BRAC Update 2010

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Effects of BRAC / Department of Defense on DC-Baltimore commercial real estate

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BRAC Update 2010

  1. 1. cassidyturley.com | 1 When originally announced in 2005, the recommendations of the Base Realignment and Closure (BRAC) Commission were expected to result in: • The relocation of between 35,000 and 56,000 jobs from Washington, D.C., Arlington County and Alexandria, VA, and Bethesda, MD to Fort Belvoir, VA, Fort Meade and Aberdeen Proving Ground, MD, and the Marine Corps Base in Quantico, VA. • Significant changes in commuting patterns for an estimated 19,000 to 30,000 employees from Washington, DC, Arlington, VA, Alexandria, VA, Bethesda, MD to Fort Belvoir and Quantico, VA. • The relocation of a number of defense contractors due to federal agency moves. For every one federal job, history has shown 1.1 to 3 contractors will follow. • An impact on up to 15 million square feet of public and private sector office space. Since the announcement of those recommendations in 2005, speculation has varied widely on the impacts of BRAC-related moves on the DC-Baltimore employment market and commercial real estate markets. This update explores the current and potential impacts of BRAC on Northern Virginia (suburban Washington, DC) and Baltimore, including the submarkets most likely to be affected, local employment trends, and the impact on office space. 2005 BRAC What is BRAC? According to the US Department of Defense, Base Realignment and Closure (BRAC) is “a Congressionally authorized process that the Department of Defense (DoD) uses to reorganize its military base structure to meet increased national security requirements”. BRAC 2005 was the fifth round of this process, and focused on reshaping the DoD by having multiple organizations share facilities. By statutory agreement, the realignment is to be completed by September 15, 2011. The City of Alexandria and Arlington and Fairfax Counties in Northern Virginia will be affected by the bulk of requirements for Fort Belvoir; Anne Arundel and Harford Counties in Maryland will experience most of the BRAC changes at Fort Meade and Aberdeen Proving Ground. Base Realignment and Closure (BRAC) UpdateContents 2005 BRAC 1 Arlington County 2 Fairfax County, Fort Belvoir 3 Alexandria, Mark Center 4 Springfield/Newington 4 Anne Arundel County, Fort Meade 5-6 Harford County, Aberdeen Proving Ground 7 Public & Private Sector Spending 8 Government Contractors 9 Impacts & Outlook 9 Appendix 10-11 Contacts 12 Base Realignment and Closure (BRAC) Update DC − Baltimore Region November 2010
  2. 2. cassidyturley.com | 2 Although some BRAC-related moves are on track to meet the September 2011 deadline, some relocations have been delayed. Not all BRAC-related office space will experience a mass exodus by the deadline. In Arlington County alone, 900,000 square feet of office leases have been extended through 2012; additional leases totaling 2.3 million square feet have been extended through 2013 or later. Even with a large amount of government-related office space vacated in the near term, Arlington County projects total employment to grow in both Crystal City and Pentagon City by almost 50 percent over the next 15 years. !(!( !(!( !( !( !( !( !( !( !( !( !(!(!(!(!( !(!(!(!(!(!(!(!( !(!(!(!( !( !(!( !( !(!( !(!(!(!( !(!(!(!( !( !(!( !( Ronald Reagan Washington National §¨¦66 £¤50 UV244 UV120 UV120 £¤1 UV400 §¨¦395 §¨¦395 UV27 UV27 UV244 ConstitutionConstitution GardensGardens Arlington Washington D.C. §¨¦395 §¨¦395 £¤29 £¤50 £¤50 £¤29 UV237 UV110 UV124 UV110 BLVD 2N D ST LO RC O M LN CA R LIN SPRINGS RD 10TH ST FAI RFA X DR 23RDST C LARE N DONB LVD E ST ROCK CR EE K BOU NDAR Y DR M O HAYE S S T D ST MACA R THUR BLVD 9THST ARMY NAVY DR MAINE AVE D E ST Arlington National CemeteryArlington National Cemetery Arlington County could be the most significantly affected jurisdiction due to BRAC-related moves by the Department of Defense and its private sector contractors. This is especially true for Crystal City and Pentagon City. The BRAC relocations are expected to