commercial real estate

Did You Know: Amazon Already Has an Arlington Office

By Bridget Reed Morawski

Hype has been building over Amazon eying Arlington as a potential destination for its second headquarters, but many may be unaware that the online giant already has offices in the county.

The D.C. region already has a number of Amazon offices and facilities, including a 50,000 square foot office at 4250 N. Fairfax Drive in Ballston.

Amazon did not respond to requests for more information about the office, but job listings for the Ballston office include titles like “Event Marketing Manager,” “Partner Development Representative” and “Business Development, DoD.”

Other property leased or owned by Amazon in the region includes a small D.C. headquarters a block away from Union Station and a planned two million square foot data center, reportedly either in Virginia’s Loudon or Prince William counties.

Northern Virginia is a significant data center hub for Amazon Web Services, the company’s cloud computing arm. Data Center Frontier reported the following in November 2017:

Amazon Web Services is believed to operate at least nine data centers in Sterling and nine in Ashburn (with two more under construction) as well seven in Manassas. The company also has two data facilities in Chantilly, and one in Haymarket in Prince William County.

Reston Now, ARLnow’s sister news site, reported last June that Amazon was creating 1,500 jobs in Herndon, Va. at a new “East Coast corporate campus.” Amazon fulfillment centers, meanwhile, employ thousands across the region, including warehouses in Springfield, Va., Rockville, Md., and Baltimore.

The Washington metro region as a whole is gunning for the $685 billion dollar company, but few details have emerged regarding the incentive packages that local governments have crafted to lure Amazon to their jurisdictions.

Arlington County Board Chairman Katie Cristol promised eventual transparency on Arlington’s incentive package in January at a “Meet the Chair” event, according to the Sun Gazette.

Crystal City (in combination with Potomac Yard) is considered strong contender for the Amazon’s new second headquarters, primarily due to the large expanse of undeveloped land, contiguous office space and proximity to Reagan National Airport, D.C. and the Blue and Yellow Metro lines. Rosslyn is also in contention for “HQ2,” as are sites in Alexandria, Fairfax and Loudoun counties, Montgomery County, Md. and the District.

Morning Notes

By ARLnow.com

Crystal City Could Be Big Budget Winner — Commercial real estate analysts expect Crystal City and the Dulles Toll Road corridor to be the big winners from the new spending bill that was signed into law last week, boosting domestic and military budgets. Crystal City is also among the Northern Virginia locales under consideration for Amazon’s HQ2. [Bisnow]

Park Police Chief Cancels Meeting with Beyer — Updated at 12:30 p.m. — The chief of the U.S. Park Police cancelled a scheduled meeting yesterday with Rep. Don Beyer (D-Va.) and D.C. Congresswoman Eleanor Holmes Norton. Beyer and Norton are seeking answers in the fatal Park Police shooting of Bijan Ghaisar, who fled from a reported crash and then from officers before being shot in Fairfax County. USPP later released a statement explaining the chief’s decision. [WUSA 9, PDF]

Ballston to Hold Puppy Party Tomorrow — “Didn’t feel the love on Valentines Day? Join the Ballston BID for a puppy pick-me-up. All dogs present available for adoption through our partner, Homeward Trails. They bring the furry friends. Earl’s will bring the food.” [Ballston BID]

Charlie Clark on Arlington and Its History — “Clark compared the local population to the cast of the NBC show ‘Parks and Recreation,’ a group of honest, do-gooders who try their best but things still go awry. They’re a body of citizens that aren’t afraid to challenge their local governance on issues, pointing in particular to the struggle put up by local citizens last year when Arlington worked to relocate Fire Station 8.” [Arlington Connection]

Last-Minute Valentine’s Day Reservations — Procrastinators rejoice, a number of Arlington restaurants were, at last check, still taking reservations for Valentine’s Day dinner tonight. [Patch]

Flickr pool photo by Tim Brown

Morning Notes

By ARLnow.com

Former Clarendon Walgreens Building Purchased — JPMorgan Chase has bought the building that housed the former Walgreens in Clarendon for $25 million, perhaps for a new bank branch. [Washington Business Journal]

