dtz va survey 2q15
DESCRIPTION
aTRANSCRIPT
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Market Report Northern Virginia | 2nd Quarter 2015
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DTZ | 2
DC Metropolitan Area Oveview...................................................................................................3
Northern Virginia & Map...........................................................................................................4-6
Alexandria ...................................................... ..................................................................................7
Arlington ................................................ ...........................................................................................8
Tysons Corner ............................................. ....................................................................................9
Reston/Herndon ...........................................................................................................................10
50/66 ................................................................................................................................................11
Springfriend/Newington...............................................................................................................12Route 28 South.................................................................................................................................13
Loudoun County ............................................................................................................................14
Appendix............................................................................................................................................15Tables...........................................................................................................................................15-24Methodology & Definitions.........................................................................................................25About DTZ......................................................................................................................................26
Contents
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www.dtz.com | 3
Washington, DC Metropolitan Area
WASHINGTON, DC METRO
Economic IndicatorsQ2 14 Q2 15 12-Month Forecast
DC Metro Employment 3.11M 3.18M
DC Metro Unemployment 5.0% 4.6%
U.S. Unemployment 6.1% 5.3%
Market IndicatorsQ2 14 Q2 15 12-Month Forecast
Overall Vacancy 15.6% 16.1%
Net Absorption 154K 666K
Under Construction 3.9M 5.8M
Deliveries 2.1K 567K
Average Asking Rent (FS) $35.91 $35.29
DC Metro Region Rises off the Bottom
After a lackluster performance in 2014, by midyear 2015 it was clear that the DC Metro economy is back on track. Job growth in 2014 was below average with just over 19,000 new nonfarm payroll jobs for the year; in fact the DC Metro Region was last among major metropolitan regions in job growth in 2014. Compare that to June 2015: over-the-year employment in the region was 64,000 net new jobs well above the historical average of 35,000 jobs per year. Adding to the good news is the return of office-using job growth to the region. Overall office-using employment (including federal government employment) in the DC Region shrank by 12,000 jobs in 2014. At midyear 2015, office-using employment had turned positive, driven by a surge of over 20,000 jobs in the high- paying Professional and Business Services sector since June of 2014. A closer examination of that very important sector shows that consulting has been leading the way in employment growth, adding 9,500 jobs from since June 2014, administrative jobs adding 8,100 positions and an even a modest growth in executive level management and legal services in the region.
Major regional demand drivers are at an inflection point. After being a drag on the local economy for the last four years, the Federal Government has reached stabilization both in terms of spending and employment. The federal contracting community that is an integral part of the suburban office landscape is estimated to be about 65% of the way through its round of downsizing. Finally, about 80% of law firms that account for a third of the District of Columbias downtown core market footprint have transacted deals. While these law firms as a whole have reduced size requirements and returned 1.2 million square feet to the market from 2011-2014, the impact of any future downsizing will be far less dramatic.
In retrospect, it appears that the DC Metro regions office market hit bottom in 2014 and is now poised for positive, if modest, conditions moving forward in the near term. The vacancy rate for the region stands at 16.1%, a 0.1% decrease from its level in the first quarter of 2015. More importantly, the decrease in regional vacancy signals a reversal from 15 straight quarters of flat or rising vacancy. The downtick in vacancy coincides with overall positive absorption of 670,000 sf for the second quarter, bringing the midyear absorption total to 390,000 sf. With this as a backdrop, investment in the region continues unabated. As of midyear 2015, $4 billion in transaction volume had occurred in the office sector signaling another robust year for investors bullish on prospects for the future of the DC Region.
Net Absorption/Asking Rent 4Q TRAILING AVERAGE
Washington, DC Metropolitan Area NET ABSORPTION - DELIVERIES - VACANCY
0%
4%
8%
12%
16%
-4
-2
0
2
4
6
8
10
12
05 06 07 08 09 10 11 12 13 14 YTD15
Vac
ancy
Rat
e
MS
F
Net Absorption Deliveries Vacancy Rate
$33.50
$34.00
$34.50
$35.00
$35.50
$36.00
$36.50
-1.0
0.0
1.0
2.0
2010 2011 2012 2013 2014 2015
Net Absorption, MSF Asking Rent, $ PSF
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DTZ | 4
Northern Virginia
Overall Vacancy
Large Blocks of Contiguous Space
Net Absorption/Asking Rent 4Q TRAILING AVERAGE
$28.00
$28.50
$29.00
$29.50
$30.00
$30.50
$31.00
$31.50
$32.00
-2.5
-2
-1.5
-1
-0.5
0
0.5
1
1.5
2
2010 2011 2012 2013 2014 2015
Net Absorption, MSF Asking Rent, $ PSF
Market IndicatorsQ2 14 Q2 15 12-Month Forecast
Overall Vacancy 18.1% 18.8%
Net Absorption 130K 370K
Under Construction 1.5M 1.9M
Deliveries 1.2M 308K
Average Asking Rent $31.66 $31.63
10%
12%
14%
16%
18%
20%
2010 2011 2012 2013 2014 2015
Historical Average = 16.2%
0 20 40 60 80
Alexandria
Arlington
Tysons Corner
Reston/Herndon
50/66
Springfield/Newington
Route 28 South
Loudoun County
# of Blocks
25-50k SF
50-100k SF
100-150k SF
150-200k SF
200k+ SF
EconomyThe Washington, DC Metropolitan Regions economy continues to thrive. Second-quarter 2015 data reflects positive job gains and falling unemployment. As of May 2015, the unemployment rate registered 4.6%, a 0.4 percentage point decline from May 2014. Northern Virginias (NoVA) economy has been equally impressive so far in 2015. Through May of this year, NoVAs economy has created 14,900 nonfarm payroll jobs, eclipsing its 2014 total of 12,100 nonfarm jobs. Since the end of the recession, employment gains have largely been concentrated in the surging leisure and hospitality services sector and thus have had no significant impact on office leasing demand. In 2015 though, nearly half of the jobs added year to date have been office-using jobs. The NoVA economy relies heavily both directly and indirectly on the federal government to bolster its economy. The size of the NoVA federal workforce has been contracting since 2011, but there are signs of increasing stability. In the second quarter of 2015, NoVA added 431 positions to federal payrolls. With increased budget authority for fiscal year 2015, federal government spending will increase for major NoVA demand drivers such as the Department of Defense, the National Science Foundation and the Defense Advanced Research Projects Agency. This spending will lead to increased contracting opportunities in the private sector, resulting in increased hiring and demand for office space.
Market OverviewAfter shedding 197,500 square feet (sf) during the first quarter of 2015, the Northern Virginia (NoVA) office market returned to growth during the second quarter of the year. The region registered 370,100 sf of absorption over the quarter, driven primarily by private sector demand. Unlike in the first quarter of the year, demand in NoVA submarkets located outside of the Capital Beltway outpaced that in the interior markets, absorbing 440,300 sf during the second quarter. The largest lease signed during the second quarter of 2015 in all of NoVA was that of Capital One which signed for 136,000 sf at 1750 Tysons Boulevard in Tysons Corner. The Fortune 200 firms expansion in Tysons backfilled space that was vacated by Deloitte in its move to Tysons Tower last year. Other notable leases included that for MC Dean which renewed its lease for 69,000 sf at 22980 Indian Creek Drive, and that for BDO which signed for 53,400 sf at 8401 Greensboro Drive as it relocated in Tysons. Federal contractor downsizing was evident again across the NoVA submarkets during the second quarter. Most notably, Unisys vacated 179,200 sf at 11493 Sunset Hills Road in Reston in a consolidation. Still, increased demand from the financial services and technology sectors offset space reductions from the contracting community.
As of the end of the second quarter of 2015, year-to-date absorption in NoVA registered 172,600 sf. With positive demand, the overall vacancy rate in NoVA dropped 0.2 percentage points from the previous quarter to 18.8%. NoVA still has over 30.5 msf of vacant space which is limiting rent growth in the market. At the end of the second quarter of 2015, average asking rents were $31.63 per square foot (psf) on a full-service basis, an increase of just $0.08 from a year ago. No major construction projects are scheduled to deliver in 2015; consequently vacancy could tighten as existing product captures demand and drives rents upward.