have a great impact on the local employment base and office markets. Over 5.4 million square feet of office leases in 47 buildings are projected to be affected in Arlington as part of BRAC-related moves. This accounts for approximately 17 percent of total office inventory in Arlington County, and approximately one-third of the inventory in the Crystal City submarket alone. In fact, 3.7 million square feet of federal leases in Crystal City will be affected by BRAC. Arlington County, Virginia Arlington County: Release of Office Space in BRAC Arlington County Employment Please refer to Appendix A for a detailed list of Arlington buildings affected by General Services Administration (GSA) leases related to BRAC moves. Although these leases are related to BRAC, there is the possibility that GSA may backfill some of these spaces with other federal tenants. Source: Arlington Economic Development Source: Arlington County Department of Community Planning, Housing and Development 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 2010 2011 2012 2013 2014 2015 After 2015 Square Feet $billions 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 2010 2011 2012 2013 2014 2015 After 2015 Square Feet $billions 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 2005 2010 2015 2020 2025 Crystal City Pentagon City $billions 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 2005 2010 2015 2020 2025 Crystal City Pentagon City $billions Ballston Clarendon/Courthouse Rosslyn Crystal City/Pentagon City SquareFeet Base Realignment and Closure (BRAC) Update DC − Baltimore Region November 2010
  3. 3. cassidyturley.com | 3 Fort Belvoir Fort Belvoir, located in southeastern Fairfax County, will be the new location for the headquarters of several U.S. Army and Department of Defense (DoD) agencies. As such, Fairfax County and its surrounding areas are likely to be greatly impacted by the BRAC plan. The area appeals to DoD agencies and federal contractors due to its proximity to Washington, DC and the Pentagon. As one of the largest employers in Fairfax County, Fort Belvoir currently employs over 29,000 civilian and military personnel. According to the Fairfax County Economic Development Authority, employment on and off base at Fort Belvoir is expected to grow by almost 43% and will eventually accommodate 19,300 civilian and military personnel from BRAC-related moves. Agencies and facilities moving to Fort Belvoir include: • National Geospatial Intelligence Agency (NGA) • A new 120-bed hospital with expanded specialty care facilities (formerly medical care functions were provided at Walter Reed Army Medical Center in Washington, DC) • Missile Defense Agency • Inventory Control Point functions from military bases in Pennsylvania and Ohio • Emergency Services Center (FBNA) Currently, there are 20 separate building projects underway at Fort Belvoir, both renovation and new construction. The projects total almost 6.2 million square feet of office space and 7 million square feet of parking structures with total construction costs estimated at approximately $4 billion. Fairfax County, Virginia 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 Main Post Ft Belvoir North Mark Center Rivanna Station Current BRAC Non BRAC Source: Fairfax County Economic Development Authority Fort Belvoir Employment Growth Fort Belvoir Agency Moves Agency Relocation Site Employment Square Feet Cost Delivery National Geospatial-Intelligence Agency (NGA) Engineering Proving Ground 8,500 2.4 M SF $1.77 Billion - new construction Spring 2011 Washington Headquarters Services (WHS) Mark Center - Alexandria 6,400 1.8 M SF $1.08 Billion - new construction Fall 2011 Fort Belvoir Community Hospital Main Post - Ft. Belvoir 3,200 1.275 M SF $807 Million - New Construction Spring 2011 Department of the Army Main Post - Ft. Belvoir 2,800 544,000 SF adaptive reuse and infill − Program Executive Office - Enterprise Information Systems (PEO-EIS) Main Post - Ft. Belvoir 400 185,000 SF adaptive reuse and infill − Joint-Use Intelligence Analysis Facility (JUIAF) Rivanna Station 1,000 170,000 SF $61 Million - new construction − Missile Defense Agency (MDA) Main Post - Ft. Belvoir 292 99,000 SF $38.5 Million - New Construction Nov-10 Emergency Services Center (FBNA) − 50 14,700 SF $7.2 Million - new construction Early 2011 Dental Clinic − 77 14,900 SF $12.6 Million - new construction Fall 2011 North Regional Medical Command (NRMC) − 232 − $17.5 Million - new construction Fall 2011 Total: 22,951 6,502,600 $3.7 Billion Source: Fairfax County Economic Development Authority Base Realignment and Closure (BRAC) Update DC − Baltimore Region November 2010
