Vacancy Rates: Dulles Toll Road Submarkets Versus Non-Toll Road Submarkets

Transcription

1 Vacancy Rates: Dulles Toll Road Submarkets Versus Non-Toll Road Submarkets Fairfax County 12.38% 17.33% Non-Toll Road* 9.23% 12.24% Direct Sublet Toll Road** 15.00% 21.57% 0% 5% 10% 15% 20% 25% Vacancy Rates *Non-Toll Road Submarkets: Annandale, Baileys Crossroads, Burke, Centreville, Chantilly, Fairfax Center, Franconia, Great Falls, Huntington, McLean, Merrifield, Mount Vernon, Newington/Lorton, Oakton, Seven Corners, Springfield, Vienna **Toll Road Submarkets: Dulles, Herndon, Reston, Tysons Corner

2 TABLE OF CONTENTS COUNTY MAP... 2 OFFICE MARKET County Overview Submarkets Recent Leasing Activity Recent Building Sales Buildings Delivered Recent Construction Activity INDUSTRIAL/HYBRID MARKET County Overview Submarkets Recent Leasing Activity Recent Building Sales Buildings Delivered Recent Construction Activity USING THIS REPORT WASHINGTON DULLES INTERTIOL AIRPORT CHANTILLY CENTREVILLE DULLES 50 TOWN OF HERNDON 1 LOUDOUN COUNTY FAIRFAX TOWN OF CLIFTON COUNTY PARKWAY 7 RESTON 2 GREAT FALLS BURKE TYSONS CORNER SPRINGFIELD MARYLAND 4 McLEAN M TOWN OAKTON OF VIEN CITY OF FALLS CHURCH M 2 M 50 MERRIFIELD CITY OF FAIRFAX ANNDALE M 5 14 FRANCONIA 18 WASHINGTON, D.C. ARLINGTON COUNTY CITY OF ALEXANDRIA Fairfax County 19 1 M 4 ROLD REAGAN WASHINGTON TIOL AIRPORT COMMERCIAL SUBMARKETS AREA 1 HERNDON AREA 2 RESTON AREA 3 ROUTE 7 CORRIDOR / GREAT FALLS AREA 4 McLEAN AREA 5 TYSONS CORNER AREA 6 VIEN AREA 7 DULLES AREA 8 CHANTILLY AREA 9 CENTREVILLE AREA 10 FAIRFAX CENTER AREA 11 OAKTON AREA 12 MERRIFIELD AREA 13 SEVEN CORNERS AREA 14 BAILEYS CROSSROADS AREA 15 ANNDALE AREA 16 SPRINGFIELD AREA 17 BURKE / FAIRFAX STATION AREA 18 FRANCONIA / VAN DORN AREA 19 HUNTINGTON AREA 20 MOUNT VERNON AREA 21 NEWINGTON AREA 22 LORTON PRINCE WILLIAM COUNTY FORT BELVOIR 20 MOUNT VERNON Metro Dulles Access & Toll Roads LEGEND Metro Stations 1 Vienna M 2 Dunn Loring 3 West Falls Church 4 Huntington 5 Franconia-Springfield Fairfax County Economic Development Authority 2 FCEDA Real Estate Report Midyear 2003

3 OFFICE MARKET OVERVIEW OFFICE SPACE TRENDS: Standing Vacancy Total New Relet Total New Relet Months Year 1 Inventory Rate (%) 2 Leased Leased Leased Available Available Available Supply ,567, ,400,000 n/a n/a 343, ,539 63, ,900, ,623,579 1,486, , , , , ,750, ,639,313 1,193, ,186 1,374, , , ,100, ,312,379 1,414, , , , , ,100, ,318,178 1,706, ,293 2,558,566 2,018, , ,800, ,107,357 3,719, ,487 4,036,662 3,283, , ,700, ,889,741 3,908, ,682 4,555,065 3,119,637 1,435, ,616, ,475,880 3,651, ,557 4,701,055 3,087,638 1,613, ,073, ,014,401 3,046,598 1,004,913 6,263,547 3,818,738 2,444, ,575, ,973,710 3,224,384 1,353,114 9,645,834 4,227,527 5,418, ,139, ,006,377 2,202,932 2,424,145 12,255,516 5,118,433 7,137, ,702, ,535,950 2,374,087 3,141,863 12,185,419 3,829,149 8,356, ,056, ,854,778 1,433,064 3,421,714 10,788,508 2,652,612 8,135, ,397, ,272,604 1,393,415 3,879,189 9,201,590 1,409,847 7,791, ,562, ,306,117 1,290,152 5,015,965 7,490, ,098 6,839, ,074, ,261, ,137 4,763,756 6,458, ,062 6,150, ,265, ,040,085 1,316,827 5,723,258 4,908,932 77,775 4,831, ,617, ,196,885 1,959,447 4,237,438 3,390,293 19,177 3,371, ,088, ,991,158 3,810,783 3,180,375 3,392, ,855 2,861, ,375, ,264,808 5,910,855 3,353,953 4,238,492 1,340,336 2,898, ,563, ,750,968 6,918,762 5,832,206 3,236,371 1,007,213 2,229, ,602, ,174,234 2,606,024 2,568,210 6,281,688 2,312,291 3,969, ,912, ,648,790 1,022,910 2,631,385 12,176,938 3,291,394 8,885, ,242, ,643,713 1,442,237 1,941,159 12,536,134 2,186,967 10,349, Includes inventory outside submarket areas, only. 2 ln some years, total leasing reflects the preleasing of buildings under construction and about to be constructed, as well as new and relet space. 3 As of June 30, The countywide office inventory topped out at million square feet (s.f.) as of midyear 2003, up from million s.f. at yearend Tysons Corner, with 25,419,065 s.f., is the largest office submarket in Fairfax County, accounting for 25.1 percent of the office space countywide. Along with Tysons Corner, Reston (17,842,593 s.f.), Merrifield (9,827,630 s.f.), Fairfax Center (7,749,770 s.f.), Chantilly (7,651,972 s.f.) and Dulles (6,842,719 s.f.) account for nearly 75 percent of the county office inventory. Leasing activity improved dramatically during the first six months of 2003, up to 5.6 million s.f. an increase of more than 50 percent from the previous six-month period. However, much of this leasing is simply tenants taking advantage of current market conditions in the form of renewals and relocation, not expansions. Relet leasing activity increased to 1.9 million s.f. as sublet leasing declined to 1.9 million s.f., primarily due to the return of sublet space to landlords. The submarkets that experienced the most leasing activity were Reston (27.3 percent), Tysons Corner (22.5 percent), Merrifield (10.3 percent), Chantilly (10.1 percent), Herndon (8.7 percent), and Fairfax Center (4.8 percent). Submarkets along the Dulles Toll Road should continue to experience the lion s share of INVENTORY/ABSORPTION Square Feet 110 mil 100 mil 90 mil 80 mil 70 mil 60 mil 50 mil 40 mil 30 mil 20 mil 10 mil 0 future leasing activity due to large blocks of available space and attractive lease rates. Trends: Inventory and Vacancy Rates (Jan-June) Activity in new space increased threefold over the previous reporting period. New space leased during the first six months of 2003 totaled 1.4 million s.f., up from the 477,452 s.f. total recorded during the last half of More new office space was leased during the first half of 2003 than in all of Vacancy Rate (%) FCEDA Real Estate Report Midyear

