Biz Talk

This article was written by Arlington Economic Development.

Two years into a global pandemic, the way people work has been permanently altered and the commercial real estate market is in the preliminary stages of determining how the changes will impact future office building utilization.

As the public health situation continues evolving, companies and commercial real estate brokers are still working through the structure and timing of return-to-work plans, which will ultimately decide the future of the office market. To understand the current dialogue around these decisions, Arlington Economic Development spoke with three local commercial real estate brokers about the key trends they believe will shape the office market in 2022 and beyond.

Health and Wellness 

Health, not surprisingly, is at the top of the list for both potential tenants and property owners. Property owners are, at a minimum, upgrading their buildings to MERV air filters and creating more touchless spaces. Some landlords are even adding air filters to elevators and upgrading their HVAC systems to direct outdoor air systems to circulate more fresh air.

Nick Gregorios, Principal, Avison Young said that his clients are also thinking beyond air filter upgrades to maximizing outdoor spaces. “In the past, a landlord might consider basic furnishings for an outdoor space for their tenants to utilize, but now what we’re starting to see is thoughtful, deliberate design of those areas with architects to make them functional for outdoor meetings and collaboration, essentially an extension of the office,” Gregorios said. “Landlords are also creating more private outdoor areas that are reserved for a particular tenant.”

Personal wellness is also becoming a leading priority for tenants. Peloton bikes are becoming much more common in gyms and property owners are even creating private gym spaces. “An employee could reserve a private room with a Peloton bike from 1 to 2 p.m. and then the janitorial staff comes in to clean it for the next person,” Gregorios said.

Ken Biberaj, Managing Director, Savills North America said personal health also extends to people’s food choices at work. “Sweetgreen delivery outposts are just as popular in buildings as Peloton bikes so employees can order food and it will be right downstairs, just like at home,” he said.

The Office Experience 

Along the same lines as the custom outdoor spaces and personal wellness offerings, the office of the future will also be more experiential now that the office must compete with the home environment.

“If the purpose of the office is going to be more about collaboration and coming together, then inherently it’s going to be a little bit more about hospitality,” said Biberaj. “So as people are thinking about getting back, part of it is creating an ecosystem that warrants people actually getting up and leaving their home.”

Companies may shrink their footprints to create this new experiential space, but they are going to be more willing to upgrade to a higher-quality space in a prime location that provides the amenities that employees want.

“We are seeing an acceleration of “flight to quality” within the office ecosystem, demonstrated by factors such as building access to extensive retail, adjacency to metro and mass transit, high-end building amenities, views and natural light, and building efficiency,” Gregorios said.

David Cornbrooks, Senior Managing Director, Savills North America said that the Ballston Exchange building in Arlington is a great example of a building that companies may upgrade to for quality. It has numerous collaborative spaces, outdoor areas and is right in the heart of Ballston, across the street from the recently transformed Ballston Quarter and its exciting dining and entertainment offerings.

Arlington is ideally positioned for the shift to the experiential office with its 18-hour, mixed-use development, and proximity to transit. Biberaj said that the value proposition for companies looking at Arlington is similar to pre-pandemic, but “it’s amplified. Amenities you may have taken for granted before now, you really value and appreciate.”

(more…)

This article was written by Adam Henry, CEcD, Business Development Manager for Arlington Economic Development.

Venture activity continues to play a critical role to Arlington’s thriving innovation ecosystem, providing capital and strategic investment opportunities for startups and high growth ventures to fuel their expansions.

The 2021 calendar year brought continued uncertainty with the COVID-19 pandemic’s delta and omicron variants, growing inflation, and sustained global supply chain issues that impacted many sectors including hospitality, restaurants and construction. On a positive note, Arlington-based businesses continued to thrive with venture capital raises, mergers and acquisitions, and initial public offerings (IPOs) which equate to more commercial leases and employment for the community.

According to data collected from Pitchbook.com and independent media sources, Arlington-headquartered companies were involved in more than 30 deals totaling more than $2.5 billion from venture capital raises, mergers and acquisitions, strategic corporate investments and other activity.

Specifically, venture capital provides investment for startups and high growth ventures that show long-term growth potential which in turn creates a larger industry cluster and generates more employment opportunities in the growing technology sector in Arlington and throughout the region.