  4. 4. cassidyturley.com | 4 Alexandria, Virginia Mark Center When the BRAC recommendations were first announced, an estimated 7,200 jobs and 1.4 million square feet of space were to be transferred out of Arlington County. Because of the great number of building sites transferring to Fort Belvoir and the lack of sufficient infrastructure, the Department of the Army and the Commonwealth of Virginia agreed to limit the number of units moving to the Fort Belvoir Engineering Proving Ground (EPG). Consequently, the Army searched for a site that could be developed as an “annex” to Fort Belvoir. To address this requirement, Action 133 created Mark Center in Alexandria, in close proximity to the Pentagon. The Army purchased Mark Center land from Duke Realty in September of 2008. With 6,400 jobs and 1.4 million square feet of office space, Mark Center will be one of the largest BRAC- related projects. Mark Center will accommodate personnel from multiple agencies and units that include but are not limited to: • Washington Headquarters Service (WHS) • Defense Human Resources Activity (DHRA) • Office of the Secretary of Defense (OSD) • Pentagon Force Protection Agency (PFPA) • Defense Technology Security Administration (DTSA) • DoD Inspector General (DoDIG) • DoD Education Activity (DoDEA) The official groundbreaking on the Mark Center site occurred in March 2009. The building is being developed to meet the LEED Silver Rating requirements and have a “campus like” atmosphere; it is set to meet the statutory deadline of September 15, 2011. The office inventory in Springfield/Newington – in close proximity to Fort Belvoir -- is comprised of 3.5 million square feet in 77 buildings. The majority of the Springfield submarket’s inventory consists of freestanding office and industrial buildings. However, there are two existing office parks in Springfield/Newington: MetroPark and Kingstowne. As relocated agencies begin to settle in Fort Belvoir, Springfield will see demand for space from government contractors desiring proximity to the respective agencies they support. Due to Springfield’s low vacancy rate and few large block options in existing buildings, new construction may be the only way to meet new space needs. • MetroPark: MetroPark buildings currently under construction include MetroPark VII -- fully leased to VSE Corporation, and MetroPark VI -- where the Tauri Group preleased 75,000 square feet. MetroPark VII broke ground in the second quarter of 2010 and is scheduled to deliver in the fourth quarter of 2011. MetroPark VI broke ground in the third quarter of 2010 and is scheduled to deliver in the first quarter of 2012. • COPT/Patriot’s Ridge: Corporate Office Properties Trust (COPT) broke ground in the fall of 2010 on Patriot’s Ridge, located just beyond the Engineering Proving Ground. This 240,000 square foot building is scheduled to deliver in 2012, but construction commenced without any preleasing. COPT plans for the park to eventually accommodate five buildings totaling almost one million square feet. Springfield/Newington, Virginia Base Realignment and Closure (BRAC) Update DC − Baltimore Region November 2010
