eads Street, or the Americana Hotel
A new office building is slated to come to 101 12th Street S. and either offices or apartments could come to 2525 Crystal Drive. JBG Smith has studied both at the site and the report currently lists its estimated residential redevelopment potential.
A map of JBG Smith’s commercial holdings in the area, as well as its pipeline of commercial and residential development opportunities, is below. Click on the window in the top left corner to see a description of the map, the different colors, and individual addresses.
(Updated at 5:15 p.m.) One pocket of Arlington County has the most office space on the market and seeking tenants in the D.C. area, according to a new report.
A submarket made up of Courthouse, Clarendon and Virginia Square tops the charts for its “availability rate” — which includes any offices that can be leased now or in the next year — because of its high concentration of older office buildings.
“There are a number of dated 1980s-constructed buildings that sit idle as tenants continue to re-evaluate their office needs and often move to newer or renovated buildings in different submarkets,” says Ben Plaisted, vice chairman at commercial real estate company Savills, which produced the report.
In this submarket, Arlington Economic Development staff says 80% of offices were built more than 20 years ago.
“National and regional trends show that new leases tend to prefer buildings built in the past 10 years,” the county’s economic development arm said in a statement. “As a result, submarkets with newer product tend to have lower availability and submarkets with older product tend to have higher availability.”
Across Arlington, vacancy is concentrated in older buildings: about 75% of vacant square footage is within buildings at least 30 years old, says AED.
In response, why Arlington County is trying to infuse old office buildings with a mix of emerging businesses, such as research and development, artisan workshops, breweries and distilleries, and even pickleball courts.
AED provided a few caveats to the report.
It says Savills combined Courthouse, Clarendon and Virginia Square into one submarket, while another real estate company, CoStar, only combines Courthouse and Clarendon. That changes the overall availability rate.
Without Virginia Square, Clarendon-Courthouse has the second-highest availability rate in Northern Virginia and the D.C. area, behind Herndon, according to July 2023 data from CoStar, AED said.
Including Virginia Square means adding one major construction project to the mix: George Mason University’s FUSE building, says AED. The new facility has over 100,000 square feet listed as available for tenants.
The economic development division also says availability rates should be taken with a grain of salt.
“Availability rates can mask available square feet, as submarkets vary greatly in size,” AED said. “Therefore, the same amount of available square footage would appear as much lower availability rates in larger submarkets.”
Like other parts of the nation, Arlington is seeing tenants seek out smaller offices in higher-quality buildings, dubbed the “flight to quality.”
Overall, the report notes Arlington has some of the highest rent prices in the D.C. area, which is due to building quality plus proximity to D.C. and Metro. Over 60% of Arlington’s office product is listed by CoStar as Class A, or those built recently with attractive amenities and high rents, among other features.
“[Tenants] are willing to pay top dollar for high quality space but by reducing their footprint, they are not increasing their overall real estate costs,” Plaisted said. “The war for talent continues to be prevalent in the market and occupiers are looking to incentivize staff to be at the office by upgrading their physical location and space.”
Not everyone is reducing their footprint, however. AED says a half-dozen Arlington-based firms, from consulting firms to to government contractors, expanded their offices over the last year.
Meanwhile, a handful of British tech firms recently opened outposts in Arlington, while shipbuilding company Huntington Ingalls moved some of its offices from D.C. to National Landing.
Arlington has scored some commercial real estate wins with retention of tenants. The only notable tenant that AED says — to their knowledge — fully moved out of Arlington over the past year is the tech company Ostendio, which is now fully virtual.
Photo via Google Maps
In another bid to encourage business growth, the Arlington County Board has made it easier to open shared kitchens and catering and food delivery operations.
On Saturday, the Board voted to amend the zoning ordinance to allow these uses by right in mixed-use, commercial and industrial zones throughout Arlington County. The changes streamline the regulatory approval process for several food-related uses, according to a county report.