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Northern Virginia Office SubmarketsNorthern Virginia Office Submarkets
HERNDON
RESTON
LOUDOUN
ALGONKIAN PARKWAY
LOUD
OUN
COUN
TY
FAIR
FAX
COUN
TY
POTOMACRIVER
MARY
LAND
DIST
RICT
OF CO
LUMB
IA
VIRGINIA
VIRGINIA
MARYLAND
WASHINGTONDULLES
INTERNATIONALAIRPORT
395
95
123
123
7
7
29
1
29
29
50
50
50 50
236
28
28
FAIRFAX COUNTYPRINCE WILLIAM COUNTY
ARLIN
GTON
COUN
TY
FAIRF
AX CO
UNTY
VIENNA
RONALDREAGAN
WASHINGTON NATIONALAIRPORT
495
66
metro
metro
metro
metro
metro
6666
metro
PENTAGON
COURT HOUSE
CLARENDON
BALLSTONVIRGINIA SQUARE - GMU
metro
KING STREET
metro
metro
metro
metro
ROSSLYN
metro
metro
metro
286
267
495
metro
metrometrometro
267
267metro
metro
metro
286
metro
WASHINGTON, DC
FAIRFAX COUNTY
LOUDOUN COUNTY
PRINCE WILLIAM COUNTY
ARLINGTON COUNTY
metro
metro
metro
metro
FRANCONIA/SPRINGFIELD
VAN DORNSTREET
EISENHOWERAVENUE
EAST FALLSCHURCH
WEST FALLSCHURCH
DUNN LORING/MERRIFIELD
TYSONSCORNER
SPRINGHILL
WIEHLE - RESTONEAST
RESTON TOWNCENTER
HERNDON
PHASE I
INNOVATIONCENTER
DULLESAIRPORT
ROUTE 606
ROUTE772
PHASE II2016
MCLEANGREENSBORO
NATIONALAIRPORT
MARYLAND
CRYSTAL CITY
OLD TOWNALEXANDRIA
TYSONS
MERRIFIELD
FAIRFAX CENTERROUTE 28 SOUTH
RESTON
HERNDON
LOUDOUN
EISENHOWERAVENUE
SPRINGFIELD/NEWINGTON
I-395 CORRIDOR
R-B CORRIDOR
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DTZ | 6
Northern Virginia Office MarketInventory and Vacancy by Submarket, Second Quarter 2015
Top Transactions
Northern Virginia Office MarketNet Absorption - Deliveries - Vacancy, Second Quarter 2015
0%
4%
8%
12%
16%
20%
-4
0
4
8
04 05 06 07 08 09 10 11 12 13 14 YTD15
Vaca
ncy
Rate
MS
F
Net Absorption Deliveries Vacancy Rate
0%
5%
10%
15%
20%
25%
30%
0
5
10
15
20
25
30
35
40
Alexandria Arlington Tysons Toll Road 50/66 Springfield Route 28South
Loudoun
Vaca
ncy
Rate
MS
F
Leased Vacant Vacancy Rate
Key Sales Transactions 2Q 15
Key Lease Transactions 2Q 15
PROPERTY SF TENANT TRANSACTION TYPE SUBMARKET
1750 Tysons Boulevard 136,000 Capital One Relet Tysons Corner
22980 Indian Creek Drive 69,000 MC Dean Relet Route 28 North
8401 Greensboro Drive 53,400 BDO USA, LLP Relet Tysons Corner
901 North Glebe Road 45,000 Nixon & Vanderhye Renewal Ballston
3100 Clarendon Boulevard 43,300 Uber New Claredon/Courthouse
12110 Sunset Hills Road 41,500 Uber Relet Reston
13650 Dulles Technology Drive 39,700 Learning Tree Relet Herndon
1400 Crystal Drive 25,000 Allied Telecom New Crystal City
14151 Park Meadow Drive 24,000 Booz Allen Hamilton Renewal Route 28 South
3120 Fairview Park Drie 23,500 Spin Systems New Merrifield
2677 Prosperity Avenue 22,500 ICS Nett Relet Merrifield
PROPERTY SF SELLER/BUYER PRICE SUBMARKET
4121 & 4201 Wilson Boulevard 660,922 Dweck Properties / Jamestown $96,700,000 Ballston
1700 North Moore Street 407,364 Clover Management Corporation / American Real $82,200,000 Rosslyn
2600 Park Tower Drive 234,500 Blackstone Group / Columbia Office Properties Trust $82,100,000 Merrifield
8000 Jones Branch Drive 217,129 Walton Street JV Stonebridge Carras / EPR Properties $53,500,000 Tysons Corner
15040 Conference Center Drive 115,563 Carr Properties / Tritower Financial Gropu $27,500,000 Route 28 South
21345 Ridgetop Circle 101,875 LNR Partners / The Pinkinard Group, Buchanan, & $7,800,000 Route 28 North
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Alexandria
0%
4%
8%
12%
16%
20%
24%
-1,200
-700
-200
300
800
1,300
1,800
04 05 06 07 08 09 10 11 12 13 14 YTD15
Vaca
ncy
Rat
e
Squ
are
Fee
t, 00
0s
Net Absorption Deliveries Vacancy Rate
In the second quarter, Alexandria shed 142,800 sf, bringing its midyear absorption total to a negative 217,200 sf. Once again, demand was bifurcated in Alexandria with Old Town and the Eisenhower Avenue Corridor posting positive absorption and the lagging I-395 submarket returning space. The submarket has been hit hard by government and government contractor downsizing since 2011; that trend has continued into the second quarter of 2015. Exelis (fresh off its acquisition by Harris Corp.) vacated 53,000 sf at 2800 Shirlington Road in a consolidation effort. As in the recent past, deals for over 20,000 sf in Alexandria during the second quarter were renewals or rightsizings. Such was the case with HNTB which signed a renewal for 26,700 sf at 2900 South Quincy Streeta reduction of 8,000 sf from its previous space in the same building. With Base Realignment and Closure (BRAC) taking its toll on the I-395 submarket, leasing activity in Old Town and Eisenhower Avenue has been more robust. Unlike the HNTB deal, Sentel signed a new lease for 30,600 sf at 2800 Eisenhower Drive which resulted in 20,300 sf of growth for the market as they relocated from 1101 King Street in Old Town. This type of growth displayed by Sentel has been limited in Alexandria over the past few quarters as tenants have left for cheaper rates in Crystal City and consolidation efforts have negatively impacted the market as a whole.
During the second quarter, vacancy increased 0.7 percentage points from the first quarter to 21.6%. Vacancy in the I-395 submarket rose to an alarming 39.6%, the highest vacancy rate in Northern Virginia. Rents in Alexandria were up $0.29 from the previous quarter to $30.92 psf. Class B rents trailed top- quality Class A rates by $1.33, with Class A rents at $31.95 psf at the end of the second quarter.
Outlook The space efficiency dispute at the National Science
Foundation (NSF) could delay the arrival Alexandrias most highly-awaited tenant. But with GSA conceding more space per worker for the project there could be an increase in demand for Alexandria.
Following in the wake of the NSFs move to the Eisenhower Avenue submarket, another large GSA tenant requiring in excess of 600,000 sf is rumored to be taking a look at the submarketanother potential major demand driver.
Market Indicators*Arrows = Current Qtr Trend
Asking Rent
Net Absorption Deliveries Vacancy
Vacant and Available Space
2.3 2.83.9 3.8 4.3
4.4 4.5
1.5
2.3
1.6 1.5 0.8 0.80.8
0
1
2
3
4
5
6
Q4 10 Q4 11 Q4 12 Q4 13 Q4 14 Q1 15 Q2 15
MS
F
Vacant Marketed Available (not yet vacant)
$25
$27
$29
$31
$33
$35
$37
2009 2010 2011 2012 2013 2014 2015
Ful
l Ser
vice
PS
F
Class A Class B
Asking Rent$30.92 FS
Net Absorption(142,800) SF
Vacancy21.6%
Deliveries0 SF
Under Construction720,000 SF
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DTZ | 8
Arlington
0%
4%
8%
12%
16%
20%
24%
28%
-2,000
-1,500
-1,000
-500
0
500
1,000
1,500
04 05 06 07 08 09 10 11 12 13 14 YTD15
Vac
ancy
Rat
e
Squ
are
Fee
t, 00
0s
Net Absorption Deliveries Vacancy Rate
Vacancy in Arlington has remained virtually unchanged from a year ago, rising just 0.1 percentage points from the second quarter of 2014 to 22.9%. Arlington posted 72,600 sf of absorption during the second quarter, but the delivery of newly renovated 3100 Clarendon Boulevard increased the amount of vacant space in the market. The building, which was previously occupied by the Defense Intelligence Agency, underwent a significant renovation and was rewarded when it signed Uber for 39,800 sfone of the largest leases of the quarter. First-generation space was also absorbed in Crystal City during the second quarter. Allied Telecom leased a full floor (25,000 sf) at 1400 Crystal Drive in a move from the District. That same building, which had failed to sign additional tenants since delivering in the third quarter of 2013, has experienced a flurry of leasing activity during 2015. As large as the Uber deal was, it was not the largest deal of the quarter in Arlington. That title belonged to law firm Nixon Vanderhye which renewed for 45,000 sf at 901 North Glebe Road in Ballston. Another notable lease signed during the quarter was that of ICA Language Services which signed for 17,100 sf at 1501 Wilson Boulevard in Rosslyn as it relocated from 1901 N Moore Street. ICAs relocation in Rosslyn is indicative of the leasing landscape in the submarket. Rosslyn has struggled to attract new tenants recently and the majority of leasing activity has been relocations from existing tenants to nearby buildings in the submarket, creating a musical chairs scenario.
Rents in Arlington increased $0.08 from a year ago to $39.76 psf at the end of the second quarter of 2015. Arlington contains 21.5 msf of Class A product which has a relet vacancy rate of 15.8%. With a large supply of Class A space available, Arlington has the highest rates for top-quality product at $41.95 psf. With no additions to inventory until the delivery of the CEB Tower in 2018, existing quality product should capture substantial demand from tenants seeking a location proximate to the District.
Market Indicators*Arrows = Current Qtr Trend
Asking Rent
Net Absorption Deliveries Vacancy
Vacant and Available Space
2.74.4
6.17.9 8.1 8.0 8.02.6
2.92.0
1.9 2.13.3 3.3
0
2
4
6
8
10
12
Q4 10 Q4 11 Q4 12 Q4 13 Q4 14 Q1 15 Q2 15
MS
F
Vacant Marketed Available (not yet vacant)
$32
$34
$36
$38
$40
$42
$44
$46
2009 2010 2011 2012 2013 2014 2015
Full
Serv
ice P
SF
Class A Class B
Asking Rent$39.76 FS
Net Absorption72,600 SF
Vacancy22.9%
Deliveries259,300 SF
Under Construction552,800 SF
Outlook Sales activity was robust in Arlington during the second
quarter as both Rosslyn Metro Center and Stafford Place transacted. Investors are obviously still bullish on the interior submarkets that neighbor the District.
Rents could decline in the near term as Arlington landlords lower rates to keep key tenants from relocating to submarkets outside of the Beltway with Metro access or emerging submarkets in the District.