  5. 5. cassidyturley.com | 5 Anne Arundel County, Maryland Fort Meade Fort Meade is located in Anne Arundel County, Maryland, southwest of Baltimore. It is one of the largest military bases in the United States and is home to the fourth largest workforce on any U.S. Army installation, hosting 40,000 military, government service civilian and contractor employees. The National Security Agency (NSA) is the largest agency currently located on-base. According to the Installation Management Community (IMCOM), Fort Meade generates $2.2 billion annually in contracts. BRAC-related moves will bring an estimated $550 million annually in additional contracts. As a result of BRAC 2005 decisions, Fort Meade will be the host facility for three DoD agencies that are relocating: • The Defense Information Systems Agency (DISA) will relocate from its current location in Arlington, VA to Fort Meade, MD. It is the largest agency moving to Fort Meade. DISA will absorb 1,000,000 square feet of office space in five buildings. The project is scheduled to be completed in February 2011 and will be the largest office complex in Anne Arundel County. • The Colocation of Defense/Military Adjudication Activities encompasses 152,000 square feet and will cost an estimated $51 million. • Defense Media Activity (DMA) construction includes 186,000 square feet and will cost an estimated $78 million. The relocation of these agencies also means approximately 5,700 military, DoD civilians and defense-related contractor employees will move from other locations to work at Fort Meade. In addition, the Howard County BRAC Office estimates an additional 9,000 off-base jobs could be generated due to BRAC moves. Even with these agency relocations from across the DC-Baltimore region, Fort Meade is expected to retain many of its current employees. For example, DISA expects to retain up to 75 percent of its 4,300 workers from the Arlington move. This could mean fewer new jobs for local hires around Fort Meade. We would expect this figure to be lower, as the distance from Arlington to Fort Meade is over 30 miles and thus would significantly impact the commuting patterns of its workers. Due to the expanded presence of government agencies at Fort Meade, developers and landlords can expect increased demand for office space to accommodate federal workers and government contractors. Business parks closest to Fort Meade are likely to be the greatest beneficiaries of BRAC-related demand. Planned construction in the area already has increased, though many of these developments have yet to obtain financing or commence construction. Growth Components Jobs on Fort Meade Jobs off Fort Meade Total Jobs Current Jobs on Fort Meade 40,000 94,000 134,000 BRAC 5,695 9,000 14,695 Other 2,000 3,000 5,000 NSA 4,000 6,000 10,000 Enhanced Use Lease 10,000 2,000 12,000 Cyber Command (HQ) 2,000 14,000 16,000 Total New Jobs 23,695 34,000 57,695 Total Jobs 63,695 128,000 191,695 Source: Fort Meade Regional Growth Management Committee (RGMC) Fort Meade Employment Base Realignment and Closure (BRAC) Update DC − Baltimore Region November 2010
  6. 6. cassidyturley.com | 6 Forte Meade Office Locations Four notable business parks with up to 10 million square feet of developable office space are located in close proximity to Fort Meade: • National Business Park (NBP), currently under development by COPT, is the closest business park to Fort Meade. One of NBP’s biggest selling points is a bridge that connects the office park directly to Fort Meade. The project is scheduled to deliver multiple buildings totaling 863,000 square feet by 2012. The southern portion of the business park is already 100 percent preleased. • Konterra Realty’s Annapolis Junction Business Park is expected to benefit from BRAC-related moves as well. The National Security Agency (NSA) awarded a contract to Konterra for a “Mega Center” -- a fully secured office building -- on a speculative basis. This park will be built to Sensitive Compartment Information Facility (SCIF) standards. As part of the agreement with Konterra, NSA will outfit the building with the appropriate infrastructure (IT, telecom, security). • Independence Park at Odenton Town Center is planned for development by Halle Development. The 128-acre site adjacent to Fort Meade can accommodate office buildings with up to 3.5 million square feet of space. Initial development would include two 150,000 square foot office buildings and a 1,200 space parking garage. • Trammell Crow’s Enhanced Use Leasing (EUL) Development could contain up to 2 million square feet of development. The Army Corps of Engineers awarded Trammell Crow EUL space at Fort Meade to accommodate federal contractors. While the land is not within the gates of Fort Meade, it is still within close proximity. The EUL program allows the military to partner with private industries by leasing underutilized assets to generate rent or receive “in kind” services for the assets. This allows the military to lease land and/or buildings and receive income from on-base leased property. The income from ground leases is typically up to 50 years. Base Realignment and Closure (BRAC) Update DC − Baltimore Region November 2010
