Office Market Countywide Trends

Transcription

Fairfax County, Virginia
REAL ESTATE REPORT
Midyear 2006
Large Blocks of Space
AT A GLANCE
Office Market
Inventory:
104,426,029 s.f.
Vacancy Rates
Direct:
7.3% ▼
w/Sublet:
8.9% ▼
Absorption
Total:
6,290,028 s.f.
Relet:
4,053,262 s.f.
Sublet:
664,077 s.f.
New:
1,572,689 s.f.
Construction:
3,521,182 s.f.
Delivered:
915,599 s.f.
Industrial/Flex Market
Inventory:
38,431,263 s.f.
Vacancy Rates
Direct:
7.7%
w/Sublet:
8.6%
Absorption
Total:
1,515,570 s.f.
Relet:
1,048,089 s.f.
Sublet:
62,495 s.f.
New:
404,986 s.f.
Construction:
237,639 s.f.
Delivered:
732,468 s.f.
Hotel Market
Hotels:
Rooms:
Construction:
87
15,696
1 property/
96 rooms
INSIDE
Office Market
Countywide trends
Leasing activity
Building sales
Construction activity
Submarket trends
Commercial
Condominium Market
2–11
3–8
9
10–11
12
13
Industrial/Flex Market
Countywide trends
14–17
Construction activity
15
Leasing activity
16–17
Building sales
17
Submarket trends
18
Hotel Market
19
Using This Report
Glossary
Submarket map
20
20
FCEDA Resources
21
• At midyear 2006, the number of buildings
with 50,000 square feet (s.f.) or more of
contiguous office space in Fairfax County
(36) remained unchanged from the previous reporting period.
• Of these 36 buildings, 28 carried over from
the yearend 2005 total, and eight were
added, including three office buildings that
delivered during the first half of 2006.
Seven buildings from the yearend 2005 total were removed from the midyear totals
due to significant leasing activity.
• Buildings with 200,000 s.f. or more of
contiguous space remain scarce throughout the county. At midyear, only three
buildings in the county could service the
needs of a 200,000+ s.f. user. Two of the
properties are located in Fairfax Center
and the other in Tysons Corner.
Large Blocks of Available Office Space
Number of Blocks Available by Reporting Period
62
Fairfax County
36
36
19
50,000–74,900
9
75,000–99,999
15
17
13
Yearend 2001
Yearend 2002
Yearend 2003
Yearend 2004
Yearend 2005
Midyear 2006
29
9
15
80
24
9
12
11
9
11
10
100,000–199,999
45
56
26
36
14
5
• The 36 blocks of space were spread
8
among 10 county submarkets. Reston
4
200,000+ 4
(with 10 buildings) and Tysons Corner (six
3
buildings) led all submarkets at midyear
3
2006. The Chantilly, Dulles and Herndon
submarkets had four buildings apiece, followed by Fairfax Center/Oakton with three buildings, Springfield/Franconia with two buildings, and the
Merrifield, Seven Corners and Richmond Highway submarkets with one each.
• Barring any major additions to the existing list of currently occupied space or a steep drop in leasing activity,
the number of buildings with large blocks of space should experience a slight decline by the end of 2006.
Only three new office buildings with space of 100,000 s.f. or more of available space are due to deliver by
yearend 2006. The inventory
of buildings with large blocks
of space will most likely
increase by midyear 2007,
due in large part to the
scheduled delivery of seven
new office buildings with
available space of more than
100,000 s.f. each now under
construction. Four other
buildings with 100,000 s.f.
or more of space are due to
deliver by yearend 2007.
Park Stone Place in Chantilly
delivered nearly 77,000 square
feet of space in June 2006.
Office Market Countywide Trends
Midyear 2006
Office Space Trends: 1980–2006 (Square Feet)
Year
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006 3
Standing
Inventory 1
20,567,000
27,900,000
30,750,000
32,100,000
35,100,000
42,800,000
48,700,000
53,616,000
58,073,000
63,575,000
67,139,000
72,702,000
73,056,000
74,397,000
75,562,432
76,074,620
78,265,573
79,617,676
82,088,287
88,375,053
93,563,753
97,602,908
100,912,347
101,507,385
102,117,697
103,520,646
104,426,029
Direct
Vacancy
Rate (%)
1.7
2.9
4.5
2.9
7.3
9.4
9.4
8.8
10.8
15.2
18.3
16.8
14.8
12.4
9.9
8.5
6.2
4.3
4.1
4.8
3.5
6.4
12.1
11.2
8.6
7.8
7.3
Total
Leased 2
1,400,000
2,623,579
2,639,313
2,312,379
3,318,178
5,107,357
5,889,741
5,475,880
5,014,401
5,973,710
5,006,377
5,535,950
4,854,778
5,272,604
6,306,117
5,261,893
7,040,085
6,196,885
6,991,158
9,264,808
12,750,968
5,174,234
7,648,790
10,570,315
10,969,819
9,659,060
6,290,028
New
Leased
Relet
Leased
Total Direct
Available
New
Available
Relet
Available
N/A
1,486,919
1,193,946
1,414,951
1,706,050
3,719,570
3,908,799
3,651,588
3,046,598
3,224,384
2,202,932
2,374,087
1,433,064
1,393,415
1,290,152
498,137
1,316,827
1,959,447
3,810,783
5,910,855
6,918,762
2,606,024
1,022,910
1,788,402
1,762,757
537,974
1,572,689
N/A
146,046
451,186
360,211
562,293
440,487
339,682
942,557
1,004,913
1,353,114
2,424,145
3,141,863
3,421,714
3,879,189
5,015,965
4,763,756
5,723,258
4,237,438
3,180,375
3,353,953
5,832,206
2,568,210
2,631,385
4,898,701
6,028,830
5,920,239
4,053,262
343,086
810,950
1,374,534
933,012
2,558,566
4,036,662
4,555,065
4,701,055
6,263,547
9,645,834
12,255,516
12,185,419
10,788,508
9,201,590
7,490,605
6,458,580
4,908,932
3,390,293
3,392,909
4,238,492
3,236,371
6,281,688
12,176,938
11,393,801
8,764,801
8,054,510
7,667,856
279,539
439,406
866,906
366,792
2,018,716
3,283,319
3,119,637
3,087,638
3,818,738
4,227,527
5,118,433
3,829,149
2,652,612
1,409,847
651,098
308,062
77,775
19,177
531,855
1,340,336
1,007,213
2,312,291
3,291,394
1,870,915
919,191
1,053,457
986,326
63,547
371,544
507,628
566,220
539,850
753,343
1,435,428
1,613,417
2,444,809
5,418,307
7,137,083
8,356,270
8,135,896
7,791,743
6,839,507
6,150,518
4,831,157
3,371,116
2,861,054
2,898,156
2,229,158
3,969,397
8,885,544
9,522,886
7,845,610
7,001,053
6,681,530
Includes inventory outside submarket areas, 1980-2000 only.
ln some years, total leasing reflects the preleasing of buildings under construction and about to be constructed, as well as new and relet space.
3
As of June 30, 2006.
1
2
• At midyear 2006, office space inventory stood at 104.4
million square feet (s.f.), with the addition of nearly 1
million s.f. of new space during the first half of the year.
Countywide Office Space Trends: 1980–2006
• The direct vacancy rate dropped to 7.3 percent, down
from the yearend 2005 rate of 7.8 percent. The overall
vacancy rate, including sublet space, experienced a
decrease for the seventh consecutive reporting period.
At midyear, the overall rate had dropped to 8.9 percent, down from 9.7 percent at yearend 2005.
Square
Feet
• Gross absorption increased for the first time in more
than a year following two consecutive periods of declining demand. Approximately 6.3 million s.f. of office
space was leased during the first six months of 2006,
up from 4.8 million s.f. at yearend 2005.
Inventory and Vacancy Rates
Vacancy
Rate (%)
110 mil
20
100 mil
90 mil
80 mil
15
70 mil
60 mil
10
50 mil
5
0
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
(as of June 30)
40 mil
• Absorption of relet space increased by more than
800,000 s.f. from the previous reporting period to
30 mil
4 million s.f. As expected, sublet leasing activity fell
20 mil
off sharply during the first half of 2006 due to the
10 mil
dwindling supply of sublet space on the market. The
sublet portion of leasing activity declined by 39 per0
cent—from 1.1 million s.f. at yearend 2005 to 664,000
s.f. at midyear 2006. New leasing activity experienced
Vacancy rate includes sublet space (figures available for 2001–2006 only)
the largest increase from the previous reporting period—more than tripling during the first half of 2006
to nearly 1.6 million s.f., up from 427,000 s.f. during the last six months of 2005. The new leasing category includes existing,
previously unoccupied, preleased under-construction and preleased planned space.
• The first half of 2006 proved to be one of the most exceptional periods in recent years. Leasing activity increased to near-record levels.
Barring any unexpected declines in demand, absorption should easily exceed 10 million s.f. by yearend 2006.
2 Real Estate Report—Midyear 2006
© Fairfax County Economic Development Authority
Major Lease Transactions
Midyear 2006
Top 10 Office Lease Deals in First Half 2006 (Square Feet)
• In terms of leasing activity, the first half of
Government Services Administration (GSA) / Tysons Corner
400,000
2006 proved to be one the most successful
GSA
/
Vienna
189,000
periods in Fairfax County in recent years.
Verizon / Reston
The number of large-scale leases of 50,000 square feet (s.f.)
172,448
or more increased from seven during the last half of 2005 to
Northrop Grumman / Chantilly
145,959
20 at midyear 2006.
Lockheed Martin / Chantilly
144,996
• Six of the top 10 leases topped 100,000 s.f., up from four
Apptis, Inc. / Chantilly
105,833
during the previous reporting period. The top 10 leases
Lockheed Martin / Dulles
were distributed among five submarkets. Tysons Corner, the
94,176
county’s largest submarket, and Chantilly, the most active for
KSI / Tysons Corner 86,820
new office development, each posted three of the top 10
Feld Entertainment / Tysons Corner 78,889
leases during the first half of 2006.
Rolls-Royce / Reston 78,000
• As expected, the federal government and government-related contractors were the leading forces behind much of
the large-scale leasing activity during the first half of 2006. These two entities were responsible for six of the top 10 leases during the first six
months of the year.
• In the near future, the majority of large lease deals will be concentrated in the Reston and Tysons Corner submarkets due to the availability
of available large blocks of space there. However, the county should also experience increased activity in the Chantilly and Dulles submarkets
over the next 12 to 18 months as new office space delivers in these markets. Additionally, the Springfield/Franconia, Newington/Lorton and
Richmond Highway submarkets will all experience increases in demand over the next five years with the Department of Defense expansions
planned for Fort Belvoir and the Army Engineer Proving Ground.
Office Leasing Activity, First Half 2006
Tenant
Building
Address
Submarket
“R” Place
3 Phoenix, Inc.
AboveNet Communications, Inc.
Accelera Solutions
Acella
Acqusition Technologies, Inc.
ACS, Inc.
Active Health Management
Adaequare, Inc.
Aireco Supply
Allergy Care Center
Altus Technologies
American Environmental & Engineering Consultants
Amerta
Anteon
Anteon
Apex CoVantage
Applied Engineering Management Corp.
Apptis, Inc.
Arcolex, LLC
Arcolex, LLC
Argon ST, Inc.
Artel, Inc.
Ascend Healthcare Systems, LLC
ASM Research
Avcom East
Axiom Resource Management
Bantu
Barcelo Crestline Corp.
BD Metrics, Inc.
BearingPoint
Beazer Homes
Bimethods, Inc.