In 2021, Arlington companies were involved in 21 venture capital deals totaling over $367.8 million. The most notable raise of the year was Interos’ July 2021 $100 million Series C raise, enabling the company to join an elite group of only 4% of ‘unicorn’ startups not only nationally valued at more than $1 billion but also led by a female founder-CEO. Some other notable raises among Arlington-based companies last year include:

• SCYTHE, a local cybersecurity startup, raised $10 million in Series A funding led by Gula Tech Ventures and Paladin Capital Group
• Cybersecurity startup Shift5 announced it raised $20 million in Series A funding led by 645 Ventures, with participation from Squadra Ventures, General Advance, and First In
• Local food tech startup Hungry Marketplace announced it raised $21 million in Series C financing from multiple high-profile investors
• Fintech startup Rize announced it raised $11.4 million of Series A venture funding in a round led by Alpha Edison and Morpheus Ventures
• Geospatial data and analytics company Fraym announced $7 million Series B financing to further scale their AI/ML software
• WireWheel, a data privacy technology company, announced $20 million in Series B financing to speed up its go-to-market plans and establish its leadership position in SaaS
• Stacklet announced it raised $18 million in Series A funding for its cloud governance platform

In addition to the dynamic venture capital activity, Arlington companies were also involved in some notable mergers and acquisitions and IPOs.

• Arlington-based Fluence Energy announced pricing of its Initial Public Offering (IPO), which went on to raise close to $1 billion
• Privia Health, a technology-driven, national physician-enablement company based in Arlington, announced an IPO that raised $448.5 million
• Arlington-based Halfaker and Associates was acquired by Science Applications International for $250 million on July 2, 2021
• Arlington-based Gibbs and Cox was acquired by Leidos for $376 million on May 7, 2021

Despite another turbulent year for business, Arlington-based companies continue to shine in venture activity, which contributes towards establishing the community as a major innovation and entrepreneurial hub nationally. As we continue to see more companies launching, AED is very excited about the prospects of 2022 for startups to raise capital, scale and grow into established companies.

This article was written by Arlington Economic Development.

In early December, Arlington Economic Development honored the winners of its fastest growing companies competition — known as the Arlington Fast Four. The winners were formally announced and recognized at a small reception at Ballston Local. County Board Chair Matt de Ferranti presented the award to the four winning companies.

Award nominees were privately held companies that showcased sound revenue growth from 2018-2020. Applicants were required to provide income statements to show proof of growth and revenue. The competition recognized the leading companies within four levels of revenue, spanning from $500,000 to $25 million and above per year.

Congratulations to the 2021 Fast Four winners:

• $500k-$1.5M: Eminent Future (Rosslyn) is a digital product and innovation company that focuses on helping organizations and government agencies revamp business processes and technologies. Eminent Future began operations in Crystal City in 2009 and has since expanded and moved to Rosslyn, with a client roster that includes the Department of Defense, Air Force as well as nonprofits such as Global Village. This is the second Fast Four win for Eminent Future. See what CEO Jose Risi says was key to Eminent Future’s growth.
• $1.5M-$5M: GoTab (Ballston) empowers consumers with contactless technology that puts them in control. GoTab operators run lean, profitable hospitality operations like contactless ordering, contactless payment and a QR-based Point of Sale system. It’s a favorite tool of a number of Arlington restaurants. Find out what CEO Tim McLaughlin says contributed to GoTab’s growth.
• $5M-$25M: Quantitative Scientific Solutions (Ballston) is a scientific and technical consulting and data analytics firm that supports Federal, State, local and commercial clients with science and technology needs. Clients include the Office of Naval Research in Ballston, NASA and the U.S. Army to name a few.  Hear Founding Partner Dr. David Guarrera’s thoughts on business in Arlington.

• $25M and above: Fors Marsh Group (Ballston) combines the power of research and strategy to solve social, commercial, and health-related challenges. In business since 2002, it has applied science and strategy to create positive behavior changes in people and program improvements in government. As a B Corporation, FMG governs from a unique set of values that compound the positive impact achieved for employees, clients and partners. See what CEO Ben Garthwaite says about growing his business.

Arlington is fortunate to have companies like these that drive growth and innovation in our region while solving some of the world’s greatest challenges.

Previous Image 1/3 Next Image

This article was written by Susan Soroko, of Arlington Economic Development.