  7. 7. cassidyturley.com | 7 Harford County, Maryland Aberdeen Proving Ground Aberdeen Proving Ground (APG) will be the Department of Defense’s center for communications and software development, resulting from the relocation of the following commerce centers: • Command & Control, Communications, Computers, Intelligence, Sensors & Reconnaissance systems (C4ISR) • Army Test & Evaluation Command (ATEC) • Joint Program Executive Office for Chemical & Biological Defense (JPEO-Chem Bio) • Medical Research Institute of Chemical Defense (MRICD) As a result of BRAC, APG will experience job growth of 8,000 to 9,000 employees on base. Additionally, private sector contractors and support-related workforce could generate 1.5 to 3 jobs per public sector job. In addition, 28 new defense contractors have moved to Harford County and include: MITRE – 54,000 square feet at North Gate Raytheon- 80,000 square feet at The Gate L-3 – 74,000 square feet at The Gate CAC 1 – 60,000 square feet at The Gate Boeing – 6,000 square feet at The Gate General Dynamics – 10,000 square feet at The Gate BRAC has enabled the following local contractors to expand: Service Engineering Booz Allen Hamilton SAC Northrop Grumman (Logicon Division) ManTech Logistic Management Institute (LMI) RTR Technologies Smith Detection Base Realignment and Closure (BRAC) Update DC − Baltimore Region November 2010
  8. 8. cassidyturley.com | 8 Public and Private Sector Spending As the 2011 deadline for BRAC-related moves approaches, DoD spending on BRAC is projected to drop significantly to $2.2 billion dollars in 2011. At the same time, overall DoD spending is projected to hold steady or increase slightly in Northern Virginia and Maryland through 2011. Though, there is risk associated with possible decreases in defense spending. Secretary of Defense Robert Gates recently announced mandates for a 10 percent per year reduction (called 10, 10, 10) in defense contractor spending over the next three years. Northern Virginia and Maryland have traditionally received a large portion of Department of Defense (DoD) spending. Additionally, government contractors have benefited from increases in procurement spending. If we use historical growth levels as a guide to future projections for DoD expenditures and procurement (contractor) spending, Fairfax County alone could receive up to $14.5 billion in DoD Total Direct Expenditures and $13.6 billion in procurement spending by 2011. Department of Defense BRAC Military Obligations $- $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0 $9.0 $10.0 2008 act. 2009 act. 2010 est. 2011 est. $billions Source: Government Printing Office (GPO) Department of Defense Total Direct Expenditures $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 $16.0 2007 2008 2009e 2010p 2011p Alexandria Arlington County Fairfax County Anne Arundel County e = estimated p = projected Source: US Census Bureau, GPO, Cassidy Turley Department of Defense Total Procurement $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 $16.0 2007 2008 2009e 2010p 2011p Alexandria Arlington County Fairfax County Anne Arundel County e = estimated p = projected Source: US Census Bureau, GPO, Cassidy Turley $billions $billions Base Realignment and Closure (BRAC) Update DC − Baltimore Region November 2010
