TYSONS, VA–Startups and smaller companies want the same features in an office as everyone else does. A transit-friendly locale, lots of nearby amenities and, more recently, an urban location. PS Business Parks is offering just that to them … sort of.
The REIT has tapped JLL to lease up the remaining space — including a combined 40 spec suites — at two portfolio listings that total 1.3 million square feet. The two projects, The Mile at Tysons (formerly Westpark Business Campus) and Prosperity at Merrifield, come very close to the aforementioned desirable qualities, but slightly miss the mark.
For example, The Mile at Tysons, is about half a mile from the nearest Metro Station. People can walk to it, but it is not next door. Likewise, for Prosperity at Merrifield. The nearest and best amenities are at the Mosaic District and the new Avenir Place, which also requires a brisk walk. Fortunately, the extensive pedestrian-friendly residential developments near the two projects, in Tysons in particular, means walking is no longer the life-and-death prospect it was a few years ago.
The rental rates at these two projects are discounted to metro-proximate buildings, JLL SVP Yorke Allen tells GlobeSt.com.
“These properties will enjoy a disproportionate share of demand by smaller companies unable to pay top dollar,” he says.
Asking rates for the buildings are $27 to $30 per square foot full service, compared with $55 per square foot for top of the market buildings, Allen says.
Occupancy at The Mile has been hovering in the low 90% over the last six months, according to JLL, while occupancy at Prosperity has been in the low to mid 90% over the last six months.
TYSONS, VA–Startups and smaller companies want the same features in an office as everyone else does. A transit-friendly locale, lots of nearby amenities and, more recently, an urban location. PS Business Parks is offering just that to them … sort of.
The REIT has tapped JLL to lease up the remaining space — including a combined 40 spec suites — at two portfolio listings that total 1.3 million square feet. The two projects, The Mile at Tysons (formerly Westpark Business Campus) and Prosperity at Merrifield, come very close to the aforementioned desirable qualities, but slightly miss the mark.
For example, The Mile at Tysons, is about half a mile from the nearest Metro Station. People can walk to it, but it is not next door. Likewise, for Prosperity at Merrifield. The nearest and best amenities are at the Mosaic District and the new Avenir Place, which also requires a brisk walk. Fortunately, the extensive pedestrian-friendly residential developments near the two projects, in Tysons in particular, means walking is no longer the life-and-death prospect it was a few years ago.
The rental rates at these two projects are discounted to metro-proximate buildings, JLL SVP Yorke Allen tells GlobeSt.com.
“These properties will enjoy a disproportionate share of demand by smaller companies unable to pay top dollar,” he says.
Asking rates for the buildings are $27 to $30 per square foot full service, compared with $55 per square foot for top of the market buildings, Allen says.
Occupancy at The Mile has been hovering in the low 90% over the last six months, according to JLL, while occupancy at Prosperity has been in the low to mid 90% over the last six months.
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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.
