Posted on 04/10/14 by Troy Palma
This morning, more than 200 registered business leaders from Arlington and the surrounding areas converged at George Mason University’s Arlington campus to learn the very latest on the county's real estate market and what the future of that market has in store. Presentations were given by Board Chair Jay Fisette, Economic Development Commission Chair, Sally Duran, and Arlington Economic Development Acting Deputy Director Alex Iams. It was a great opportunity to network with terrific thought leaders and obtain a wealth of information and insight. But let me summarize the key points:
First, the regional economy has improved, but it’s still not ideal. There is stability and certain level of expectation from the business community and the federal government and budget. However, the federal government continues to contract as it repositions its real estate, and certain job sectors like professional/business services are underperforming.
Additionally, the office market is changing, so adaptation is key. Due to lower overall demand, more competition, BRAC effects, GSA restructuring and the way the millennials do business, the need for large real estate spaces has diminished. Many developers and real estate owners are repositioning and redeveloping their office properties to meet these changing demands. Coworking spaces like UberOffices and the Crystal Tech Fund, as well as partnerships like TandemNSI, Fosterly and CoFoundersLab are focused on connecting people with resources and creating environments that make collaboration natural and inviting.
Another bright side is that new development is still occurring. There is almost 10m square feet of planned office space that ranges from under construction to in zoning review. The majority of new development is occurring in residential development; more than 10,000 units are in various stages of development and a third is currently under construction.
And lastly, but most importantly, is that Arlington continues to be resilient and resolute. The county has engaged in the necessary long-term planning, invested in transportation and technology infrastructure, and launched new initiatives to maintain our enviable commercial tax base and further grow and diversify our economy. We at Arlington Economic Development continue to look at policies and programs to adapt to the changing business market and be a partner with the business community.
If you would like to get more information, the presentations from the Arlington Real Estate Market Review and Forecast are now online.Topic: BIG Update