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Tysons Corner
0%
4%
8%
12%
16%
20%
-1,000
-500
0
500
1,000
1,500
04 05 06 07 08 09 10 11 12 13 14 YTD15
Va
can
cy R
ate
Sq
ua
re F
ee
t, 0
00
s
Net Absorption Deliveries Vacancy Rate
In the second quarter of 2015, the Tysons Corner submarket absorbed 91,000 sf bringing its midyear absorption total to 73,000 sf. Contractor downsizing was evident during the quarter, most notably in the West Gate minimarket. 7799 Leesburg Pike experienced a spike in vacancy as ManTech returned 54,000 sf to the market and United States Investigations Services shed 29,000 sf due to bankruptcy. Tysons is one the most diverse submarkets in regards to its tenant mix and thus Tysons does not necessarily rely solely on one specific sector to drive demand. This was certainly apparent in the second quarter as reductions by government contractors were offset by growth from financial services firms and technology companies. The largest lease signed in Northern Virginia during the second quarter was that of Capital One which signed for 136,000 sf at 1750 Tysons Boulevard. The Fortune 200 firms expansion in Tysons backfilled space that was vacated by Deloitte as it moved to 7900 Tysons One Place (Tysons Tower) last year. Elsewhere in Tysons, consulting firm BDO relocated from 8405 Greensboro Drive to nearby 8401 Greensboro Drive and signed for 53,400 sf. Another notable lease was that of Transwestern which signed for 13,200 sf at Tysons Tower. Tysons Tower, which delivered in the second quarter of 2014, has captured significant demand and is nearly 80% leased as NoVA tenants have continued to display a preference for top-quality product in locations proximate to Metro.
With positive absorption in the second quarter, vacancy decreased and rents rose, albeit slightly. Rents increased $0.08 from the previous quarter to $31.19 psf. The spread between Class A and B rents in the submarket rose to $6.74 with Class A rents currently at $34.06 psf. Owners of commodity product have lowered rates in an attempt to compete on a pricing basis with higher quality buildings. Vacancy in the submarket slid 0.8 percentage points from the previous quarter to 18.1%. Vacancy could increase in the near term with the delivery of 1775 Tysons Boulevard in the first quarter of 2016 as new product is added to inventory and pulls tenants from existing buildings. But as older buildings are renovated, repositioned or demolished, vacancy should return to equilibrium.
Market Indicators*Arrows = Current Qtr Trend
Asking Rent
Net Absorption Deliveries Vacancy
Vacant and Available Space
4.3 4.5 4.1 4.14.9 4.9 4.7
1.8 0.9 1.31.9
1.3 1.3 1.8
0
1
2
3
4
5
6
7
Q4 10 Q4 11 Q4 12 Q4 13 Q4 14 Q1 15 Q2 15
MS
F
Vacant Marketed Available (not yet vacant)
$25
$27
$29
$31
$33
$35
$37
$39
2009 2010 2011 2012 2013 2014 2015
Ful
l Ser
vice
PS
F
Class A Class B
Asking Rent$31.19 FS
Net Absorption91,000 SF
Vacancy18.1%
Deliveries0 SF
Under Construction476,900 SF
Outlook The arrival of the Silver Line Metro in Tysons has created
a bifurcated market in which buildings proximate to Metro stations have captured the majority of demand and those farther off Metro have either returned space or lost deals. In an effort to become more competitive, owners of buildings located off Metro will either have to lower rates, build competitive spec suites, or find a way to activate retail in the properties to entice tenants.
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DTZ | 10
Reston/Herndon
0%
4%
8%
12%
16%
20%
-500
0
500
1,000
1,500
2,000
2,500
04 05 06 07 08 09 10 11 12 13 14 YTD15
Va
can
cy R
ate
Sq
ua
re F
ee
t, 0
00
s
Net Absorption Deliveries Vacancy Rate
Demand in the Toll Road submarkets of Reston and Herndon rebounded in the second quarter of 2015; collectively these submarkets posted 115,500 sf of absorption. With positive demand, vacancy fell 0.3 percentage points from the previous quarter to 13.4%. As of the end of the second quarter, Restons premier office parksReston Town Center and Plaza Americahad vacancy rates of just 5.0%. With a shortage of space in these amenity-rich parks, surrounding office parks and buildings further along the Toll Road in Herndon have seen increased leasing activity. The largest lease signed in Reston and Herndon during the quarter was that of Uber which signed for 41,500 sf at 12110 Sunset Hills Road in Reston. Other notable leases during the quarter included Perfect Sense Digital which signed for 20,800 at 12120 Sunset Hills Road and Learning Tree which signed for 38,700 sf at 13650 Dulles Technology Drive in Herndon. Quality product along the Toll Road absorbed 118,500 sf during the quarter while Class B buildings returned space to the market. With Class A space performing well, the spread between Class A and B product rents increased to $7.77 with Class A rents now at $30.01 psf.
So far this year, large blocks have been absorbed along the Toll Road, but nearly every block that has come off the market in Reston has been followed by a larger vacancy coming to the market. In the second quarter, Unisys vacated the entire building at 11493 Sunset Hills Road, returning 179,200 sf to the Reston office market. With large blocks coming on line, vacancy in Reston has struggled to decline in 2015 and is currently 0.2 percentage points above its year-end 2014 level at 14.6%. Herndons vacancy rate is one of the lowest in Northern Virginia at 11.5%; however, the submarkets availability rate is significantly higher at 23.3%. That means several large blocks will likely be coming back to the market and vacancy could increase if demand falters.
Market Indicators*Arrows = Current Qtr Trend
Asking Rent
Net Absorption Deliveries Vacancy
Vacant and Available Space
4.8 4.6 4.5 4.0 4.2 4.2 4.0
2.31.2 1.8 2.2
2.7 2.2 2.2
0
1
2
3
4
5
6
7
8
Q4 10 Q4 11 Q4 12 Q4 13 Q4 14 Q1 15 Q2 15
MS
F
Vacant Marketed Available (not yet vacant)
$20
$22
$24
$26
$28
$30
$32
2009 2010 2011 2012 2013 2014 2015
Ful
l Ser
vice
PS
F
Class A Class B
Asking Rent$28.19 FS
Net Absorption115,500 SF
Vacancy13.4%
Deliveries0 SF
Under Construction0 SF
Outlook The Toll Road currently has 23.7 msf of Class A product
but only 2.5 msf of that was built after 2006. Construction could be around the corner for the Toll Road as the last completed office project delivered in 2009.
Increased competition for a dwindling supply of quality space in Reston appears to be driving velocity. Tenants now are moving faster to execution on deals in the expectation that the quality space wont be available if they dont act quickly.
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50/66
0%
4%
8%
12%
16%
20%
-1,000
-800
-600
-400
-200
0
200
400
600
04 05 06 07 08 09 10 11 12 13 14 YTD15
Vaca
ncy
Rate
Square
Feet, 0
00s
Net Absorption Deliveries Vacancy Rate
Vacancy in the 50/66 Corridor decreased by 0.5 percentage points from the previous quarter to 15.8% as the submarkets of Merrifield, Vienna, Oakton, Fairfax Center and Fairfax City collectively absorbed 89,500 sf. In previous quarters, the Merrifield submarket and particularly the Fairview Park office park lost several large tenants to more urban and Metro-proximate submarkets such as Tysons and Reston, but in the second quarter Merrifield bounced back absorbing 68,900 sf. The largest lease in Merrifield during the second quarter was that of Spin Systems which signed for 23,500 sf of first-generation space at 3120 Fairview Park Drive. That deal left the Merrifield market with only 35,000 sf of new space available for lease. Another noteworthy lease during the quarter was signed by Actionet Inc. which expanded by 11,000 sf at 2600 Park Tower Drive. The Corridor would have posted even larger absorption totals, but contractor downsizing was once again evident in the market. Boeing vacated 20,000 sf at 2650 Park Tower Drive in Merrifield and CGI returned 18,000 sf at 11325 Random Hills Road in Fairfax Center.
The 50/66 Corridor was one of the few markets in which demand for Class B product rivaled that of Class A absorption. During the quarter, 37,300 sf of high-end product was absorbed and legacy B buildings followed closely behind, absorbing 35,300 sf. The absorption of Class B space is not surprising considering its competitive pricing. As of the end of the second quarter, average rent for Class A product was $7.29 ahead of commodity product at $30.78 psf.
Market Indicators*Arrows = Current Qtr Trend
Asking Rent
Net Absorption Deliveries Vacancy
Vacant and Available Space
3.1 3.1 2.9 3.0 3.0 3.2 3.2
0.9 0.3 1.21.2 1.1
1.3 1.6
0.0
1.0
2.0
3.0
4.0
5.0
6.0
Q4 10 Q4 11 Q4 12 Q4 13 Q4 14 Q1 15 Q2 15
MS
F
Vacant Marketed Available (not yet vacant)
$22
$24
$26
$28
$30
$32
$34
2009 2010 2011 2012 2013 2014 2015
Ful
l Ser
vice
PS
F
Class A Class B
Asking Rent$28.69 FS
Net Absorption89,500 SF
Vacancy15.8%
Deliveries0 SF
Under Construction0 SF
Outlook With no construction projects currently underway and
with the success of the Mosaic District, expect future development in the area to place more emphasis on amenities to meet changing tenant preferences. Rumors that the Mosaic District could move on a spec office site to follow on the success of 2905 District Avenue have been whispered.
After four years of increasing uncertainty, contractor-dependent submarkets such as Fairfax City and Fairfax Center could see new requirements as stabilization is occurring in the federal sector both in terms of employment and spending.