What better time to shop local? This season’s Arlington holiday pop-up markets will put shoppers in control of supply chain, delivery and all the unique factors needed for gift giving.

Handmade holiday gifts that are Made in Arlington range from boutique soaps and scrubs by All that Yazz that are free of palm oil to unforgettable chocolate and finely crafted furniture. Spread out over several weeks, the variety of makers and artisans will fill practically every gift need thanks to these new market partnerships.

Starting on December 4, the entire loop of The Crossing Clarendon will be a wonderland filled with Made in Arlington vendors alongside artisans from across the area. Kingsbury Chocolates has been a favorite of the Courthouse Plaza Made in Arlington pop-ups and will be there with an array of sweet treats. Ready to splurge on hand crafted furniture? You won’t want to miss custom woodworker Jeff Spugnardi.

November 30 kicked off another chance to get smart about shopping with six evening pop-ups at Arlington’s George Mason University Van Metre Hall. Check out more Arlington makers like Adriana Jaramillo from Trapillo Art. Her beautiful baskets and containers from recycled fabrics are first rate. Cooler weather is the perfect time to be kind to your skin. Who wouldn’t want organic skincare with a French accent from Elodie’s Naturals?

Capping off the season of pop-ups is the National Landing Business Improvement District (BID). Creative makers from all over the area will gather on Friday, December 17, 5-10 p.m. and Saturday, December 18, 12-5 p.m. Sponsored by JBG SMITH and the National Landing BID, this market is a curatorial partnership between DCBB Productions and Bun’d Up.

Vendor registration is now open (until filled).

Sneak peek: get a glimpse of fine craftsmanship from new Arlington maker Voyage Bag Works. Beautiful, ecofriendly, durable and designed for all of life’s journeys.

Feeling floral for the holidays? Let’s not forget custom arrangements from Arlington florists. Too fragile to withstand outdoor markets, but perfect for a scent of spectacular. Among them, Tiny Bloom Shop, HB Fiori, Prive Roses and  Company Flowers to name a few.

This article was written by Arlington Economic Development. In honoring our veterans this week, we would like to share a wonderful program the Commonwealth of Virginia sponsors in support of those leaving the military seeking employment.

Did you know the Commonwealth of Virginia is one of the most veteran-friendly states in the nation?

Virginia is comprised of the most veteran-owned small businesses in the country. Not so surprising considering Virginia is home to the Pentagon in Arlington and the world’s largest naval base in Norfolk. There are hundreds of thousands of active-duty service members serving within the Commonwealth’s borders and many have chosen to call Virginia home upon leaving the military.

With more than 750,000 veterans located in Virginia, the Commonwealth has had the fastest growing veteran labor force over the past 5 years and is projected to continue to have the fastest growing veteran population over the next few years.

With such a highly skilled and adaptable workforce living here, Virginia recognizes the opportunity to promote veteran talent to the civilian workforce and to help businesses become more successful by focusing on hiring the right people for the job.

One such initiative, the Virginia Values Veterans (V3) Program, provides education, training and connectivity resources to assist companies to implement nationally recognized best practices in recruiting, hiring and retaining veterans. Virginia companies who have completed all V3 training requirements and have submitted a veteran hiring plan will be recognized as an official “V3-Certified Company.”

Furthermore, V3 qualified companies with fewer than 300 employees may qualify for up to $10,000 in grants, with $1,000 being awarded per eligible veteran that is hired and retained for at least one year.

There are more than 70 Arlington organizations participating in the V3 Program, from large companies like Nestlé, Boeing and Lockheed Martin to mid- and small-size companies like Ideal Innovations, Millennium Corporation, Lunarline and Cydecor.

We encourage Arlington companies to consider becoming V3 certified to seize the opportunity to find the workforce they need within the veteran community

This article was written by Arlington Economic Development.

Arlington Economic Development is proud to announce its seventh annual Fast Four Awards. The award program honors the fastest growing companies in the Arlington business community and recognizes their success, creativity, and in this year’s edition, resiliency in the face of the global pandemic.

The Fast Four Awards honor Arlington companies that are exhibiting significant revenue growth in the following four annual revenue categories:

• $500,000 to $1.5M
• $1.5M to $5M
• $5M to $25M
• $25M and above

To be eligible, companies must be privately held, non-retail, headquartered in Arlington and show continuous revenue growth between 2018, 2019 and 2020.

