WASHINGTON, DC–Since the Phase I of the Silver Line opened in 2014, leasing dynamics have changed dramatically in the area, according to a new analysis by JLL. Namely, in Tysons, vacancy for Class A buildings located within a half mile of Metro decreased 890 basis points since 2014, while vacancy increased 1,250 basis points in Class A buildings that are beyond a half mile from the Metro.
Likewise for Reston, where Class A vacancy dropped 1,120 basis points for buildings within a half mile of the Wiehle-Reston East station. Class A vacancy also fell 210 basis points for buildings beyond the half mile as the scheduled 2020 opening of Phase II of the Silver Line will add three more stations along the Toll Road. However, Class B office buildings beyond a half mile from Metro are posting nearly double the vacancy, just below 20%.
Much of the activity is happening at the newer buildings in these submarkets, JLL notes, citing Tysons Tower and 1775 Tysons Blvd., both developments which have attracted tenants from non-Metro accessible buildings. Buildings built since 2014 have posted 1.2 million square feet of positive net absorption since then, while Class A buildings built before that posted more than 900,000 square feet of negative net absorption.
Which brings JLL to the obvious conclusion in its analysis that:
The shift in tenant demand to Silver Line Metro-accessible office buildings will continue as every major office building in the pipeline in these locations is located within ½ mile of a Metro station.
WASHINGTON, DC–Since the Phase I of the Silver Line opened in 2014, leasing dynamics have changed dramatically in the area, according to a new analysis by JLL. Namely, in Tysons, vacancy for Class A buildings located within a half mile of Metro decreased 890 basis points since 2014, while vacancy increased 1,250 basis points in Class A buildings that are beyond a half mile from the Metro.
Likewise for Reston, where Class A vacancy dropped 1,120 basis points for buildings within a half mile of the Wiehle-Reston East station. Class A vacancy also fell 210 basis points for buildings beyond the half mile as the scheduled 2020 opening of Phase II of the Silver Line will add three more stations along the Toll Road. However, Class B office buildings beyond a half mile from Metro are posting nearly double the vacancy, just below 20%.
Much of the activity is happening at the newer buildings in these submarkets, JLL notes, citing Tysons Tower and 1775 Tysons Blvd., both developments which have attracted tenants from non-Metro accessible buildings. Buildings built since 2014 have posted 1.2 million square feet of positive net absorption since then, while Class A buildings built before that posted more than 900,000 square feet of negative net absorption.
Which brings JLL to the obvious conclusion in its analysis that:
The shift in tenant demand to Silver Line Metro-accessible office buildings will continue as every major office building in the pipeline in these locations is located within ½ mile of a Metro station.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
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.
