Northern Virginia

The Northern Virginia office market consists of 1,525 buildings over 25,000 square feet, totaling approximately 186.8 million square feet of rentable space.

The largest non-GSA lease signed during the third quarter was a 87,070-square-foot new lease by Neustar, Inc. at Reston Station – Phase II – 1906 Reston Metro Plaza. The largest lease signed by the GSA – The Executive Office of the President was a 257,400-square-foot renewal at Building Two – 499 Grove Street.

Building sales volume totaled $483,248,925 during the third quarter. The largest transaction was the sale of International Place – 1735 Lynn Street in the Rosslyn-Ballston Corridor submarket. Altus Realty
Partners acquired the building from The Meridian Group for $128,800,000 ($436.21 psf). The building was 92.0% occupied at the time of sale and traded at a 7.00% Cap Rate. The second largest sale was of Two Liberty Center – 4075 Wilson Boulevard in the Rosslyn-Ballston Corridor submarket. Hines Interests LP acquired the building from Westbrook Partners for $93,200,000 ($521.54 psf). The building was 95.0% occupied at the time of sale and traded at a 6.20% Cap Rate. The third largest sale was of 1660 International Drive in the Tysons Corner submarket. American Real Estate Partners acquired the building from Sun Life Institutional Investments for $71,050,000 ($333.99 psf). The building was 91.4% occupied at the time of sale.

Inside the Beltway, there were 37 buildings marketing 50,000 square feet or greater of contiguous space available at the end of the third quarter 2019, compared to 40 from the second quarter 2019. Outside the Beltway, there were 75 buildings marketing 50,000 square feet or greater of contiguous space available at the end of the third quarter 2019, compared to 82 from the second quarter 2019.