Blackbird Technologies
Blue Collar Objects
Boilermakers
Brick Industry Association (BIA)
Brown Automotive Group
Cary Building
Greenbriar Corporate Center 1
South Pointe I
East Building
Westwood Tower
Two Reston Overlook
Reston International Center
Lakeside II
Sullyfield Park Center 1
Shell Park Center
8136 Old Keene Mill Road
13135 Lee-Jackson Highway
2350 Corporate Park Drive
7600 Leesburg Pike
8614 Westwood Center Drive
12021 Sunset Hills Road
11800 Sunrise Valley Drive
3975 Virginia Mallory Drive
14301 Sullyfield Circle
5712 General Washington Drive
527 Maple Avenue East
1775 Wiehle Avenue
7611 Little River Turnpike
6408 Grovedale Drive
198 Van Buren Street
14030 Thunderbolt Place
4800 Westfields Boulevard
1850 Centennial Park Drive
3076 Centreville Road
12701 Fair Lakes Circle
5205 Leesburg Pike
5885 Trinity Parkway
3025 Hamaker Court
8150 Leesburg Pike
5203 Leesburg Pike
8110 Gatehouse Road
8405 Greensboro Drive
7918 Jones Branch Drive
8000 Towers Crescent Drive
1930 Isaac Newton Square
13900 Lincoln Park Drive
3702 Pender Drive
2722 Merrilee Drive
1850 Centennial Park Drive
Springfield/Franconia
Fairfax Center/Oakton
Dulles
Tysons Corner
Tysons Corner
Reston
Reston
Chantilly
Chantilly
Vienna
Reston
Reston
Reston
Annandale
Herndon
Chantilly
Chantilly
Reston
Dulles
Baileys Crossroads
Centreville
Merrifield
Tysons Corner
Baileys Crossroads
Merrifield
Tysons Corner
Tysons Corner
Tysons Corner
Tysons Corner
Reston
Dulles
Merrifield
Reston
OER Building
Morino Institute
Heritage Center 2
Courtyards South
President’s Plaza 2
Wright Building II
Stoneleigh I
Commerce Executive 3
Lincoln Park II – Building B
Hyatt Plaza 1
One Skyline Place
Trinity Centre 3
Executive Park 1
Two Skyline Place
One Cambridge Court
Greensboro Corporate Center 2
McLean Hilton Office Complex
Tysons Center
Towers Crescent
Reston Association Building
Lincoln Park I
West Oaks Executive Park 2
Dunn Loring Center
Fair Lakes 1
Square Feet
3,124
2,305
10,429
5,189
1,000
2,500
2,362
11,078
1,267
4,400
3,311
1,637
1,903
5,369
47,371
5,580
15,000
9,531
105,833
12,822
8,212
13,418
7,437
3,540
35,000
2,576
4,030
7,168
21,465
5,028
12,620
3,500
1,174
4,234
10,713
10,523
6,914
8,129
Real Estate Report—Midyear 2006 3
Midyear 2006
Tenant
Building
Address
Submarket
Bull & Associates
Burney Partners
Business Defense & Security Corp.
Capital Bible Seminary
Caraview
Carfax
CelPlan Global Wireless
CH2M Hill
Chenega Technologies
Chimes
Cinea, Inc.
Client Solutions Architect
CMI Management
CMSS Architects
CN Consulting
Colquitt-Carruthers of Fair Oaks, LLC
Command Information
Commercial Title
Community Mortgage Corp.
Compass Airlines
Competitive Innovations
Comsys Information Technology
Convergenz, LLC
Corporate Risk International
Countrywide Home Loans, Inc.
Cox Communications
CSC Scientific Co.
Cubellis Associates
Cushman & Wakefield
Cyent Call Communications
Cypress Communications
Dell
Delta Solutions
Dental Lease
Deque, Inc.
Digital Focus
Digital Harbor
Digital Intelligence Systems
Digital System Resources, Inc.
Digney York Associates, Inc.
Direct Development
Dovel Technologies, Inc.
Dundee Associates, Inc.
Dundee Associates, Inc.
e-Approve Mortgage
East Star Lending
EDD Labs
Elite Kitchen and Bath
Enterra Solutions
eStara
eStarland
Ettion Group
ExcelaCom
Fairfax County Democratic Council
Falmouth Institute
Federal Funding Mortgage Co.
Feld Entertainment
FHC Health Systems
First American Mortgage
First Horizon Wholesale Mortgage
First National Bank of Arizona
Fiserv
Flight Explorer
FNB Mortgage
Formatta
Founders Title Agency of Virginia
Fox, Joss, & Yankee
Friedman Billings & Ramsey
Fritsche & Thomas, PC
Genesys Conferencing, Inc.
Spring Mall Building
6551 Loisdale Court
1800 Alexander Bell Drive
4501 Singer Court
8001 Forbes Place
11400 Commerce Park Drive
15010 Conference Center Drive
5911 Kingstowne Village Parkway
3957 Pender Drive
11710 Plaza America Drive
5285 Shawnee Road
11921 Freedom Drive
3050 Chain Bridge Road
13655 Dulles Technology Drive
7900A Westpark Drive
4501 Singer Court
2724 Dorr Avenue
2799 Merrilee Drive
1600 Tysons Boulevard
7601 Lewinsville Road
1420 Spring Hill Road
1760 Reston Parkway
1919 Gallows Road
7515 Lee Highway
14900 Bogle Drive
14901 Bogle Drive
7830 Backlick Road
1921 Gallows Road
1821 Michael Faraday Drive
3150 Spring Street
2815 Hartland Road
3702 Pender Drive
555 Herndon Parkway
11250 Waples Mill Road
8521 Leesburg Pike
8280 Willow Oaks Corporate Drive
1600 International Drive
8230 Leesburg Pike
3975 Fair Ridge Drive
3951 Pender Drive
2301 Gallows Road
Reston
Chantilly
Reston
Centreville
Reston
Chantilly
Reston
Reston
Reston
Annandale
Oakton
Dulles
Tysons Corner
Tysons Corner
Chantilly
Merrifield
Reston
Tysons Corner
Reston
Tysons Corner
Dulles
Merrifield
Tysons Corner
Tysons Corner
Tysons Corner
Tysons Corner
Annandale
Reston
Reston
Reston
Dulles
Reston
Tysons Corner
Tysons Corner
Merrifield
Tysons Corner
Chantilly
Chantilly
Newington/Lorton
Annandale
Reston
Tysons Corner
Tysons Corner
Reston
Oakton
Reston
Reston
Merrifield
Tysons Corner
Tysons Corner
Herndon
Tysons Corner
Merrifield
Tysons Corner
Tysons Corner
Tysons Corner
Reston
Dulles
Tysons Corner
Tysons Corner
Southgate Center 1
Forbes Building
Trinity Centre 2
Executive Center 2
Washington Technology Park II
Kingstowne Town Center K
Fairfax Executive Park
Plaza America II
Golf Course Plaza
Poplar Run Office Park 5
Two Fountain Square
Heritage Center 2
Flint Hill Centre
Campus at Dulles Tech 6
Westwood 3
Atrium Building
Southgate Center 1
Tysons Center
Towers Crescent
Walker Warehouse
Westwood Tower
Corporate Office Center @ Tysons II
Lewinsville Office Building
Tysons Dulles Plaza 1
Heritage Center 4
OER Building
Town Center Office Building
Reston Quadrangle
Campus at Dulles Tech 6
Executive Center 1
Fair Lakes 1
Tysons International Plaza 2
Chantilly Parc Phase 2 Building D
Chantilly Parc Phase 2 Building E
Newington Professional Building
Heritage Center 2
Cascades East
Spring Hill Business Center
Sunrise Plaza 1
Plaza America II
West Oaks Executive Park 2
Westwood 4
Parkway One
NRA HQ
Willow Oaks 2
Northhampton Building
Fifty West Corporate Center 2
South Pointe I
Square Feet
1,501
2,262
1,780
3,370
22,000
51,450
9,000
77,651
26,700
2,379
5,846
1,625
10,419
9,621
3,800
4,710
5,900
3,675
4,521
11,471
2,125
2,500
2,094
12,050
7,915
13,097
5,478
6,883
22,919
4,466
4,903
2,800
4,305
2,215
2,795
4,242
17,805
7,561
16,421
5,753
2,500
10,311
3,030
3,030
1,470
6,600
3,785
5,000
6,207
9,468
3,800
1,763
9,206
1,640
7,772
2,000
78,889
15,000
12,313
14,611
30,011
22,059
3,875
17,543
4,700
7,420
3,893
7,351
1,835
21,259
Midyear 2006
Tenant
Building
Address
Submarket
Girard Engineering
Girl Scout Council of the Nation’s Capital
Global Crossing Holdings Ltd.
Goodman & Co., LLP
Grant Thornton LLP
Group Insurance Services
GSA
GSA
GSA
GSA
GSA
GSA – Department of Justice
GSA – Department of the Interior
GSA – Department of State
Hair Club for Men (HCM)
Harmony Information Systems
Harris for Senate
Hawthorne
HCA
Hensel Phelps Construction
Hertz Equipment Rental Corp.
High-Tech Immigration Law
Hoffman and Fitzgerald
Holder Construction
Home Funding Group
Horne Engineering
HQ Global Worplaces, Inc.
HSP Direct
Hyperion, Inc.
IBM
IBM
IceWeb
ICO America
IKON Realty
IMC
Infinity
Information Management Consulting (IMC)
InPhonic, Inc,
Integrate Touch Systems, Inc.
Interactive Intelligence
IntergraMed America
International Logic Systems
Irving Burton Associates
Island Hideaways
iTalk Broadband Corp.
ITS Group
IXI Corp.
J. Spargo & Associates
Jacer Corp.
Jade Realty Co.
Janus Research Group, Inc.
Just Mortgage, Inc.
JWK International Corp.
Kaiser Permanente
Kaiser, Scherer & Schlegel
Kalman & Co.
KB Home
Knowledge Connections
Konica Minolta
Kraftson & Caudie
KSI
KSI Services, Inc.
KTA Group, Inc.
Labat-Anderson, Inc.
Laboratory Corporation of America
Lee & Morse
Lever Point
Lighthouse Underwriters
West Building
Gunston Office Plaza
One Discovery Square
Tysons Executive Plaza 2
One Freedom Square
Liberty Crossing Phase 2
Liberty Park at Tysons
Northridge I
American Center West
East Building
One Skyline Tower
Dulles Park Technology Center
Cedar Hill 2
Atrium Building
Reston Executive Center 3
Johnson Building 1
Fair Oaks Plaza
Brookfield Park Ph 4
Campus East
Reston Plaza 1
Tower Building
Northridge I
Westwood Tower
Metro Place IV
Reston Plaza 2
Dulles Corporate Center 1
7600 Leesburg Pike
7764 Armistead Road
2010 Corporate Ridge
11951 Freedom Drive
1505 Tysons McLean Boulevard
801 Follin Lane SE
13221 Woodland Park Road
8330 Boone Boulevard
7600 Leesburg Pike
5107 Leesburg Pike
2230 Gallows Road
7600 Colshire Drive
11350 Random Hills Road
4437 Brookfield Corporate Drive
1900 Campus Commons Drive
7900B Westpark Drive
13221 Woodland Park Road
2677 Prosperity Avenue
1660 International Drive
12902 Federal Systems Parkway
6800 Versar Drive
243 Church Street NW
10580 Arrowhead Drive
3050 Chain Bridge Road
10800-10802 Parkridge Boulevard
503 Carlisle Drive
4000 Legato Road
5109 Leesburg Pike
4501 Singer Court
5201 Leesburg Pike
8230 Old Courthouse Road
5901 Kingstowne Village Parkway
5203 Leesburg Pike
8219 Leesburg Pike
620 Herndon Parkway
1751 Pinnacle Drive
8081 Wolftrap Road
8000 Westpark Drive
4001 Fair Ridge Drive
3141 Fairview Park Drive
Tysons Corner
Newington/Lorton
Reston
Tysons Corner
Tysons Corner
Reston
Tysons Corner
Vienna
Dulles
Tysons Corner
Tysons Corner
Baileys Crossroads
Dulles
Tysons Corner
Tysons Corner
Reston
Tysons Corner
Reston
Chantilly
Reston
Reston
Tysons Corner
Dulles
Tysons Corner
Merrifield
Reston
Dulles
Tysons Corner
Dulles
Herndon
Vienna
Oakton
Chantilly
Oakton
Reston
Herndon
Dulles
Baileys Crossroads
Chantilly
Tysons Corner
Reston
Tysons Corner
Baileys Crossroads
Tysons Corner
Annandale
Annandale
Tysons Corner
Baileys Crossroads
Tysons Corner
Herndon
Tysons Corner
Tysons Corner
Tysons Corner
Tysons Corner
Dulles
Tysons Corner
Merrifield
Reston
Annandale
FP2
Dulles Park Technology Center
Versar Center 2
Windover Office Building
Redwood Plaza 3
One RidgeView
Flint Hill Centre
Parkridge Center 1
May Building
Two Dulles Tech Center
Fair Oaks Office Building
Centerpointe II
Six Skyline Place
Southgate Center 1
Tysons Pond 3
Lancaster Building
Fair Oaks Corporate Center
Three Skyline Place
Tycon 5
Kingstowne Center L
Heritage Center 2
Heritage Center 1
Two Skyline Place
Tysons Commerce Center
Monroe Business Center 1
Shenandoah Building
North Tower
Kettler & Scott Building
Warren Building
Fair Oaks Medical Building
Square Feet
10,490
2,748
11,270
9,844
28,513
1,300
400,000
189,000
24,015
20,914
15,047
21,014
6,785
8,041
8,815
12,906
3,151
2,294
8,758
10,600
4,714
1,136
5,296
3,416
1,800
16,626
11,423
6,003
2,465
28,435
22,058
7,932
7,508
2,842
28,000
9,750
29,000
13,000
1,250
4,000
4,205
1,502
4,570
2,169
2,363
3,159
18,231
27,000
11,076
1,093
2,599
1,748
8,468
18,577
2,105
8,702
20,185
1,244
12,212
7,502
86,820
25,066
7,600
20,400
2,327
5,113
2,922
9,200
Midyear 2006
Tenant
Building
Address
Submarket
LinQuest
Lockheed Martin
Lockheed Martin
Lockheed Martin
Lockheed Martin
LST,
ST, Inc.
