A curated source of significant news in Arlington County that affects the retail industry including development project updates, infrastructure plans, major office tenant announcements, and more.
Rosslyn Metro Center is set for a long-awaited overhaul, as owner American Real Estate Partners announced a $35 million investment. The renovations will include a 20,000 SF food hall, a 30,000 SF fitness tenant, and improvements to the office common areas. The food hall will join similar concepts planned in Rosslyn (Common Grounds; Happy Endings) and the recently opened Quarter Market in Ballston.
After signing a deal in Ballston in 2018, Industrious is adding another Arlington location at the recently constructed 2311 Wilson Boulevard in Courthouse. The 25,000 square foot space is scheduled to open in early 2020 with several lease options for tenants from month-to-month to 12-months. The 179,205-square-foot building also recently announced ground floor deals with For Five Coffee Roasters, Solidcore, and Wells Fargo.
As the Transportation Security Administration prepares to move their headquarters to Springfield, Brookfield Properties is quickly proceeding with plans for the site's future. The developer recently submitted plans for a complex of four new towers, totaling about 1.5 million square feet, that could potentially house a mix of hotel, office, residential, and retail uses.
Incentive Technology Group announced plans to lease 50,000 square feet at 2511 Jefferson Davis Highway for their headquarters, which will eventually house over 1,000 employees. The company selected Arlington over Georgia for their new headquarters, partly in response to the expected influx of tech talent once Amazon begins ramping up.
In the wake of the National Science Foundation's 700,000-square-foot departure, the redevelopment of its former home and several new developments are bringing renewed focus to the neighborhood. The mix of office, residential, and retail projects are introducing a wave of new retailers including Cava, Philz Cafe, Salt Line, Quarter Market food hall, and Target.
Yext Inc., a tech company that provides cloud-based brand management services signed a deal for 43,000 square feet at 1101 Wilson Boulevard and expects to hire 500 employees in the coming years. The announcement continues Rosslyn's momentum from 2018, when office deals included Accenture, Cerner, Convene, Gerber, Higher Logic and WeWork.
The world's oldest Marriott was acquired in 2018 by Woodridge Capital Partners, who are preparing plans for a significant renovation that will add residential and retail to the 5.5-acre site on the Potomac. Additionally, they plan to add meeting and event space, while improving connections from the site to the rest of Rosslyn.
Plans Submitted for Two Residential Towers in Crystal City (February)
Less than a block from where Amazon will open its Arlington headquarters, developer JBG Smith filed preliminary plans for 26- and 27-story towers at 1900 Crystal Drive. Combined, the towers propose 789 units along with 35,000 square feet of retail at their base.
In an effort to transform an obsolete office building that sits opposite a Whole Foods Market, Regency will add an additional floor while upgrading the ground level with high quality retail and dining options. In total, the project is 140,000 square feet with a breakdown of 86,000 square feet of office, 31,000 square feet for an unidentified high-end fitness user, and another 23,000 square feet of retail. The building is slated to deliver in the second quarter of 2020.
PBS to Relocate Within Crystal City (January)
Public Broadcasting Service, a nonprofit television network, plans to relocate from its current home in Crystal City at 2100 Crystal Drive to 1225 S. Clark Street, about a half-mile away, in mid-2020. PBS signed a 15-year lease to occupy 120,328 square feet in the building, which is also home to a 45,000-square-foot Earth Treks climbing gym.
Located blocks from the planned Amazon headquarters in Pentagon City, the developers behind the Crystal Houses apartment complex have more than tripled their proposed addition on the site in the wake of the tech giant's November announcement. The developer originally received county approval to build a 5-story, 252-unit building, while the new plan calls for four buildings comprising a total of 798 units.
In the wake of its partnership in the Amazon announcement, GMU is growing its Arlington campus in the near future. Most notably, the university will tear down an aging structure at 3401 Fairfax Drive to make way for a 400,000-square-foot replacement to house the Institute for Digital Innovation. The new building will include classrooms and computer labs, retail, and short-term housing for visiting guests.
AIR, one of the world's pre-eminent research, evaluation, and technical assistance organizations, opened a new 90,000-square-foot office at 1400 Crystal Drive. The expansion from AIR's headquarters in DC caps off a massive year for the Crystal City/Pentagon City area with earlier announcements from Amazon, Interstate Hotels & Resorts and March of Dimes.
Developed by Penzance, the 884-unit project sits atop the hill in Rosslyn at 1555 Wilson Boulevard. The residential units will be divided into three towers with a mix of 780 apartments and 104 condos. Additionally, the building includes 40,000 square feet of retail, which will be anchored by a 27,000-square-foot location of Vida Fitness. CVS has also signed onto the project and will lease 4,300 square feet.
