The Northern Virginia office market consists of 1,535 buildings over 25,000 square feet, totaling approximately 187.0 million square feet of rentable space. The largest non-GSA lease signed during the first quarter was a 724,820-square-foot pre-lease by Fannie Mae at Reston Gateway – Sunset Hills Road at Town Center Boulevard. The largest lease signed by the GSA was a 73,000-square-foot relet for the GSA-DEA at Crystal Plaza 4 – 2200 Crystal Drive.
Building sales volume totaled over $271 million during the first quarter. The largest transaction was the sale of Commerce Metro Center III-V – 1850 Centennial Park Drive, 11400 and 11440 Commerce Park Drive in the Reston-Herndon submarket. Comstock acquired the buildings from JBG Smith for $115 million ($282 psf). The buildings were 87.0% occupied at the time of sale. The second largest sale was of 2000 Duke Street in the Old Town & Eisenhower Ave submarket. The Shidler Group acquired the building from J.P. Morgan for $75 million ($482 psf). The building was 98.1% occupied at the time of sale and traded at a 5.50% Cap Rate. The third largest sale was of 6400 & 6402 Arlington Boulevard in the Falls Church submarket. BoundTrain/Harbert acquired the buildings from AIG for $38,119,000 ($93 psf). The buildings were 73.0% occupied at the time of sale and traded at a 10% Cap Rate. Inside the Beltway, there were 42 buildings marketing 50,000 square feet or greater of contiguous space available at the end of the first quarter 2019, compared to 44 from the fourth quarter 2018. Outside the Beltway, there were 78 buildings marketing 50,000 square feet or greater of contiguous space available at the end of the first quarter 2019, compared to 76 from the fourth quarter 2018.