M.H.M.
MAFC Residential
Mantech IS&T
Market Street Mortgage
Martek Global Services, Inc.
Mason International, Inc.
Matrix Medical Supplies
McLean Auto Imports, Inc.
McLean Financial
Mega Tech, Inc.
Mercury Interactive
Metro Title
Metron
MHM Services, Inc.
Michael Harris Development
Military Professional Services
Mistron, LLC
MKI
Mobile Satellite Ventures, LP
Monarch Title, LLC
Morgan Franklin Corp.
MSSI – Telescience
National Academy of Science
National Automated Clearing House
National City Bank of Indiana
National City Bank of Indiana
Navigant Consulting, Inc.
Nephrology Associates of Northern Virginia
NetasPX
Newsletter Holdings
NII Holdings
Norbridge
Northern Virginia Primary Care Associates
Northern Virginia Regional Commission
Northrop Grumman
Northstar
NoVA Land Title
NoVA Oncology Associates
NSSI Group, Inc.
NuRide, Inc.
ObjectVideo
Opptis
P3 Solutions
Pack Rats
Pae Tec Communications
Parkway Suites, Inc.
Persaud Companies, Inc
Pinnacle CSI
Plateau Software, Inc.
Platinum Solutions
Porsche Club of America
PPM, Inc.
Pragmatics
Premiere Global Services
Premiere Systems Support
PricewaterhouseCoopers
Primary Integration
Private Health Care Systems
Professional Alternative
Project Performance Corp.
Prudential Insurance Co. of America
PSI International
Quantum Dynamics
Quest America, Inc.
One Skyline Place
Stonegate II @ Westfields
Dulles Executive Plaza I
5205 Leesburg Pike
14280 Park Meadow Drive
1749 Old Meadow Road
8521 Leesburg Pike
11911 Freedom Drive
6066 Leesburg Pike
5109 Leesburg Pike
1753 Pinnacle Road
4000 Legato Road
4000 Legato Road
7600 Leesburg Pike
1875 Explorer Street
3060 Williams Drive
1951 Kidwell Drive
3020 Hamaker Court
6506 Loisdale Road
5203 Leesburg Pike
1900 Gallows Road
3901 Stonecroft Boulevard
620 Herndon Parkway
462 Herndon Parkway
2411 Dulles Corner Park
3959 Pender Drive
8003 Forbes Place
1760 Reston Parkway
13873 Park Center Road
3141 Fairview Park Drive
1919 Gallows Road
4000 Legato Road
8230 Old Courthouse Road
Baileys Crossroads
Chantilly
Dulles
Merrifield
Chantilly
Merrifield
Tysons Corner
Centreville
Chantilly
Annandale
Dulles
Reston
Tysons Corner
Tysons Corner
Tysons Corner
Tysons Corner
Tysons Corner
Reston
Tysons Corner
Tysons Corner
Baileys Crossroads
Reston
Baileys Crossroads
Reston
Herndon
Tysons Corner
Reston
Tysons Corner
Dulles
Tysons Corner
Dulles
Tysons Corner
Reston
Reston
Annandale
Merrifield
Chantilly
Tysons Corner
Annandale
Merrifield
Reston
Reston
Baileys Crossroads
Tysons Corner
Chantilly
Reston
Herndon
Herndon
Dulles
Reston
Tysons Corner
Tysons Corner
Reston
Tysons Corner
Dulles
Merrifield
Tysons Corner
Tysons Corner
Tysons Corner
Tysons Corner
Tysons Corner
Independence Center
The Concourse East
Trinity Centre 3
Corporate Pointe 3
Heritage Center 1
South Pointe I
Reston Quadrangle
Fair Center Office Building
Spring Hill Business Center
Westwood 4
American Center West
One Fountain Square
The Concourse East
Skyline West
Parkridge Center 2
Six Skyline Place
Parkridge Center 1
South Tower
Westwood 8
Two Dulles Tech Center
Centerpointe II
Centerpointe II
Towers Crescent/A
Greenbriar Corporate Center 1
Dulles Executive Plaza I
West Building
SoMA – West Building
Heritage Center 1
Williams Plaza 2
Washington Technology Park II
Heritage Center 1
Prosperity Plaza 1
Springfield Place
Morino Institute
Two Skyline Place
Plaza Nineteen Hundred
Tech Center 1
Springwood Office Center
Park South
Two Discovery Square
Shenandoah Building
Park Place 1
Oakwood Center
Hallmark Building
Westwood Tower
Harrison Building
Centerpointe II
Tycon 5
Square Feet
2,105
144,996
94,176
44,536
20,658
5,870
4,170
3,377
7,920
1,928
14,018
13,308
2,415
5,000
15,280
2,747
21,250
9,634
28,799
3,723
4,300
8,413
19,153
3,287
70,094
3,000
28,000
21,258
14,407
21,484
8,786
8,032
22,627
4,766
5,500
23,408
52,000
1,162
4,792
2,838
145,959
2,000
4,218
4,999
1,175
1,210
27,094
17,737
4,021
34,000
4,091
19,758
1,118
8,500
1,005
4,000
3,282
6,548
45,000
2,820
2,901
24,600
3,600
3,884
1,051
58,963
4,118
7,141
3,931
1,541
Midyear 2006
Tenant
Building
Address
Submarket
Qwest Business Resources
RCN Corporation
Reliance Mortgage/ Spectrum Realtors
Resolvit Resources, Inc.
Resource Dealer Group
Reston Association
Reston Pediatrics
Reston Wealth Management
Revive Systems, Inc.
RGS Title, LLC
RGS Title, LLC
Robert, Mlotkowski & Hobbes
Rolls-Royce
RS Information Systems
Ryland Homes
S. Cohen & Associates
Sack Harris and Martin, PC
SAI Mortgage
SAIC
Scott-Long Construction
Secure Wave, Inc
Securiguard, Inc.
Security One Bank
Sedna Digital Solutions
Segovia
Sensa Solutions, Inc.
Setty & Associates, Ltd.
Seung Oh
Shared Spectrum Co.
Siemens Information and Commuications Networks
Siemens Real Estate, Inc.
Sir Speedy
Skill Storm, Inc.
Skyline West, LLC
SM Consulting
SMS Data Products
Space Adventure
Sparks Personnel
Spatial Data Analysis Corp.
Special Counsel, Inc.
Spectrum
Staffing Now, Inc.
Stallion Financial Services, Inc
Starpoint Virginia, LLC
State Farm Insurance
Stratford College
Strayer University
Streamline Financial
Sun Microsystems
Sunrise Assisted Living
Sunrise Senior Living REIT
SunRocket
Suntiva
Supreme Soft
Synacor
Systems Integration & Management
SZR US Investments
Tam Nguyen
Tangible Software
Targus Information Corp.
TCAssociates
Technical Service Providers
Technik, Inc.
Technology Concepts and Design, Inc.
Tectura Corp.
Teleglobe America, Inc.
Tenacity Solutions
The Examiner
The Lafayette Group, Inc.
The Medical Team, Inc.
Parkridge Center 4
President’s Plaza 1
Building 1
Tyson Frederick Building
Executive Center 1
Reston Association Building
10700 Parkridge Boulevard
14420 Albemarle Point Place
1950 Old Gallows Road
6045 Burke Centre Parkway
6551 Loisdale Court
14668 Lee Road
14170 Newbrook Drive
6858 Old Dominion Drive
5850 Columbia Pike
3959 Pender Drive
600 Herndon Parkway
3040 Williams Drive
4510 Daly Drive
6066 Leesburg Pike
1521 Westbranch Drive
6359 Walker Lane
1760 Reston Parkway
100 Elden Street
7777 Leesburg Pike
8540 Cinder Bed Road
7902 Westpark Drive
7900B Westpark Drive
8045 Leesburg Pike
7600 Leesburg Pike
560 Herndon Parkway
459 Herndon Parkway
6551 Loisdale Court
3040 Williams Drive
11911 Freedom Drive
6850 Versar Drive
1919 Gallows Road
Reston
Herndon
Chantilly
Tysons Corner
Reston
Reston
Reston
Reston
Tysons Corner
Reston
Burke
Tysons Corner
Reston
Tysons Corner
Tysons Corner
Tysons Corner
Chantilly
Chantilly
Dulles
McLean/Great Falls
Baileys Crossroads
Herndon
Reston
Merrifield
Annandale
Tysons Corner
Reston
Chantilly
Tysons Corner
Tysons Corner
Baileys Crossroads
Reston
Tysons Corner
Tysons Corner
Tysons Corner
Tysons Corner
Reston
Annandale
Reston
Herndon
Tysons Corner
Newington/Lorton
Reston
Tysons Corner
Tysons Corner
Tysons Corner
Tysons Corner
Tysons Corner
Tysons Corner
Herndon
Tysons Corner
Tysons Corner
Herndon
Tysons Corner
Tysons Corner
Merrifield
Reston
Reston
Reston
Reston
Reston
Tysons Corner
Annandale
Fairway Executive Center
Tycon 2
Grant Building
Fair Oaks 2 Corporate Center
Tysons Pond 3
Liberty Center 3
Glenbrook 4
Columbia Pike Gateway
Williams Plaza 1
Heritage Center 4
The Concourse West
Campus Commons 4
Brookfield Corporate Center 3
Tysons International
Westwood Park
Skyline West
Executive Center 2
Dickenson Building
Towers Crescent/A
Tyson Frederick Building
Greensboro Park
Metro Park 4
Campus South
Stuart Professional Village
Four Sevens Building
Gateway 95 Business Park 4
Cascades East
Atrium Building
Terrace Building
Tower Building
Fairfax Square Tower 3
West Building
Tysons Pond 3
Monroe 2
Westwood Tower
Atrium Building
Parkway Crossing Condominiums
Williams Plaza 1
Plaza America I
Campus South
One Fountain Square
Versar Center 1
Heritage Center 1
Square Feet
4,200
12,303
4,757
13,607
2,910
19,938
3,800
3,148
4,014
7,713
1,596
7,409
78,000
3,298
2,710
4,578
2,046
6,301
55,220
8,000
2,825
2,000
3,390
3,921
8,870
6,155
9,214
1,600
5,737
8,193
5,616
2,754
2,888
8,413
7,207
8,574
10,500
2,161
6,000
3,337
17,000
1,970
1,412
2,526
1,795
9,385
11,086
2,450
65,104
8,000
4,507
25,000
1,151
2,929
2,194
3,007
4,507
1,567
5,601
8,446
20,000
10,583
1,309
7,000
3,697
11,693
5,680
19,000
5,465
1,575
Tenant
The Schaffer Co.