4 OFFICE MARKET OVERVIEW Direct Office Vacancy Rates by Submarket VACANCY RATES Fairfax County Annandale Baileys Crossroads Burke Centreville Chantilly Dulles Fairfax Center Franconia Great Falls Herndon Huntington McLean Merrifield Mount Vernon Newington/Lorton Oakton Reston Seven Corners Springfield Tysons Corner Vienna 12.4% 15.0% 16.2% 1.7% 7.8% 9.6% 18.8% 8.6% 19.5% 3.0% 17.8% 1.5% 10.7% 7.0% 1.4% 2.0% 14.7% 2.4% 10.4% 13.6% 8.7% 24.6% For the sixth straight reporting period the overall direct vacancy rate increased in Fairfax County. The direct vacancy rate at midyear 2003 was 12.4 percent, up slightly from 12.1 percent at yearend The addition of sublet space brings the overall vacancy rate in the county to 17.3 percent, down from 18.8 percent at yearend This marks the first decrease in the overall vacancy rate in three years. Direct vacancy rates for the seven largest office submarkets in the County were mixed during the first half of The Reston (14.7 percent), Herndon (17.8 percent) and Merrifield (10.7 percent) submarkets each experienced a decline in their direct vacancy rates, while vacancy rates in Tysons Corner (13.6 percent), Chantilly (9.6 percent), Dulles (18.8 percent) and Fairfax Center (8.6 percent) increased slightly. The sublet vacancy rate decreased for the first time in more than three years. Of the seven largest office markets in the county, five experienced a decrease from the previous reporting period: Chantilly (15.3 percent), Herndon (25.3 percent), Merrifield (14.9 percent) Reston (18.7 percent) and Tysons Corner (21.4 percent). The other two largest submarkets Dulles (31.1 percent) and Fairfax Center (12.3 percent) registered very small increases. As vacancy rates have stabilized, the real estate community is cautiously optimistic that the market has finally bottomed out. If leasing activity in the form of expansions begin to occur within the next six months, the overall vacancy rate should begin to decline, albeit at a slow pace. Sublet lease rates should also continue to decline as sublet space is returned to landlords and tenants cherry-pick the best remaining sublease deals on the market. CONSTRUCTION ACTIVITY Sq. Ft. 8 mil 7 mil 6 mil 5 mil 4 mil 3 mil 2 mil 1 mil (Jan-June) As of midyear 2003 eight buildings totaling approximately 750,000 square feet (s.f.) were under construction, and they are 93 percent preleased. Five of these eight office buildings currently under construction should deliver by yearend New construction continues to be limited, with only three groundbreakings occurring during the first six months of A build-to-suit headquarters building (228,634 s.f.) for Sallie Mae is underway at Reston Town Center, Building 2 (31,062 s.f.) at Albemarle Point commenced construction following a prelease to Chantilly Health Club; and Redwood Square (24,000 s.f.) is under construction in Centreville. Once again, new construction will be limited to small (less than 30,000 s.f.) buildings or built-to-suits. Speculative construction has taken an indefinite leave of absence pending significant improvements in the leasing market. The lack of construction starts are a positive step toward a recovery in the office market, as it will allow the substantial amount of direct and sublet space on the market to be absorbed. The first half of 2003 saw only five buildings, totaling approximately 350,000 s.f., deliver in the county. These included the last two large, speculative office buildings from the latest construction cycle Heritage Center IV (192,396 s.f.) in Annandale and River Tower (116,750 s.f.) in Tysons Corner. 4 FCEDA Real Estate Report Midyear 2003

5 OFFICE MARKET OVERVIEW AVAILABILITY Available office space increased slightly for the seventh consecutive reporting period to a record high of 12.5 million square feet (s.f.). Relet space accounted for the bulk of available space in the market, with 10,349,167 s.f. Relet space should continue to increase through the end of the year as sublet leases expire and space is returned to the market as relet space. Available new space declined for the third straight reporting period to 2.2 million s.f., down from 3.3 million at yearend This trend should continue into 2005 due to the absence of any significant speculative office development. Sublet space decreased by 26 percent at midyear 2003 to 5 million s.f., down from a record high of 6.8 million s.f. at yearend The Tysons Corner (1,681,752 s.f.), Dulles (842,159 s.f.) and Reston (718,871 s.f.) submarkets accounted for nearly 65 percent of all sublet space on the market. Sq. Ft. 15 mil 12 mil 9 mil 6 mil 3 mil 0 Available: New vs. Relet New Available Relet Available (Jan-June) MAJOR TRANSACTIONS: LEASES AND SALES Top 10 Office Lease Deals: 1st Half 2003 (square feet leased) Titan Systems/Reston Unisys/Reston Lockheed Martin/Oakton BAE Systems/Reston General Dynamics/Merrifield US Army Intelligence & Security Command (INSCOM)/Springfield Sunrise Assisted Living/Tysons Corner GSA/Tysons Corner GSA/Merrifield SRA International/Merrifield 160, , , , ,338 86,000 84,757 83,120 LEASE TRANSACTIONS The first half of 2003 saw a rise in the number of large lease transactions. Unfortunately, most of 280,693 these leases were either renewals or relocations and not expansions. As a result, their impact on 275,000 vacancy rates was muted. This flight to quality is occurring as tenants seek to upgrade their space and/or location at a significant cost savings when compared to just three years ago. Numerous tenants also seeking to take advantage of depressed lease rates simply re-signed in their existing locations. However, several large deals were signed that involved expansions, perhaps a sign that the market has passed its nadir. Additionally, the federal government signed two large leases of note: The U.S. Army Intelligence & Security Command (125,000 s.f.) in Springfield and the General Services Administration (84,757 s.f.) in Merrifield perhaps a harbinger of increased federal spending. SALE TRANSACTIONS Twenty-five office properties 10,000 square feet (s.f.)or larger in size sold during the first half of 2003, down one from 26 in yearend The aggregate of these transactions was nearly $326 million dollars. The median sale price was approximately $174 per s.f., up from $165 per s.f. during the second half of The average sale price during the first six months of 2003 was $171 per s.f., up from $166 per s.f. at yearend For the first time in recent memory, the top 10 sale transactions on a per-square-foot basis all exceeded $200. These prices reflect the current attractiveness of real estate when compared to other investment opportunities. FCEDA Real Estate Report Midyear 2003 Notable Office Building Sales: 1st Half 2003 (price per square foot) 8301 Old Courthouse Road/Tysons Corner $ Englat Building/McLean $ Old Dominion Drive/McLean $ Cedar Hill 3/Tysons Corner $ Cedar Hill 1/Tysons Corner $ Westwood 7/Tysons Corner $ Sunset Corporate Plaza 1/Reston $ Sunset Corporate Plaza 2/Reston $ Crown Fair Oaks/Fairfax Center $ One Dulles Tower/Herndon $

