The Northern Virginia office market consists of 1,529 buildings over 25,000 square feet, totaling approximately 182.0 million square feet of rentable space. The largest non-GSA lease signed during the first quarter was a 234,937-square-foot renewal by the Arlington County Board at Courthouse Plaza 1 – 2100 Clarendon Boulevard in the Rosslyn-Ballston Corridor submarket.
The largest lease signed by the GSA was a 96,000-square-foot renewal/expansion for the FBI at Commonwealth Centre Phase I Bldg II – 14360 Newbrook Drive in the Route 28 Corridor South submarket. Building sales volume totaled approximately $836.8 million during the first quarter. The largest transaction was the sale of the James K. Polk & Zachary Taylor Buildings in the Crystal City submarket. Beacon Capital Partners and GIC Real Estate acquired the two buildings from Beacon Capital Partners for $379.5 million ($416 psf). The properties were fully occupied at the time of sale, and traded at a 6.58% Cap Rate. The second largest sale was Tysons Metro Center I-IV – 8251, 8255, 8281 & 8285 Greensboro Drive trading from Beacon Capital Partners to Meridian Group for $227,000,000 ($297 psf). The buildings were 91.0% occupied at the time of sale, and traded at a 6.00% Cap Rate. Inside the Beltway, there were 55 buildings marketing 50,000 square feet or greater of contiguous space available at the end of the first quarter 2017, compared to 60 from the fourth quarter 2016. Outside the Beltway, there were 80 buildings marketing 50,000 square feet or greater of contiguous space available at the end of the first quarter 2017, compared to 85 from the fourth quarter 2016.