Interested companies must submit a simple online application and provide income statements to show proof of growth and revenue. The company with the fastest growth rate in each revenue category will be honored as one of Arlington’s fastest growing businesses. Applications are due by midnight on Friday, November 12, 2021.

The winners from the previous edition of the Fast Four Award winners were:

• Deft Consulting:$500,000 to $1.5M
• Hungry: $1.5M to $5M
• Capitol Bridge: $5M to $25M
• Higher Logic: $25M and above

(Awards were not held in 2020 due to the pandemic)

The 2021 Arlington Fast Four winners will be announced virtually during the week of December 6. Please follow Arlington Economic Development on LinkedIn to see which companies take home the prize.

Arlington companies may apply for the 2021 Fast Four Awards here.

This article was written by Adam Henry, CEcD, Business Development Manager for Arlington Economic Development.

Next month, Arlington Economic Development will participate in the inaugural Accelerate 2022 event as a founding sponsor.

Accelerate 2022 is an investor conference and startup business competition to showcase Arlington and the Northern Virginia region as a national anchor for innovation and business opportunities. The audience for the event includes angel investors and venture capitalists, entrepreneurs and high-growth companies, students and state and local tech ecosystem service providers.

This event will take place at George Mason University’s Arlington Campus and provide a unique opportunity to showcase the community and its innovative companies to investors from all over the country to attract more outside capital to the region.

Arlington’s tech ecosystem is thriving with startups and high-growth companies throughout the community. In August 2021, the annual Inc. 5000 list was released. This list features the nation’s fastest-growing privately-owned companies in the United States, and 30 Arlington-based companies made the list for 2021.

Additionally, Arlington-based companies have had great success in raising venture capital in 2021. So far in 2021, Arlington-based companies have logged 20 angel and venture capital deals totaling more than $252.7 million (Pitchbook, 2021). Some notable activity in Arlington for 2021 included:

• Last week, local food tech startup Hungry Marketplace announced it raised $21 million in Series C financing from multiple high-profile investors
• In July 2021, supply chain risk management software company Interos announced it raised $100 million in Series C financing and joined an elite group of only 4% of the ‘unicorn’ startups nationally valued at more than $1 billion led by a female founder-CEO
• In June 2021, geospatial data and analytics company Fraym announced $7 million Series B financing to further scale their AI/ML software
• In February 2021, WireWheel, a data privacy technology company, announced $20 million in Series B financing to speed up its go-to-market plans and establish its leadership position in SaaS
• In January 2021, Stacklet announced it raised $18 million in Series A funding for its cloud governance platform

Arlington Economic Development is excited about the inaugural event to showcase Arlington and Northern Virginia as a major innovation hub through its world-class business assets, innovative companies, and an unparalleled diverse and talented workforce.

For more information on the event, please visit www.accelerate2022.org. Additionally, you can follow the event on LinkedIn and Twitter.

This article was written by Arlington Economic Development.

Thirty Arlington companies were recently named to the annual Inc. 5000 list. This list features the nation’s fastest-growing privately owned companies, historically identifying today’s most prosperous companies early in their growth trajectories.

As a leading hub for entrepreneurship, Arlington is consistently well represented on the annual list. Some companies, like 540.co and Sehlke Consulting are annual mainstays, exhibiting consistent year-over-year revenue growth. Others, like DonorBureau, HUNGRY and Vemo Education, are among the Arlington-based companies notching their first appearance.

Advertising and marketing firm Olympic Media was the highest-ranked Arlington company on the list, making its debut at No. 13. The firm’s impressive three-year growth rate of 20,330% earned it the distinction of being the top-ranked company from Virginia and the top company nationwide in its category, advertising and marketing.

Arlington and the D.C. metro region’s reputation as a hub of both tech talent and innovation are fundamental to success and offer a strong foundation for the area’s large collection of fast-growing companies. While each company is driven by different goals, principles, and ideals, two constants in their success are quality leadership and strong employee talent.

“Making the Inc. 5000 list as Arlington’s fastest growing IT Management firm gives our great team national recognition and validates the hard work and dedication we put in every day,” stated C3 Integrated Solutions Co-Founder and President, Bill Wootton. “Our core market is the defense community, so being based in the heart of Arlington gives us local access to our target market as well as a great location for us to sell nationally.”