-
DTZ | 12
Springfield/Newington
0%
4%
8%
12%
16%
20%
24%
28%
32%
-300
-200
-100
0
100
200
300
400
500
04 05 06 07 08 09 10 11 12 13 14 YTD15
Va
can
cy R
ate
Sq
ua
re F
ee
t, 0
00
s
Net Absorption Deliveries Vacancy Rate
Leasing activity in Springfield/Newington was light during the second quarter of 2015. The submarket posted 24,100 sf of absorption during the quarter, bringing midyear absorption to 66,500 sf. Modest leasing caused vacancy to trickle down by 0.4 percentage points from the previous quarter to 26.4%. We could see vacancy in the submarket increase in the near term as Springfields availability rate is an alarming 40.6%. One factor that may limit future vacancy in the submarket is the vacancy rate of new space. At the end of the second quarter, Springfield contained 2.3 msf of Class A space with and a vacancy rate for new space of 24.2%the highest in Northern Virginia. Vacancy should tighten further as tenants continue showing a preference for new quality space and since future construction is limited due to a large amount of existing new product currently being marketed for lease. Vacancy could also decrease if Springfield were chosen as the location for the new FBI headquarters. The submarket was on the shortlist for possible relocation sites last year and is still anxiously awaiting news of a final decision which has the potential for driving additional demand in Springfield.
Rents in Springfield dipped $0.17 from the previous quarter to $31.31 psf. Class A rents are among the highest in Northern Virginia submarkets located outside of the Beltway at $37.61 psf. The delta between A and B product in the submarket is currently $14.34 with Class B rents falling to $23.27 psf. With Class B product offered at a substantial discount, Class B product outpaced high-end space by absorbing nearly double the amount of space during the second quarter of the year.
Market Indicators*Arrows = Current Qtr Trend
Asking Rent
Net Absorption Deliveries Vacancy
Vacant and Available Space
0.40.9 0.9
1.5 1.6 1.5 1.50.3
0.4 0.4
0.4 0.4 0.50.7
0.0
0.5
1.0
1.5
2.0
2.5
Q4 10 Q4 11 Q4 12 Q4 13 Q4 14 Q1 15 Q2 15
MS
F
Vacant Marketed Available (not yet vacant)
$20
$24
$28
$32
$36
$40
2009 2010 2011 2012 2013 2014 2015
Ful
l Ser
vice
PS
F
Class A Class B
Asking Rent$31.31 FS
Net Absorption24,100 SF
Vacancy26.4%
Deliveries0 SF
Under Construction0 SF
Outlook Although government contractors should see a boost
in federal spending during 2015, Springfields emerging healthcare sector could be another source of demand for the contractor-centric submarket.
With the Springfield Malls overhaul and transformation into the Springfield Town Center, there the potential of over 1,000,000 sf of office development on the site. Reston Town Center and the Mosaic District have found success with this model and Springfield could be next as tenant preferences continue to shift away from traditional business parks.
-
www.dtz.com | 13
Route 28 South
0%
4%
8%
12%
16%
20%
24%
-500
0
500
1,000
1,500
2,000
04 05 06 07 08 09 10 11 12 13 14 YTD15
Va
can
cy R
ate
Sq
ua
re F
ee
t, 0
00
s
Net Absorption Deliveries Vacancy Rate
Leasing activity increased in the Route 28 South submarket during the second quarter of 2015 as the submarket posted absorption of 38,000 sf. Although that demand total was modest, it appears the submarket could be turning a corner after shedding 63,000 sf during the first quarter of the year. During the second quarter, the submarket was unscathed by large move-outs by federal contractors which have plagued the region. In fact, some growth came from the federal contracting sector. Booz Allen Hamilton renewed its 24,000 sf lease at 14151 Park Meadow Drive and expanded by an additional 10,200 sf. There were also a number of renewals from contractors, proving how resilient the submarket is in retaining tenants. General Dynamics Information Technology Inc. (GDIT) renewed for 20,000 sf at 14151 Newbrook Drive and Blackbird Technologies, which was acquired by Raytheon at the end of 2014, also renewedfor 18,600 sf at 13900 Lincoln Park Drive.
With positive demand, vacancy declined 0.3 percentage points from the previous quarter to 19.9%. Vacancy in the submarket is still elevated from a year ago due to decreased overall demand. Still, with a large supply of quality product and increased federal spending, resurgence in demand is likely. A large portion of the space in the Route 28 South submarket72%is Class A product, so it is not that surprising that the majority of absorption during the quarter was sourced from high-quality buildings. Class A absorption for the quarter totaled 54,900 sf and demand for Class B space was scarce with legacy assets returning 17,000 sf to the market.
The second of COPTs two Stonecroft buildings remains under construction with an anticipated delivery date in the second quarter of 2016. Initially, it was thought the U.S. Government would occupy both 4850 and 4870 Stonecroft Boulevard; while that remains a possibility it now appears that the building will be marketed for lease. Demand for a new quality building proximate to a government tenant will be a good indicator of where the submarket is trending.
Market Indicators*Arrows = Current Qtr Trend
Asking Rent
Net Absorption Deliveries Vacancy
Vacant and Available Space
2.31.9 2.1 2.2
2.5 2.7 2.7
0.40.5 0.5
0.91.0 0.8 0.9
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
Q4 10 Q4 11 Q4 12 Q4 13 Q4 14 Q1 15 Q2 15
MS
F
Vacant Marketed Available (not yet vacant)
$18
$20
$22
$24
$26
$28
$30
2009 2010 2011 2012 2013 2014 2015
Ful
l Ser
vice
PS
F
Class A Class B
Asking Rent$24.75 FS
Net Absorption38,000 SF
Vacancy19.9%
Deliveries0 SF
Under Construction161,00 SF
Outlook Route 28 Souths access to fiber will be substantial
demand driver as increased spending for cloud computing and cybersecurity continues to balloon.
-
DTZ | 14
Loudoun County
0%
4%
8%
12%
16%
20%
24%
-200-100
0100200300400500600700800
04 05 06 07 08 09 10 11 12 13 14 YTD15
Vaca
ncy
Rate
Square
Feet, 0
00s
Net Absorption Deliveries Vacancy Rate
Loudoun County absorbed 82,300 sf during the second quarter of 2015, bringing its midyear absorption total to 173,800 sf. With stable demand, vacancy declined 0.3 percentage points from the previous quarter to 16.8%. The Route 7 Corridor experienced the most significant demand during the quarter with 43,600 sf of absorption. The main driver of demand in the submarket was merchant services firm Electronic Transaction System Corporations (ETS) which signed for 27,000 sf at 20135 Lakeview Center Place in Ashburn. ETS was the first tenant to sign a lease in the building, which delivered in 2009. Although ETSs full floor deal was large, the most significant lease signed in the County during the second quarter was that of MC Dean. The government contractor renewed its lease for 69,000 sf at 22980 Indian Creek Drive in the Route 28 North submarket.
The lone delivery during the second quarter outside of the Capital Beltway occurred in the Route 28 North submarket. Loudoun Station, a 49,100 sf project at 43777 Central Station Drive, delivered without any leasing activity, and thus Loudoun Countys Class A inventory increased to 7 msf. Similar to most of Northern Virginias submarkets, top-quality product in the Loudoun County submarkets was also in high demand during the second quarter of 2015. The Loudoun submarkets collectively absorbed 108,400 sf of Class A space during the quarter and returned 25,900 sf of legacy Class B product. Rents in Loudoun County have remained relatively flat over the past few quarters and they dipped slightly during the second quarter. Overall rents averaged $23.41 psf with Class A rents averaging $25.01 psf.
Market Indicators*Arrows = Current Qtr Trend
Asking Rent
Net Absorption Deliveries Vacancy
Vacant and Available Space
1.9 2.0 1.9 2.1 2.1 2.0 1.9
0.7 0.60.4
0.40.1 0.3 0.3
0.0
0.5
1.0
1.5
2.0
2.5
3.0
Q4 10 Q4 11 Q4 12 Q4 13 Q4 14 Q1 15 Q2 15
MS
F
Vacant Marketed Available (not yet vacant)
$16
$18
$20
$22
$24
$26
$28
2009 2010 2011 2012 2013 2014 2015
Ful
l Ser
vice
PS
F
Class A Class B
Asking Rent$23.41 FS
Net Absorption82,300 SF
Vacancy16.8%
Deliveries49,100 SF
Under Construction20,500 SF
Outlook Loudoun County is one of the fastest growing counties in
the nation. It has struggled to find an appropriate balance between residential developmentwhich is in high demand but takes a heavy toll on public resources (such as roads and schools)and commercial development which generally pays more into the tax base than it draws. Expect to continue to see conditions that require the commercial portions of large developments to be constructed prior to allowing additional residential development.