The Secura Group, LLC
The Siegfried Group
Title One
TOSA Group
Turner Construction
TWD Associates
Tycon Frederick Building
U.S. Customs
UBS Financial Services
UGS Corp.
Ultimate Travel Advisors, Inc.
UMG Financial
Unitrans International, Inc.
USA Football, Inc.
VA Commerce
Vega & Associates
Verizon
Virginia Surety Company, Inc.
Visions Financial Group, Inc.
Visitar
Vitas Healthcare Corp.
VM Software Building
Wachovia Securities
Wachovia Securities
Wallace Wilmore
Washington Consulting
Washington Radiology Associates
Wayne G. Tatsuko, Chartered
Weichert Realtors
Wells Fargo Bank, N.A.
West Law Group, PC
WFG Properties
Whitley, Bradley & Brown, Inc.
Whitley, Bradley & Brown, Inc.
Womble Carlyle Sandridge & Rice, PLLC
World Bank
Xpedite Systems, LLC
Xybernaut
YRCI
Zoning Solutions
Building
Towers Crescent/A
West Annandale Building
Englat Building
Two Fountain Square
Cherokee Business Center C
Tycon Frederick Building
Worldgate Plaza III
Brookfield Corporate Center 1
Campus East
American Center East
Newington Professional Building
Hartland Business Center 3
Campus Point
Executive Center 1
Heritage Center 2
Oakbrook Building
Tysons Pond 2
South Tower
One Fountain Square
Four Seasons 1
Three Dulles Tech Center
Tysons Business Centre
Reston Heights
Tysons Pond 3
Enterprise Center Ph 1 Building 2
JFCU Building
Tysons Office Center
Midyear 2006
Address
Submarket
1921 Gallows Road
6832 Old Dominion Drive
11921 Freedom Drive
5520 Cherokee Avenue
12825 Worldgate Drive
8045 Leesburg Pike
4500 Daly Drive
1921 Gallows Road
7830 Backlick Road
2735 Hartland Road
1897 Preston White Drive
1753 Pinnacle Road
11911 Freedom Drive
3701 Pender Drive
3016 Williams Drive
156 Maple Avenue East
8065 Leesburg Pike
4120 Lafayette Center Drive
1760 Reston Parkway
5175 Parkstone Drive
3877 Fairfax Ridge Road
8133 Leesburg Pike
Tysons Corner
Tysons Corner
Tysons Corner
Annandale
McLean/Great Falls
Reston
Tysons Corner
Herndon
Tysons Corner
Dulles
Chantilly
Tysons Corner
Reston
Tysons Corner
Newington/Lorton
Merrifield
Reston
Reston
Annandale
Reston
Tysons Corner
Reston
Tysons Corner
Tysons Corner
Reston
Tysons Corner
Merrifield
Vienna
Dulles
Tysons Corner
Tysons Corner
Reston
Tysons Corner
Tysons Corner
Chantilly
Reston
Chantilly
Tysons Corner
Square Feet
2,764
5,876
10,000
2,482
1,200
4,800
8,845
2,580
60,435
11,173
7,077
1,325
15,122
7,125
4,500
2,778
1,623
172,448
2,910
3,693
3,125
5,297
3,159
14,853
5,560
3,892
2,549
6,393
2,959
7,143
7,155
3,525
2,025
50,000
6,278
7,350
54,530
4,229
9,656
15,500
3,225
Liberty Center 3, 14668 Lee Road, Chantilly,
offers 158,925 square feet of office space.
Major Sale Transactions
• Forty-four office buildings changed ownership during the first half
of 2006, up from 32 at yearend 2005. The aggregate value of buildings sold countywide increased for a fourth consecutive reporting
period to $1.4 billion, up from $924 million at yearend 2005.
• The median sale price of office buildings sold during the first six
months of 2006 was about $261 per square foot (s.f.), up from
$220 per s.f. during the last half of 2005. During the same period,
the average sale price also increased to $259 per s.f. , up from $228
per s.f. at yearend 2005. The average sale price for office space in
Fairfax County has increased for each of the past nine reporting
periods.
Midyear 2006
Notable Office Building Sales in First Half 2006
(Price Per Square Foot)
Litton TASC II / Chantilly
246 Maple Avenue E / Vienna
Liberty Center 2 / Chantilly
223 Tapawingo Road SE / Vienna
$413.42
$401.33
$378.54
$374.91
$357.41
Reston International Center / Reston
$342.03
Metro Park 2,3,4 & 5 / Springfield/Franconia
$339.43
Nealon Building / Merrifield
$335.60
• Five of the top 10 sales involved Duke Realty and ING Clarion
$311.20
Litton TASC III / Chantilly
Realty. Duke Realty purchased the Winkler portfolio at Westfields,
1301 Beverly Road / McLean/Great Falls
$309.52
including the Liberty Center and TASC buildings. ING Clarion
purchased the four existing buildings at Springfield Metro Park, in
addition to the remaining developable land there. Two buildings in
Vienna sold for slightly inflated prices to purchasers interested in redeveloping the aging properties.
TheII building
East was
Litton TASC
/ Chantillyat 246 Maple Avenue
$413.42
torn down to make way for a Commerce Bank, and the building at 223 Tapawingo Road
SE
will
be
demolished
and
redeveloped
as
residential.
246 Maple Avenue E / Vienna
$401.33
• Reston and Chantilly were the two most active office submarkets in terms of sales duringLiberty
the first
half 2of/ 2006.
Reston led the way$378.54
with nine buildCenter
Chantilly
ings totaling $269 million, followed by Chantilly with seven buildings totaling $278 million.
$374.91
Office Building Sales, First Half 2006
Building
Address
Skyline West
6066 Leesburg Pike
4201 Pleasant Valley Road
14668 Lee Road
14660 Lee Road
14672 Lee Road
3877 Fairfax Ridge Road
12902 Federal Systems Parkway
1477-1499 Chain Bridge Road
1301 Beverly Road
8260/8280/8270 Willow Oaks Corporate Drive
2900 Telestar Court
8415 Arlington Boulevard
7955 Cameron Brown Court
11130/11180/11190 Sunrise Valley Drive
1893 Preston White Drive
1759 Business Center Drive
6343 South Kings Highway
6400/6402 Arlington Boulevard
6350/6354/6359/6363 Walker Lane
7115 Leesburg Pike
2000 Corporate Ridge
8283B Greensboro Drive
9401 Lee Highway
223 Tapawingo Road SE
246 Maple Avenue E
Litton TASC I
Liberty Center 3
Litton TASC III
Liberty Center 1
Liberty Center 2
Litton TASC II
AMS Building
FP2 a.k.a. IBM Building
McLean Professional Park
Willow Oaks 1, 2, 3
Merrifield Place I
Nealon Building
Morino Institute
The Campus at Sunrise
MEI Building
Lake Fairfax Business Center 5
Chubb Institute
Lake Fairfax Business Center 7
Reston International Center
One First Virginia Plaza
Metro Park 2,3,4 & 5
Hooper Office Building
Westwood 4
Tysons International
Tysons Executive Plaza 1
John Marshall II
Circle Towers Office Building
223 Tapawingo Road SE / Vienna
Reston International Center / Reston
Submarket
Sale Price
Metro Park 2,3,4 & 5 / Springfield/Franconia
Baileys Crossroads
$8,765,000
Chantilly Nealon Building / Merrifield
$3,100,000
Chantilly
Litton TASC III /$68,129,657
Chantilly
Chantilly
$54,756,013
Falls
1301
Beverly Road / McLean/Great
Chantilly
$25,166,880
Chantilly
$30,946,298
Chantilly
$62,843,459
Chantilly
$32,944,190
$48,425,000
$68,674,624
$62,000,000
McLean/Great Falls
$35,000,000
McLean/Great Falls
$2,600,000
Merrifield
$125,576,456
Merrifield
$8,500,000
Merrifield
$3,500,000
Newington/Lorton
$3,298,000
Reston
$2,550,000
Reston
$51,900,000
Reston
$6,850,000
Reston
$37,827,000
Reston
$11,500,000
Reston
$79,173,000
Reston
$79,654,096
Richmond Highway
$858,420
Seven Corners
$62,119,920
$198,375,000
Tysons Corner
$8,500,000
Tysons Corner
$20,250,000
Tysons Corner
$43,300,000
Tysons Corner
$79,100,000
Tysons Corner
$71,000,000
Vienna
$5,000,000
Vienna
$965,000
Vienna
$4,100,000
$357.41
$342.03
Square Feet
$339.43
79,912
$335.60
17,025
250,000
$311.20
178,779
$309.52
80,871
82,543
166,014
79,687
218,565
265,178
230,219
145,920
8,400
597,363
31,184
10,429
24,973
158,102
264,815
31,029
143,750
41,256
277,200
232,885
4,776
419,264
584,428
72,227
84,021
174,164
287,929
236,200
40,882
2,700
10,216
$/S.F.
$109.68
$182.09
$272.52
$306.28
$311.20
$374.91
$378.54
$413.42
$221.56
$258.98
$269.31
$239.86
$309.52
$210.22
$272.58
$335.60
$132.06
$16.13
$195.99
$220.76
$263.14
$278.75
$285.62
$342.03
$179.74
$148.16
$339.43
$117.68
$241.01
$248.62
$274.72
$300.59
$122.30
$357.41
$401.33
• At midyear 2006, 29 buildings were under construction
in seven submarkets. The majority of new construction is
concentrated along the Route 28 corridor from Herndon
south through the submarkets of Dulles, Chantilly and
Centreville. These four markets account for 20 of the 29
buildings and roughly 76 percent of all space under construction. Chantilly led all submarkets with 12 buildings
totaling nearly 1.4 million s.f., followed by Dulles with
834,000 s.f. in four buildings and Reston with 801,000 s.f.
in four buildings.
Sq. Ft.
8 mil
7 mil
6 mil
5 mil
4 mil
3 mil
2 mil
1 mil
• Speculative office development more than doubled during the first six months of 2006. At midyear, 13 of the 29
buildings under construction were 100 percent speculative
developments totaling 2.1 million s.f. Build-to-suit projects
totaled approximately 1.2 million s.f. in eight buildings, and
the remaining eight properties totaling 221,000 s.f. were
condo developments.
0
(as of June 30)
• New office construction increased dramatically during the
first half of 2006, topping 3.5 million square feet (s.f.) at
midyear, up from 2 million s.f. at yearend 2005.
New Office Building Deliveries by Year
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
Construction Activity
Midyear 2006
• Fifteen buildings totaling 919,000 s.f. are slated to deliver by yearend 2006. Roughly 50 percent of that space had been preleased by midyear
2005. The remaining 14 buildings (2.6 million s.f.) are scheduled to deliver in 2007. Only 30 percent of that space had commitments in place at
midyear 2006.
• New office building deliveries for the first half of 2006 totaled 916,000 s.f., down from 1.4 million s.f. at yearend 2005. Seven of the buildings
(147,000 s.f.) were condo projects, three (449,000 s.f.) were build-to-suits, two (43,000 s.f.) were medical buildings and the remaining two
(276,000 s.f.) were speculative developments. About 58 percent of the space delivered during the first half of 2006 was leased by midyear.
• New office deliveries have increased in each of the past four years, a trend that will easily continue through 2007 based on square footage under
construction at midyear 2006 and due to deliver in 2007. The 2007 delivery totals are on pace to surpass 2006 totals by at least 1 million s.f.
