STERLING, VA—Route 28 was a submarket in pain during and after the recession but one developer is confident enough in its long-term durability that it has built an office on spec here.
The LGV Group, a Northern Virginia based developer, built its first commercial building at 22365 Broderick Dr., last year and is now partially occupying it. Or rather, it is partially occupying the 37,096-square feet in Phase 1 of what is expected to be a 84,701-square foot office. There is another tenant as well, bringing Phase 1 to 50% occupancy. LGV Group has tapped Colliers International to lease out the remaining space and find tenants for Phase 2, which it is not building on spec.
There's been interest in the building since Fall after a slow summer, Colliers' Keith Summers tells GlobeSt.com. Summers also said that, in general Route 28, is picking up as companies see some of the buildings as candidates for the so-called flight to quality migration that many companies have made in this tenant's market.
Broderick I is particularly well suited for that role as it is well designed and built -- after all, LGV Group would be eating its own cooking since it would be an owner occupier -- and the rents are in the competitive low 20s per square foot range.
The company has its eye on the longer term though. This building is close to the future Loudoun Gateway metro station, Summer said. The owner "has decided that this is where this submarket will be active" in the future.
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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.