-
www.dtz.com | 15
Appendix
Table Summaries
Metro Washington Office Market Summary13
Employment Data13
Office Availability, Vacancy, and Net Absorption14
Trailing 12-Month Data15
Historical Year-End Data16
Market Statistics by Class17-18
Survey of New Office Space by Submarket19-22
Methodology & Definitions23
Metro Washington Current Employment Data
Metro Washington Office Market Summary: Second Quarter 2015p
SOURCE: U.S. Bureau of Labor Statistics (Not seasonally adjusted)* Average per year to datep - preliminary
TotalInventory
Total SpaceVacant
VacancyRate
Q2 2015Absorption
YTDAbsorption
Washington, DC 122,850,343 13,562,737 11.0% 275,133 250,129
Northern Virginia 162,377,414 30,463,789 18.8% 370,078 172,605
Suburban Maryland 72,887,967 13,466,110 18.5% (79,631) 36,624
Regional Totals 358,115,724 57,492,636 16.1% 665,580 459,358
Non Farm Employment
(Jan-June 2014)
Non FarmEmployment
(Jan-June 2015p)
Jobs Added/ Lost* Percent Change
Washington, DC 751,100 761,950 10,850 1.4%
Northern Virginia 1,376,800 1,397,000 20,200 1.5%
Suburban Maryland 956,550 974,250 17,700 1.9%
Regional Totals 3,101,550 3,155,450 53,900 1.7%
-
DTZ | 16
AppendixO
ffice
Ava
ilabi
lity,
Vac
ancy
, and
Net
Abs
orpt
ion,
Sec
ond
Qua
rter
201
5p
Tota
l In
vent
ory
New
Spa
ce
Vaca
ntR
elet
Spa
ce
Vaca
ntS
uble
t Spa
ce
Vaca
ntTo
tal S
pace
Va
cant
Vaca
ncy
Rat
eN
ew S
pace
A
bsor
ptio
nR
elet
A
bsor
ptio
nS
uble
t A
bsor
ptio
nTo
tal N
et
Abs
orpt
ion
Ros
slyn
8,81
7,40
2 54
6,80
2 2,
036,
477
63,2
72
2,64
6,55
1 30
.0%
19
30,8
36
(12,
567)
18,2
88
Cla
rend
on/C
ourt
-ho
use
4,86
2,81
6 30
7,45
6 60
3,66
9 69
,764
98
0,88
9 20
.2%
39,6
98
(77,
051)
(4,7
91)
(42,
144)
Virg
inia
Squ
are
1,12
0,83
1 0
239,
508
53,8
99
293,
407
26.2
%0
1,61
7 (3
,343
)(1
,726
)
Bal
lsto
n7,
332,
378
74,9
47
1,19
7,12
4 49
,892
1,
321,
963
18.0
%0
51,4
07
2,94
5 54
,352
Cry
stal
City
11,0
36,7
48
441,
774
2,00
0,68
4 33
,446
2,
475,
904
22.4
%18
,912
38
,833
10
,985
68
,730
Pent
agon
City
1,78
1,46
3 0
281,
756
0 28
1,75
6 15
.8%
0 (2
4,90
7)0
(24,
907)
Arli
ngto
n C
ount
y34
,951
,638
1,
370,
979
6,35
9,21
8 27
0,27
3 8,
000,
470
22.9
%58
,629
20
,735
(6
,771
)72
,593
R/B
Cor
ridor
122
,133
,427
92
9,20
5 4,
076,
778
236,
827
5,24
2,81
0 23
.7%
39,7
17
6,80
9 (1
7,75
6)28
,770
Old
Tow
n8,
059,
172
3,23
7 79
3,87
0 86
,979
88
4,08
6 11
.0%
0 39
,882
1,
404
41,2
86
Eise
nhow
er4,
883,
598
332,
937
152,
203
10,8
03
495,
943
10.2
%24
0 19
,103
0
19,3
43
I-395
7,91
4,85
5 60
5,99
8 2,
303,
517
227,
601
3,13
7,11
6 39
.6%
0 (2
00,3
22)
(3,1
15)
(203
,437
)
Ale
xand
ria20
,857
,625
94
2,17
2 3,
249,
590
325,
383
4,51
7,14
5 21
.7%
240
(141
,337
)(1
,711
)(1
42,8
08)
Insi
de th
e B
eltw
ay2
55,8
09,2
63
2,31
3,15
1 9,
608,
808
595,
656
12,5
17,6
15
22.4
%58
,869
(1
20,6
02)
(8,4
82)
(70,
215)
Tyso
ns C
orne
r25
,884
,383
24
9,13
3 4,
029,
891
400,
136
4,67
9,16
0 18
.1%
180
162,
735
(71,
878)
91,0
37
Res
ton
18,3
08,2
62
36,5
61
2,36
6,04
9 26
5,12
6 2,
667,
736
14.6
%0
(58,
891)
70,8
39
11,9
48
Her
ndon
11,7
37,0
88
36,1
55
1,16
3,52
6 14
6,88
0 1,
346,
561
11.5
%8,
291
88,3
71
6,85
0 10
3,51
2
Mer
rifie
ld7,
878,
879
35,0
63
1,34
1,80
5 47
,150
1,
424,
018
18.1
%26
,527
(1
7,58
5)59
,909
68
,851
Vien
na1,
170,
945
0 84
,790
0
84,7
90
7.2%
0 (9
9)0
(99)
Oak
ton
1,01
0,26
1 0
232,
881
3,20
9 23
6,09
0 23
.4%
0 (2
,775
)0
(2,7
75)
Fairf
ax C
ente
r6,
538,
055
0 91
3,88
6 52
,625
96
6,51
1 14
.8%
0 9,
971
2,25
7 12
,228
Fairf
ax C
ity3,
352,
765
0 43
8,55
3 10
,188
44
8,74
1 13
.4%
0 12
,980
(1
,731
)11
,249
28 S
outh
13,5
85,1
73
183,
565
2,39
2,46
0 12
5,20
0 2,
701,
225
19.9
%0
30,1
17
7,84
3 37
,960
Spr
ingfi
eld/
New
ingt
on5,
551,
040
556,
469
781,
289
125,
694
1,46
3,45
2 26
.4%
0 24
,120
0
24,1
20
Fairf
ax C
ount
y95
,016
,851
1,
096,
946
13,7
45,1
30
1,17
6,20
8 16
,018
,284
16
.9%
34,9
98
248,
944
74,0
89
358,
031
50/6
6319
,950
,905
35
,063
3,
011,
915
113,
172
3,16
0,15
0 15
.8%
26,5
27
2,49
2 60
,435
89
,454
28 N
orth
6,16
0,98
2 89
,179
68
4,10
8 79
,963
85
3,25
0 13
.8%
51,4
75
(30,
102)
(1,7
84)
19,5
89
Rou
te 7
4,29
0,60
7 22
0,45
1 72
8,45
6 1,
538
950,
445
22.2
%31
,481
6,
243
5,90
7 43
,631
Lees
burg
1,04
8,94
8 11
,945
10
6,84
0 5,
410
124,
195
11.8
%18
,914
12
8 0
19,0
42
Loud
oun
Cou
nty
11,5
00,5
37
321,
575
1,51
9,40
4 86
,911
1,
927,
890
16.8
%10
1,87
0 (2
3,73
1)4,
123
82,2
62
Out
side
the
Bel
tway
210
6,51
7,38
8 1,
418,
521
15,2
64,5
34
1,26
3,11
9 17
,946
,174
16
.8%
136,
868
225,
213
78,2
12
440,
293
Nor
ther
n V
irgin
ia16
2,32
6,65
1 3,
731,6
72
24,8
73,3
42
1,858
,775
30
,463
,789
18
.8%
195,
737
104,
611
69,7
30
370,
078
1 The
Ros
slyn/
Balls
ton
(R/B
) cor
ridor
is co
mpr
ised
of R
ossly
n, C
lare
ndon
/Cou
rtho
use,
Virg
inia
Squ
are,
and
Bal
lston
subm
arke
ts.
2 In
side
the
Beltw
ay is
com
prise
d of
Arli
ngto
n Co
unty
and
Ale
xand
ria/O
utsid
e th
e Be
ltway
is co
mpr
ised
of Fa
irfax
and
Loud
oun
Coun
ties
3 Th
e 50
/66
corri
dor i
s com
prise
d of
Mer
rifiel
d, V
ienn
a, O
akto
n, Fa
irfax
Cen
ter,
and
Fairf
ax C
ity su
bmar
kets
.