“The outcomes of expanding food delivery to a by-right use support small business resilience by relieving businesses of unnecessary work,” the report said. That includes going before the County Board to seek approval for each use.
The changes are part of a flurry of approvals in the last 14 months to allow more uses by-right in these zoning districts. So far, the County Board has greenlit uses such as breweries, micro-fulfillment centers, podcasting studios, indoor pickleball and other emerging businesses to operate where they previously could not set up shop or needed special permission to do so.
All these updates happened in quick succession because County Manager Mark Schwartz debuted a faster zoning approval process that streamlined community engagement. The intent was to help Arlington respond quickly to changing market conditions and, ultimately, tackle the high office vacancy rate.
Food service was the next candidate for an update because, the report says, local regulations treated delivery operations like it was still 1988. (The iPhone debuted in 2007.)
Per the report, the zoning ordinance “does not account for the present-day popularity of modern food delivery services,” requiring food delivery not to exceed 20% of a restaurant’s sales.
Restaurants were relieved of that kind of provision — borne from a concern about delivery vehicle congestion — during the pandemic, the report said.
Food delivery has become a permanent part of how Arlingtonians eat, even after Covid dining restrictions lifted. This new way of doing business was under threat by the expiration of the Covid-era Continuity of Governance ordinance that relaxed delivery regulations.
The changes approved on Saturday, then, came in the knick of time for new and existing businesses, as the ordinance is set to expire in August — meaning the county would have reverted to 1988 delivery standards.
Businesses would have had to obtain County Board approval to continue delivery, had the Board voted down the zoning change. Some already did — Foxtrot in Rosslyn, for instance, went before the Board earlier this year to continue delivering beverages, ready-made food and grocery items.
Saturday’s vote also is helping another player in the app-based food delivery ecosystem: trailer-based ghost kitchens, the kind of which you might see in a parking lot between Clarendon and Courthouse. Ghost kitchen operators will no longer need certain permits to continue cooking.
Currently, in Arlington County, a podcasting studio would need to go through a county permitting process to inhabit an office building.
But that is likely changing.
A proposal to allow more “untraditional” uses in traditional office buildings is headed to the Arlington County Board this weekend.
On Saturday, the Board is set to consider revising the zoning ordinance to allow broadcasting studios and businesses in the audio-visual production field to occupy commercial space by right. It is also expanding what counts as research and development while allowing those uses by right, too.
Under the changes, entrepreneurs would no longer need a permit to outfit an office for podcasting and influencer studios — Instagram-ready backdrops for people to take photos and record content.
Arlington’s extensive roster of cybersecurity and artificial intelligence startups, meanwhile, would no longer need a permit to conduct research and development. Facilities doing technological, electronic, biological, scientific and engineering research would be able to lease a typical office building in the same way as any other office tenant.
These businesses could also engage in small-scale product design, development, prototyping and testing. The changes will not allow industrial scale production or manufacturing.
Arlington Economic Development says these are some emerging trends it is looking to pounce to tackle its office vacancy rate and remain competitive in a changing economic landscape. Otherwise, it may lose out to peer cities, such as Seattle and Cambridge, Massachusetts.
“In the past, [AED] has had prospects come through looking for flexible research and development space to locate their semiconductor and microchip, cyber and quantum computing, as well as artificial intelligence and machine learning companies,” according to a county report. “However, the AED team was not always readily able to accommodate those prospects due to zoning barriers.”
“The competition for attracting research and development investment is fierce, the market for these uses is strong, and technological advances have allowed these uses to fit seamlessly into existing business districts,” it continued.
This is the fourth zoning code update headed to the County Board in 13 months under the “Commercial Market Resiliency Strategy.”
Through this strategy, the county established a streamlined public engagement process that expedited the approval process for these changes. Some Planning Commissioners have balked at the shortened engagement period and the nuisances that may arise.
Despite these misgivings, the strategy has already been used to allow micro-fulfillment centers, urban agriculture, breweries and distilleries, and artisan workshops to operate in office buildings, without additional red tape.