Office Space Under Construction, First Half 2006
Building/Project Name
Address
Submarket
CentreLee Building 2
Trinity Centre 2
INOVA Medical Center
Independence Center 2
Stonegate II @ Westfields
The Ponds @ Lafayette 1
Samson Realty
Plaza East II
Plaza East I
Southgate III/Penrose Center
Colonel’s Ridge 2
Colonel’s Ridge 3
Stoneleigh I
Stoneleigh II
Dulles Discovery 1
Dulles Station West
Lincoln Park III – Building A
South Lake @ Dulles Corner
Woodland Pointe
Monument III @ Worldgate
Redwood Plaza 3
SoMA – Center Building
SoMA – East Building
Tall Oaks Professional Building
Reston Heights
Jades Office Building 1
14631 Lee Highway
14526 Lee Road
14426 Penrose Place
14111-14165 Robert Paris Court
Centreville
Centreville
Centreville
Chantilly
Chantilly
Chantilly
Chantilly
Chantilly
Chantilly
Chantilly
Chantilly
Chantilly
Chantilly
Chantilly
Chantilly
Dulles
Dulles
Dulles
Dulles
Herndon
Oakton
Reston
Reston
Reston
Reston
Reston
Vienna
Vienna
Vienna
2300 Dulles Station Road
13857 McLearen Road
2260 Woodland Pointe Avenue
12930 Worldgate Drive
10580 Arrowhead Drive
11950 Democracy Drive
1818 Library Street
12054 North Shore Drive
117 Pleasant Street SW
Square Feet
90,000
150,000
9,400
115,418
144,996
76,965
36,500
125,000
125,000
150,384
16,710
19,500
105,833
105,833
375,000
185,000
201,800
267,350
180,000
193,138
40,000
176,000
230,000
230,000
12,000
153,355
2,000
2,000
2,000
Lead Tenant(s)
Delivery
Condo
Carfax
INOVA
Speculative
Lockheed Martin
Condo
Samson Realty
Speculative
Speculative
Speculative
Condo
Condo
Speculative
Speculative
GSA
Speculative
Speculative
Speculative
Speculative
Speculative
Speculative
Speculative
NII Holdings
Speculative
Condo
Whitney, Bradley, Brown
Condo
Condo
Condo
October 2006
October 2006
August 2006
October 2006
July 2007
September 2006
December 2006
March 2007
March 2007
March 2007
September 2006
September 2006
January 2007
January 2007
March 2007
May 2007
March 2007
October 2007
March 2007
September 2006
October 2006
December 2007
December 2007
December 2007
October 2006
October 2006
October 2006
October 2006
October 2006
Midyear 2006
Office Building Deliveries, First Half 2006
Address
Submarket
Liberty Center 3
Park Stone Place
Colonel’s Ridge 4
Bridgewater Corporate Center
Old Dominion Towns
Herndon Commerce Center
Lorton Station Town Center – North Building
Lorton Station Town Center – South Building
14637 Lee Highway
14641 Lee Highway
14701 Lee Highway
14668 Lee Road
5155 Parkstone Drive
11325 Random Hills Road
795 Center Street
754 Elden Street
8986 Lorton Station Boulevard
8988 Lorton Station Boulevard
7200-7204 Fordson Road
Centreville
Centreville
Centreville
Chantilly
Chantilly
Chantilly
Dulles
Herndon
Herndon
Lorton
Lorton
Reston
Richmond Highway
Shurgard Office Suites
Square Feet
22,500
33,750
30,000
158,925
76,391
15,110
96,920
200,000
14,400
25,500
15,064
28,039
193,000
6,000
Lead Tenant(s)
Delivery
Condo
Condo
Condo
SAIC
Speculative
Condo
Cox Communications
Speculative
Condo
Condo
Medical
Medical
Lockheed Martin/NGA
Condo
June 2006
June 2006
April 2006
March 2006
June 2006
June 2006
March 2006
May 2006
June 2006
May 2006
April 2006
April 2006
March 2006
May 2006
We can tell you everything there is to know
about doing business . . . within certain limits.
Within the boundaries of Fairfax County, we are the authority
on business information.
Our free services will help you take advantage of the unlimited possibilities in Fairfax
County. We have comprehensive, up-to-date data on labor force and trends, taxes,
utilities, real estate, housing and meeting accommodations—along with scores of other
facts and figures to help businesses grow and prosper. We can help you locate the
perfect office or industrial space for your new or growing business. If you need help
understanding the county's regulatory and
zoning policies and procedures, we can
help there, too. So if you or your clients
are interested in locating, relocating or
expanding your business operation in Fairfax
County, inquire in strict confidence to:
Fairfax County Economic Development Authority
8300 Boone Boulevard, Suite 450,Vienna,Virginia 22182
Phone 703-790-0600 • Fax 703-893-1269
E-mail: [email protected]
www.FairfaxCountyEDA.org
Office Market Submarket Trends
Midyear 2006
Office Space Inventory by Submarket (Square Feet)
Inventory
Annandale
1,819,053
Baileys Crossroads
3,211,465
Burke
527,834
Centreville
723,933
Chantilly
8,775,971
Dulles
6,939,639
Fairfax Center/Oakton 9,375,637
Herndon (Town)
5,493,628
McLean/Great Falls
4,239,118
Merrifield
9,829,915
Newington/Lorton
551,309
Reston
18,325,027
Richmond Highway
1,044,644
Seven Corners
1,022,086
4,254,628
Tysons Corner
25,766,246
Vienna
2,525,896
Fairfax County
104,426,029
Absorption
Total
Relet
New*
134,168 133,638
530
148,443 130,840
—
14,578
14,578
—
72,750
20,250
50,000
985,062 242,417 708,949
401,306 296,662
81,006
402,040 245,119
28,000
207,274 145,632
2,372
55,200
48,724
—
267,088 210,196
20,838
7,024
7,024
—
1,037,632 807,697 185,551
36,490
34,490
2,000
40,001
40,001
—
197,402 166,153
—
2,079,791 1,312,197 493,443
203,779 197,644
—
6,290,028 4,053,262 1,572,689
Sublet
—
17,603
—
2,500
33,696
23,638
128,921
59,270
6,476
36,054
—
44,384
—
—
31,249
274,151
6,135
664,077
Available
Total
Relet
New
Sublet
117,388
75,810
26,278
15,300
89,211
88,511
—
700
9,798
6,467
—
3,331
32,838
19,613
8,725
4,500
695,619
452,046
132,162
111,411
973,532
451,773
225,520
296,239
872,680
283,993
200,000
388,687
676,332
577,018
17,246
82,068
91,309
81,714
—
9,595
434,091
333,289
3,752
97,050
3,150
3,150
—
—
1,839,961 1,472,340
12,720
354,901
182,215
170,504
4,000
7,711
298,154
296,636
—
1,518
508,593
215,111
281,259
12,223
2,381,990 2,060,345
74,664
246,981
94,160
93,210
—
950
9,301,021 6,681,530 986,326 1,633,165
Underway Delivered
—
—
—
—
—
—
249,400
86,250
1,397,139
250,426
834,150
96,920
40,000
200,000
193,138
39,900
—
—
—
—
—
43,103
801,355
193,000
—
6,000
—
—
—
—
—
—
6,000
—
3,521,182 915,599
* Includes buildings under construction
Office Lease Rates by Submarket (Per Square Foot)
Relet Lease Rates
Annandale
$19.50–$26.00
Baileys Crossroads
$27.50–$27.50
Burke
$20.00 N– $33.00 NNN
Centreville
$25.00–$31.00
Chantilly
$14.00–$28.00
Dulles
$25.75–$32.00
$22.00–$29.00
Herndon (Town)
$20.00–$28.50
McLean/Great Falls
$22.00–$35.00
Merrifield
$22.00–$34.00
Newington/Lorton
$16.00–$21.75
Reston
$21.00–$36.00
Richmond Highway
$19.75–$26.50
Seven Corners
$22.00–$27.50
$18.00 NN–$32.00
Tysons Corner
$22.00–$43.00
Vienna
$21.00–$32.50
New Lease Rates*
$30.00
NA
NA
$34.50
$20.00–$29.00
$28.75–$38.00
$32.00
$33.00–$37.00
NA
$29.50
NA
$22.50
NA
NA
$31.00–$34.00
$37.00–$40.00
NA
Sublet Lease Rates
$16.00
$24.00 N
$16.00
$17.50
$12.00–$23.50
$22.00–$29.00
$19.00–$28.00
$13.00–$23.00
$23.00–$30.50
$23.00 N–$30.50
NA
$24.00–$37.00
$24.00
$27.50
$29.50
$21.00–$34.00
24.00 NNN
Office Vacancy Rate by
Submarket, First Half 2006
Annandale
Baileys Crossroads
Burke
Centreville
Chantilly
Dulles
Herndon (Town)
McLean/Great Falls
Merrifield
Newington/Lorton
Reston
Richmond Highway
Seven Corners
Tysons Corner
Vienna
Fairfax County
Direct
4.2% ▼
2.8% ▼
1.2% ▼
2.7% ▼
5.2% ▼
6.5% ▼
3.0% —
10.5% ▼
1.9% ▼
3.4% ▼
0.6% ▼
8.0% ▼
16.3% ▼
29.0% ▼
5.1% ▼
8.0% ▼
3.7% ▼
7.3% ▼
w/Sublet
6.5% ▼
2.8% ▼
1.9% ▼
4.5% ▼
7.9% ▼
14.0% ▼
9.3% ▼
12.3% ▼
2.2% ▼
4.4% ▼
0.6% ▼
10.0% ▼
17.4% ▼
29.2% ▼
12.0% ▼
9.2% ▼
3.7% ▼
8.9% ▼
NOTE: The lease rates listed above are based on quoted rates of property available on June 30, 2006. It is important
to note that this is just a snapshot of quoted rates at a given point in time and that all rates are subject to change.
For an explanation of lease rates, see glossary on page 18.
• Office inventory is divided among 17 business submarkets throughout Fairfax County, with the majority of space concentrated in the county’s top five
office submarkets. The Tysons Corner, Reston, Merrifield, Fairfax Center/Oakton and Chantilly submarkets represent roughly 69 percent of the countywide inventory. Chantilly led all submarkets in terms of new development at the midyear point, followed by Dulles and Reston. The western portion of
the county, specifically the submarkets along the Dulles and Route 28 corridors, continues to experience the majority of new development activity.
• Direct vacancy decreased in 11 of the 17 submarkets and four of the top five. Fairfax Center/Oakton was the only top-five submarket to experience an increase in direct vacancy, which was due to the addition of a new 200,000-square-foot building to the submarket.
• The overall vacancy rate (including sublet space) was down in 12 submarkets, four of those in the top five. The gap between the direct and
overall vacancy continues to narrow as available sublet space dwindles.
• In terms of absorption, Tysons Corner led all submarkets in total space, relet space and sublet space leased, while in new space leased, the Chantilly submarket led all submarkets by a wide margin. Approximately 45 percent of the new space leased countywide during the first half of 2006
occurred in the Chantilly submarket.
• As expected, the majority of available space is concentrated in the Tysons Corner and Reston submarkets. These two submarkets account for
roughly 45 percent of the available space countywide. Springfield/Franconia leads all submarkets in available new space, closely followed by
Dulles and Fairfax Center/Oakton. These three submarkets represent 72 percent of the available new space in the county. Meanwhile, sublet
space decreased for the seventh consecutive reporting period, down about 15 percent from the previous reporting period.
Commercial Condominium Market Countywide Trends
Midyear 2006
Commercial Condominium Sales
• Sales in the commercial condominium market
showed no signs of weakening during the first half of
2006. The decrease in new condominium development, in conjunction with a slight increase in interest
rates, did little to dampen the demand for condominium space. First half sales totaled 230 units, up from
144 during the last half of 2005. At the current pace,
overall condominium sales are expected to increase
for a sixth consecutive year.
• Office condominium sales outpaced all other categories, accounting for 175 units or roughly 76 percent of
all sales. Industrial/flex sales totaled 26 units, followed
by medical condos with 25 sales and retail with four.
• Centreville led all markets in the number of units
sold during the first half of 2006 with a total of 41
followed by Reston (33 units), Merrifield (31 units),
Chantilly (25 units) and Annandale (17 units).
CentreLee 2, 14631 Lee Highway, Centreville, will deliver 90,000 square feet of office
condominium space in October 2006.
Commercial Condominium Sales
Number of Units Sold
2000
138
2001
151
2002
2003
165
231
2004
278
2005
2006
(as of June 30)
345
230
Colonel's Ridge 2–3, Robert Paris Court, Chantilly, delivered 36,210 square feet of office
condominium space in September 2006.
