MARKET REPORT - Colliers/media/files/united... · Fairfax County is the largest market in Northern...

MARKET OVERVIEWThe Northern Virginia office market is comprised of 191.7 million square feet of office space in approximately 2,300 properties in the cities of Arlington and Alexandria, Fairfax, Loudoun, and Prince William counties. The cities of Arlington and Alexandria fall on the border of Washington D.C and are comprised of approximately 61.6 million square feet of office space combined. Fairfax County is the largest market in Northern Virginia, accounting for 108.6 million square feet, or 57%, of the total office inventory. Loudoun County, the western-most county in the market, has 16 million square feet of office space, while Prince William County is comprised of only 5.4 million square feet of office space.

During the 1st quarter of 2012, the Northern Virginia office market remained relatively flat. Net absorption was modestly negative and the overall vacancy rate increased fifty basis points over the past three months. Class B space took the biggest step back during the 1st quarter, netting negative 450,367 square feet of absorption and accounting for nearly 83% of all net absorption. Class A and Class C space both remained relatively flat during the 1st quarter. With approximately 600,000 square feet expected to deliver by year-end 2012 and over 800,000 square feet by 2013, we anticipate demand to drop slightly, and for the vacancy rate to edge up over the next 12-24 months.

ECONOMIC OVERVIEWThe Washington Metro Area unemployment rate dropped 10 basis points over the last year, to 5.9%, according to the latest economic data from The Bureau of Labor Statistics. The national unemployment rate improved as well, dropping to 8.2% in March 2012, from 8.9% twelve months earlier. Office using jobs have increased by 35,200, or 1.5%, in the Washington Metro area over the past 12-months. The Mining, Logging, Construction, Financial Activities, Education and Health, and Leisure and Hospitality industries have led the way over the last year, and we expect this trend to continue over the next year.

SALES ACTIVITYThere were 836,063 square feet of significant (> $5 million) office sales totaling $175.5 million ($210/SF) in Northern Virginia during the 1st quarter of 2012. Two noteworthy purchases were Wells Real Estate purchase of 13820 Sunrise Valley Drive in Herndon for $91.1 million ($340/SF) and The Brick Companies purchase of 8607 Westwood Center Drive in Tysons Corner for $26.7 million ($308/SF).

MARKET REPORTNORTHERN VIRGINIA

www.colliers.com/washingtondc

Q1 2012 | OFFICE

First Quarter

Q3 2011 Q4 2011 (p)

VACANCY

NET ABSORPTION

CONSTRUCTION

RENTAL RATE

UPDATED SUMMARY STATISTICS

Q1 2011 Q1 2012

VACANCY RATE: 14.8% 15.4%ABSORPTION YTD: (624,972) SF (543,589) SF

DELIVERIES YTD: 265,495 SF 330,198 SF UNDER CONSTRUCTION: 1,281,005 SF 2,290,708 SF

ASKING RENTS/SF: $29.63 $30.47

MARKET INDICATIONS

Q1 2012 Q2 2012 (p)

VACANCY —

NET ABSORPTION —

CONSTRUCTION

RENTAL RATE

RECENT SALES TRANSACTIONS

PROPERTY SUBMARKET SALE PRICE SIZE SF PRICE/SF CAP RATE BUYER SELLER

13820 Sunrise

Valley DriveHerndon $91,100,000 268,240 $340 6.8%

Wells Real

Estate Funds

Brandywine

Realty Trust

8607 Westwood

Center DriveTysons Corner $26,700,000 86,560 $308 6.3%

The Brick

Companies

America’s

Capital

Partners

ABSORPTIONDuring the 1st quarter of 2012, Northern Virginia posted a modestly negative 543,689 square feet of absorption. While the majority of the submarkets remained relatively flat, the Route 28 South submarket paced Northern Virginia with positive absorption of 295,843 square feet. The majority of Route 28 South’s absorption came from modest lease deals, but the most notable deal during the 1st quarter was SCITOR’s taking 158,919 square feet at 14672 Lee Road. The second largest deal was iDirect for 23,000 square feet at 13921 Park Center Drive. The only other submarket in Northern Virginia to boast over 100,000 square feet of absorption during the 1st quarter was the Rosslyn-Ballston Corridor (187,110 SF). Reston followed closely behind with 96,899 SF of net absorption.