Most recently, the County Board approved a broader definition of by-right indoor recreation use, meaning pickleball courts and ax-throwing could be coming to an office building near you.
Arlington is poised to buy two warehouses used by a dog-boarding facility in order to expand Jennie Dean Park.
On Saturday, the Arlington County Board is set to approve an agreement to buy the properties housing The Board Hound, at 3520 and 3522 S. Four Mile Run Drive in the Green Valley neighborhood, for $2 million.
The decision leaves New District Brewery to lick its wounds.
Co-owner Mike Katrivanos told ARLnow the brewery bid on the property as a “last shot” to staying open after its nearby 2709 S. Oakland Street location closes at the end of this month, due to a rent hike and lease disagreement. An indoor dog park and bar is set to take the brewery’s place.
Arlington County says it has been eyeing the Board Hound property since it adopted a master plan for Green Valley and Shirlington, dubbed Four Mile Run Valley, in 2018. The plan “identified for inclusion in the full buildout of Jennie Dean Park,” per a county report.
So when a real estate agent for The Board Hound, which operated in the area for some 10 years, asked the county if it was interested, the county pounced on the opportunity.
“The current owner has… has decided to close this location to consolidate its business at the main location in Alexandria on South Peyton Street,” the county says.
Arlington County says buying these properties helps to meet the goals of the 2019 Public Spaces Master Plan.
The plan calls for the addition of at least 30 acres of new public space over the next 10 years “to help address the challenge of meeting public spaces needs for a growing community.”
For park users, it may have a side benefit of reducing dog barking, which some have found to be a nuisance.
One Planning Commissioner at the start of this year referenced his experience at Jennie Dean Park in a conversation about how Arlington County should use zoning to regulate nuisances, such as dog barking, rather than entire businesses.
“I thought of Jennie Dean Park as I enjoyed it the other day with my children and the incessant barking that was continual and constant, and thought, those poor general neighbors across the street are enduring the constant barking of dogs but it’s next to an industrial zone,” said Stephen Hughes.
Industry is part of the area’s identity, as evidenced by several auto body shops, warehouses and Inner Ear Studios, which moved out of the neighborhood last year after the county bought the building it called home for decades.
Industrial use is also central to planning documents envisioning Green Valley as an “arts and industry district.”
Exactly what that will look like, however, depends on who is asked. The Green Valley Civic Association has previously said it takes a broader view of arts and industry than the county.
“From furniture-making to metal-working, from technological innovation to maker-spaces, from recording studios to culinary arts, in Green Valley we view the arts broadly,” civic association Vice-Chair Robin Stombler previously said.
As those uses materialize, the county continues its work to expand Jennie Dean Park.
In 2018, the County purchased the warehouse property located at 3514 S. Four Mile Run Drive and later demolished the building. WETA uses the property for parking.
On January 13, 2021, the County purchased 3620 27th St. S., which WETA is leasing for up to five years, or until January 2026. The public radio station will be able to move out of the building once new studios open at its renovated headquarters in Shirlington.
The county says it “could later vacate a significant portion of South 27th Street between the warehouse properties and the WETA property for incorporation into Jennie Dean Park.”
Developer Brookfield has signaled its plans to redevelop the vacant Transportation Security Administration office buildings in Pentagon City.
Last month, Brookfield filed preliminary plans outlining how it will redevelop the site. The filed documents are not site plans that illustrate the buildings it intends to construct, but rather, a high-level overview of what it intends to do with the property.
The real estate company has long had plans to redevelop the TSA buildings, located at 601 and 701 12th Street S., near the Pentagon City Metro entrance and between the Pentagon City mall and the second phase of Amazon’s HQ2. Those plans are currently paused and the buildings have been empty since the TSA left in March 2021 for Springfield, abandoning its original plans to move to Alexandria.