Notes
Industrial/Flex Market Countywide Trends
Midyear 2006
Industrial/Flex Space Trends: 1980–2006 (Square Feet)
Year
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006 3
Standing 1
Inventory
14,700,000
16,300,000
17,700,000
18,700,000
20,222,000
21,600,000
23,400,000
24,400,000
28,200,000
31,400,000
32,600,000
34,200,000
35,000,000
35,800,000
34,961,029
34,961,029
35,336,217
35,745,785
36,299,193
36,444,226
37,060,795
36,174,673
36,478,391
36,723,384
37,268,392
37,698,795
38,431,263
Direct
Vacancy
Rate (%)
N/A
3.7
6.6
3.1
7.3
6.9
6.8
6.5
7.9
8.5
10.6
13.4
12.7
11.0
9.8
8.0
8.6
6.1
5.4
3.1
3.6
4.6
7.3
7.9
6.3
6.2
7.7
Total 2
Leased
N/A
1,000,000
374,000
2,016,294
1,965,768
2,745,936
1,602,344
1,733,854
2,111,453
2,641,674
1,438,935
1,311,695
1,310,223
2,004,260
2,501,403
2,204,196
2,538,099
1,972,636
1,802,105
1,909,050
2,057,616
1,197,055
1,201,307
2,032,569
2,590,855
2,183,318
1,515,570
New
Leased
Relet
Leased
Total Direct
Available
New
Available
Relet
Available
N/A
N/A
221,000
1,292,439
1,579,182
2,416,694
1,383,489
1,374,025
1,745,037
1,674,048
642,668
410,296
867,837
416,541
496,630
235,790
520,888
44,942
522,744
206,439
348,563
308,512
108,340
360,524
516,423
151,235
404,986
N/A
N/A
153,000
723,855
386,586
329,242
218,855
359,829
366,416
967,626
796,267
901,339
1,310,223
1,587,719
2,004,773
1,968,406
2,017,211
1,927,694
1,279,361
1,702,611
1,709,053
888,543
771,892
1,157,445
1,663,986
1,774,350
1,048,089
N/A
600,000
1,168,000
583,996
1,469,874
1,487,269
1,588,646
1,741,092
2,478,591
2,774,996
3,661,729
4,648,621
4,439,335
3,947,894
3,433,339
2,797,486
3,073,832
2,161,158
1,956,663
1,132,003
1,338,932
1,652,959
2,658,738
2,913,787
2,361,600
2,326,169
2,954,122
N/A
N/A
600,000
260,931
1,337,698
1,360,339
1,011,771
1,316,991
1,229,409
1,306,948
1,669,505
1,914,470
902,275
580,301
285,565
58,568
81,494
41,552
169,439
0
273,984
575,583
547,120
246,861
149,435
237,700
633,682
N/A
N/A
568,000
323,065
132,176
126,930
576,875
424,101
1,179,182
1,468,048
1,992,224
2,734,151
3,537,060
3,367,593
3,147,774
2,738,918
2,992,338
2,119,606
1,787,224
1,132,003
1,064,948
1,077,376
2,111,618
2,666, 926
2,212,165
2,088,469
2,320,440
Includes inventory outside submarket areas, 1980-2000 only.
ln some years, total leasing reflects the preleasing of buildings under construction and about to be constructed, as well as new and relet space.
3
As of June 30, 2006.
1
2
Countywide Industrial/Flex Space Trends: 1980–2006
Inventory and Vacancy Rates
Square
Feet
Vacancy
Rate (%)
40 mil
15
35 mil
• The direct vacancy rate in the industrial/flex market
increased to 7.7 percent at midyear 2006, up from
6.2 percent at yearend 2005. The overall vacancy
rate including sublet space increased to 8.6 percent,
up from the 6.9 percent at yearend 2005. The
increase in the vacancy rate can be attributed primarily to the increase in new space delivered to the
market during the first half of 2006.
30 mil
• Gross absorption experienced an increase for the second consecutive reporting period, totaling more than
1.5 million s.f. of space in the first half of 2006. Activity
was up in all categories by an average 39 percent or
roughly 452,000 s.f. from yearend 2005 totals.
5 mil
12
25 mil
9
20 mil
6
15 mil
10 mil
(as of June 30)
0
3
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
• The industrial/flex space inventory increased by
more than 732,000 square feet (s.f.) to close out
the first half of 2006 at 38.4 million s.f. This sixmonth total represents the largest single reporting
period increase in more than two decades. The
total amount of space delivered during the first six
months of 2006 outpaced the 12-month totals for
the each of the previous four years.
0
• Available space increased to 3.3 million s.f. at midyear
2005—an increase of 27 percent from the yearend 2005 total of 2.6 million s.f. Relet space led all categories with 2.3 million s.f. of space—
an increase of 232,000 s.f. from the previous reporting period. The new space category experienced the largest increase over the first six
months of 2006, adding 396,000 s.f. of available space. Available sublet space increased to 334,000 s.f., up 67,000 s.f. from the previous period.
• Despite the increase in the vacancy rate, demand for industrial/flex space remains strong, as evidenced by the increase in overall absorption.
If absorption stays on track through 2006, a decrease in the vacancy rate should be seen by year’s end.
Midyear 2006
Industrial/Flex Building Deliveries by Year
1,500,000
1,200,000
900,000
600,000
2006
(as of June 30)
2005
2000
1998
1999
1997
1996
1995
1994
1993
1992
1991
1990
0
• The outlook for new industrial/flex space depends on how quickly
new space is absorbed over the next six months. There is some
concern over the increase in the vacancy rate, but in reality, demand in
the industrial/flex market remains very strong. The rise in the vacancy
rate is due in large part to the influx of new space, as opposed to a
decrease in demand. Based on current demand, Fairfax County should see an increase in new construction starts by yearend.
2004
300,000
2002
2003
• Deliveries of new industrial/flex space neared record levels during
the first half of 2006. Eleven buildings totaling more than 732,000 s.f.
had delivered by midyear, up 81 percent from yearend 2005. Newington/Lorton led all submarkets with six buildings totaling 335,000
s.f., followed by Chantilly with four buildings and 304,000 s.f.
Sq. Ft.
2001
• New industrial flex construction activity declined sharply during
the first six months of the year. At the midyear 2006, seven
buildings totaling 238,000 square feet (s.f.) of space were under
construction, off nearly 59 percent from the previous reporting period. The Chantilly submarket experienced the lion’s share of new
construction with 62 percent of all activity countywide.
Industrial/Flex Space Under Construction, First Half 2006
Address
Submarket
Granite & Marble Express
Northridge @ Westfields – Building VII
Northridge @ Westfields – Building VI
Northridge @ Westfields – Building V
FedEx Expansion
Miller’s Office Products
Del Ray Glass
14154 Mariah Court
15002 Northridge Drive
14900 Stonecroft Center Court
6621-6631 Richmond Highway
Chantilly
Chantilly
Chantilly
Chantilly
Chantilly
Newington/Lorton
Richmond Highway
Square Feet
32,000
27,870
39,088
39,088
9,500
60,000
30,093
Lead Tenant(s)
Delivery
Granite & Marble Express
Speculative
Speculative
Speculative
FedEx
Miller’s Office Products
Del Ray Glass
September 2006
December 2006
December 2006
December 2006
March 2007
November 2006
December 2006
Industrial/Flex Building Deliveries, First Half 2006
Address
Submarket
Avion Park – Building A
Avion Park – Building C
Avion Park – Building B
Hoop Magic
Gunston Commerce Center – Building 6
Gunston Commerce Center – Building 8
Gunston Center Condominiums
Gunston Cove Business Center – Building 2
West Springfield Corporate Park
3931 Avion ParkCourt
3933 Avion Park Court
3935 Avion Park Court
14810 Murdock Drive
10430 Furnace Road
10440 Furnace Road
10595 Furnace Road
9704 Gunston Cove Road
8701 Morrissette Drive
Chantilly
Chantilly
Chantilly
Chantilly
Newington/Lorton
Newington/Lorton
Newington/Lorton
Newington/Lorton
Newington/Lorton
Newington/Lorton
Square Feet
Lead Tenant(s)
Delivery
48,600
108,000
82,000
65,000
75,200
75,200
102,088
18,000
21,600
43,200
93,580
Condo
Condo
Condo
Hoop Magic
Bode Technology
Speculative
Condo
Speculative
Speculative
Speculative
Speculative
May 2006
May 2006
May 2006
April 2006
June 2006
June 2006
June 2006
June 2006
June 2006
June 2006
June 2006
Gunston Cove Business Center 2,
9704 Gunston Cove Road, Lorton,
delivered 18,000 square feet of
warehouse space in
June 2006.
Major Lease Transactions
Top 10 Industrial/Flex Lease Deals in First Half 2006
(Square Feet)
• Industrial/flex leasing activity countywide increased for a
second consecutive reporting period and registered the
highest single period total in 10 years. At midyear 2006,
overall leasing activity totaled 1.5 million square feet
(s.f.). If demand continues at its current pace, 2006 could
end up as the most active year on record in terms of
absorption.
• The top three largest industrial/flex submarkets dominated overall leasing activity, as well as major lease deals,
during the first half of the year. Seven of the top 10 largest deals took place in the the Chantilly and Newington/
Lorton submarkets. These two areas also are the most
active as far as new construction activity is concerned.
Midyear 2006
Northrop Grumman / Newington/Lorton
63,000
Guernsey Office Products, Inc. / Chantilly
43,750
Waterford Receptions / Springfield/Franconia
42,000
Bode Technology / Newington/Lorton
Treasures of Time, LLC / Chantilly
48,505
33,786
Intel / Chantilly
MVLE / Newington/Lorton
M.C. Dean / Dulles
30,339
28,102
25,000
GSA – Army Corps of Engineers / Dulles
23,760
Mantech Security Technologies Corp. / Newington/Lorton
22,600
• Chantilly, Newington/Lorton and Springfield/Franconia
will continue to experience the bulk of large-scale leasing
for the the foreseeable future. These three submarkets
represent over 86 percent of the vacant space in the
county.
Industrial/Flex Leasing Activity, First Half 2006
Tenant
Building
Address
Submarket
Cycle Pros
D&J Electric, Inc.
E.K. Fix & Associates, Ltd.
Elite Wine
ENSCO
ESI International, Inc.
Exhibit Edge
Friendly Hearts, Ltd.
Goetz Printing Co.
Great American Restaurants, Inc.
GSA
GSA – Army Corps of Engineers
Guernsey Office Products, Inc.
Harmony Pottery, Inc./Creative Clay
Home Plus, Inc.
HSM Electronic Protective Services, Inc.
Hyundai Electric & Construction Co.
Hyundai Electric & Construction Co.
ImageWorks Studio
Intel
JK Distributors
JNC Business Systems
KM Group, LLC
Lifetouch National School Studios, Inc.
Lift Off Distribution
M&M Welding & Fabrication
M.C. Dean
MAC Aerospace Corp.
Mantech Security Technologies Corp.
Marblex Design International
Maurice Pastries
MVLE
National Cable Satellite Corp. (C-SPAN)
Northeastern Supply, Inc.
Northrop Grumman
Phoenix Enterprises
Premier Development, LLC
Presto Valet
Radiology Services of Northern Virginia
Raytheon
R.E. Michael Co.
Regent, Inc.