The two most notable office leases in Northern Virginia during the 1st quarter of 2012 were the Center for Naval Analyses’ (CNA’s) 173,000 square foot pre-lease at 3001 Washington Boulevard in Clarendon, and SCITOR’s 158,919 square foot lease at 14672 Lee Road. Office space in Arlington County took a hit during the 1st quarter, highlighted by the Crystal/Pentagon Cities submarket experiencing negative 431,702 square feet of absorption. The Crystal/Pentagon Cities submarket had the largest negative absorption total by any single submarket, largely due to BRAC and the Federal Government moving out of their fully-occupied buildings in Crystal City.

VACANCYTotal vacancy in Northern Virginia edged up by 50 basis points from 14.9% in the 4th quarter to 15.4% at the end of the quarter. The total vacancy rate in Northern Virginia has remained in the low-to-mid teens range over the past three years. Vacancy rates remained relatively consistent throughout Northern Virginia’s submarkets during the 4th quarter of 2011. Fairfax County’s overall vacancy rate increased 20 basis points from 15.5% in the 4th quarter to 15.7% at quarter-end, but the trend shows to be leveling off coming from 15.2% in the 3rd quarter (a jump of 60 basis points in the 4th quarter). Arlington County’s overall vacancy rate increased from 11.9% to 13.3% in the 1st quarter.

DELIVERIES AND CONSTRUCTIONCurrently, there is 2.3 million square feet of office space under construction in Northern Virginia. The vast majority of the construction is happening in the RB Corridor, Tysons Corner, and Springfield submarkets. The RB Corridor is home to 718,535 square feet, or 31%, of all the office space under construction in Northern Virginia comprising of two properties. Consisting of 718,535 square feet of combined space at 1812 N Moore Street and 1776 Wilson Boulevard are expected to deliver within the next 16 months. Fairfax County has 1.5 million square feet of office space under construction. Of all the construction in Fairfax County, 65% of it is happening in the Tysons Corner and Springfield submarkets. Most notably, The Lerner Company has broken ground at 1775 Tysons Boulevard on a 475,000 square foot building that is expected to deliver in the 1st quarter of 2014. In anticipation of the Dulles Metro Rail, many more projects will be breaking ground within the next few years. Three buildings, totaling 330,198 square feet of office space delivered in Northern Virginia during the 1st quarter of 2012. The most significant of these buildings, JBG’s 800 N Glebe Road, added 301,895 square feet of trophy space to the RB Corridor. Accenture, previously headquartered in Reston, relocated to 800 N Glebe and leased nearly 100,000 feet of office space. Average asking rates for this building average $54.50. The second building, developed by Ellis Dale Construction, delivered 13,303 Class B square feet to the Leesburg/West Loudoun submarket asking $25.00. The Lofts at Del Ray Village delivered in Old Town Alexandria, bringing 15,000 square feet of Class B office space to the market.

RENTAL RATESThe average rental rate continued its upward swing during the 1st quarter of 2012, finishing at its highest rate since year-end 2008. The overall asking rate averaged $30.47 per square foot, up from $30.20 in the 4th quarter and $29.77 in the 3rd quarter of 2011. Class A rental rates averaged $33.86 during the 1st quarter, up from $32.45 the quarter prior. Class B rents increased to $29.03 in the 1st quarter from $27.27 at the year-end, but class C rents increased to $24.72 from $23.96. We expect rents to level off over the next 12 months as more vacant space floods the market.

