Referred to as Dulles West, the building is located on 44965 Aviation Dr. Transwestern, representing the building's owner Velsor Properties, just negotiated a 25,003-sf lease with Gemini Air Cargo. Matt Bundy, Allen McBride and Josh Masi, in Tysons' Corner, represented Velsor. Cushman & Wakefield brokers Jude Collins and Kirk Boyd, also in Tysons' Corner, represented Gemini.
Bundy tells GlobeSt.com if two additional pending leases close, the building will be 100% occupied. He cites the growing activity and construction at Dulles International Airport as a key factor. "One reason we are going to be 100% occupied--which a lot of buildings on this block can't say--is because of Dulles. We are on its power grid and are located very close by." The building's tenants are comprised of transport companies such as Gemini, engineers that need to be close to the work and government agencies, he says.
Another draw could be the asking rental rate at the building--$18.50 per sf for as is occupancy--which is slightly lower than the market rate of $22 per sf for class B space in this submarket. With TIs factored in, the asking rate is usually negotiated higher. The two pending leases, for instance, are said to be in the low $20s including TIs, according to a source close to the deals.
In general the submarket is struggling with high vacancy rates, Tonya Ginter, director of research at GVA Advantis, tells GlobeSt.com, which may be one reason why the asking rate is slightly lower.
Unlike nearby Fairfax, Arlington and Alexandria counties, with vacancies rates at 9.7%, 9.1% and 6.6% respectively, Loudoun County is experience vacancy rates close to 20%, she says. "Also, when FLYi Inc.--formerly Atlantic Coast Airlines, the operator of Independence Air--went bankruptcy, it dumped 80,000 sf back on the market," she says. "That didn't help." Long-term growth prospects are more favorable, though, she adds. "This is one the fastest growing submarkets are property owners are hopeful that demand for space will increase."
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