Zach Wahl, CEO of Enterprise Knowledge, said: “Our fourth consecutive year on this list is a great achievement for Enterprise Knowledge, and one that belongs to each member of our growing team. What is important to me is that we’ve successfully sustained our culture and kindness and collaboration as we’ve grown.”

Arlington’s 30 Inc. 5000 companies join an additional 183 companies in Northern Virginia on the list. Despite the inconsistent and turbulent economic conditions over the past 18 months, the representation of companies in the region on the 2021 list is clear evidence of the region’s strong and diversified economy.

About the Inc. 5000 List

To qualify for the Inc. 5000, companies must show the past three calendar years of sales to prove their revenue. Additionally, they must be U.S. based, privately held and independent — not subsidiaries or divisions of other companies. Revenue in the initial year must have been at least $100,000, and revenue in the most recent year must have been at least $2 million to qualify.

Here is the full list of Arlington companies that made the cut, and their respective rankings:

(more…)

This article was written by Adam Henry, CEcD, Business Development Manager for Arlington Economic Development.

Earlier this year, Arlington Economic Development launched its monthly TechConnect Profile series to highlight companies in our technology startup ecosystem.

Arlingtonʼs startup ecosystem has been rapidly expanding over the past five years and is quickly becoming recognized as an established innovation hub in the United States.

Since beginning the profiles, AED has highlighted five Arlington-based companies, all of which have had great recent success in growing their revenues and workforces and raising venture capital for future growth.

Below are some company highlights from the profiles:

• CareerGig: In January 2021, CareerGig announced the acquisition of Charlottesville, Virginia, based Moonlighting, a SaaS platform that empowers individuals to build their freelancer profiles and allows businesses to hire talented professionals quickly and affordably.
• GoTab: In September 2020, GoTab announced that it secured a $6 million investment to enhance its innovative technology and further bridge the gap between contactless dining and full-service hospitality.
• DeepSig: In March 2021, DeepSig announced its 5G Wireless AI Lab opening in Rosslyn, which includes an end-to-end 5G network using state-of-art, commercial grade, multi-vendor products and tools.
• VerticalApps: In 2020, VerticalApps was named one of the “Best Places to Work” by both the Washington Business Journal and Virginia Business and recognized as one of the fastest-growing private companies in the United States with a growth rate of 336% in the annual Inc. 5000 list.
• Lovelytics: In 2021, Lovelytics was named one of the 75 Best Places to Work in Greater Washington in 2021 by Washington Business Journal and selected as the winner of Tableau Software’s 2021 Rising Star Partner of the Year Award.

As technology startups continue to be a driving force in our local economy, Arlington Economic Development and its economic development partners seek to help companies launch and grow through several business resources to ensure the industry’s success.

To see the August TechConnect Profile and future profiles, subscribe to AED’s Economic Update Newsletter, and follow us on LinkedIn, Twitter and Facebook.

If you are an Arlington-based technology startup interested in being profiled, please get in touch with me to discuss how to be featured.

This article was written by Marian Marquez, Director of Business Investment for Arlington Economic Development.

It’s the end of Arlington County’s fiscal year, a time when we look back over the past twelve months to reflect on our successes, challenges and opportunities.

Clearly, the “normal” work of our Business Investment Group here at AED, which includes working with companies who are interested in locating or growing in Arlington, was anything but normal as the global health pandemic prevented companies from returning to the office. Nevertheless, we marked some exciting milestones during this past year spent mostly on lockdown and are excited to be moving forward from challenge to opportunity.

Our business investment team continued efforts to build the pipeline and get in front of high-growth prospects through digital touch points. Through 500+ virtual engagements over the past year, our team doubled down on retention efforts with the amazing companies that call Arlington home and had some exciting developments with several companies announcing expansions, even during a pandemic.

These include Two Six Labs, Vertical Apps, Orbital Effects, Fresh Impact Farms and Interos, which just announced Series C financing and is now Arlington’s first unicorn (female-led at that!). Other exciting news included the announcement of Microsoft’s regional Global Sales and Marketing hub at Commonwealth Towers in Rosslyn and, down the road in National Landing, the arrival of ZEBOX, a French incubator that will open its first U.S. location early next year. We anticipate increased interest from high-tech companies given recent investments on the part of JBG Smith in the digital infrastructure surrounding National Landing, which accelerates the innovation ecosystem we are fostering in Arlington.

