Northern Virginia

The Northern Virginia office market consists of 1,534 buildings over 25,000 square feet, totaling approximately 188.3 million square feet of rentable space. The largest non-GSA lease signed during the fourth quarter was a 379,000-square-foot renewal by Fannie Mae at Fannie Mae Complex – 11600 American Dream Way. The largest lease signed by the GSA was a 190,546-square-foot renewal for the Patent & Trademark Office at Randolph Square – 2800 S. Randolph Street.

Building sales volume totaled $763,384,101 during the fourth quarter. The largest transaction was the partial interest transfer of the Rockpoint/ Brandywine Portfolio in the Reston-Herndon submarket. Brandywine Realty Trust formed a joint venture with Rockpoint Group who purchased 85% interest in the portfolio while Brandywine retained 15% interest. The buildings were 85.7% occupied at the time of sale. The second largest sale was of 1550 & 1560 Wilson Boulevard in the Rosslyn-Ballston Corridor submarket. Empire Leasing, Inc. acquired the building from Brookfield Office Properties, Inc. for $102,500,000 ($364 psf). The buildings were 76.0% occupied at the time of sale and traded at a 6.10% Cap Rate. The third largest sale was of Building C-2- 22001 Loudoun County Parkway. Boyd Watterson acquired the building from American Real Estate Partners for $65,500,000 ($143 psf). The building was fully occupied at the time of sale. Inside the Beltway, there were 44 buildings marketing 50,000 square feet or greater of contiguous space available at the end of the fourth quarter 2018, compared to 46 from the third quarter 2018. Outside the Beltway, there were 76 buildings marketing 50,000 square feet or greater of contiguous space available at the end of the fourth quarter 2018, compared to 78 from the third quarter 2018.