RECENT LEASE TRANSACTIONS

TENANT ADDRESS SUBMARKET SQUARE FOOTAGE TYPE

Center for Naval

Analyses (CNA)3001 Washington Boulevard

Clarendon/

Courthouse173,000 SF Pre-Lease

SCITOR 14672 Lee Road Route 28 South 158,919 SF Renewal

VACANCYNorthern Virginia Vacancy Rate

0.0%

5.0%

10.0%

15.0%

20.0%

Perc

ent V

acan

t

ABSORPTION

(800,000) (600,000) (400,000) (200,000)

- 200,000 400,000 600,000 800,000

1,000,000 1,200,000

Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012

Squa

re F

eet

RENTAL RATES

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

$40.00

Class A Class B Class C

Dolla

rs P

er S

F

DELIVERIES

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

Q2 2010Q3 2010Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012

Squa

re F

eet

P. 2 | COLLIERS INTERNATIONAL

MARKET REPORT | Q1 2012 | OFFICE | NORTHERN VIRGINIA

LOOKING FORWARDThe greater Washington D.C. commercial real estate market is in a state of uncertainty right now. The real fear is the compounding of two upcoming factors that can lead to a significant depression in the local commercial real estate market. The first is the uncertainty of the upcoming election. Federal funding flows in distinctly different directions depending on the party that is in office. When Federal agencies are unable to make long-term decisions because of this, the market slows. Secondly and most significantly are the massive budget cuts that will continue to take place regardless of the party in place after November. There are currently $1.2 trillion in mandatory Federal budget cuts over the next 10 years that are split fairly evenly between Defense and Non-Defense agencies. As has always been the case as Federal spending goes, so goes the Washington, DC market.

SIGNIFICANT NORTHERN VIRGINIA CONSTRUCTION PROJECTS

PROPERTY SUBMARKET BUILDING SF DELIVERY DATE LEAD TENANT

7770 Backlick Road (Bldg 1) Springfield/Burke 240,565 SF Q2 2010 General Dynamics

1776 Wilson Boulevard R-B Corridor 138,535 SF Q3 2012 NACD & CRDF

1812 N Moore Street R-B Corridor 538,092 SF Q3 2013 None

1775 Tysons Boulevard Tysons Corner 476,000 SF Q1 2014 None

FOURTH QUARTER, 2011 DELIVERIES

PROPERTY ADDRESS SUBMARKET BUILDING SF % LEASED LEAD TENANT(S)

800 North Glebe Road 800 North Glebe Road R-B Corridor 301,895 SF 33.1% Accenture

Lofts at Del Ray Village 2709-2731 Mount Vernon Avenue Old Town 15,000 SF 100% N/A

Building A 201 Loudoun Street Leesburg/West Loudoun 13,303 SF 39.5% Guestroom



10.3%

ACTIVITY ABSORPTION RENTS

Submarket/Class Bldgs RBA

Direct 2

VacancyRate

Sublease Vacancy

Rate

Total 3

VacancyRate

Total Vacancy

Rate Prior Qtr

LeasingActivity

SF

Net 4

Absorption Current Qtr

SF

Net Absorption YTD

Weighted 5

Avg Asking Lease Rate

1 200,000 14.4% 0.9% 15.3% 15.3% 0 0 0 $27.35B 8 381,914 27.0% 5.0% 32.0% 33.7% 28,494 6,429 6,429 $23.16

45 1,270,728 8.9% 0.0% 8.9% 8.5% 6,928 (4,664) (4,664) $22.9454 1,852,642 13.2% 1.1% 14.3% 14.4% 35,422 1,765 1,765 $23.86

22 3,615,833 9.9% 4.4% 14.3% 13.3% 28,976 (34,872) (34,872) $26.84B 34 3,014,043 22.0% 0.6% 22.6% 22.4% 16,586 (8,220) (8,220) $24.63

13 401,195 2.3% 0.0% 2.3% 1.8% 1,854 (2,111) (2,111) $22.6969 7,031,071 14.6% 2.5% 17.2% 16.5% 47,416 (45,203) (45,203) $25.74

