Northern Virginia

The Northern Virginia office market consists of 1,531 buildings over 25,000 square feet, totaling approximately 186.6 million square feet of rentable space. The largest non-GSA lease signed during the first quarter was an 850,000-square-foot pre-lease by Fannie Mae at Reston Gateway – Sunset Hills Rd @ Town Center Boulevard in the Reston-Herndon submarket. The largest lease signed by the GSA was a 445,000-square-foot relet for Customs and Border Protection at Quantum Park – 22001 Loudoun County Parkway.

Building sales volume totaled $871,725,000 during the first quarter. The largest transaction was the sale of Arlington Tower – 1300 N. 17th Street. Washington REIT acquired the building from Tishman Speyer for $250 million ($629 psf). The building was 88.0% occupied at the time of sale, and traded at a 6.25% Cap Rate. The second largest sale was of One Dulles Tower – 13200 Woodland Park Road. Harbour Group acquired the building from Federal Capital Partners for $226 million ($560 psf). The building was fully occupied by Amazon at the time of sale, and traded at a 5.46% Cap Rate. The third largest sale was Braddock Metro Center – 1310-1340 Braddock Place in the Alexandria submarket. Kawa Capital acquired the four buildings from Washington REIT for $93 million ($260 psf). The buildings were 92.3% occupied at the time of sale, and traded at a 7.60% Cap Rate. Inside the Beltway, there were 49 buildings marketing 50,000 square feet or greater of contiguous space available at the end of the first quarter 2018, compared to 51 from the fourth quarter 2017. Outside the Beltway, there were 76 buildings marketing 50,000 square feet or greater of contiguous space available at the end of the first quarter 2018, compared to 78 from the fourth quarter 2017.