(Read more on the industrial market.)
STERLING, VA-BAE Systems Information Technology, Inc. has inked a lease to occupy 45479 Holiday Dr., a 102,376-sf office/flex building in a 79-acre office/R&D park called Dulles North Corporate Park. The building had been vacated in Q2 by the NationalGeospatial Intelligence Agency, a move that added an unwelcome additional empty building to what is already a glut of buildings and office/flex space in this submarket. B.F. Saul Property Co. owns the one-story property, which delivered to market in 2001.
Vacancy rates in the Route 28 North Corridor increased to 21.7% from a first quarter rate of 16.6% in some part because of NGIA's departure, says Tonya Ginter, director of research & marketing for GVA Advantis. Another factor is the 240,480 sf that delivered during the second quarter, all of which was fully available for lease at the time of delivery.
"There are not a lot of big users looking for office and/or flex space, particularly Route 28 North and Route 28 South Corridor," she tells GlobeSt.com. Leasing activity in the area has never quite recovered from the tech downturn of 2001, she adds.
The average rate for space in the market is $12.78 per sf, triple net, according to GVA Advantis statistics. Asking rates for nearby areas include $12 per sf, triple net in Prince William's County and $15.50 per sf, triple net for Reston.
Chris Sowick, Chris Lucey, Bob Hines and Scott Killie of Cassidy & Pinkard Colliers represented B.F. Saul Property Co. Gene Sachs, Paul Ehrenreich, Christa Leight and Lauren Hodgin of Cresa Partners represented BAE Systems.
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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.