Brookfield put its redevelopment plans on hold in 2020 at the request of Arlington County planners, who were working on a new sector plan to guide future development in Pentagon City, per the Washington Business Journal.
More than a year after the passage of the Pentagon City Sector Plan, Brookfield is taking its first steps toward redeveloping the property, which it is calling “12th Street Landing.”
Brookfield is dividing the property into three land bays, which it will redevelop one at a time, according to land use attorney Kedrick Whitmore. It will apply for site plans for these land bays “in the future,” he adds.
“The proposed development will result in significant improvements to the Property and benefit the Pentagon City community,” per a letter to the county from Whitmore. “Indeed, to enable the requested density increase, the proposed development will provide community benefits on-site, consistent with the recommendations of the Sector Plan.”
The number of buildings within each land bay and their uses will be finalized at the site plan stage, wrote Whitmore. Brookfield will provide on-site affordable housing but other community benefits will be worked out during the site plan process.
In the application, Brookfield asks the county to approve the maximum allowable density in for the site, as outlined in the Pentagon City Sector Plan. It also asks for permission to allocate that density among “various buildings and uses” once it files site plans for the site.
Renovations to a pair of office buildings in Crystal City, including the construction of a new pedestrian plaza, are set to wrap up this spring.
Work kicked off last year at the Century Center towers, located at the intersection of Crystal Drive and S. Clark Street. Some older retail space between the buildings, previously known as Century One (2450 Crystal Drive) and Century Two (2461 S. Clark Street), was torn down to make room for the plaza.
Now, the upgrades to the 50-year-old buildings and the plaza between them are in the home stretch and set to be completed this spring, per an announcement from MRP Realty and LaSalle Investment Management. As part of the refresh, the towers are being rebranded simply as “Crystal & Clark.”
The exteriors and mall interior of the old Century Center buildings were “dated and washed-out,” per a press release. Now, the buildings “balance modern design with biophilic and organic touches” and feature “vibrant retail.”
The plaza, meanwhile, “is a reimagined central gathering hub between the two buildings,” per the release. It will be lined by retail, including a new Primrose Schools Early Education & Care location and forthcoming retailers in casual and fine dining, medical care and boutique fitness, as well as a food market, according to the building’s website.
“Century Center was an outmoded design with limited amenities and much-needed indoor/outdoor spaces for the offices, further complemented by the retail-accessible pedestrian plaza shared by the two buildings,” said Frederick Rothmeijer, Founding Principal of MRP’s Development, Construction Management and Asset Management operations, in a statement. “Our strategic plan executed with Davis Construction brings a palpable vitality to this property, and to the neighborhood, located in the center of the burgeoning National Landing.”
As part of the renovations, the plaza has new outdoor seating and gathering areas while the buildings have increased street-level retail and restaurant spaces, as well as streetscape improvements.
Inside, refreshed features include a new lobby and “the largest office conference center in National Landing,” per the press release. That’s in addition to a fitness center with locker rooms, second- and third-floor terraces with indoor and outdoor meeting spaces and a “townhall” amenity space.
“With our keen appreciation of the National Landing neighborhood, we are pleased to see the redevelopment come to fruition,” said Shaun Broome, Managing Director at LaSalle Investment Management. “We believe it will be a significant draw for new tenants and an improved chapter for those who have been onsite for years.”
The renovations have already attracted a “strong contingent of office leases,” despite the difficult office leasing environment, per the release. Arlington’s overall office vacancy rate is currently above 21%.
Raytheon renewed the lease for its corporate headquarters at the Crystal City office complex in 2021, with 120,000 square feet of space on six floors across both buildings.
In total, 2450 Crystal Drive comprises 336,229 square feet of office space and 51,443 square feet of retail. Of that, 36,000 square feet are leased out or a lease is being negotiated. 2461 S. Clark Street has 232,969 square feet of office space and 5,000 square feet of retail now under lease of the total 18,980 available.