****
New
Spa
ce A
vaila
ble
and
New
Spa
ce A
bsor
ptio
n ba
sed
on b
uild
ings
del
iver
ed 2
005
to p
rese
nt
P - P
relim
inar
y
-
www.dtz.com | 17
AppendixTr
ailin
g 12
-Mon
th D
ata
Tota
l Offi
ce In
vent
ory
Offi
ce V
acan
cy R
ate
Tota
l Offi
ce A
bsor
ptio
n
3rd
Qtr
201
44t
h Q
tr 2
014
1st Q
tr 2
015
2nd
Qtr
20
15p
3rd
Qtr
20
144t
h Q
tr
2014
1st Q
tr
2015
2nd
Qtr
20
15p
3rd
Qtr
20
144t
h Q
tr
2014
1st Q
tr
2015
p2n
d Q
tr
2015
p
Ros
slyn
8,81
7,40
28,
817,
402
8,81
7,40
28,
817,
402
30.8
%30
.7%
30.2
%30
.0%
(58,
898)
11,2
54
40,1
86
18,2
88
Cla
rend
on/
Cou
rtho
use
4,86
2,81
64,
862,
816
4,86
2,81
64,
862,
816
13.6
%14
.0%
14.0
%20
.2%
(21,
574)
(18,
880)
1,43
0 (4
2,14
4)
VA S
quar
e1,
120,
831
1,12
0,83
11,
120,
831
1,12
0,83
1 25
.2%
26.1
%26
.0%
26.2
%(2
1,18
9)(1
0,74
6)1,
143
(1,7
26)
Bal
lsto
n7,
332,
378
7,33
2,37
87,
332,
378
7,33
2,37
8 18
.2%
19.0
%18
.8%
18.0
%(9
4,23
0)(5
5,51
9)13
,587
54
,352
Cry
stal
City
11,2
45,3
5611
,245
,356
11,2
45,3
5611
,036
,748
25
.4%
24.4
%24
.5%
22.4
%13
5,92
1 12
1,08
1 (1
2,74
3)68
,730
Pent
agon
City
1,78
1,46
31,
781,
463
1,78
1,46
31,
781,
463
14.4
%14
.4%
14.4
%15
.8%
0 0
0 (2
4,90
7)
Arli
ngto
n C
nty
35,1
60,2
4635
,160
,246
35,1
60,2
4634
,951
,638
23
.1%
22.9
%22
.8%
22.9
%(5
9,97
0)47
,190
43
,603
72
,593
R/B
Cor
ridor
122
,133
,427
22,1
33,4
2722
,133
,427
22,1
33,4
27
22.6
%22
.9%
22.6
%23
.7%
(195
,891
)(7
3,89
1)56
,346
28
,770
Old
Tow
n8,
109,
935
8,10
9,93
58,
109,
935
8,05
9,17
2 11
.6%
11.2
%11
.4%
11.0
%58
,930
31
,897
(2
0,11
1)41
,286
Eise
nhow
er4,
883,
598
4,88
3,59
84,
883,
598
4,88
3,59
8 10
.7%
10.2
%10
.6%
10.2
%(3
8,63
5)25
,021
(1
8,57
5)19
,343
I-395
47,
914,
855
7,91
4,85
57,
914,
855
7,91
4,85
5 34
.5%
36.6
%37
.1%
39.6
%(2
4,01
5)(1
68,7
89)
(35,
734)
(203
,437
)
Ale
xand
ria20
,908
,388
20,9
08,3
8820
,908
,388
20,8
57,6
25
20.0
%20
.6%
20.9
%21
.7%
(3,7
20)
(111
,871
)(7
4,42
0)(1
42,8
08)
Insi
de th
e B
eltw
ay2
56,0
68,6
3456
,068
,634
56,0
68,6
3455
,809
,263
21
.9%
22.1
%22
.1%
22.4
%(6
3,69
0)(6
4,68
1)(3
0,81
7)(7
0,21
5)
Tyso
ns25
,996
,268
26,0
87,2
2326
,087
,223
25,8
84,3
83
17.1
%18
.9%
18.9
%18
.1%
101,
351
(333
,500
)(1
8,01
7)91
,037
Res
ton
18,3
08,2
6218
,308
,262
18,3
08,2
6218
,308
,262
15
.0%
14.4
%14
.6%
14.6
%(1
08,1
91)
102,
302
(41,
206)
11,9
48
Her
ndon
11,7
37,0
8811
,737
,088
11,7
37,0
8811
,737
,088
12
.5%
12.7
%12
.4%
11.5
%(3
6,33
4)(2
5,00
3)40
,964
10
3,51
2
Mer
rifie
ld7,
878,
879
7,87
8,87
97,
878,
879
7,87
8,87
9 15
.6%
15.7
%18
.9%
18.1
%2,
626
(6,6
40)
(205
,930
)68
,851
Vien
na1,
219,
275
1,21
9,27
51,
170,
945
1,17
0,94
5 10
.8%
10.5
%7.
2%7.
2%2,
207
3,11
6 (4
,644
)(9
9)
Oak
ton
1,01
0,26
11,
010,
261
1,01
0,26
11,
010,
261
23.8
%23
.0%
23.1
%23
.4%
7,66
9 7,
584
(800
)(2
,775
)
Fairf
ax C
ente
r6,
538,
055
6,53
8,05
56,
538,
055
6,53
8,05
5 14
.9%
14.8
%15
.0%
14.8
%(8
12)
10,0
12
(13,
442)
12,2
28
Fairf
ax C
ity3,
352,
765
3,35
2,76
53,
352,
765
3,35
2,76
5 13
.7%
13.9
%13
.7%
13.4
%31
,578
(5
,722
)5,
522
11,2
49
28 S
outh
13,4
31,2
7313
,431
,273
13,5
85,1
7313
,585
,173
16
.7%
18.8
%20
.2%
19.9
%(1
2,46
9)(6
7,67
4)(6
3,04
2)37
,960
Spr
ingfi
eld/
New
ingt
on4
5,59
8,64
05,
598,
640
5,55
1,04
05,
551,
040
26.9
%28
.2%
26.8
%26
.4%
(10,
152)
(71,
313)
42,4
27
24,1
20
Fairf
ax C
ount
y95
,070
,766
95,1
61,7
2195
,219
,691
95,0
16,8
51
16.2
%17
.0%
17.4
%16
.9%
(22,
527)
(386
,838
)(2
58,1
68)
358,
031
50/6
6319
,999
,235
19,9
99,2
3519
,950
,905
19,9
50,9
05
15.2
%15
.1%
16.3
%15
.8%
43,2
68
8,35
0 (2
19,2
94)
89,4
54
28 N
orth
6,11
1,88
36,
111,
883
6,11
1,88
36,
160,
982
14.3
%14
.2%
13.5
%13
.8%
72,9
49
5,61
6 46
,594
19
,589
Rou
te 7
4,29
0,60
74,
290,
607
4,29
0,60
74,
290,
607
24.8
%24
.4%
23.2
%22
.2%
(24,
428)
17,3
35
52,3
99
43,6
31
Lees
burg
1,04
8,94
81,
048,
948
1,04
8,94
81,
048,
948
13.2
%12
.9%
13.7
%11
.8%
2,73
2 2,
246
(7,4
81)
19,0
42
Loud
oun
Cou
nty
11,4
51,4
3811
,451
,438
11,4
51,4
3811
,500
,537
18
.1%
17.9
%17
.1%
16.8
%51
,253
25
,197
91
,512
82
,262
Out
side
the
Bel
tway
210
6,52
2,20
410
6,61
3,15
910
6,67
1,12
910
6,51
7,38
8 16
.4%
17.1
%17
.3%
16.8
%28
,726
(3
61,6
41)
(166
,656
)44
0,29
3
Nor
ther
n V
irgin
ia16
2,59
0,83
816
2,68
1,793
162,
739,
763
162,
326,
651
18.4
%18
.8%
19.0
%18
.8%
(34,
964)
(426
,322
)(1
97,4
73)
370,
078
1 The
Ros
slyn/
Balls
ton
(R/B
) cor
ridor
is co
mpr
ised
of R
ossly
n, C
lare
ndon
/Cou
rtho
use,
Virg
inia
Squ
are,
and
Bal
lston
subm
arke
ts.
2
Insid
e th
e Be
ltway
is co
mpr
ised
of A
rling
ton
Coun
ty a
nd A
lexa
ndria
/Out
side
the
Beltw
ay is
com
prise
d of
Fairf
ax a
nd Lo
udou
n Co
untie
s.
3 Th
e 50
/66
corri
dor i
s com
prise
d of
Mer
rifiel
d, V
ienn
a, O
akto
n, Fa
irfax
Cen
ter,
and
Fairf
ax C
ity su
bmar
kets
.
4 Th
e I-3
95 a
nd S
prin
gfiel
d/N
ewin
gton
subm
arke
ts w
ere
upda
ted
in th
e se
cond
qua
rter o
f 201
2 w
ith a
dditi
onal
inve
ntor
y. p-
pre
limin
ary
-
DTZ | 18
AppendixH
isto
rical
Yea
r-En
d D
ata
Tota
l Inv
ento
ryVa
canc
y R
ate
(%)
Tota
l Ann
ual A
bsor
ptio
n
2013
20
1420
15p
2013
2014
2015
p20
1320
1420
15p
Arli
ngto
n C
ount
y35
,187
,499
35
,160
,246
34,9
51,6
3822
.5%
22.9
%22
.9%
(720
,085
)(8
2,55
3)11
6,19
6
R/B
Cor
ridor
222
,001
,420
22
,133
,427
22,1
33,4
2720
.5%
22.9
%23
.7%
(836
,033
)(3
21,5
01)
85,1
16
Ale
xand
ria4
20,9
08,3
88
20,9
08,3
8820
,857
,625
18.1
%20
.6%
21.7
%14
5,83
7 (1
79,9
00)
(217
,228
)
Insi
de th
e B
eltw
ay1
56,0
95,8
87
56,0
68,6
3455
,809
,263
20.9
%22
.1%
22.4
%(5
74,4
59)
(262
,453
)(1
01,0
32)
Tyso
ns C
orne
r25
,471
,289
26
,087
,223
25,8
84,3
8316
.3%
18.9
%18
.1%
(107
,423
)(1
30,5
77)
73,0
20
Res
ton
18,3
08,2
62
18,3
08,2
6218
,308
,262
14.7
%14
.4%
14.6
%40
0,14
8 33
,134
(2
9,25
8)
Her
ndon
11,7
37,0
88
11,7
37,0
8811
,737
,088
11.2
%12
.7%
11.5
%28
0,78
0 (1
81,3
19)
144,
476
50/6
6320
,063
,883
19
,999
,235
19,9
50,9
0514
.8%
15.1
%15
.8%
(77,
341)
(116
,436
)(1
29,8
40)
28 S
outh
13
,056
,023
13
,431
,273
13,5
85,1
7316
.5%
18.8
%19
.9%
270,
089
217,
655
(25,
082)
Spr
ingfi
eld/
New
ingt
on4
5,55
8,64
0 5,
598,
640
5,55
1,04
027
.2%
28.2
%26
.4%
(239
,973
)(2
7,48
5)66
,547
Fairf
ax C
ount
y94
,195
,185
95
,161
,721
95,0
16,8
5115
.7%
17.0
%16
.9%
526,
280
(205
,028
)99
,863
Loud
oun
Cou
nty
11,3
95,7
57
11,4
51,4
3811
,500
,537
18.0
%17
.9%
16.8
%(1
27,0
22)
87,6
97
173,
774
Out
side
the
Bel
tway
*10
5,59
0,94
2 10
6,61
3,15
9 10
6,51
7,38
8 15
.9%
17.1
%16
.8%
399,
258
(117
,331
)27
3,63
7
Nor
ther
n Vi
rgin
ia16
1,68
6,82
9 16
2,68
1,79
316
2,32
6,65
117
.6%
18.8
%18
.8%
(174
,990
)(3
79,7
84)
172,
605
1 Ins
ide
the
Beltw
ay is
com
prise
d of
Arli
ngto
n Co
unty
and
Ale
xand
ria/O
utsid
e th
e Be
ltway
is co
mpr
ised
of Fa
irfax
and
Loud
oun
Coun
ties
2
The
Ross
lyn/
Balls
ton
(R/B
) cor
ridor
is co
mpr
ised
of R
ossly
n, C
lare
ndon
/Cou
rtho
use,
Virg
inia
Squ
are,
and
Bal
lston
subm
arke
ts.