6 Annandale Baileys Crossroads Inventory: 1,814, % Vacancy Rate: 14.97% Vacancy Rate w/ 16.22% Under Construction: 4, % Delivered: 192, % Space Leased: 57, % 23,362 13,672 20,263 Space Available: 271, % Space Available w/ 294, % 99,454 22, ,133 $15.00 FS 1 $23.50 FS $16.00 FS $22.00 FS $26.50 FS $29.50 FS 1 Full service lease. See page 23 for explanation. Burke Inventory: 3,211, % Vacancy Rate: 16.18% Vacancy Rate w/ 16.98% 0.00% Space Leased: 77, % 75,402 2,330 Space Available: 519, % Space Available w/ 545, % 519,628 25,831 Planned: 37,500 $17.00 FS $25.00 FS $19.75 FS $24.00 FS Centreville Inventory: 520, % Vacancy Rate: 1.65% Vacancy Rate w/ 1.65% 0.00% Space Leased 16, % 11,557 5,183 Space Available: 8, % Space Available w/ 8, % 8,620 0 $16.00 NN 2 $18.00 NNN 3 2 Double net lease. See page 23 for explanation. 3 Triple net lease. See page 23 for explanation. Inventory: 560, % Vacancy Rate: 7.84% Vacancy Rate w/ 9.19% Under Construction: 24, % Space Leased 41, % 17, ,700 Space Available: 43, % Space Available w/ 51, % 32,869 7,556 11,076 Under Construction: 24,000 Planned: 609,000 $20.00 FS $29.00 FS $27.00 FS $26.50 FS 6 FCEDA Real Estate Report Midyear 2003

7 Chantilly Dulles Inventory: 7,651, % Vacancy Rate: 9.56% Vacancy Rate w/ 15.43% Under Construction: 31, % Delivered: 14, % Space Leased: 571, % 57, , ,945 Under Construction: 31,062 Space Available: 731, % Space Available w/ 1,180, % 611, , ,119 Planned: 11,046,535 $15.00 FS $25.00 FS $14.50 FS $24.00 FS $14.00 NNN $23.00 FS Fairfax Center Inventory: 6,842, % Vacancy Rate: 18.80% Vacancy Rate w/ 31.11% 0.00% Space Leased: 211, % 65, ,332 14,320 Space Available: 1,286, % Space Available w/ 2,128, % 891, , ,332 Planned: 13,308,013 $19.00 FS $28.00 FS $14.75 FS $24.00 FS $24.00 FS $25.00 FS Franconia Inventory: 7,749, % Vacancy Rate: 8.61% Vacancy Rate w/ 12.26% 0.00% Delivered: 14, % Space Leased: 272, % 72, ,210 31,000 Space Available: 667, % Space Available w/ 950, % 644, ,935 23,000 Planned: 3,638,175 $16.00 FS $27.50 FS $14.00 FS $22.00 FS $28.00 FS Inventory: 497, % Vacancy Rate: 19.54% Vacancy Rate w/ 19.54% 0.00% Space Leased: 51, % ,313 Space Available: 97, % Space Available w/ 97, % 12, ,687 Planned: 116,000 $13.50 FS $16.00 NNN $24.50 FS $28.00 FS FCEDA Real Estate Report Midyear

8 Great Falls Herndon Inventory: 137, % Vacancy Rate: 3.01% Vacancy Rate w/ 3.01% 0.00% Space Leased: 1, % 1,175 0 Space Available: 4, % Space Available w/ 4, % 4,150 0 Planned: 29,000 Inventory: 5,169, % Vacancy Rate: 17.76% Vacancy Rate w/ 25.26% Under Construction: 235, % Delivered: 11, % Space Leased: 493, % 324, ,533 24,533 Space Available: 918, % Space Available w/ 1,305, % 905, ,670 12,976 Under Construction: 25,008 Planned: 2,072,370 $23.50 NNN $15.00 FS $26.00 FS $15.00 FS $25.00 FS $19.75 FS $21.00 FS Huntington McLean Inventory: 479, % Vacancy Rate: 24.56% Vacancy Rate w/ 26.02% 0.00% Space Leased: 11, % 11,062 0 Space Available: 117, % Space Available w/ 124, % 117,679 7,000 Planned: 450,000 $17.50 FS $25.00 FS $19.75 FS Inventory: 4,101, % Vacancy Rate: 1.49% Vacancy Rate w/ 1.85% 0.00% Space Leased: 52, % 37,604 14,980 Space Available: 60, % Space Available w/ 75, % 60,907 14,997 Planned: 138,000 $19.75 FS $31.00 FS $15.00 FS $29.50 FS 8 FCEDA Real Estate Report Midyear 2003

9 Merrifield Mount Vernon Inventory: 9,827, % Vacancy Rate: 10.65% Vacancy Rate w/ 14.94% Under Construction: 27, % Space Leased: 571, % 136, , ,633 Space Available: 1,046, % Space Available w/ 1,468, % 471, , ,198 Under Construction: 27,000 Planned: 3,219,234 $16.00 FS $30.00 FS $17.00 FS $30.00 FS $26.50 FS $32.00 FS Newington/Lorton Inventory: 559, % Vacancy Rate: 7.01% Vacancy Rate w/ 7.01% 0.00% Space Leased: 14, % 12, ,800 Space Available: 39, % Space Available w/ 39, % 39,242 0 Planned: 256,120 $12.00 NN $22.00 FS Oakton Inventory: 481, % Vacancy Rate: 1.43% Vacancy Rate w/ 1.43% 0.00% Space Leased: % 0 0 Space Available: 6, % Space Available w/ 6, % 6,903 0 Planned: 1,524,400 $14.00 FS $19.00 FS Inventory: 1,425, % Vacancy Rate: 1.98% Vacancy Rate w/ 3.22% 0.00% Space Leased: 42, % 35,792 6,669 Space Available: 28, % Space Available w/ 45, % 28,222 17,752 Planned: 309,842 $18.00 NNN $25.50 FS $23.00 FS $23.50 FS FCEDA Real Estate Report Midyear