“Once prospective tenants visit the site and see this radically improved office and retail environment — especially the food and dining choices, along with a continuing vision set in the very center of National Landing, the value of this position will be undeniable,” said Gary Cook, Senior Vice President Leasing for Lincoln Property Company, in a statement. “The ‘office lifestyle’ here is a game-changer that I believe all current and future tenants celebrate as we seek to bring them new synergistic neighbors to the building.”
Urban farms and breweries could be coming to a vacant office near you.
Over the weekend, the Arlington County Board approved a series of zoning changes aimed at tackling the stubborn office vacancy rate. They would allow the following tenants to move into offices by right:
- animal boarding facilities, provided animals are under 24-hour supervision
- urban farms
- urban colleges and universities
- breweries, distilleries and facilities making other craft beverages, such as kombucha and seltzer
- artisan workshops for small-scale makers working in media such as wood or metal, laser cutters, 3D printers, electronics and sewing machines
Colleges and universities or urban farms previously needed to seek out a site plan amendment, which requires Arlington County Board approval, to operate in spaces previously approved for office or retail use.
The code requires all animal boarding, farming and artisan product-making activities to occur inside the building.
A county report describes this existing process as “overly cumbersome” for entrepreneurs trying to prove their business concept as well as for landlords, “who may be averse to take a risk on a new type of use that may require significant building improvements.”
The changes require farms, craft beverage facilities and artisan workshops to maintain a storefront where they can sell goods made on-site to walk-in customers, which the report says could reinvigorate dead commercial zones.
“Artisan beverage uses can bring new life to vacant buildings, boost leasing demand and, when located in a walkable neighborhood, can attract both existing and potential residents, while creating active third places for the community to gather,” the report said. “By fostering space for small-scale makers, artisans, and the like, a creative economy can grow, and people who may not have the space for such activities in their urban apartments may see this as an attractive neighborhood amenity.”
Some of these uses were allowed along Columbia Pike in the fall of 2021 to encourage greater economic revitalization. At the same time, D.C.-based animal boarding company District Dogs was appealing zoning ordinances curtailing the number of dogs it could board overnight in Clarendon, prompting discussions about expanding the uses approved for the Pike throughout the county.
The next spring, County Manager Mark Schwartz developed a “commercial market resilience strategy” aimed at bringing down the county’s high office vacancy rate, fueled by persistent remote work trends catalyzed by the pandemic. The tool, which includes an expedited public review process, was first used last fall to allow micro-fulfillment centers to operate by-right in vacant office spaces.
In a letter to the County Board, Arlington Chamber of Commerce CEO Kate Bates said the rapid approval of these commercial activities is critical for attracting new and emerging businesses.
“The Chamber believes that the Zoning Ordinance needs reform, and that unnecessary restrictions on commercial use should be removed to help the economy of the County grow,” Bates wrote. “In the wake of record high commercial vacancy, timely change is needed. It is imperative that the County focuses on long-term solutions for new business models, both through increased adaptability for new uses and expedited timeframes for approval of these new uses.” Read More
The old Transportation Security Administration buildings in Pentagon City, vacant and awaiting redevelopment, could get put to a new, temporary use.
Avis Car Rental is looking to add rental operations to the pair of offices and their underground garages at 601 and 701 12th Street S. The business, which currently has a location at 2600 Richmond Hwy, has filed two applications, one for each building, with the county.
The TSA announced in 2015 that it would be leaving its headquarters for offices in Alexandria after the expiration of the five-year lease it signed in 2013. That stalled and amid the pandemic, the agency switched course and instead moved to Springfield, opening its headquarters in 2021.
At the time of the announcement, Arlington was coping with relatively high office vacancy rates driven in part by the departure of major tenants — including the U.S. Fish and Wildlife Service and the National Science Foundation — in search of cheaper leases.
After a dip down, the pandemic hit, sending the office vacancy rate even higher, where it has remained due to lasting remote work trends Covid catalyzed.