In other positive news, Amazon’s HQ2 ramp up has progressed according to plan in terms of both hiring and construction, including the unveiling of its landmark structure, the Helix. As vaccination rates have picked up in recent months, we’ve seen increased activity in the market and our team has been busy responding to requests for information and conducting site tours for companies that are ready to make good on their expansion plans.

Through close dialogue over the past year with our businesses and real estate partners, we know that what companies are looking for in an office location has changed and will continue to evolve as employees return to the workplace. As trends in remote work and changing employee preferences challenge the demand for traditional office space, localities are entering a more competitive environment than ever.

To maintain attractiveness as a business location, communities must remain nimble and ensure that their offerings are in line with industry demand from a policy and real estate standpoint. During this pause in “business as usual” over the past year, AED has taken the opportunity to revisit its offerings and win themes; we are in the process of reworking elements of our value proposition as a business destination along with our marketing collateral (stay tuned this fall for AED’s new look!).

Looking ahead, we are excited about the future and confident that Arlington’s most compelling assets — its talent, connectivity and culture of innovation — are more relevant than ever in the post-pandemic world. In fact, these assets have only grown stronger with continued investments on the part of our businesses, real estate community, the County and its partners at the State level. Knowing that the “normal” we come back to won’t resemble that of the past, we are certain that Arlington is still an incredible place to live, work and play.

This article was written by Arlington Economic Development.

Arlington’s robust federal government ecosystem and prime location directly across the Potomac from Washington, D.C. make it an attractive place for government contractors to grow and thrive.

In FY20, Northern Virginia companies were awarded nearly $90 billion in federal procurement awards, exceeding the total of any single state, including Texas and California (usaspending.gov). We all know Arlington is home to the Department of Defense at the Pentagon, which alone awards nearly two-thirds of federal contracts by value. Additionally, the Air Force Office of Scientific Research (AFOSR), Defense Advanced Research Projects Agency (DARPA) and Office of Naval Research (ONR) call Arlington home.

However, many may not know about the critical pieces of the government contracting ecosystem that help businesses grow and thrive here.

1. Mentoring and business development: Looking for personal help and guidance for your federal contracting business? Arlington Economic Development’s (AED) mission is to help Arlington businesses grow and thrive. AED can help you find the right resources for your business. We provide small business counseling, timely workshops and webinars, and even incentives if your business is growing quickly and taking new office space. If you’re interested in ongoing mentoring, SCORE assists Arlington businesses and AED clients. Some SCORE mentors have owned their own federal contracting business and have the experience to help you grow yours. Reach out to AED’s senior business ambassador, Sindy Yeh, if you have questions about growing your federal contracting business in Arlington or want to be connected to additional resources.
2. Accelerators: If your government startup is looking for guidance and to scale quickly, an accelerator program could be an excellent fit for you. Accelerators are a cohort-based program in which startups are given resources and education to expedite their growth in a specific market, typically ending with a pitch day or competition. Mach37 accelerator is a great choice for cybersecurity startups. Defense startups can apply to the National Security Innovation Network Accelerator program (NSIN), and FedTech has a few accelerator options for government technology contractors. NSIN and Fedtech, both in Arlington, provide a platform for innovators from the defense, academic and venture communities to change the way national security innovation works.
3. Funding/capital investment: Is your business growing quickly and looking for outside capital? In-Q-tel invests in national security tech startups and brings a unique blend of funding and deep knowledge of the national security market. The Center for Innovative Technology aims to fill gaps in the earliest stages of innovation and commercialization. They have multiple funds, including their GAP fund and Virginia Founders Fund, to help Virginia startups.
4. Networking: There is no shortage of networking, advocacy and education groups specifically dedicated to government contracting. The Small and Emerging Contractors Advisory Forum provides education and networking for new government contractors. In the defense industry? Check out the National Defense Industrial Association, which helps foster discussion on national security. The Professional Services Council advocates for government technology and professional services companies and professionals. The Northern Virginia Chamber has a very active Gov Con committee holding networking meetings and educational programming.