WASHINGTON, DC–When the Federal Bureau of Investigation permanently put its search for a new headquarters on hold, it was a harsh setback for Prince George's County, which had high hopes of winning the project. But the county has moved on and, according to a JLL note by Senior Research Analyst Sara Hines, office leasing in the market is doing well considering the 1.3-million square feet of space it has lost over the last ten years.
Private sector leasing fueled by 2U helped drive nearly 300,000 square feet of occupancy gains at 7900 Harkins, she wrote — the first time since 2010 the county posted annual net absorption. The 2U lease also helped post the highest per square foot sales price of $252 in the county since 2007. The last time 7900 Harkins sold, in 2015, it was for $66 per square foot.
Other positive developments for the county include the US Department of Homeland Security – Citizenship and Immigration Services' plans to relocate near the Branch Avenue Metro, taking down 574,767 square feet by 2020. In addition, Kaiser Permanente has signed a lease for 172,863 square feet in New Carrollton starting in 2019.
A New Zoning Code
Perhaps most importantly, the county is rewriting its 50-year old plus zoning code to spur development. According to Hines:
The draft of the new code includes changes that would reduce parking minimums near Metro stations, streamline the development process from 67 to 20 regulatory hurdles, and encourage mixed-use development around transit.
The county's proposed office pipeline totals 19.6 millions square feet with 40% near transit, the note concludes — a significant increase for a county that has only added 2.3 million square feet of new inventory over the past 15 years.
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.