6 797,166 5.7% 0.0% 5.7% 5.7% 0 0 0 $28.17B 44 1,626,764 9.6% 1.0% 10.6% 12.9% 47,844 37,812 37,812 $22.51

77 2,109,413 10.0% 0.1% 10.1% 9.0% 23,802 (24,312) (24,312) $20.42127 4,533,343 9.1% 0.4% 9.5% 9.8% 71,646 13,500 13,500 $22.34

1 85,000 2.2% 0.0% 2.2% 2.2% 0 0 0 $28.50B 19 1,259,947 8.3% 3.6% 11.9% 13.1% 2,941 15,589 15,589 $25.96

49 1,078,172 11.8% 0.4% 12.2% 12.6% 13,266 4,391 4,391 $20.5969 2,423,119 9.6% 2.1% 11.7% 12.5% 16,207 19,980 19,980 $23.90

B 13 498,725 6.6% 1.1% 7.7% 8.2% 26,001 2,619 2,619 $32.5047 1,063,695 6.8% 0.4% 7.2% 7.8% 7,783 7,312 7,312 $28.1060 1,562,420 6.7% 0.6% 7.3% 8.0% 33,784 9,931 9,931 $29.44

HERNDON47 7,940,258 13.0% 1.5% 14.5% 11.2% 74,910 (258,510) (258,510) $30.53

B 52 3,261,866 10.7% 1.8% 12.5% 16.2% 38,738 123,268 123,268 $21.9035 786,928 16.8% 0.0% 16.8% 16.0% 4,813 (6,247) (6,247) $20.46

134 11,989,052 12.7% 1.4% 14.1% 12.9% 118,461 (141,489) (141,489) $26.86

28 5,294,907 6.9% 1.2% 8.1% 6.9% 16,669 (66,351) (66,351) $32.86B 31 3,161,273 15.0% 0.8% 15.8% 16.3% 63,947 13,388 13,388 $29.18

44 1,297,656 9.0% 2.2% 11.2% 9.6% 17,486 (20,490) (20,490) $26.56103 9,753,836 9.8% 1.2% 11.0% 10.3% 98,102 (73,453) (73,453) $30.50

3 396,771 33.6% 0.0% 33.6% 51.9% 17,640 72,591 72,591 $28.80B 9 1,059,829 12.8% 1.0% 13.8% 10.2% 3,439 (37,856) (37,856) $25.73

7 145,995 4.7% 0.0% 4.7% 5.2% 610 667 667 $21.6519 1,602,595 17.2% 0.7% 17.9% 20.1% 21,689 35,402 35,402 $27.33

RESTON62 11,037,853 14.3% 4.4% 18.7% 18.6% 117,162 (9,061) (9,061) $29.69

B 72 5,838,804 16.9% 1.2% 18.1% 19.0% 80,163 55,329 55,329 $25.3255 1,859,832 16.5% 0.6% 17.1% 19.9% 4,423 50,631 50,631 $23.24

189 18,736,489 15.3% 3.0% 18.3% 18.8% 201,748 96,899 96,899 $27.18

RT. 28 SOUTH (CHANTILLY)A 53 8,012,989 13.0% 0.3% 13.3% 16.7% 56,485 277,746 277,746 $28.97B 68 4,188,801 18.7% 1.5% 20.2% 20.7% 69,536 20,543 20,543 $22.51C 36 1,148,628 13.3% 5.8% 19.1% 18.9% 28,182 (2,446) (2,446) $18.34Subtotal 157 13,350,418 14.8% 1.1% 16.0% 18.1% 154,203 295,843 295,843 $25.69