Local Man Shot and Killed in Philly — An Arlington man who “appeared to be intentionally trying to run down people” with his car was shot and killed by an off-duty police officer in South Philadelphia. The shooting is under investigation. [WPVI]

More Details on Arlington Vehicle Decals — “The 2017-18 Arlington car-tax decal may come with a new feature: personalization. The county treasurer’s office is working on a plan that would add each vehicle’s year, make and model onto the new decals, which will start being distributed over the summer.” [InsideNova]

ACPD Launches Super Bowl Sobriety Campaign — “The Arlington County Police Department and law enforcement agencies across the country are huddling up with the National Highway Traffic Safety Administration (NHTSA) for a special Fans Don’t Let Fans Drive Drunk reminder to urge football fans across the nation not to drop the ball on this issue.” [Arlington County]

VHC Named Top Hospital for Nurses — Virginia Hospital Center is the top hospital for nurses in Virginia, according to new rankings from a nursing website. [Nurse.org]

Signs Up for Nestle in Rosslyn — A Nestle sign is now up on the company’s new headquarters at 1812 N. Moore Street in Rosslyn. [Twitter]

State Senate OKs Arlington Hotel Tax Bill — The Virginia state Senate has passed a bill to authorize Arlington to impose a 0.25 percent hotel tax surcharge, to fund tourism promotion. The county’s current authority to collect the surcharge expires July 1. [InsideNova]

Robert Parry Obituary — “Robert Parry, an investigative journalist who was a Pulitzer Prize finalist in 1985 for his Associated Press exclusives about the CIA’s production of an assassination manual for Nicaraguan rebels, died Jan. 27 in Arlington, Va. He was 68.” [Washington Post, Consortiumnews]

Report: Office Rent on Wilson Blvd in Rosslyn Highest in Northern Virginia

By Chris Teale

Northern Virginia office space is most expensive to rent on Wilson Blvd in Rosslyn, according to a study.

Commercial real estate firm JLL found that rents on the street in Rosslyn average between $56 and $65 per square foot, and that those rents are increasing.

The study found that average rent increase is due to new high-end “trophy class” offices coming online, as well as the unobstructed views of Washington, D.C. and the Potomac River. Those “trophy” offices include top amenities, good views of their surroundings and are connected to transit options like Metro and bus routes.

“The new trophy buildings not only deliver high-end modern office space, but will help transform Rosslyn from a sleepy 9-5 business district into a vibrant live-work-play neighborhood,” Michael Hartnett, senior research manager in JLL’s Northern Virginia office, said in a statement.

Across the region, average rents on office space remain high even as jurisdictions battle with a high vacancy rate. Arlington County’s office vacancy rate is just over 17 percent, even with the likes of Nestle moving to Rosslyn.

“Despite the U.S. office market posting 81 million square feet of net absorption the past 24 months and posting rent growth of 8.2 percent, the Metro D.C. market has posted nearly 700,000 square feet of occupancy losses and a rent decline of 6.9 percent,” John Sikaitis, managing director of research at JLL, said in a statement. “In this challenging market, there are an equal mix of winners and losers and on the demand side, these nuanced high-priced corridors at the intersection of Main and Main have attracted the most demand and been some of the more resilient segments of the market.”

Photo via Monday Properties

Fast-Growing Media Startup Axios Signs 10 Year Lease in Clarendon

By ARLnow.com

Sponsored by Monday Properties and written by ARLnow.com, Startup Monday is a weekly feature that profiles Arlington-based startups and their founders, plus other local technology happenings. The Ground Floor, Monday’s office space for young companies in Rosslyn, is now open. The Metro-accessible space features a 5,000-square-foot common area that includes a kitchen, lounge area, collaborative meeting spaces, and a stage for formal presentations.

(Updated at 12:20 p.m.) It’s less than a year old, but media startup Axios is growing fast and ready to put down roots in Clarendon.

The company, which launched in January and has since commandeered its own wing of the MakeOffices Clarendon coworking space, has signed a 10 year lease for a floor in the same building, we’re told.

Axios will soon start the build-out process for its new space on the 13th floor of the office building at 3100 Clarendon Blvd. It expects to move out of MakeOffices and into the new space by mid-2018.