10 Reston Seven Corners Inventory: 17,842, % Vacancy Rate: 14.72% Vacancy Rate w/ 18.75% Under Construction: 228, % Space Leased: 1,540, % 289, , ,369 Under Construction: 228,634 Space Available: 2,626, % Space Available w/ 3,344, % 2,223, , ,414 Planned: 4,771,614 $14.00 FS $31.50 FS $10.00 FS $29.50 FS $18.00 NNN $29.50 FS Springfield Inventory: 999, % Vacancy Rate: 2.42% Vacancy Rate w/ 4.92% 0.00% Space Leased: 40, % 3,593 37,233 Space Available: 24, % Space Available w/ 49, % 24,234 25,000 Planned: 17,000 $19.00 FS $22.50 FS $17.50 FS Tysons Corner Inventory: 3,430, % Vacancy Rate: 10.39% Vacancy Rate w/ 11.91% 0.00% Space Leased: 243, % 107,163 21, ,000 Space Available: 356, % Space Available w/ 408, % 303,290 52,361 53,000 Planned: 1,951,464 $14.00 FS $25.00 FS $13.00 FS $20.00 FS $19.50 FS $29.50 FS Inventory: 25,419, % Vacancy Rate: 13.62% Vacancy Rate w/ 20.23% Under Construction: 180, % Delivered: 116, % Space Leased: 1,269, % 652, ,377 78,361 Space Available: 3,461, % Space Available w/ 5,143, % 3,124,295 1,681, ,032 Under Construction: 101,438 Planned: 6,961,665 $20.00 FS $40.00 FS $15.00 FS $36.00 FS $28.00 FS $40.00 FS 10 FCEDA Real Estate Report Midyear 2003

11 Vienna Inventory: 2,518, % Vacancy Rate: 8.73% Vacancy Rate w/ 10.88% Under Construction: 17, % Space Leased: 61, % 6,658 36,574 Under Construction: 17,770 Space Available: 219, % Space Available w/ 273, % 219,753 54,222 Planned: 452,981 $18.75 FS $27.00 FS $22.00 FS $24.00 FS WE CAN TELL YOU EVERYTHING THERE IS TO KNOW ABOUT DOING BUSINESS... WITHIN CERTAIN LIMITS. Within the boundaries of Fairfax County, we are the authority on business information. Our free services will help you take advantage of the unlimited possibilities in Fairfax County. We have up-to-date data on labor force and trends, taxes, utilities, real estate, housing and meeting accommodations, along with scores of other facts and figures to help businesses grow and prosper. So if you or your clients are interested in locating, relocating or expanding your business operation in Fairfax County, inquire in strict confidence to: Fairfax County Economic Development Authority 8300 Boone Boulevard, Suite 450 Vienna, Virginia Phone Fax OFFICE LEASING McLEACTIVITY Tenant Building/Project Name Address CHANTILLY BIA Financial Network Enterprise Center Phase 1 Building Enterprise Court 14,800 Federal Bureau of Investigation Ridgewood Conference Center Drive 17,500 Inphomatch Southgate Center II 4511 Singer Court 17,301 Lockheed Martin Avion Mid-Rise III Avion Parkway 71,507 Network Resources Lafayette A 4230 Lafayette Center Drive 9,493 Northrop Grumman TASC Liberty Center Lee Road 27,570 Scitor Corporation Liberty Center Lee Road 55,243 DULLES Boeing Presidents Park Three 2525 Network Place 21,783 Electronic Warfare Associates Hallmark Building Park Center Road 54,450 FAIRFAX CENTER CC Pace Systems Town Center I 4100 Monument Corner Drive 19,000 George Mason Mortgage Town Center I 4100 Monument Corner Drive 11,564 Identix Fifty West Corporate Center Fair Ridge Drive 27,000 HERNDON Bureau of Indian Affairs (Dept. of Interior) Corporate Oaks Herndon Parkway 60,387 Marine Spill Response Corp. Enterprise Office Park Spring Street 14,009 Nextel 575 Herndon Parkway 55,300 Symantec Worldgate Plaza IV Worldgate Drive 50,000 Thompson Hospitality Services Herndon Square 505 Huntmar Park Drive 8,000 MERRIFIELD AMS Research 8500 Executive Park Avenue 15,000 BRTRC Willow Oaks Willow Oaks Corporate Drive 25,033 FCEDA Real Estate Report Midyear