3
The
50/6
6 co
rrido
r is c
ompr
ised
of M
errifi
eld,
Vie
nna,
Oak
ton,
Fairf
ax C
ente
r, an
d Fa
irfax
City
subm
arke
ts.
4
The
I-395
and
Spr
ingfi
eld/
New
ingt
on su
bmar
kets
wer
e up
date
d in
the
seco
nd q
uarte
r of 2
012
with
add
ition
al in
vent
ory.
-
www.dtz.com | 19
Northern Virginia 2nd Quarter 2015 Market Statistics
BuildingsTotal
Inventory(SF)
New Vacancy
(%)
Relet Vacancy
(%)
Sublet Vacancy
(%)
Total Vacancy*
(%)
Total Availability
(%)
Net Absorption
Current QTR(SF)
Under Construc-
tion(SF)
Average Asking Rent(FS)
Alexandria
Class
A 77 11,298,198 3.0% 19.6% 0.6% 24.1% 20.6% (4,192) 720,000 $31.95
B 138 8,717,254 0.0% 3.1% 0.4% 18.9% 28.4% (139,288) 0 $30.62
C 36 892,936 0.0% 0.6% 0.0% 3.0% 4.7% 672 0 $24.28
TOTAL 251 20,908,388 2.6% 17.9% 0.6% 21.6% 25.1% (142,808) 720,000 $30.92
Arlington
Class
A 87 21,480,999 6.3% 15.8% 1.1% 23.3% 30.9% 17,446 552,781 $41.95
B 67 11,813,994 0.0% 23.5% 0.2% 23.7% 29.2% 39,235 0 $37.49
C 15 1,656,645 0.0% 9.8% 0.0% 9.8% 49.5% 15,912 0 $34.62
TOTAL 169 34,951,638 3.9% 18.2% 0.8% 22.9% 30.8% 72,593 552,781 $39.76
Tysons Corner
Class
A 76 17,566,187 1.4% 14.7% 1.6% 17.7% 23.8% 123,499 476,913 $34.06
B 89 8,181,552 0.0% 17.3% 1.5% 18.8% 27.4% (32,462) 0 $27.32
C 5 136,644 0.0% 12.5% 0.0% 12.5% 12.8% - 0 $23.23
TOTAL 170 25,884,383 1.1% 15.4% 1.5% 18.1% 24.7% 91,037 476,913 $31.19
Reston/Herndon
Class
A 150 23,736,978 0.2% 10.8% 1.7% 12.8% 20.5% 118,521 0 $30.01
B 151 6,101,108 0.0% 15.8% 0.2% 16.0% 21.0% (8,221) 0 $22.24
C 9 207,264 0.0% 12.5% 0.0% 12.5% 22.9% 5,160 0 $27.94
TOTAL 310 30,045,350 0.2% 11.7% 1.4% 13.4% 20.6% 115,460 0 $28.19
50/66
Class
A 89 12,343,025 0.3% 18.3% 0.6% 19.2% 27.0% 37,269 0 $30.78
B 167 7,109,828 0.0% 10.0% 0.5% 10.5% 16.5% 35,288 0 $23.49
C 29 498,052 0.0% 8.3% 1.1% 9.4% 10.6% 16,897 0 $21.60
TOTAL 285 19,950,905 0.2% 15.1% 0.6% 15.8% 22.8% 89,454 0 $28.69
* Vacancy Current - the vacancy rate is calculated using the combined total of vacant direct, sublease and new space.
Market Statistics
-
DTZ | 20
Northern Virginia 2nd Quarter 2015 Market Statistics
Market Statistics
BuildingsTotal
Inventory(SF)
New Va-cancy
(%)
Relet Vacancy
(%)
Sublet Vacancy
(%)
Total Vacan-
cy*(%)
Total Availability
(%)
Net Absorption
Current QTR(SF)
Under Construc-
tion(SF)
Average Ask-ing
Rent(FS)
Springfield/Newington
Class
A 19 2,302,487 24.2% 8.8% 5.1% 38.1% 43.2% 8,770 0 $37.61
B 44 3,033,365 0.0% 19.1% 0.3% 19.3% 38.8% 15,350 0 $23.27
C 1 215,188 0.0% 0.0% 0.0% 0.0% 0.0% - 0 $0.00
TOTAL 64 5,551,040 10.0% 14.1% 2.3% 26.4% 28.4% 24,120 0 $31.31
Route 28 South
Class
A 70 9,718,536 1.9% 17.3% 0.2% 19.4% 27.1% 54,944 161,030 $26.33
B 75 3,848,845 0.0% 18.0% 2.8% 20.8% 30.3% (16,984) 0 $21.70
C 3 17,792 0.0% 100.0% 0.0% 100.0% 100.0% - 0 $14.79
TOTAL 148 13,585,173 1.4% 17.6% 0.9% 19.9% 28.1% 37,960 161,030 $24.75
Loudoun County
Class
A 69 6,965,385 3.8% 12.1% 1.2% 17.9% 18.6% 108,419 - $25.01
B 128 4,371,562 0.1% 14.9% 0.1% 15.0% 17.2% (25,944) 20,500 $20.75
C 5 163,590 0.0% 16.4% 0.5% 17.0% 17.8% (213) 0 $19.31
TOTAL 202 11,500,537 2.4% 13.3% 0.8% 16.8% 17.5% 82,262 49,099 $23.41
Northern Virginia
Class
A 637 105,411,795 3.6% 14.9% 1.2% 19.7% 25.8% 464,676 1,910,724 $32.99
B 859 53,076,595 0.0% 15.2% 0.7% 15.9% 24.6% (133,026) 20,500 $29.13
C 103 3,788,111 0.0% 7.8% 0.2% 8.0% 20.5% 38,428 0 $30.89
TOTAL 1,599 162,377,414 2.4% 14.8% 1.0% 18.8% 25.3% 370,078 1,931,224 $31.63
* Vacancy Current - the vacancy rate is calculated using the combined total of vacant direct, sublease and new space.
-
www.dtz.com | 21
Nor
ther
n Vi
rgin
ia S
urve
y of
Offi
ce S
pace
Und
er C
onst
ruct
ion/
Und
er R
enov
atio
n
Ros
slyn
BU
ILD
ING
AD
DR
ESS
OW
NER
/DEV
ELO
PER
REN
TAL
RAT
EST
ATU
SD
ELIV
ERY
DAT
ER
ENTA
BLE
B
UIL
DIN
G A
REA
AVAI
LAB
LE
SPAC
EPE
RC
ENT
PREL
EASE
D
MAJ
OR
TEN
ANTS
1201
Wils
on B
oule
vard
The
JBG
Com
pani
es$5
5.00
-$65
.00
FSU
/C1Q
1855
2,78
119
5,70
065
%C
orpo
rate
Exe
cutiv
e B
oard
Tota
l 5
52,7
81
195,
700
65%
Eise
nhow
er A
venu
e
BU
ILD
ING
AD
DR
ESS
OW
NER
/DEV
ELO
PER
REN
TAL
RAT
EST
ATU
SD
ELIV
ERY
DAT
ER
ENTA
BLE
B
UIL
DIN
G A
REA
AVAI
LAB
LE
SPAC
EPE
RC
ENT
PREL
EASE
D
MAJ
OR
TEN
ANTS
2401
Eis
enho
wer
Ave
nue
US
AA
Rea
l Est
ate
Com
pany
/Low
e E
nter
pris
esN
/AU
/C1Q
1772
0,00
020
,102
97%
The
Nat
iona
l Sci
ence
Fou
ndat
ion
Tota
l 7
20,0
00
010
0%
Lees
burg
BU
ILD
ING
AD
DR
ESS
OW
NER
/DEV
ELO
PER
REN
TAL
RAT
EST
ATU
SD
ELIV
ERY
DAT
ER
ENTA
BLE
B
UIL
DIN
G A
REA
AVAI
LAB
LE
SPAC
EPE
RC
ENT
PREL
EASE
D
MAJ
OR
TEN
ANTS
109-
111
Eas
t Mar
ket S
treet
Dav
id C
antra
ll &
Ass
ocia
tes
$25.
00-$
27.0
0 FS
U/C
3Q15
20,5
0020
,500
0%N
/A
Tota
l 2
0,50
0 2
0,50
0 0%
Rou
te 2
8 So
uth
BU
ILD
ING
AD
DR
ESS
OW
NER
/DEV
ELO
PER
REN
TAL
RAT
EST
ATU
SD
ELIV
ERY
DAT
ER
ENTA
BLE
B
UIL
DIN
G A
REA
AVAI
LAB
LE
SPAC
EPE
RC
ENT
PREL
EASE
D
MAJ
OR
TEN
ANTS
4870
Sto
necr
oft B
oule
vard
Cor
pora
te O
ffice
Pro
perti
es T
rust
N/A
U/C
2Q16
161,
030
161,
030
0%N
/A
Tota
l 1
61,0
30
161
,030
0%
Stat
usO
pera
ting
Expe
nse
and
Rea
l Est
ate
Tax
Bas
eU
/C =
Und
er C
onst
ruct
ion
FS
= F
ull S
ervi
ce
NN
= P
lus
Ele
ctric
& C
har
N/A
= N
o S
pace
Ava
ilabl
eU
/R =
Und
er R
enov
atio
nN
=
Plu
s E
lect
ric
NT
= P
lus
Taxe
sN
NN
= N
et o
f all
Ope
ratin
g E
xpen
ses
and
Taxe
s
-
DTZ | 22
Nor
ther
n Vi
rgin
ia S
urve
y of
Offi
ce S
pace
Und
er C
onst
ruct
ion/
Und
er R
enov
atio
n
Tyso
ns C
orne
r
BU
ILD
ING
AD
DR
ESS
OW
NER
/DEV
ELO
PER
REN
TAL
RAT
EST
ATU
SD
ELIV
ERY
DAT
ER
ENTA
BLE
B
UIL
DIN
G A
REA
AVAI
LAB
LE
SPAC
EPE
RC
ENT
PREL
EASE
D
MAJ
OR
TEN
ANTS
1775
Tys
ons
Bou
leva
rdLe
rner
Ent
erpr
ises
$55.