The Arlington County Board approved plans at 1550 and 1750 Crystal Drive for 90,000 square feet of retail, which is part of JBG Smith's planned overhaul of the area. The project is expected to be anchored by Alamo Drafthouse Cinema and a to-be-named grocery store.
Healthcare IT Company Opening Rosslyn Office (September)
Cerner, a Missouri-based healthcare technology company, is leasing 38,075 square feet at 1812 N. Moore Street, where they will join Nestle's corporate headquarters and its subsidiary, Gerber. The Rosslyn location will house staffers working on the company's contracts with the Department of Veteran Affairs and the Department of Defense.
WeWork Opening Coworking Space in Rosslyn (September)
Adding to the list of tenants at CEB Tower (1201 Wilson Boulevard), the coworking space provider is leasing 65,000 square feet on the 25th through 27th floors. Rosslyn is already home to a growing number of flexible space providers including Convene, Eastern Foundry, Regus, and Spaces.
DEA Renews 500,000 SF Lease in Pentagon City (September)
The General Services Administration renewed the DEA's 511,487 SF lease at 600-700 Army Navy Drive for 15 years. The renewal comes after the GSA launched a competitive process in 2016 to seek a new home for the agency. The Pentagon City headquarters houses 2,500 employees, plus a visitors center and museum.
With a 4.5% increase over the 2016 benchmark, tourism revenue for Arlington reached a new record. Coinciding with the increase, Arlington was recognized in 2017 by Expedia as a "Super Cool U.S. City" and by ConventionSouth as a top location for meetings and conventions.
While Arlington may be a small county geographically, it's punching above its weight in terms of churning out exciting companies. On this year's Inc. 5000 List, a prestigious grouping of America's fastest-growing companies, Arlington is represented by thirty-three businesses.
FP1 Strategies is making the move from Dupont Circle to 3001 Washington Boulevard with a 30,000 SF deal, which places the building at over 90% leased. Combined with its fully-leased neighbor, 3003 Washington Boulevard, the properties account for over 281,000 SF of office space and 23,000 SF of retail.
With their initial Arlington location set to open in late 2019 on Wilson Boulevard in Ballston, the high-end gym has selected an undisclosed space in western Rosslyn for its next venture. The space is likely to be in the 30,000-square-foot range and is expected to open in late 2020.
Brooklyn-based Industrious will open its third regional location at the Ballston Exchange (4201 Wilson Blvd), which has undergone significant renovations in the wake of the National Science Foundation's departure last fall. The coworking space signed a 10-year lease for 24,795 SF and will join recently-announced retail tenants Cava Grill, Philz Coffee, Shake Shack, and We the Pizza.
The computer software company signed a 10-year lease for 31,000 SF at 1919 N. Lynn Street. The move marks a continued expansion in the County, as the company plans to reach 200+ employees in the coming years.
The global consulting firm will occupy 28,000 square feet in CEB Tower at Central Place. The location is Accenture's fourth Cyber Fusion Center with the others in the Czech Republic, India, and Israel. The positions created in Rosslyn will be "highly skilled technology jobs" at all salary ranges, from entry level to experience veterans.
New York-based Convene plans to open its second area location this fall in the CEB Tower at Central Place. The company signed a 35,000 SF sublease to occupy the top two floors beneath the building's observation deck. The sublease is from Gartner, the building's anchor tenant that possesses a 350,000 SF lease in the recently-delivered tower
The nonprofit organization leased 28,000 square feet at 1550 Crystal Drive with plans to occupy the space in January 2019. The building's owner, JBG Smith, is moving forward with plans to install a specialty grocer on the ground floor of the 13-story office building. The move follows plans by Interstate Hotels & Resorts to shift its headquarters to 35,000 square feet at nearby 2011 Crystal Drive.
Approved in late 2015, The Shooshan Company is seeking approval to change the construction phasing of the 584-unit multifamily project that includes a limited amount of retail, 1,295 square feet. The projects includes several properties on Clarendon's west end including Red Top Cab's headquarters that sits behind the Wilson Boulevard retail including Don Tito, Liberty Tavern, and Spider Kelly's.
Rosslyn Observation Deck Nears Opening (May 2018)
Projected to attract 600,000 visitors with its 360-degree views, the Observation Deck at Central Place is expected to open to the public in July. The 32nd-floor setting provides a clear shot of the nation' capital, including the Washington Monument and U.S. Capitol building. The Observation Deck is the crown jewel in the Central Place redevelopment, which includes 377 apartments, 500,000 square feet of office, and 45,000 square of retail. Tenants include Cava Mezze, Common Ground Food Hall, Compass Coffee, Open Road Grill, Nando's PERi-PERi, Sweetgreen, The Little Beet, and more.