12 OFFICE LEASING ACTIVITY (continued) Tenant Building/Project Name Address Capitol Advantage 2751 Prosperity Avenue 15,565 Dynamic Research Corp. Metro Place I 2650 Park Tower Drive 47,358 General Dynamics 2941 Fairview Park Drive 139,420 GSA Metro Place III 2675 Prosperity Avenue 84,757 Manville Trust 3110 Fairview Park Drive 17,816 SRA International Willow Oaks Willow Oaks Corporate Drive 83,120 SunTrust Mortgage 2941 Fairview Park Drive 13,800 OAKTON Lockheed Martin Three Flint Hill 3201 Jermantown Road 160,850 Veridian Oakton Corporate Center White Granite Drive 17,889 RESTON BAE Systems Arboretum III 2245 Monroe Street 157,560 Detecon, Inc. Parkridge Center Parkridge Boulevard 5,520 GCI, Inc. Reston International Center Sunrise Valley Drive 38,073 Guidance Software Audubon Preston White Drive 7,892 idefense Campus South 1875 Campus Commons Drive 10,908 Lockheed Martin Parkridge Center Parkridge Boulevard 27,844 Meta Group, Inc Roland Clarke Place 16,273 NCI Information Systems Plaza America IV Plaza America Drive 76,716 New Technology Management Reston Quadrangle Sunrise Valley Drive 25,441 Northop Grumman IT Linpro Park Wiehle Avenue 57,000 Titan Systems Two Freedom Square Freedom Drive 280,693 Transaction Network Services Commerce Executive Commerce Park Drive 40,980 Truland Systems Corp. Oracle Sunset Hills Road 25,000 Unisys Plaza America III Plaza America Drive 275,000 United Healthcare Services 1925 Isaac Newton Square 26,652 Walton & Adams PC 1925 Isaac Newton Square 7,725 Wilson, Sonsini, Goodrich & Rosati Two Fountain Square Freedom Drive 22,678 XPAND Corp Roland Clarke Place 25,820 SPRINGFIELD US Army Intelligence & Security Command Metro Park Walker Lane 125,000 (INSCOM) TYSONS CORNER 3H Technology Tycon Boone Boulevard 12,011 Anvicom River Tower 1934 Old Gallows Road 14,885 Ariel Research 8280 Greensboro Drive 23,000 Bank of America 8300 Greensboro Drive 58,676 BCE Emergis 1600 International Drive 22,059 Cardinal Financial 8270 Greensboro Drive 41,818 Cassidy & Pinkard 1750 Tysons Boulevard 11,000 Computer & Hi-Tech Management, Inc. Park Place Jones Branch Drive 17,653 Dean & Co. Fairfax Square I 8065 Leesburg Pike 24,000 Enterprise Information Services 1951 Kidwell Drive 21,486 Federal Bureau of Investigation 1577 Spring Hill Road 20,466 GSA North Tower 7799 Leesburg Pike 86,000 IBM 8020 Towers Crescent Drive 68,975 Impact Innovations Group The Concourse East 1593 Spring Hill Road 12,200 LMI Tysons Executive Plaza I 2000 Corporate Ridge 24,203 Pacific Guarantee Mortgage Tysons Business Centre 8230 Boone Boulevard 16,700 Pacific Guarantee Mortgage Tycon Boone Boulevard 16,760 Project Performance Harrison Building 1760 Old Meadow Road 42,000 Reliable Software River Tower 1934 Old Gallows Road 9,000 Sport & Health Corporate Office Courthouse Centre 1953 Gallows Road 10,000 Sunrise Assisted Living Tower Building 7900B Westpark Drive 116,338 Sunrise Assisted Living Terrace Building 7902 Westpark Drive 49,000 Sytex, Inc. River Tower 1934 Old Gallows Road 16,785 Womble Carlyle Sandridge & Rice PLLC Fairfax Square I 8065 Leesburg Pike 22, FCEDA Real Estate Report Midyear 2003

13 OFFICE BUILDING SALES Building Name Address Sale Price Price PSF BAILEYS CROSSROADS Skyline Executive Center 5100 Leesburg Pike $ 3,500,000 17,914 $ CHANTILLY 3900 Skyhawk Drive $ 6,950,000 77,703 $ Chantilly Professional Building A Centreville Road $ 2,687,266 14,174 $ Lafayette One Building A 4090 Lafayette Center Drive $ 6,865,000 50,267 $ Lakeside Newbrook Drive $12,282,015 81,194 $ Lakeside at Westfields Newbrook Drive $13,817,985 91,348 $ DULLES One Dulles Tower Woodland Park Road $80,573, ,000 $ FAIRFAX CENTER Crown Fair Oaks 4035 Ridge Top Road $35,900, ,715 $ HERNDON Herndon Corporate Center Bldg A 1175 Herndon Parkway $ 3,596,085 34,634 $ Herndon Corporate Center Bldg B 1145 Herndon Parkway $ 3,201,305 30,831 $ Herndon Corporate Center Bldg C 1155 Herndon Parkway $ 3,201,305 30,831 $ Herndon Corporate Center Bldg D 1165 Herndon Parkway $ 3,201,305 30,831 $ MCLEAN 6858 Old Dominion Drive $ 9,931,687 41,267 $ Englat Building 6832 Old Dominion Drive $ 5,668,313 23,327 $ MOUNT VERNON IMP Headquarters Building 8850 Richmond Highway $ 5,550,000 64,254 $ RESTON Sunset Corporate Plaza Sunset Hills Road $20,467, ,194 $ Sunset Corporate Plaza Sunset Hills Road $ 8,082,494 39,566 $ Town Center Office Building 1760 Reston Parkway $ 9,625,000 55,183 $ XO Communications Building Sunset Hills Road $31,400, ,469 $ SPRINGFIELD Cherokee Business Center A 5500 Cherokee Avenue $ 7,750,000 58,583 $ TYSONS CORNER 8301 Old Courthouse Road $ 2,764,500 10,310 $ Cedar Hill Gallows Road $12,521,157 55,782 $ Cedar Hill Gallows Road $ 9,844,443 45,877 $ Westwood Westwood Center Drive $21,200, ,205 $ VIEN Plaza Electric Avenue SE $ 5,000,000 50,116 $ FCEDA Real Estate Report Midyear

14 OFFICE BUILDING DELIVERIES Building/Project Name Address Lead Tenant(s) ANNDALE Heritage Center IV 7619 Little River Turnpike 192,396 Speculative CHANTILLY Chantilly Professional Building I 3914A Centreville Road 14,174 Speculative FAIRFAX CENTER Fairfax County Employees Credit Union 4201 Members Way 14,812 Fairfax County Employees Credit Union HERNDON Grant Street Offices 722 Grant Street 11,524 Speculative TYSONS CORNER River Tower 8027 Leesburg Pike 116,750 Speculative OFFICE CONSTRUCTION ACTIVITY Building/Project Name Address Lead Tenant(s) Delivery ANNDALE 7373 McWhorter Place 4,692 Speculative Sept CENTREVILLE Redwood Square Redwood Square 24,000 Speculative Mar CHANTILLY Albemarle Point Albemarle Point Place 31,062 Chantilly Health Club Oct HERNDON GSA Phase 2 Grove Street 235,000 GSA Mar MERRIFIELD Merrifield Medical Building 2826 Old Lee Highway 27,000 Speculative Sept RESTON Sallie Mae Headquarters Bluemont Way 228,634 Sallie Mae Jul TYSONS CORNER Mitre III 7594 Colshire Drive 180,000 Mitre Corp. Sept VIEN Omega Travel World II 3106 Omega Office Park Drive 17,770 Speculative Oct FCEDA Real Estate Report Midyear 2003