00 F
SU
/C1Q
1647
6,91
347
6,91
30%
N/A
Tota
l 4
76,9
13
476
,913
0%
Nor
ther
n Vi
rgin
ia
Sum
mar
yR
ENTA
BLE
B
UIL
DIN
G A
REA
AVAI
LAB
LE
SPAC
EPE
RC
ENT
PREL
EASE
D
2015
DEL
IVER
IES
20,5
0020
,500
0%
2016
DEL
IVER
IES
637,
943
637,
943
0
2017
DEL
IVER
IES
720,
000
20,1
0297
%
2018
DEL
IVER
IES
552,
781
195,
700
65%
TOTA
L C
UR
REN
TLY
UN
DER
C
ON
STR
UC
TIO
N/R
ENO
VATI
ON
1,9
31,2
24
874
,245
55
%
Stat
usO
pera
ting
Expe
nse
and
Rea
l Est
ate
Tax
Bas
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/C =
Und
er C
onst
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FS
= F
ull S
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ce
NN
= P
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= N
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pace
Ava
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Und
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enov
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s E
lect
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NT
= P
lus
Taxe
sN
NN
= N
et o
f all
Ope
ratin
g E
xpen
ses
and
Taxe
s
-
www.dtz.com | 23
Nor
ther
n Vi
rgin
ia S
urve
y of
New
Offi
ce S
pace
2015
Del
iver
ies
BU
ILD
ING
AD
DR
ESS
OW
NER
/DEV
ELO
PER
STAT
US
REN
TAL
RAT
ESU
BM
ARK
ETR
ENTA
BLE
B
UIL
DIN
G A
REA
NEW
SPA
CE
AVAI
LAB
LEVA
CAN
CY
RAT
E (A
S O
F C
UR
REN
T Q
UAR
TER
) *PE
RC
ENT
LEAS
ED
UPO
N D
ELIV
ERY
3100
Cla
rend
on B
oule
vard
Pied
mon
t Offi
ce R
ealty
Tru
stR
enov
atio
n C
ompl
eted
2Q
15$2
8.00
-$29
.00
FSC
lare
ndon
/Cou
rthou
se25
9,33
119
2,08
474
%26
%
4377
7 C
entra
l Sta
tion
Driv
eC
omst
ock
Partn
ers
Del
iver
ed 2
Q15
$28.
00-$
29.0
0 FS
Rou
te 2
8 N
orth
49,0
9949
,099
100%
0%
4850
Sto
necr
oft B
oule
vard
Cor
pora
te O
ffice
Pro
perti
es T
rust
Del
iver
ed 1
Q15
N/A
Rou
te 2
8 So
uth
153,
900
00%
100%
Tota
l 4
62,3
30
241
,183
52
%48
%
2014
Del
iver
ies
BU
ILD
ING
AD
DR
ESS
OW
NER
/DEV
ELO
PER
STAT
US
REN
TAL
RAT
ESU
BM
ARK
ETR
ENTA
BLE
B
UIL
DIN
G A
REA
NEW
SPA
CE
AVAI
LAB
LEVA
CAN
CY
RAT
E (A
S O
F C
UR
REN
T Q
UAR
TER
) *PE
RC
ENT
LEAS
ED
UPO
N D
ELIV
ERY
1071
8 R
ichm
ond
Hig
hway
I-95
Busi
ness
Par
ks /
Col
ches
ter L
and
Com
pany
Del
iver
ed 1
Q14
N/A
Sprin
gfie
ld/N
ewin
gton
40,0
000
0%10
0%
3001
Was
hing
ton
Boul
evar
dPe
nzan
ce C
ompa
nies
Del
iver
ed 2
Q14
With
held
Cla
rend
on/C
ourth
ouse
92,1
3561
,969
67%
1%
3003
Was
hing
ton
Boul
evar
dIn
vesc
o R
ealty
Adv
isor
s / P
enza
nce
Del
iver
ed 2
Q14
$54.
00 F
SC
lare
ndon
/Cou
rthou
se21
1,17
06,
649
3%89
%
7900
Tys
ons
One
Pla
ceM
acer
ich
/ Hin
esD
eliv
ered
2Q
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5.00
-$60
.00
FSTy
sons
Cor
ner
524,
979
97,5
3519
%61
%
3443
His
toric
Sul
ly W
ayTh
e Pe
ters
on C
ompa
nies
Del
iver
ed 2
Q14
N/A
Rou
te 2
8 So
uth
375,
020
00%
100%
1949
0 Sa
ndrid
ge W
ayBu
ckey
e D
evel
opm
ent,
LLC
Del
iver
ed 3
Q14
$16.
00 N
NN
Rou
te 7
55,6
8124
,318
44%
0%
2461
Eis
enho
wer
Ave
nue
Hof
fman
Man
agem
ent C
ompa
nyR
enov
atio
n C
ompl
eted
3Q
14$3
9.75
-$45
.00
FSEi
senh
ower
Ave
nue
Cor
ridor
328,
626
328,
404
100%
0%
7940
Jon
es B
ranc
h D
rive
MR
P R
ealty
, Inc
.D
eliv
ered
4Q
14$5
0.00
-$52
.00
FSTy
sons
Cor
ner
321,
965
140,
094
44%
56%
Tota
l 1
,949
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6
58,9
69
34%
66%
Ope
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stat
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ase
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ancy
rate
for n
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pace
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lude
rele
t or s
uble
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vaila
ble
FS
= F
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NN
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Elec
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N
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NT
= Pl
us T
axes
NN
N =
Net
of a
ll O
pera
ting
Expe
nses
and
Tax
es
-
DTZ | 24
Nor
ther
n Vi
rgin
ia S
urve
y of
New
Offi
ce S
pace
2013
Del
iver
ies
BU
ILD
ING
AD
DR
ESS
OW
NER
/DEV
ELO
PER
STAT
US
REN
TAL
RAT
ESU
BM
ARK
ETR
ENTA
BLE
B
UIL
DIN
G A
REA
NEW
SPA
CE
AVAI
LAB
LEVA
CAN
CY
RAT
E (A
S O
F C
UR
REN
T Q
UAR
TER
)*PE
RC
ENT
LEAS
ED
UPO
N D
ELIV
ERY
1812
Nor
th M
oore
Stre
etM
onda
y Pr
oper
ties
Del
iver
ed 4
Q13
$50.
00-$
65.0
0 FS
Ros
slyn
535,
381
535,
381
100%
0%
1400
Cry
stal
Driv
eLo
we
Ente
rpris
esD
eliv
ered
3Q
13$4
4.00
-$52
.00
FSC
ryst
al C
ity30
8,89
825
1,77
282
%0%
901
Sout
h C
lark
Stre
etM
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nter
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4Q
13N
/APe
ntag
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ity33
2,08
40
0%10
0%
7951
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1 Lo
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oad
Rub
enst
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Partn
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LP
Del
iver
ed 3
Q13
With
held
Sprin
gfie
ld/N
ewin
gton
242,
272
221,
316
100%
0%
5680
Kin
g C
ente
r Driv
eH
alle
Ent
erpr
ises
Del
iver
ed 3
Q13
$34.
50-$
37.5
0Sp
ringf
ield
/New
ingt
on11
0,04
775
,814
69%
0%
6400
Beu
lah
Stre
et O
ffice
IIBe
ulah
Stre
et L
LC II
Del
iver
ed 3
Q13
$32.
00 F
SSp
ringf
ield
/New
ingt
on35
,000
7,53
123
%67
%
1439
9 Pe
nros
e Pl
ace
Zum
ot R
eal E
stat
e M
anag
emen
tD
eliv
ered
2Q
13$2
9.50
FS
Rou
te 2
8 So
uth
104,
000
73,0
0070
%25
%
4801
Sto
necr
oft B
oule
vard
Duk
e R
ealty
Del
iver
ed 2
Q13
N/A
Rou
te 2
8 So
uth
254,
578
00%
100%
Tota
l 1
,922
,260
1
,164
,814
61
%39
%
2012
Del
iver
ies
BU
ILD
ING
AD
DR
ESS
OW
NER
/DEV
ELO
PER
STAT
US
REN
TAL
RAT
ESU
BM
ARK
ETR
ENTA
BLE
B
UIL
DIN
G A
REA
NEW
SPA
CE
AVAI
LAB
LEVA
CAN
CY
RAT
E (A
S O
F C
UR
REN
T Q
UAR
TER
)*PE
RC
ENT
LEAS
ED
UPO
N D
ELIV
ERY
1776
Wils
on B
oule
vard
Skan
ska
Del
iver
ed 4
Q12
$46.
00-$
47.0
0 FS
Ros
slyn
138,
535
11,4
408%
82%
675
Nor