Newington Park Center 5
8536 Terminal Road
2807 Merrilee Drive
4511 Daly Drive
7329-7347 Lockport Place
8538 Terminal Road
4315 Walney Road
14140 Parke-Long Court
7939 Angus Court
2711 Dorr Avenue
8532 Terminal Road
13934-13968 Park Center Road
4311 Walney Road
5702-5704 General Washington Drive
7942 Cluny Court
8211 Terminal Road
2711 Dorr Avenue
2824-2830 Dorr Avenue
3859 Centerview Drive
8535 Terminal Road
7400-7402 Lockport Place
14221B Willard Road
4515 Daly Drive
6636-6672 Fleet Drive
4155 Westfax Drive
13821-13843 Redskin Drive
14301 Sullyfield Circle
2930-2942 Prosperity Avenue
7420 Fullerton Road
8211 Terminal Road
2729 Merrilee Drive
13870-13912 Park Center Road
4429 Brookfield Corporate Drive
Newington/Lorton
Merrifield
Chantilly
Newington/Lorton
Newington/Lorton
Chantilly
Chantilly
Chantilly
Newington/Lorton
Merrifield
Newington/Lorton
Dulles
Chantilly
Newington/Lorton
Newington/Lorton
Merrifield
Merrifield
Chantilly
Chantilly
Newington/Lorton
Newington/Lorton
Chantilly
Chantilly
Chantilly
Dulles
Chantilly
Newington/Lorton
Merrifield
Newington/Lorton
Newington/Lorton
Merrifield
Dulles
Merrifield
Merrifield
Chantilly
Daly Brook Corporate Center A
Northern VA Industrial 4
Beaumont @ Lafayette D
Walney Business Center, Building A
Parke-Long Center 5
Renaissance Park @ Dulles 8
Walney Business Center, Building B
Bren Mar Center
Crown Center
Davis Building
Lafayette Technology Center C
Brookfield Park, Phase 1 Building B
Daly Brook Corporate Center B
Fleet Industrial Park, Section 3 Building 2
Westfax Business Center C
Sullyfield Park Center 1
Bren Mar Center
Fullerton Square
Beltway Business Center 2
Fleet Industrial Park, Section 3 Building 2
Crown Center
Marlo Furniture
Merrilee Business Center, Phase 1
Fleet Distribution Center 8
Brookfield Park Phase 2 Building B
Square Feet
3,000
2,500
11,547
8,800
3,000
12,165
18,830
14,720
14,502
1,680
5,905
23,760
43,750
5,900
2,200
7,060
1,680
1,243
2,440
30,339
6,024
16,000
6,662
5,285
12,000
4,400
25,000
8,302
22,600
16,125
4,425
28,102
9,161
18,000
63,000
61,500
6,145
5,925
6,860
5,300
11,836
2,462
Midyear 2006
Industrial/Flex Leasing Activity, First Half 2006
Tenant
Building
Address
Submarket
Robert Williams
Sennett Security Products
Sherwin Williams
Sonic Automotive
Soon C. Chang
Stanley Steemer International, LLC
Stohlman Automotive Products
Sun Café
Tasty Cake
Technitrux
Terremark
Treasures of Time, LLC
Truland Service Corp.
Universal Power Systems, Inc.
Waterford Receptions
Wholesale Carpet
Winn Design
Newington Center North
Fairtech @ Lafayette B
7700-7702 Backlick Road
4212 Technology Court
8400 Hilltop Road
2730 Dorr Avenue
2736-2750 Gallows Road
8534 Terminal Road
7361 Lockport Place
460 Spring Park Place
4315 Walney Road
6715 Commerce Street
Newington/Lorton
Chantilly
Merrifield
Merrifield
Merrifield
Newington/Lorton
Newington/Lorton
Merrifield
Herndon
Chantilly
Chantilly
Merrifield
Merrifield
Fleet Distribution Center 8
Spring Park Tech Center, Phase 1 Building 4
Walney Business Center, Building A
Beaumont @ Lafayette A
Waterford at Springfield
Square Feet
1,599
4,790
5,610
12,000
3,200
3,581
6,247
1,500
5,000
2,650
48,832
33,786
16,118
15,923
42,000
3,932
2,650
Miller's Office Products, 8600 Cinder Bed Road,
Lorton, comprises 64,349 square feet of
warehouse space.
Major Sale Transactions
Notable Industrial/Flex Building Sales in
First Half 2006 (Price Per Square Foot)
• Eighteen industrial/flex buildings totaling approximately 1.2 million
square feet (s.f.) sold during the first half of 2006. The aggregate
value of the properties sold in the first half of 2006 totaled
$148 million, up from $68 million at yearend 2005.
Lafayette Technology Center A, B, & C / Chantilly
$255.11
7322 Richmond Highway / Richmond Highway
$227.27
4211 Henninger Court / Chantilly
• The median sale price at midyear was $159 per s.f., up from $144
per s.f. at yearend 2005. The average value for industrial/flex properties increased to $168 per s.f., up from $109 per s.f. at yearend 2005.
$212.12
2916 Annandale Road / Seven Corners
$162.24
Avion Flex-Tech 1& 2 / Chantilly
$158.52
Industrial/Flex Building Sales, First Half 2006
Building
Address
Lafayette Technology Center A, B, & C
Chantilly Distribution Center 2
Service Center 1 & 2
Avion Flex-Tech 1 & 2
Beaumont @ Lafayette D & A
Crown Center
Slan Building
Submarket
4030/4040/4050 Lafayette Center Drive
3800/3810 Concorde Parkway
3701/3725 Concorde Parkway
4200/4230 Lafayette Center Drive
8211 Terminal Road
7955-7969 Twist Lane
2916 Annandale Road
4211 Henninger Court
7953 Angleton Court
7322 Richmond Highway
7623 Fullerton Road
Chantilly
Chantilly
Chantilly
Chantilly
Chantilly
Newington/Lorton
Newington/Lorton
Seven Corners
Chantilly
Newington/Lorton
Newington/Lorton
Richmond Highway
Newington/Lorton
Sale Price
$37,000,000
$34,750,000
$20,111,979
$15,827,000
$15,625,000
$6,225,000
$6,145,000
$3,125,000
$2,800,000
$2,313,000
$1,600,000
$1,250,000
$1,200,000
Square Feet
$/S.F.
145,033
368,206
130,244
99,845
107,306
229,547
52,458
19,262
13,200
14,850
11,460
5,500
12,483
$255.11
$94.38
$154.42
$158.52
$145.61
$27.12
$117.14
$162.24
$212.12
$155.76
$139.62
$227.27
$96.13
Industrial/Flex Market Submarket Trends
Midyear 2006
Industrial/Flex Space Inventory by Submarket (Square Feet)
Inventory
Annandale
91,450
Baileys Crossroads
318,502
Burke
239,924
Chantilly
9,181,774
Dulles
1,581,175
43,660
Herndon (Town)
1,154,782
McLean/Great Falls
9,390
Merrifield
2,762,547
Newington/Lorton
10,268,898
Reston
465,775
Richmond Highway
49,273
Seven Corners
35,706
10,703,053
Tysons Corner
1,072,874
Vienna
452,480
Fairfax County
38,431,263
Absorption
Total
Relet
New*
—
—
—
—
—
—
—
—
—
466,311
326,678 137,793
55,620
55,620
—
—
—
—
3,914
3,914
—
—
—
—
123,571
115,051
—
579,753
298,060 266,693
—
—
—
—
—
—
—
—
—
256,151
218,516
500
30,250
30,250
—
—
—
—
1,515,570 1,048,089 404,986
Sublet
—
—
—
1,840
—
—
—
—
8,520
15,000
—
—
—
37,135
—
—
62,495
Total
—
7,800
4,677
1,417,101
91,408
—
163,528
—
68,665
740,025
12,374
—
—
678,152
63,150
41,452
3,288,332
Available
Relet
New
—
—
7,800
—
4,677
—
1,026,339 249,051
87,408
—
—
—
163,528
—
—
—
68,665
—
369,082 284,551
11,574
—
—
—
—
—
476,765 100,080
63,150
—
41,452
—
2,320,440 633,682
Sublet
—
—
—
141,711
4,000
—
—
—
—
86,392
800
—
—
101,307
—
—
334,210
Underway Delivered
—
—
—
—
—
—
147,546
303,600
—
—
—
—
—
—
—
—
—
—
60,000
335,288
—
—
30,093
—
—
—
—
93,580
—
—
—
—
237,639
732,468
Industrial/Flex Vacancy Rate by
Industrial/Flex Lease Rates by Submarket (Per Square Foot) Submarket, First Half 2006
Relet Lease Rates
Annandale
NA
Baileys Crossroads
$15.00 NNN–$17.00 NNN
Burke
NA
Chantilly
$6.75 NNN–$23.00
Dulles
$8.00 NNN–$8.75 NNN
NA
Herndon (Town)
$8.50 NNN–$17.00 NNN
McLean/Great Falls
NA
Merrifield
$12.00 NNN–$15.00 NNN
Newington/Lorton
$7.00 NNN–$17.75 NNN
Reston
$13.00 NNN–$18.00 NNN
Richmond Highway
NA
Seven Corners
NA
Springfield/Franconia $9.50 NNN–$18.00 NNN
Tysons Corner
$15.00 IG–$25.00 NNN
Vienna
$15.00 NNN
New Lease Rates*
NA
NA
NA
$10.00 NNN–$11.75 IG
NA
NA
NA
NA
NA
$11.25 NNN–$16.00 NNN
NA
NA
NA
NA
NA
NA
Sublet Lease Rates
NA
NA
NA
$8.00 NNN–$12.95 NNN
$12.00 IG
NA
NA
NA
NA
$5.50 NNN–$15.50 NNN
NA
NA
NA
$9.00 NNN–$14.00 NNN
NA
NA
Annandale
Baileys Crossroads
Burke
Chantilly
Dulles
Herndon (Town)
McLean/Great Falls
Merrifield
Newington/Lorton
Reston
Richmond Highway
Seven Corners
Tysons Corner
Vienna
Fairfax County
Direct
0.0% —
2.5% ▼
1.9% ▼
13.6% ▼
5.5% ▼
0.0% —
14.2% ▼
0.0% —
2.5% ▼
6.4% ▼
2.5% ▼
0.0% —
0.0% —
5.4% ▼
5.9% ▼
9.2% —
7.7% ▼
w/Sublet
0.0% —
2.5% ▼
1.9% ▼
15.1% ▼
5.8% ▼
0.0% —
14.2% ▼
0.0% —
2.5% ▼
7.2% ▼
2.7% ▼
0.0% —
0.0% —
6.3% ▼
5.9% ▼
9.2% —
8.6% ▼
NOTE: The lease rates listed above are based on quoted rates of property available on June 30, 2006. It is important
to note that this is just a snapshot of quoted rates at a given point in time and that all rates are subject to change.
For an explanation of lease rates, see glossary on page 18.
• The approximately 38 million square foot industrial/flex inventory in Fairfax County is spread among 16 submarkets; however, the bulk of the space
is concentrated in the top three submarkets. The Springfield/Franconia, Newington/Lorton and Chantilly submarkets account for more than 78
percent of the county’s industrial/flex inventory.
• The direct vacancy rate was up in six of the 16 submarkets, down in four and unchanged in the remaining six. The overall vacancy rate increased
in seven of the submarkets, decreased in three and remained static in six.
• The Chantilly and Newington/Lorton submarkets each experienced increases in overall vacancy rates. Both markets experienced substantial
increases in the amount of new space delivered during the first half of 2006. A decrease in new deliveries in conjunction with strong demand in
these two submarkets should combine to offset any additional increases in the vacancy rate during the last half of 2006.
• Gross absorption was up countywide, led by the Newington/Lorton, Chantilly and Springfield/Franconia submarkets, which, combined, accounted
for more than 1.3 million square feet (s.f.) or 86 percent of total leasing activity. Absorption of new space increased threefold during the first half
2006. More than 400,000 s.f. was absorbed in Newington/Lorton and Chantilly—the two most active submarkets in terms of new construction.
• Available space is heavily concentrated in the Chantilly submarket along the Route 28 and Route 50 corridors and the Newington/Lorton and
Springfield /Franconia submarkets along the Interstate 95 corridor. More than 86 percent of the available space lies within these three submarkets. The addition of over 732,000 s.f. of new space was the main reason for the increase in available space during the first half of 2006. Available
space increased by 27 percent over yearend 2005 totals, but it is important to note that demand increased by more than 29 percent over the
same period of time.
Hotel Market Countywide Trends
Midyear 2006
Hotel Activity
Hotels by Submarket
Hotels Under Construction, First Half 2006
Hotel
Hampton Inn Herndon
Submarket
Herndon
Rooms
96
Square Feet
150,000
Delivery
May 2007
Square Feet
87,396
Delivery
April 2006
Hotels Delivered, First Half 2006
Hotel
Hilton Garden Inn
Submarket
Rooms
Tysons Corner
149
Hotels Under Renovation, First Half 2006
Hotel
Hampton Inn Old Town
Westin Tysons Corner
Submarket
Richmond Highway
Tysons Corner
Rooms
50
NA
• At midyear 2006, the hotel inventory stood at
87 hotels with 75 rooms or more in 15 submarkets throughout the county. The number of hotel
rooms declined slightly due to the demolition of
the 201-room Homestyle Inn in the Springfield/
Franconia submarket. At midyear, there were approximately 15,700 rooms and nearly 10 million
square feet (s.f.) of hotel space countywide.