15 NOTES FCEDA Real Estate Report Midyear

16 INDUSTRIAL/HYBRID MARKET OVERVIEW INDUSTRIAL/HYBRID SPACE TRENDS: Standing Vacancy Total New Relet Total New Relet Months Year Inventory 1 Rate (%) 2 Leased Leased Leased Available Available Available Supply ,700,000 n/a n/a n/a n/a n/a n/a n/a n/a ,300, ,000,000 n/a n/a 600,000 n/a n/a n/a ,700, , , ,000 1,168, , , ,700, ,016,294 1,292, , , , , ,222, ,965,768 1,579, ,586 1,469,874 1,337, , ,600, ,745,936 2,416, ,242 1,487,269 1,360, , ,400, ,602,344 1,383, ,855 1,588,646 1,011, , ,400, ,733,854 1,374, ,829 1,741,092 1,316, , ,200, ,111,453 1,745, ,416 2,478,591 1,229,409 1,179, ,400, ,641,674 1,674, ,626 2,774,996 1,306,948 1,468, ,600, ,438, , ,267 3,661,729 1,669,505 1,992, ,200, ,311, , ,339 4,648,621 1,914,470 2,734, ,000, ,310, ,837 1,310,223 4,439, ,275 3,537, ,800, ,004, ,541 1,587,719 3,947, ,301 3,367, ,961, ,501, ,630 2,004,773 3,433, ,565 3,147, ,961, ,204, ,790 1,968,406 2,797,486 58,568 2,738, ,336, ,538, ,888 2,017,211 3,073,832 81,494 2,992, ,745, ,972,636 44,942 1,927,694 2,161,158 41,552 2,119, ,299, ,802, ,744 1,279,361 1,956, ,439 1,787, ,444, ,909, ,439 1,702,611 1,132, ,132, ,060, ,057, ,563 1,709,053 1,338, ,984 1,064, ,174, ,197, , ,543 1,652, ,583 1,077, ,478, ,201, , ,892 2,658, ,120 2,111, ,569, ,169, , ,565 2,535, ,938 2,190, Includes inventory outside submarket areas. 2 ln some years, total leasing reflects the preleasing of buildings under construction and about to be constructed, as well as new and relet space. 3 As of June 30, Industrial/hybrid inventory increased from 36.4 million square feet (s.f.) at yearend 2002 to 36.5 million s.f. at midyear Two new buildings totaling 91,363 s.f. delivered during the first half of Construction activity rose slightly during the first six months of Three buildings totaling 153,630 s.f. were under construction as of midyear Two of the projects are in Chantilly, and the third is in Springfield. Two of the three buildings are build-to-suit projects: a 54,076 s.f. building for Federal Express in Chantilly and a 50, 210 s.f. building for Lindsay Cadillac in Springfield. Submarkets with the largest inventory of industrial/ hybrid space are Springfield (9,392,436 s.f.), Newington/Lorton (9,364,957 s.f.), Chantilly (8,384,221 s.f.), Merrifield (2,762,547 s.f.), Dulles (1,581,175 s.f.) and Franconia (1,166,827 s.f.). Leasing activity increased by 70 percent during the first half of 2003 after experiencing a slight downturn during the last half of Industrial/hybrid leasing totaled 1,169,369 s.f. at midyear 2003, up from 684,078 s.f. at yearend The industrial/hybrid leasing market is on pace to double last year s overall leasing activity. INVENTORY/ABSORPTION Square Feet 40 mil 35 mil 30 mil 25 mil 20 mil 15 mil 10 mil 5 mil Industrial/Hybrid Space Trends: Inventory and Vacancy Rates (Jan-June) Leasing activity was concentrated in four submarkets: Chantilly (361,345 s.f.), Newington/Lorton (334,539 s.f.), Dulles (139,934 s.f.) and Springfield (113,480 s.f.). These four markets accounted for 81 percent of the total leasing activity during the first six months of Vacancy Rate (%) FCEDA Real Estate Report Midyear 2003

17 INDUSTRIAL/HYBRID MARKET OVERVIEW Fairfax County Baileys Crossroads Burke Chantilly Dulles Franconia Herndon Merrifield Newington/Lorton Reston Springfield Tysons Corner Vienna VACANCY RATES 6.9% 2.5% 4.7% 7.5% 11.2% 2.9% 2.9% 5.8% 5.7% 9.5% 0.0% 19.7% 28.1% Direct Industrial/Hybrid Vacancy Rates by Submarket The industrial/hybrid direct vacancy rate declined for the first time since yearend The direct vacancy rate at midyear 2003 stood at 6.3 percent, down from a six-year high of 7.3 percent. Sublet vacancy increased by 24 percent during the first half of 2003, yet still plays only a minor role in overall industrial/hybrid vacancy. The addition of sublet space vacancy pushes the industrial/hybrid vacancy rate up to 8.2 percent. Two of the three largest industrial/hybrid submarkets experienced decreases in vacancy rates during the first half of The vacancy rate in Chantilly at midyear was 7.5 percent, down from 7.7 percent at yearend In Newington/Lorton, the vacancy rate dropped to 5.8 percent from 6.7 percent. Springfield s vacancy rate increased from 5.2 percent at yearend 2002 to 5.7 percent at midyear. The industrial/hybrid vacancy rate should remain stable or decline through the end of the year if leasing activity continues at its current pace and new construction remains stagnant. AVAILABILITY Industrial/Hybrid Space Available: New vs. Relet MAJOR TRANSACTIONS: LEASE AND SALES LEASE TRANSACTIONS Four transactions were for more than 50,000 square feet (s.f.): GSA leased 104,014 s.f. in Dulles, while in Chantilly, Carmack Moving and Storage leased 83,476 s.f. and Intersections leased 53,000 s.f. DynCorp renewed for 62,000 s.f. at Renaissance Park in Dulles. Along the I-95 corridor, Cherokee Wholesalers leased 38,160 s.f on Farrington Avenue in Springfield. SALE TRANSACTIONS The number of industrial/hybrid buildings sold increased by one from seven to eight in the first half of The aggregate of these transactions was nearly $44 million. The median sale price was $77 per s.f., up from $64 per s.f. in the last half of The average sale price was $84 per s.f., up from $64 per s.f. during the last six months of Transactions of note included the sale of the former AboveNet data center in Reston, a warehouse in Baileys Crossroads and a three building portfolio at Fullerton Industrial Park in Newington. Sq. Ft. 5 mil 4 mil 3 mil 2 mil 1 mil 0 New Available Relet Available (Jan-June) New and relet space available as of midyear 2003 totaled 2,535,731 square feet (s.f.), a decrease of 4.6 percent from yearend Sublet space increased by 24 percent during the first half of Sublet represents only 18 percent of all available industrial/hybrid space as compared with 40 percent of available office space. The Chantilly submarket alone accounted for 55 percent of all available sublet space. Approximately two-thirds (67 percent) of available space was in the county s three largest industrial/hybrid submarkets: Chantilly (627,741 s.f.) Newington/Lorton (546,287 s.f.) and Springfield (533,886 s.f.). Relet space increased to 2,190,793 s.f. in midyear 2003, while available new space decreased for the second consecutive reporting period to 344,938 s.f. Sublet space increased to 451,279 s.f. over the same period. Notable Industrial/Hybrid Lease Deals: 1st Half 2003 (square feet leased) GSA/Dulles Carmack Moving and Storage/Chantilly DynCorp/Dulles Intersections/Chantilly Cherokee Wholesalers/Springfield 83,476 62,002 53,000 38, ,014 Notable Industrial/Hybrid Building Sales: 1st Half 2003 (price per square foot) Columbia Pike/Baileys Crossroads 1780 Business Center Drive/Reston General Green Way/Springfield 7664 Fullerton Road/Newington 7668 Fullerton Road/Newington $ $ $97.45 $80.50 $74.48 FCEDA Real Estate Report Midyear