  9. 9. cassidyturley.com | 9 Government Contractors The full impact of BRAC-related developments on local defense contractors remains uncertain. It is estimated that for every federal job that moves, 1.1 to 3 government contractor jobs will follow. However, many of the contractors are already located in Northern Virginia and Maryland and would most likely remain in their current locations, at least in the short term. The distances between contractors’ current locations and the Mark Center or Fort Belvoir are not significantly different, although in the longer term, the resulting increases in traffic along I-395 and I-95 may encourage businesses to move closer to Fort Belvoir, Fort Meade, and Aberdeen Proving Ground. Since the announcement of the 2005 BRAC recommendations, the total net impact on the DC metro continues to evolve. According to the latest information, we foresee the following: • Over 5.4 million square feet of office space will be impacted in Arlington County, with approximately one third of the total office inventory in Crystal City. • While this presents a risk for the Arlington office market, it also offers a rare opportunity for redevelopment. As of this writing, Crystal City recently approved a 40-year plan that will include major renovations or redevelopments of several buildings in the area. • Although many agencies will meet the 9/15/11 deadline, many will need to extend their leases in order to buy time. In Arlington County alone, one-third of BRAC-affected office space will be released in 2010/2011, while the other two-thirds will be released in 2012 or later. • Some BRAC moves will have a “domino effect” on office buildings. For example, the National Geospatial-Intelligence Agency (NGA) will vacate two buildings in Reston, Virginia as part of BRAC requirements. The Defense Intelligence Agency (DIA) will backfill space in these buildings by relocating from the Clarendon and Skyline submarkets in Northern Virginia. The Federal Government will either need to find new tenants for this vacated space, or the office space will need to be retrofitted for private sector use. • Roads, infrastructure, and public transportation around Fort Belvoir, Fort Meade and the Mark Center will be stressed as commuting patterns change. • In the medium- to long-term, opportunities will exist for retail and housing to accommodate increases in employment at the Forts. In contrast, areas from which a large number of jobs will be relocating (like Crystal City) could be negatively impacted. • Plans change. When the BRAC recommendations were first announced, an estimated 7,000 jobs of the Washington Headquarters Services were to relocate from Alexandria to Fort Belvoir, Virginia. Since then, 6,400 jobs are planned to transfer instead to the 1.4 million square foot Mark Center in Alexandria in close proximity to the agency’s current location. • Overall, regional DC-Baltimore employment should remain healthy in spite of BRAC moves. For example, jobs will relocate from Crystal City in Arlington County to Mark Center in Alexandria. The two locations are located only a few miles apart from each other, thus the net impact from this move should be minimal. • Defense contractors will NOT move immediately to coincide with agency moves. Any private business relocations will happen gradually. Moves will depend on the types and longevity of agreements contractors have with the DoD and existing lease agreements. However, the areas with the most opportunity for increased office space demand are in close proximity to Fort Belvoir, Fort Meade, and Aberdeen Proving Ground. • Large defense contractors will be cautious about future growth projections. For instance, Lockheed Martin recently announced more conservative 2011 revenue projections due to anticipated defense spending cuts by the Federal Government. Impacts & Outlook Base Realignment and Closure (BRAC) Update DC − Baltimore Region November 2010