Avis proposes an alternative use until the owner of the office buildings, Brookfield Properties, razes these towers and builds four new towers with a mix of residential, office and retail uses. Brookfield’s redevelopment plans, first filed in 2019, are currently on hold.
“The proposed Vehicle Rental Use will further Arlington County’s goals and aims for a resilient commercial market,” attorney Matthew Weinstein, representing the car rental company, wrote in an application. “The Property is currently operating as a vacant office building until future redevelopment. The Vehicle Rental Use will improve existing conditions by activating space that would otherwise remain vacant for the short to mid-term. Moreover, the Vehicle Rental use will benefit the National Landing area by allowing customers arriving at National Airport to have a reliable and efficient option for renting vehicles during their visit to the Washington, D.C. area.”
Avis plans plans on using 50-250 spaces daily per garage, but is leasing some 922 parking spaces between the two TSA buildings to have extra space “depending on the operational needs,” such as handling overflow from other facilities, Weinstein writes.
Customers will access the facility from the lobbies of both buildings, where there will also be service counters. Avis plans to serve customers and rideshare drivers and rent an estimated 40-50 vehicles per day. The proposed hours of operation are 7 a.m. to 7 p.m., seven days a week.
“The Applicant’s vehicle rental facility network works cohesively to ensure each rental facility is meeting customer demands and the Applicant’s operational needs. This means that at certain times each vehicle rental facility in the Applicant’s network will back up and supplement each other depending on demand and operational requirements.”
Meanwhile, plans to redevelop the TSA buildings have been on hold since 2020, at the request of Arlington County planners, Brookfield previously told the Washington Business Journal. At the time, they were working on a new sector plan to guide future development in Pentagon City.
The plan that was in place when Brookfield filed preliminary redevelopment plans reached the end of its useful life in light of Amazon’s second headquarters. Despite some vocal opposition, the Arlington County Board approved a new plan that focuses on residential infill development and “ribbons” of tree- and plant-lined walking paths.
Brookfield did not return a request for comment about an updated timeline for redevelopment.
A property between Rosslyn and Courthouse that is home to an office building and two long-time restaurants has been sold to a developer with plans to build apartments and retail.
D.C.-based The Fortis Cos. bought the property at the intersection of Wilson Blvd and N. Rhodes Street for $14 million.
The site includes a four-story, 48,000-square-foot office building (1840 Wilson Blvd) and the restaurants Il Radicchio and Rhodeside Grill. The office building was the headquarters for the property’s previous owner, the nonprofit National Science Teaching Association (NSTA).
“This is a very familiar and highly visible property within the County and along the Rosslyn-Ballston corridor, and FORTIS is excited work on a new vision for the site, which will likely be mixed-use multifamily residential over ground floor retail,” Fortis Vice President Matt Bunch tells ARLnow.
In a press release announcing the sale, real estate company CBRE — which represented the nonprofit in the transaction — called the property “one of the last commercial development sites in the Rosslyn-Ballston corridor in Arlington.”
Its development potential and quarter-mile distance from the Courthouse Metro Station generated “a high level of interest from prospective buyers,” CBRE Senior Vice President Dean Stiles said in a statement. “We are confident that it will be a valuable asset for Fortis.”
Arlington County has identified this site for mixed-use redevelopment, and Fortis intends to build a seven-story, 85-foot-tall apartment building.
Bunch says that plans for the site are still tentative and there’s no timeline to share — yet.
“We are in the very early stages of exploring design alternatives for the property, but we look forward to working with the County and community this year as we pursue new redevelopment ideas for the block,” Bunch said. “As of the moment, we don’t have a timeline to share but we do intend to seek an extension of the prior site plan this year.”
Last year, Fortis submitted a conceptual site plan outlining its intentions and seeking county feedback on how high it can build. The application laid out plans to file an amendment in the first quarter of 2023 seeking an extension of the site plan until 2026.