18 Baileys Crossroads Industrial/Hybrid Space Burke Industrial/Hybrid Space Inventory: 318, % Vacancy Rate: 2.51% Vacancy Rate w/ 2.51% 0.00% Space Leased: % 0 0 Space Available: 8, % Space Available w/ 8, % 8,000 0 Chantilly $13.00 NNN Industrial/Hybrid Space Inventory: 239, % Vacancy Rate: 4.70% Vacancy Rate w/ 4.70% 0.00% Space Leased: 11, % 11,926 0 Space Available: 11, % Space Available w/ 11, % 11,274 0 $8.50 IG 4 $8.50 NNN 4 Industrial gross rent. See page 29 for explanation. Dulles Industrial/Hybrid Space Inventory: 8,384, % Vacancy Rate: 7.49% Vacancy Rate w/ 10.45% Under Construction: 103, % Delivered: 70, % Space Leased: 361, % 132,800 82,209 82,291 Under Construction: 64,045 Space Available: 627, % Space Available w/ 876, % 446, , ,938 Planned: 1,403,140 $5.75 NNN $18.00 NNN $8.00 NNN $15.00 NNN $6.75 NNN $15.00 NNN Inventory: 1,581, % Vacancy Rate: 11.18% Vacancy Rate w/ 13.71% 0.00% Space Leased: 131, % 27, ,014 Space Available: 176, % Space Available w/ 216, % 176,741 40,082 Under Construction: 39,375 Planned: 59,481 $7.25 NNN $9.50 IG $7.75 IG 18 FCEDA Real Estate Report Midyear 2003

19 Franconia Industrial/Hybrid Space Herndon Industrial/Hybrid Space Inventory: 1,166, % Vacancy Rate: 2.89% Vacancy Rate w/ 2.89% 0.00% Space Leased 24, % 24,292 0 Space Available: 33, % Space Available w/ 33, % 33,690 0 $7.75 NNN $11.00 NNN Merrifield Industrial/Hybrid Space Inventory: 1,150, % Vacancy Rate: 28.07% Vacancy Rate w/ 33.51% 0.00% Space Leased: % 0 0 Space Available: 322, % Space Available w/ 385, % 322,892 62,607 $8.00 NNN $18.00 NNN $6.00 NNN $10.00 NNN Newington/Lorton Industrial/Hybrid Space Inventory: 2,762, % Vacancy Rate: 2.94% Vacancy Rate w/ 3.96% 0.00% Space Leased: 99, % 90,150 8,925 Space Available: 81, % Space Available w/ 109, % 81,225 28,168 $5.00 IG $17.50 NNN $7.00 NNN $11.00 IG Inventory: 9,364, % Vacancy Rate: 5.83% Vacancy Rate w/ 6.59% 0.00% Delivered: 20, % Space Leased: 334, % 273,111 24,661 36,767 Space Available: 546, % Space Available w/ 617, % 482,287 70,859 64,000 Planned: 1,011,249 $5.50 NNN $15.00 NNN $5.50 IG $12.50 IG $9.00 NNN FCEDA Real Estate Report Midyear

20 Reston Industrial/Hybrid Space Springfield Industrial/Hybrid Space Inventory: 465, % Vacancy Rate: 19.68% Vacancy Rate w/ 19.68% 0.00% Space Leased: 40, % 34,541 6,432 Space Available: 91, % Space Available w/ 91, % 91,665 0 $10.00 NNN $15.00 NNN Tysons Corner Industrial/Hybrid Space Inventory: 9,392, % Vacancy Rate: 5.68% Vacancy Rate w/ 5.68% Under Construction: 50, % Space Leased: 113, % 63,270 0 Under Construction: 50,210 Space Available: 533, % Space Available w/ 533, % 433, ,000 Planned: 122,026 $6.75 NNN $15.00 NNN Vienna Industrial/Hybrid Space Inventory: 1,072, % Vacancy Rate: 9.54% Vacancy Rate w/ 9.62% 0.00% Space Leased: 20, % 14,400 6,250 Space Available: 102, % Space Available w/ 103, % 102, Inventory: 452, % Vacancy Rate: 0.00% Vacancy Rate w/ 0.00% 0.00% Space Leased: 31, % 31,155 0 Space Available: % Space Available w/ % 0 0 $10.00 NNN $28.00 NNN $14.50 NNN 20 FCEDA Real Estate Report Midyear 2003

21 INDUSTRIAL/HYBRID LEASING ACTIVITY Tenant Building/Project Name Address CHANTILLY Carmack Moving and Storage Chantilly Distribution Center Stonecroft Boulevard 83,476 Dal-Tile Corp. UPS Dulles Distribution Center II Flint Lee Road 30,100 Intersections Chantilly Parc Phase I Bldg C Bogle Drive 53,000 Termane Systems Parke-Long Center Parke-Long Court 7,270 UCC TotalHome Albemarle Point Albemarle Point Place 9,969 DULLES DynCorp Renaissance Dulles Park Center Road 62,002 GSA Cabot Dulles EDS Drive 104,014 HERNDON National Assoc. of Secondary School Principals Building Victory Drive 8,000 NEWINGTON/LORTON Federal Bureau of Investigation Potomac Industrial Center 9610 Gunston Cove Road 37,398 Reilley Construction Northern Virginia Industrial Park Lockport Place 10,000 Reliable Automatic Sprinkler Co Terminal Road 19,890 SPRINGFIELD Cherokee Wholesalers 6001 Farrington Avenue 38,160 CSI Springbelt Business Center Southern Drive 32,700 INDUSTRIAL/HYBRID BUILDING SALES Building/Project Name Address Sale Price Price PSF BAILEYS CROSSROADS Columbia Pike $ 1,750,000 14,460 $ CHANTILLY Lee Road $ 3,600,000 78,900 $ NEWINGTON/LORTON 7664 Fullerton Road $ 5,435,932 67,526 $ Fullerton Road $ 2,553,458 35,700 $ Fullerton Road $ 2,560,610 34,379 $ RESTON 1780 Business Center Drive $23,000, ,276 $ SPRINGFIELD General Green Way $ 2,600,000 26,679 $ Port Royal Road $ 2,184,000 31,944 $ INDUSTRIAL/HYBRID BUILDING DELIVERIES Building/Project Name Address Lead Tenant(s) CHANTILLY Dominion Electric Supply 4080 Westfax Drive 70,563 Dominion Electric Supply NEWINGTON/LORTON Gunston Commerce Center A Furnace Road 20,800 Speculative FCEDA Real Estate Report Midyear

