Mills Corp. Takes 200,000 SF at New Mixed-Use Development

CHEVY CHASE, MD-The Chevy Chase Center at Wisconsin Circle, a new 400,000-sf mixed-use project orchestrated by the Chevy Chase Land Co., has secured a major tenant for its office component. Retail and entertainment property REIT the Mills Corp. signed a long-term lease on the entire 200,000-sf office segment of the combination office and retail development, committing to relocating its corporate headquarters from Arlington, VA, to Maryland. Mills relied on Cushman & Wakefield to negotiate the lease transaction, while the Chevy Chase Land Co. president and COO Edward Hall Asher turned to CB Richard Ellis, which had been marketing the office space for $42 to $44 per sf.

“The reason why the Mills Corp. chose to relocate to Chevy Chase Center is the amenities are there, the Metro is there, it’s a brand new building, and they can control their growth,” CBRE’s Larry Thau tells GlobeSt.com. “It will be their building and they can put the Mills style into it, and that was very important to them.” But Thau points out that the deal is not just beneficial to the property owner and the new tenant, but also to the city, as a whole. “Large corporate users will now look to the Chevy Chase market as a place to locate, whereas before, it was a very boutique market.” Both Montgomery County and the State of Maryland provided financial incentives to encourage Mills Corp.’s relocation to the property. The company is expected to take occupancy of its new home sometime in the first quarter of 2006.