Subtotal

ANNANDALE

MERRIFIELD

Subtotal

AFAIRFAX CENTER

Subtotal

Subtotal

Subtotal

A

CSubtotal

VACANCY

SubtotalC

MCLEAN

C

A

C

AFAIRFAX CITY

SubtotalC

C

AFALLS CHURCH

A

C

EXISTING PROPERTIES

FAIR

FAX

CO

UN

TY

A

CSubtotal

OAKTONA

C

22222222222222222222

Northern Virginia Market Stats First Quarter 2012





Direct 2

VacancyRate

Sublease Vacancy

Rate

Total 3

VacancyRate

Total Vacancy

Rate Prior Qtr

LeasingActivity

SF

Net 4


SF

Net Absorption YTD

Weighted 5


VACANCYEXISTING PROPERTIES


SPRINGFIELDA 12 1,771,759 24.5% 5.3% 29.8% 27.9% 2,015 (33,848) (33,848) $41.37B 41 1,933,330 11.4% 0.0% 11.4% 13.2% 20,596 34,866 34,866 $29.96C 80 2,498,373 12.5% 0.2% 12.7% 11.6% 3,696 (26,576) (26,576) $20.41Subtotal 133 6,203,462 15.6% 1.6% 17.2% 16.8% 26,307 (25,558) (25,558) $30.50

TYSONS CORNERA 47 12,313,834 11.0% 2.1% 13.1% 12.5% 91,070 (66,472) (66,472) $37.77B 104 13,255,051 18.8% 0.8% 19.6% 18.3% 156,274 (167,718) (167,718) $26.80C 43 2,501,841 23.2% 0.2% 23.4% 22.4% 70,529 (26,146) (26,146) $25.13Subtotal 194 28,070,726 15.8% 1.3% 17.1% 16.2% 317,873 (260,336) (260,336) $29.63

VIENNAA 1 189,000 0.0% 0.0% 0.0% 0.0% 0 0 0 -B 5 567,653 3.0% 0.0% 3.0% 1.6% 0 (7,667) (7,667) $20.84C 33 810,210 26.3% 0.0% 26.3% 26.7% 4,734 3,866 3,866 $25.75Subtotal 39 1,566,863 14.7% 0.0% 14.7% 14.4% 4,734 (3,801) (3,801) $24.61

FAIRFAX COUNTYA 283 51,655,370 12.3% 2.3% 14.7% 14.4% 404,927 (118,777) (118,777) $31.72B 500 40,048,000 16.3% 1.1% 17.4% 17.6% 554,559 88,382 88,382 $25.76C 564 16,972,666 13.9% 0.7% 14.6% 14.3% 188,106 -46,125 -46,125 $22.64Subtotal 1,347 108,676,036 14.1% 1.6% 15.7% 15.5% 1,147,592 (76,520) (76,520) $27.73

59 14,958,018 9.3% 3.1% 12.4% 11.6% 195,248 155,510 155,510 $43.47

B 45 7,286,514 12.8% 0.5% 13.3% 13.3% 73,874 (1,363) (1,363) $41.13

32 1,791,017 9.9% 0.5% 10.4% 12.3% 19,656 32,963 32,963 $33.50

136 24,035,549 10.4% 2.1% 12.5% 12.2% 288,778 187,110 187,110 $41.35

16 5,156,638 13.0% 0.3% 13.3% 11.9% 12,653 (72,523) (72,523) $42.20B 15 4,400,655 23.7% 0.3% 24.0% 15.5% 120,412 (374,289) (374,289) $39.02

18 3,774,281 5.6% 0.2% 5.8% 6.2% 36,034 15,110 15,110 $33.9749 13,331,574 14.4% 0.3% 14.7% 11.5% 169,099 (431,702) (431,702) $39.56

75 20,114,656 10.2% 2.4% 12.6% 11.7% 207,901 82,987 82,987 $43.01B 60 11,687,169 16.9% 0.5% 17.4% 14.2% 194,286 (375,652) (375,652) $40.13

50 5,565,298 7.0% 0.3% 7.3% 8.1% 55,690 48,073 48,073 $33.71185 37,367,123 11.8% 1.5% 13.3% 11.9% 457,877 (244,592) (244,592) $40.60

R-B CORRIDOR

Arlin

gton

Cou

nty **Delivery of office at 800 N Glebe Road (301,895 SF) caused vacancy to rise despite positive net absorption.