22 INDUSTRIAL/HYBRID CONSTRUCTION Building/Project Name Address Lead Tenant(s) Delivery CHANTILLY Albemarle Point Albemarle Point Place 49,344 UCC TotalHome Nov FedEx Distribution Facility Stonecroft Center Court 54,076 FedEx Nov SPRINGFIELD Lindsay Cadillac Collision Center 5555 Industrial Drive 50,210 Lindsay Cadillac Dec USING THIS REPORT METHODOLOGY This Real Estate Report summarizes office and industrial/hybrid space available for lease in projects previously leased (relet), recently completed (new), under construction and planned. It also summarizes space leased (absorbed) in both the office and industrial/ hybrid markets. Buildings fully leased, office and industrial condominiums, and for-sale-only and custom-built/owner-occupied buildings are not included in the survey, but are calculated in the total inventory. TERMINOLOGY Buildings Delivered: Under construction buildings for which a certificate of occupancy has been obtained. This figure is the total number of buildings delivered during the previous six months. Contiguous Space: Office or industrial/hybrid space that is adjoining, including multiple floors. Full Service (FS) Rent: A rental rate that includes building operating expenses and real estate taxes. Industrial/Hybrid Space: Space which can be used for any of the following purposes or combinations: warehousing and distribution, production, research and development, or office. The distinguishing characteristics of an industrial/hybrid building are interior clear ceiling heights of 12 to 24 feet and the presence of loading doors or docks. This building is always one-story, and in most cases can accommodate a mezzanine or second level. It is generally leased on a triple net (NNN) or industrial gross (IG) basis. Industrial Gross (IG) Rent: A lease in which the landlord pays the base year tax and insurance bill, while the tenant is responsible for annual increases in tax and insurance rates and the entire common area maintenance (CAM) charge. Lease Rate Range: A range of lease rates typical to the respective market. Rates are quoted in a variety of measures. See net (N), triple net (NNN), full service (FS) and industrial gross (IG). Leasing Activity/Absorption: For the purposes of this analysis, this figure includes the sum of all completed transactions; new leases, relet leases, pre-leases and renewals. This figure is the total of all leasing activity during the previous six months. depending on the degree to which the tenant is responsible for operating costs. Planned: Buildings that have not begun construction. These projects may be waiting for a lead tenant, zoning, financing, approvals or any other event necessary to start construction. Standing Inventory: This term refers to the total amount of existing and delivered rentable square feet in a given category. It refers to all space, minus medical space, regardless of its availability or condition. Triple Net (NNN) Rent: Rent stipulated in a lease in which the tenant agrees to pay a share of the landlord s building operating expenses or real estate taxes proportionate to the amount of space it occupies. Under Construction: Buildings where construction has begun but no certificate of occupancy has been issued. Vacancy Rate: The total amount of space available compared to the total inventory of space. The rates are calculated using space available in both recently completed/previously unleased and relet/ previously occupied buildings. Buildings under construction are not included in this figure. SOURCES This survey is one of a series of business reports published by the Fairfax County Economic Development Authority. The data presented here have been compiled from information provided by commercial real estate owners, developers, brokers, private businesses, and the Fairfax County Department of Management and Budget. Due to the nature of this data, no warranty is made as to its complete accuracy. Lease rates, availability of space, and the progress of buildings or projects under construction or planned are subject to change without notice. This survey is published biannually and is available at no cost. Prior surveys dating from 1980 also are available free of charge. For more information, call Curt Hoffman or Kevin Peterkin at Net (N) Leases: A lease in which the tenant pays, in addition to rent, the following expenses, including but not limited to: property taxes, insurance, repairs, utilities and maintenance. Variations on this type of lease include double net (NN) and triple net (NNN), 22 FCEDA Real Estate Report Midyear 2003

23 NOTES FCEDA Real Estate Report Midyear

24 8300 Boone Boulevard, Suite 450, Vienna, Virginia Voice Fax URL The Fairfax County Economic Development Authority is an independent authority created under state law, operating under the direction of seven Commissioners appointed by the Fairfax County Board of Supervisors. Its activities are funded by Fairfax County. COUNTY BOARD OF SUPERVISORS Katherine K. Hanley, Chairman Gerry W. Hyland, Vice Chairman Sharon Bulova Gerald E. Connolly Michael R. Frey Penelope A. Gross Catherine M. Hudgins Dana Kauffman Elaine McConnell Stuart Mendelsohn ECONOMIC DEVELOPMENT AUTHORITY COMMISSIONERS Harry N. Doyle, Chairman Michael S. Horwatt, Vice Chairman Steven Davis Ron Johnson Ann Rodriguez Sudhakar Shenoy William Soza ECONOMIC DEVELOPMENT AUTHORITY STAFF Gerald L. Gordon, President and Chief Executive Officer Robin Fenner, Vice President, Management Catherine W. Riley, Vice President of Marketing and Director, International Marketing Barbara Cohen, Chief of Operations Alan Fogg, Director, Communications Anita Grazer, Director, National Marketing Ivy G. Richards, Director, Market Research & Real Estate Karen Smaw, Director, Small & Minority Business Development REAL ESTATE REPORT PRODUCTION TEAM Curt Hoffman, Author Kevin Peterkin, Author Vicki Serraino, Graphic Designer The Fairfax County Economic Development Authority (FCEDA) assists businesses interested in locating, relocating, or expanding their commercial office or industrial operations in Fairfax County. FCEDA s services are offered free of charge. Fairfax County Economic Development Authority 8300 Boone Boulevard, Suite 450 Vienna, Virginia Presorted Standard U.S. Postage PAID Permit No Merrifield, VA 22116