This July, an existing site plan that is nearly 20 years old and has been extended several times will expire.
In November of 2005, the Arlington County Board originally approved a site plan that would have retained the NSTA building, demolished the restaurants and replaced them with a new, six-story office building with nearly 62,000 square feet of office space and 10,000 square feet of ground-floor retail and restaurant space.
In 2008, it granted an extension until 2011 and it was automatically extended until July 2020 by a state statute enacted in the wake of the Great Recession. The County Board subsequently granted extension until July 1, 2023.
This would be the second current project in Arlington for Fortis, which has also reprised long-dormant plans to turn a single-family detached home off of Route 50 near Courthouse into an apartment building.
“[It] is consistent with our strategy to create well-located and walkable transit-oriented redevelopments,” Bunch said. “It is also a testament to what we believe are strong economic fundamentals and demand drivers in the County that will continue for the foreseeable future.”
NSTA said via press release that it was time to let go of its physical presence in D.C. because the pandemic proved the organization could function well remotely.
“The organization was able to continue to function at a high level throughout the pandemic, while staff worked remotely and NSTA members were able to take part in many excellent virtual meetings and professional programs,” said NSTA Executive Director Erika Shugart, Ph.D. “After a long and thorough process and careful consideration, our board of directors decided to sell the property.”
In another bid to tackle the soaring office vacancy rate, Arlington County is mulling whether to fill vacant offices with unconventional tenants such as breweries and hydroponic farms.
The county is looking at allowing urban farms, artisan workshops, and craft beverage-making and dog boarding facilities to operate by-right in commercial, mixed-use districts throughout Arlington County. Some of these uses are already allowed along Columbia Pike.
Now above 21%, the office vacancy rate in Arlington spells lower tax revenue and belt-tightening for the under-development county budget. It ticked up during the pandemic and remained high even as buildings reopened, mask mandates were lifted and people returned to the office.
As the trend persisted, Arlington County Manager Mark Schwartz and his staff launched a “commercial market resilience strategy” to get new types of tenants moved in quickly. The strategy focuses on zoning changes with a limited impact on neighbors that can be approved with through a new, less involved public engagement process. The strategy was first used last fall to approve micro-fulfillment centers.
Last night (Wednesday), a majority of the Arlington County Planning Commission approved a request to authorize public hearings on this proposal.
“We do need to be thinking creatively,” said Planning Commission Vice-Chair Sara Steinberger. “I’m appreciative that the county came forward with a streamlined approach so we can start fast-tracking some things. The community feedback and involvement is essential and is a cornerstone of the Arlington Way and how we comport ourselves within this community. That said, it’s never fun to be bogged down in bureaucracy either, so when there is an opportunity to move more quickly on certain things in a limited field, I think it’s appropriate to do so.”
The proposal also would let colleges and universities, which can currently operate in offices only after obtaining a more burdensome site plan amendment, move in by right.
“They tend to be our strongest source of demand in office buildings at a time when we aren’t seeing much demand,” Marc McCauley, the director of real estate for Arlington Economic Development, told the Planning Commission.
Commissioners Stephen Hughes and James Schroll abstained from the final vote, reprising concerns they raised last year about the impact of these new uses on neighbors. While voting for the proposal, Commissioner Tenley Peterson questioned county staff about potential noise, smell and parking nuisances.
“I can see the good reasons for doing this,” Schroll said. “My reticicene is not necessarily what you’re doing on the zoning side, it’s more the outreach. There are some things that I feel like aren’t fully thought through… We’re pursuing these without fully understanding what use standards we need to put in place.”
Citing “incessant barking” from nearby dog-boarding facilities that can be heard from Jennie Dean Park, Hughes said he wants the community to understand that these changes would leave nuisance mitigation up to the condition of the building and county noise ordinances.
“There is no place in the entire county where your actions do not impact another person,” Hughes said, pushing staff to instead draft a document listing “externalities we can all agree to as a community that we will not do.”