  10. 10. cassidyturley.com | 10 Appendix Arlington County BRAC Affected Buildings Address Building Name RBA (square feet) GSA Leases1 (square feet) 901 N Stuart St Ballston Metro Center 234,937 108,797 1010 N Glebe Rd One Ballston Plaza 140,000 56,0002 875 N Randolph St One Liberty Center 316,348 273,8632 4015 Wilson Blvd Tower 3 160,000 64,000 4040 North Fairfax Dr Webb Building 147,299 138,653 Ballston Submarket Total: 998,584 641,313 3100 Clarendon Blvd 3100 Clarendon Boulevard 242,358 182,264 2000 N 15th St Arlington Plaza 193,657 5,841 2300 Clarendon Blvd Courthouse Plaza 2 260,067 27,994 Clarendon/Courthouse Submarket Total: 696,082 216,099 1400-1450 S Eads St 1400-1500 S Eads St 77,000 76,164 1919 S Eads St 1919 S Eads Street 98,750 9,484 400 Army Navy Drive 400 Army Navy Drive 235,983 202,434 2450 Crystal Drive Century One at Century Tower 389,732 78,789 1235 S Clark St Crystal Gateway 1 372,000 85,933 1225 S Clark St Crystal Gateway 2 287,000 106,368 1215 S Clark St Crystal Gateway 3 352,886 36,277 200 12th St S Crystal Gateway 4 206,500 73,761 201 12th Street S Crystal Gateway North 342,000 203,278 1801 S Bell St Crystal Mall 2 290,500 49,396 1851 S Bell St Crystal Mall 3 393,587 309,629 1901 S Bell Street Crystal Mall 4 278,700 82,186 2011 Crystal Drive Crystal Park 1 442,800 105,656 2231 Crystal Drive Crystal Park 3 466,200 11,492 2451 Crystal Drive Crystal Park 5 407,300 96,679 223 23rd St S Crystal Plaza 5 185,500 38,559 2221 S Clark St Crystal Plaza 6 177,500 77,683 1550 Crystal Drive Crystal Square 2 448,600 97,629 1750 Crystal Dr Crystal Square 3 242,100 205,575 241 18th St S Crystal Square 4 329,900 149,281 251 18th St S Crystal Square 5 308,700 27,440 2521 S Clark St James Polk Building 355,001 314,317 1411 Jefferson Davis Hwy Jefferson Plaza 1 278,332 111,3332 1421 Jefferson Davis Hwy Jefferson Plaza 2 271,285 337,9843 Base Realignment and Closure (BRAC) Update DC − Baltimore Region November 2010
  11. 11. cassidyturley.com | 11 2800 Crystal Drive Potomac Gateway North 177,473 70,9892 2511 Jefferson Davis Hwy Presidential Towers 332,928 307,685 2530 Crystal Dr Zachary Taylor Building 558,187 486,909 Crystal City Submarket Total: 8,306,444 3,752,910 1101 Wilson Blvd 1101 Wilson Boulevard 330,528 41,641 1500 Wilson Blvd 1500 Wilson Boulevard 247,726 10,060 1560 Wilson Blvd 1560 Wilson Blvd 126,000 50,4002 1600 Wilson Blvd 1600 Wilson Boulevard 166,000 11,623 1815 N Fort Myer Dr 1815 N Fort Myer Drive 91,809 36,7242 1501 Wilson Blvd Art Associates 123,183 30,221 1515 Wilson Blvd Art Associates West 124,081 17,758 1555 Wilson Blvd Mill Court 170,767 35,026 1400 Key Blvd Nash Street Building 170,300 73,660 1401 Wilson Blvd Oakhill Office Building 189,632 103,306 1700 N Moore St Rosslyn Metro Center 409,749 150,417 1777 N Kent Street Rosslyn Plaza North 263,462 242,532 Rosslyn Submarket Total: 2,413,237 803,368 Arlington County Total: 12,414,347 5,413,690 Number of Buildings Affected Submarket Submarket Total Office Inventory GSA Leases1 (square feet) % Submarket 27 Crystal City 11,353,823 3,752,910 33.05% 12 Rosslyn 8,507,630 803,368 9.44% 5 Ballston 7,023,009 641,313 9.13% 3 Clarendon/Courthouse 4,580,232 216,099 4.72% 47 31,464,694 5,413,690 17.21% Source: Arlington County Economic Development & Cassidy Turley 1 GSA leases related to BRAC 2 Estimated square footage based on market average 3 Combined RBA for 1421 and 1411 Jefferson Davis Base Realignment and Closure (BRAC) Update DC − Baltimore Region November 2010
  12. 12. cassidyturley.com | 12 Researchers’ information: Cassidy Turley Jeffrey Kottmeier Director of Research 2101 L Street, NW Suite 700 Washington, DC 20037 Tel: 202-463-2100 Sazshy Valentine 2101 L Street, NW Suite 700 Washington, DC 20037 Tel: 202-463-2100 Carey Heymann Market Analyst, Northern Virginia 2101 L Street, NW Suite 700 Washington, DC 20037 Tel: 202-463-2100 Disclaimer This report and other research materials may be found on our website at www.cassidyturley.com. This is a research document of Cassidy Turley in Washington, DC. Questions related to information herein should be directed to the Research Department at 202-463-2100. Information contained herein has been obtained from sources deemed reliable and no representation is made as to the accuracy thereof. Cassidy Turley is a leading commercial real estate services provider with over 2,800 professionals in 60 offi ces nationwide. The fi rm completed transactions valued over $13 billion in 2009, manages over 420 million square feet on behalf of private, institutional and corporate clients and supports over 25,000 domestic corporate services locations. Base Realignment and Closure (BRAC) Update DC − Baltimore Region November 2010

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