The office building is just one facet of the one million-sf mixed-use Arlington Gateway project, which will ultimately consist of three structures containing more than 400 luxury condominiums, a 300-room hotel, 17,000 sf of retail space, and the office space. Watson Wyatt plans to begin relocating its corporate headquarters from Washington, DC to the property a year from now.

Situated in the Balston submarket just off I-66 at Glebe Rd. and Fairfax Dr., Arlington Gateway is scheduled for completion in 2005, with work on the 12-story office component wrapping up in January. The terms of Watson Wyatt's lease with property owner the JBG Cos. have not been disclosed; however, property leasing agent Jones Lang LaSalle markets the space for $33 to $36 per-sf. Jones Lang LaSalle represented the JBG Cos. in the transaction, while Equis stood in for the tenant.

Watson Wyatt is among a stellar list of firms that have already staked a claim to office space at Arlington Gateway. Project management training and consulting firm ESI has signed on for 45,000 sf, and law firm Nixon & Vanderhye has dibs on nearly 52,000 sf. "The caliber of the tenants that have committed to the project are indicative of the quality of the environment that we are creating," says JBG managing partner Brian Coulter. For its part, Watson Wyatt says the new location will provide the firm with easy access to all of its Washington, DC area clients, and allow for a flexible commute for employees.