ARLINGTON COUNTYA

CRYSTAL/PENTAGON CITIESA

C

A **

C

FAIR

FAX

CO

UN

TY

C

Subtotal

Subtotal

Subtotal





Direct 2

VacancyRate

Sublease Vacancy

Rate

Total 3

VacancyRate

Total Vacancy

Rate Prior Qtr

LeasingActivity

SF

Net 4


SF

Net Absorption YTD

Weighted 5


VACANCYEXISTING PROPERTIES


35 3,592,607 16.3% 3.6% 19.9% 20.2% 45,068 10,750 10,750 $36.11B ** 106 4,282,125 10.9% 0.7% 11.6% 11.5% 32,573 10,906 10,906 $29.73

59 1,286,322 5.0% 0.9% 5.9% 5.8% 3,260 (2,317) (2,317) $26.80200 9,161,054 12.2% 1.8% 14.0% 14.1% 80,901 19,339 19,339 $32.67

26 7,599,513 19.7% 1.1% 20.8% 19.2% 7,969 (118,397) (118,397) $32.75B 48 5,709,118 14.7% 0.8% 15.5% 12.7% 40,008 (162,967) (162,967) $30.86

52 1,736,002 7.9% 0.0% 7.9% 9.1% 5,959 19,868 19,868 $22.26126 15,044,633 16.4% 0.9% 17.3% 15.5% 53,936 (261,496) (261,496) $30.88

61 11,192,120 18.6% 1.9% 20.5% 19.5% 53,037 (107,647) (107,647) $34.20B 154 9,991,243 13.1% 0.7% 13.8% 12.2% 72,581 (152,061) (152,061) $30.52

111 3,022,324 6.7% 0.4% 7.1% 7.7% 9,219 17,551 17,551 $23.85326 24,205,687 14.8% 1.2% 16.1% 15.0% 134,837 (242,157) (242,157) $31.52

45 5,473,324 17.6% 0.4% 18.0% 17.6% 148,878 (20,697) (20,697) $25.30B 79 3,643,839 21.2% 0.6% 21.8% 21.9% 43,612 2,705 2,705 $21.19

14 488,057 7.2% 0.0% 7.2% 6.6% 950 (2,849) (2,849) $18.83138 9,605,220 18.5% 0.4% 19.0% 18.7% 193,440 (20,841) (20,841) $22.97

66 7,054,987 21.2% 0.4% 21.6% 21.2% 181,275 (26,249) (26,249) $26.30B 144 7,525,373 14.6% 0.7% 15.3% 15.5% 88,121 18,815 18,815 $22.07

58 1,452,826 9.5% 0.0% 9.5% 8.6% 7,735 194 194 $22.83268 16,033,186 17.0% 0.5% 17.5% 17.4% 277,131 (7,240) (7,240) $24.21

17 1,119,259 17.5% 0.3% 17.8% 19.6% 6,882 20,453 20,453 $25.54B 73 2,435,904 15.1% 0.9% 16.0% 14.7% 13,457 (29,851) (29,851) $21.53

83 1,904,635 9.7% 0.0% 9.7% 11.6% 18,492 36,218 36,218 $20.22173 5,459,798 13.7% 0.5% 14.2% 14.6% 38,831 26,820 26,820 $22.30

