Volkswagen will have its Northern Virginia staff fully in place in its newly leased digs by the end of 2008. Besides the US headquarters for Volkswagen of America Inc, it will also include the US headquarters for Audi of America Inc., Audi Financial Services, Volkswagen Credit and other affiliated operations.
The building, called Woodland Pointe, is owned by Tishman Speyer. A six-story office building in the Woodland Park mixed-use business complex, it is very close to Dulles International Airport and visible along the Dulles Toll Road--two factors that the company weighed as it made its decision, according to Keith Scott, a vice president with the Staubach Co., which represented the company in its search. Scott tells GlobeSt.com that the building finished construction in July. The total cost of development, including interior build-out to accommodate Volkswagen, is $100 million. Woodland Park is a corporate, retail, and residential complex that will encompass more than five million sf when fully developed.
However, as with most site selection decisions now, the real estate piece plays only a minor part. "It is a real estate project but it is not about real estate in the end," Greg Lubar, senior vice president for the Staubach Co. tells GlobeSt.com.
"There were a number of factors that went into this decision," he adds. "These included labor, the incentives the state and local government could offer, transportation, infrastructure, the proximity to clients and an international airport, education and training opportunities," he tells GlobeSt.com. Volkswagen received $6 million in performance based cash-grants as part of the state incentive package.
Indeed, the decision to shift operations here is a major coup for the state; in general, direct investments from automotive manufacturers are eagerly sought and bitterly competed for among states because of the additional investment that usually follows from third-party suppliers and sometimes even the manufacturer.
"Volkswagen's decision for Virginia is a strong affirmation of the Commonwealth's business-friendly environment, location, market access and infrastructure," says Gov. Timothy Kaine in a statement. "The caliber of companies already located in the region and the proximity to Dulles International Airport were huge factors in the company's decision."
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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.