Delivery
December 2006
November 2006
Properties
Annandale
—
Baileys Crossroads
3
Burke
—
Centreville
2
Chantilly
14
Dulles
6
Fairfax Center/Oakton 9
Herndon (Town)
9
McLean/Great Falls
1
Merrifield
5
Newington/Lorton
1
Reston
3
Richmond Highway
6
Seven Corners
3
10
Tysons Corner
14
Vienna
1
Fairfax County
87
Rooms
—
294
—
231
1,956
1,270
1,490
1,467
143
996
129
965
707
337
1,709
3,888
115
15,696
Square Feet
—
158,903
—
131,098
1,215,286
1,041,525
927,198
895,251
103,646
637,849
62,172
714,495
338,073
191,812
873,207
2,578,229
39,312
9,908,056
Hotels Planned
Hotel
Marriott Residence Inn Springfield
Sheraton Dulles Station
Westin Dulles Corner
Westin Reston International Center
Sheraton Dulles South
Marriott Residence Inn
Courtyard by Marriott
Submarket
Springfield
Dulles
Dulles
Reston
Chantilly
Richmond Highway
Richmond Highway
Rooms
160
180
326
185
249
150
130
Delivery
February 2008
January 2008
June 2008
March 2008
October 2008
TBD
TBD
• One new hotel was added to the inventory during the first half of 2006—the Hilton Garden Inn
Tysons Corner, a 149-room, upscale, select service hotel that delivered in April. The 87,396-square-foot project offers 1,300 s.f. of meeting space
that can accommodate up to 75 people and an on-site restaurant.
• At midyear 2006, one hotel was under construction in Fairfax County. The Hampton Inn Herndon, a 96-room, limited service hotel broke
ground during the first half of 2006 and is scheduled to deliver in May 2007.
• In other hotel development news, the Doubletree Hotel and Executive
Meeting Center Tysons Corner is undergoing an extensive $20 million
renovation and conversion to Westin. Completion of the project is slated
for November 2006. The Hampton Inn Old Town on Richmond Highway
broke ground on a 50-room expansion due to deliver by yearend 2006.
• Seven new hotel projects totaling approximately 1,380 new rooms were
in the pipeline at midyear 2006. Several other major chains were actively
pursuing potential development sites throughout the county during the
first half of 2006.
The Hilton Garden Inn, 8301 Boone Boulevard,Tysons Corner, opened
in April 2006, offering 149 rooms and 87,396 square feet of hotel space.
Using This Report Glossary & Submarket Map
Glossary
Fairfax County Submarket Map
Absorption
CO
UN
TY
Total—
Total—The
sum of all reported transactions, including new, relet, sublet and preleasing. This figure is the total of all leasing
activity within the previous six months.
Great
Falls
Relet—Previously occupied space leased.
7
New—Newly constructed space leased.
Sublet—Leased space, via an existing tenant and not the landlord.
Town of
Herndon
Industrial/Flex—
Industrial/Flex—The
total amount of
existing rentable square feet. All buildings,
including commercial condominiums,
owner-occupied properties and singletenant buildings are included.
Hotel—
Hotel—The
total building area of all
hotels with 75 or more rooms.
UD
OU
N
Chantilly
LO
Office—
ce—The total amount of existing
rentable square feet. All buildings, including
commercial condominiums, owner-occupied properties and single-tenant buildings
are included.
5
6
Dulles
50
Fairfax
Center
Industrial Gross (IG): Base rent includes
insurance and real estate taxes with tenant
responsible for increases over this base year.
Tenant is also responsible for the CAM charge.
Net Leases: The tenant is responsible for
some or all of the operating expenses, such as
real estate taxes, insurance, utilities and CAM
charges. Most common for industrial/flex
leases. The primary types of Net Leases are:
• Net (N): In addition to rent, tenant typically pays for utilities.
• Double Net (NN): In addition to rent,
tenant typically pays for utilities and cleaning.
• Triple Net (NNN): Sometimes referred
to as a Pure Net Lease, in which the tenant
is responsible for all or almost all of the
operating expenses, such as utilities, CAM,
real estate taxes and insurance.
Space Available
Total—Sum of relet, new and sublet available space.
Relet—Previously occupied available space.
New—Newly constructed available space.
Sublet—
Sublet—Available
space, via an existing
tenant and not the landlord. May or may
not be occupied.
123
16
17
Tysons
Corner
7
Oakton
7
3
10
50
Merrifield
14
Seven
Corners
Centreville
4
66
28
1
29
2
CITY OF
ALEXANDRIA
3
TOWN OF CLIFTON
RONALD REAGAN
WASHINGTON
NA
NATIONA
L
AIRPORT
Baileys
Crossroads
Annandale
236
29
ARLINGTON
COUNTY
Falls Church
2
1
66
WASHINGTON,
D.C.
McLean
Town of
Vienna
1
Burke
495
2
395
Springfield
PRINCE WILLIAM
COUNTY
5
4
5
Franconia
1
Newington
95
11
123
1
3
15
Leases
Full Service (FS) Leases: Sometimes
referred to as Gross Rent. This rate includes
operating expenses, CAM, real estate taxes
and insurance for which the landlord is responsible. A tenant may pay for increases in these
costs over a base year, which is stipulated in a
lease. Most common for office leases.
495
267
ou t
ay
Parkw
Inventory
WASHINGTON DULLES
INTERNATIONAL
AIRPORT
F ir
fax
Buildings for which a certificate of occupancy has been issued. This figure is for the
previous six months only.
Reston
Dull
es A
ess &
irport Acc
Tol
l Road
8
Deliveries
MARYLAND
9
12
4
Lorton
2
1
3
d
on
m
ch
Ri
Hw
y
13
Mount
Vernon
FORT
BELVOIR
4
5
6 Dulles (formerly Oak Hill/Herndon)
7
8
9
10
11
12
13
14
15
16
17
Under Construction
Buildings where construction has begun as
evidenced by site work such as excavation or
foundation placement. Site grading and demolition
of existing structures do not meet these criteria.
This figure is for the previous six months only.
Vacancy Rates
Direct—
Direct—The
direct vacancy rate is total direct
available space divided by the inventory. Direct avail-
able space consists of space, new or relet, that is
available directly through the landlord and not a
third party such as an existing tenant. Buildings
under construction are not included in this figure.
Sublet—
Sublet—The
sublet vacancy rate is the aggregate of direct available space plus sublet available
space available divided by the inventory. As such,
the sublet vacancy rate will always be equal to or
higher than the direct vacancy rate. Buildings under construction are not included in this figure.
FCEDA Resources
In addition to the Real Estate Report, the Fairfax County Economic Development Authority (FCEDA) has numerous resources
available to assist those looking for information about Fairfax County. Publications range from an annual overview of the FCEDA’s
work to a guide to doing business in the county. All the publications are free and most can be downloaded from the FCEDA’s Web
site at www.FairfaxCountyEDA.org. Contact the FCEDA office at 703-790-0600 or [email protected] for printed copies.
Annual Report
Overview Brochure
Detailed summary of the FCEDA’s activity and Fairfax County’s business growth during the previous year—including economic indicators,
marketing results and real estate trends. Available in hard copy and on
the FCEDA’s Web site.
Describes aspects that make Fairfax County a prime location for both
domestic and international businesses, including proximity to Washington, D.C., fiscal standing, business environment, Washington Dulles
International Airport, labor force, educational system and quality of
life. Hard copy and Web versions available.
Area Business Reports
Demographic information and other statistics summarized for seven
geographic submarkets in Fairfax County. Hard copy and Web versions available. Areas covered include:
• Annandale–Baileys Crossroads–Seven Corners
• Merrifield
• Reston–Herndon
• Richmond Highway Corridor–Southeast Fairfax
Small Business Information
Business Ventures
Quarterly newsletter covering news of interest to small, minority- and
woman-owned businesses. Hard copy and Web versions available.
Small Business Calendar of Events
Web version only.
• Springfield–Interstate 95 Corridor
Summary Reports
• Tysons Corner
• Western Fairfax
Overviews, fact sheets and lists providing information on the following topics, as compiled by the FCEDA. Hard copy and Web versions
available.
Fairfax County Profile
• Associations
Summarizes topics of interest to businesses. Hard copy and Web
versions available. Sections include:
• Bioscience Resources
• Fairfax County Overview
• Business Community
• Technology
• BioAccelerator Fact Sheet
• Chambers of Commerce
• Colleges and Universities
• Education
• Employment Services
• Demographics
• Embassy Contacts
• Education
• Emerging Markets
• Quality of Life
• Executive Suites
• Health and Community Services
• Fairfax County Fact Sheet
• Transportation
• FCEDA Headquarters Fact Sheet
Doing Business in Fairfax County
• Foreign-Owned Firms
• Government Procurement
Summarizes government regulations and provides guidelines and reference information on starting and operating a business in the county.
Hard copy and Web versions available.
• Procurement for Emerging Markets
Fairfax County Leader
• Local and State Taxes
Quarterly newsletter containing recent announcements, county statistics, profiles on local firms and FCEDA programs and services. Hard
copy and Web versions.
• Incubators
• Largest Employers
• Technology Firms
• Venture Capital
• Wages
©2006 Fairfax County Economic Development Authority (FCEDA). The data presented here have been compiled from information provided by commercial real estate owners,
developers, brokers, local periodicals, private businesses and public agencies. Statistics contained within are extremely fluid and subject to change without notice. The acceptance and use of this report by any individual or group is with the understanding that the Fairfax County Economic Development Authority makes no warranties, expressed or
implied, regarding the accuracy, completeness and reliability of the data contained within. It is the responsibility of the user to verify its completeness and accuracy.
This free survey is published biannually and copies of prior surveys dating from 1980 are available. For more information, call Curt Hoffman at 703-790-0600.
October 2006
8300 Boone Boulevard, Suite 450, Vienna, Virginia 22182
Phone 703-790-0600 • Fax 703-893-1269 • E-mail [email protected] • URL www.FairfaxCountyEDA.org
The Fairfax County Economic Development Authority is an independent authority created under state law, operating under the
direction of seven Commissioners appointed by the Fairfax County Board of Supervisors. Its activities are funded by Fairfax County.
COUNTY BOARD OF SUPERVISORS
Gerald E. Connolly, Chairman
Sharon Bulova, Vice Chairman
Joan DuBois • Michael R. Frey • Penelope A. Gross • Gerry W. Hyland • Catherine M. Hudgins • Dana Kauffman • Elaine McConnell • Linda Q. Smyth
ECONOMIC DEVELOPMENT AUTHORITY COMMISSIONERS
Steven Davis, Chairman
Michael S. Horwatt, Vice Chairman
Ron Johnson • Mike Lewis • Ann Rodriguez • Sudhakar Shenoy • William Soza
ECONOMIC DEVELOPMENT AUTHORITY STAFF
Gerald L. Gordon, President and Chief Executive Officer
Robin Fenner, Vice President, Management
Catherine W. Riley, Vice President of Marketing and Director, International Marketing
Barbara Cohen, Director, Administration
Alan Fogg, Director, Communications
Anita Grazer, Director, National Marketing
Ivy G. Richards, Director, Market Research & Real Estate
Karen Smaw, Director, Small & Minority Business Development
REAL ESTATE REPORT PRODUCTION TEAM
Curt Hoffman, Author
Christian Koschil, Researcher
Vicki Serraino, Graphic Designer
The Fairfax County Economic Development Authority (FCEDA) assists businesses interested in locating, relocating, or expanding
their commercial office or industrial operations in Fairfax County. FCEDA’s services are free and confidential.
Fairfax County Economic Development Authority
8300 Boone Boulevard, Suite 450
Vienna,Virginia 22182-2633
Presorted Standard
U.S. Postage
PAID
Permit No. 6353
Merrifield, VA 22116

Office Market Countywide Trends

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