**Delivery of Lofts at 2709-2731 Mt Vernon Avenue (15,000 SF) caused vacancy to rise despite positive net absorption.

OLD TOWN ALEXANDRIA

Subtotal

Subtotal

Ale

xand

ria

A

Loud

oun

and

Prin

ce W

illia

m C

ount

ies

LOUDOUN COUNTY

CSubtotal

RT. 28 NORTH

APRINCE WILLIAM COUNTY

C

A

CSubtotal

EISENHOWER AVE/I-395 CORRA

C

C

A

Subtotal

ALEXANDRIAA

CSubtotal





Direct 2

VacancyRate

Sublease Vacancy

Rate

Total 3

VacancyRate

Total Vacancy

Rate Prior Qtr

LeasingActivity

SF

Net 4


SF

Net Absorption YTD

Weighted 5


EXISTING PROPERTIES VACANCY


502 91,136,392 13.4% 2.1% 15.5% 15.0% 857,522 (149,233) (149,233) $33.86

931 71,687,689 15.7% 0.9% 16.6% 16.0% 923,004 (450,367) (450,367) $29.03

866 28,917,749 11.3% 0.5% 11.8% 12.0% 279,242 55,911 55,911 $24.72

2,299 191,741,830 13.9% 1.5% 15.4% 14.9% 2,059,768 (543,689) (543,689) $30.47NORTHERN VIRGINIA

1Includes all buildings over 10,000 Square Feet 2Direct vacant includes all space that is entirely vacant and immediately ready for occupancy 3Total direct and direct sublet SF that is completely vacant at quarter end 4The net change in occupied direct and sublease space 4SF completed via new construction plus return-to-market of renovated space, less space demolished 5Rental rates that are calculated by factoring in, or weighting, the square footage associated with each particular rental rate. This has the effect of causing rental rates on larger spaces to affect the average more than that of smaller spaces. The weighted average rental rate is calculated by taking the ratio of the square footage associated with the rental rate on each individual available space to the square footage associated with rental rates on all direct vacant spaces, multiplying the rental rate by that ratio, and then adding together all the resulting numbers. Rental rate averages include Direct Vacant space and calculated at the quarter end.

NORTHERN VIRGINIA

NORTHERN VIRGINIA

NORTHERN VIRGINIA

NORTHERN VIRGINIA CLASS A TOTALS

NORTHERN VIRGINIA CLASS B TOTALS

NORTHERN VIRGINIA CLASS C TOTALS

NORTHERN VIRGINIA CLASS A, B, C TOTALS



COLLIERS INTERNATIONALNORTHERN VIRGINIA OFFICE:

8045 Leesburg PikeSuite 401Vienna, VA 22182TEL +1 703 394 4800www.colliers.com/washingtondc

RESEARCHER:PATRICK SCORAH

TEL +1 703 394 [email protected]

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• $1.5 billion in annual revenue

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Deliveries:

Buildings that complete construction during a specified period of time. In order for space to be considered delivered, a certificate of occupancy must have been issued for the property.

Direct Space:

Space that is being offered for lease directly from the landlord or owner of a building, as opposed to space being offered in a building by another tenant (or broker of tenant) trying to sublet a space that has already been leased.

Existing Inventory:

The square footage of buildings that have received a certificate of occupancy and are able to be occupied by tenants. It does not include space in buildings that are either planned, under construction or under renovation.

Leasing Activity:

The volume of square footage that is committed to and signed under a lease obligation for a specific building or market in a given period of time. It includes direct leases, subleases and renewals of existing leases. It also includes any pre-leasing activity in planned, under construction, or under renovation buildings.

Rentable Building Area (RBA):

The total square footage of a building that can be occupied by, or assigned to a tenant for the purpose of determining a tenant’s rental obligation. This report tracks buildings with 10,000 square feet or more of speculative space. Includes competitive space in Class A, B and C single and multitenant buildings. Excludes buildings that were built with the intent to house only medical users and government owner-occupied buildings.

Sublease Space:

Space that has been leased by a tenant and is being offered for lease back to the market by the tenant with the lease obligation. Sublease space is sometimes referred to as sublet space.

Vacant Space:

Space that is not currently occupied by a tenant, regardless of any lease obligation that may be on the space.

Inventory:

Includes all existing multi- or single-tenant leased and owner-occupied office properties greater than or equal to 10,000 square feet (net rentable area). Does not include medical of government buildings.

DEFINITIONS OF KEY TERMS FOUND IN THIS REPORT

Net Absorption:

The net change in occupied space over a given period of time. Unless otherwise noted, Net Absorption includes direct and sublease space.

Weighted Average Asking Rental Rates:

Weighted by the total square feet available for direct lease. Data is based on Full Service Gross rents, and includes all costs associated with occupying the space, including taxes, insurance, maintenance, janitorial service and utilities. Reports on an annual per square foot basis.


MARKET REPORT - Colliers/media/files/united... · Fairfax County is the largest market in Northern...

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