Roy Schwartz, who co-founded Axios with fellow Politico veterans Jim VandeHei and Mike Allen, says the new space will provide room for Axios’ growing team while also offering “monumental views” of D.C. and Northern Virginia.

The new office is expected to have all of the accoutrement of a startup company that bridges the media and technology worlds: bigger versions of its employee lounge, dubbed “Relaxios,” and its free snack bar, “Snaxios,” in addition to features like a video studio and a “live shot” camera for television interviews of its journalists.

Schwartz says Axios currently has 90 employees but will likely have 120 by the time of the move and 150 by the end of 2018. Last month the company announced that it had raised another $20 million from venture capital firms, NBC Universal, Laurene Powell Jobs and others.

Axios received an economic development grant from Arlington County to incentivize it to stay here, Schwartz told ARLnow.com. The amount of that grant was not immediately available.

There were other factors that led the company to launch and now stay in Arlington, according to Schwartz. For one, he and Allen live in the neighborhoods around Clarendon, while VandeHei lives in Alexandria, making for an easy commute. Beyond that, however, Schwartz praised Arlington and Clarendon for its proximity to bars and restaurants, ease of access to D.C., and comparatively lower rent and lower taxes than the District.

“We’re very excited to be in Arlington,” he said. The company also has satellite offices in New York City and San Francisco.

Axios covers a number of news verticals, including politics and policy, business, technology, media, healthcare, science, energy and the “future of work.” While plenty of other national news outlets cover the same topics, Schwartz said the secret to Axios’ success is its focus on “smart brevity.”

In a world where there is “too much noise” in people’s lives, Schwartz said, Axios stands out by publishing radically concise articles that include only the most important facts and no filler.

“We’re going to cut straight to the chase,” he said. “Here is the information and, even more importantly, here is why it matters.”

Smart brevity extends to the business side of Axios. The company eschews programmatic banner ads, which Schwartz says are ineffective, and instead publishes very brief pieces of sponsored content on its site and in its popular email newsletters. Some recent clients include Morgan Stanley, Koch Industries, Fusion Media Group and Boeing.

Axios also holds sponsored events, which take advantage of smart brevity by featuring brief one-on-one interviews with newsmakers and subject matter experts, as opposed to long panel discussions.

Schwartz says its advertising has been working, producing audience engagement that is “off the charts.” Readers, he said, appreciate that in its coverage and its advertising, Axios is respectful of their time.

While BuzzFeed, Mashable and other venture capital-funded, online-only media companies have stumbled this year in their quest for growth, Axios is exceeding growth expectations. Schwartz credits smart brevity for that, in part, but also attributes Axios’ success to having the three pillars of its operation — the editorial, business and technology sides — working in concert.

Despite the challenges faced by others in the digital media industry, Schwartz he is “very confident” that Axios’ model is scalable and that its growth will continue.

Morning Notes

By ARLnow.com

County HQ to Be Named After Bozman — “The Arlington County Board today voted unanimously to name the County Office Building at 2100 Clarendon Boulevard for Ellen M. Bozman, the six-time Board Chair who served on the Board through some of Arlington’s most transformative years, and who died in 2009.” [Arlington County]

Blue, Yellow Line Service Disruption — Metrorail service on the Blue and Yellow lines was suspended earlier this morning due to “fire department activity” at the Pentagon station. Arlington County Fire Department units investigated the incident and turned the scene back over to Metro around 6 a.m. Service has since been restored. [Twitter, Twitter, Fox 5]

County Board Sets Stage for Va. Square Redevelopment — The Arlington County Board on Saturday took a first step towards the redevelopment of several properties at the corner of Washington Blvd and N. Kirkwood Road. New apartments and upgrades to the YMCA have been proposed for the site. The Board approved a General Land Use Plan Study and Concept Plan that will “serve as a long-range planning guide for potential redevelopment.” [Arlington County]

Arlingtonian Among Rhodes Scholars — Arlington native Matthew Chun, a senior at the Massachusetts Institute of Technology, has been named one of 32 Rhodes scholars in the U.S. Chun, who is also captain of the school’s wrestling team, is one of two Virginians among the latest group of Rhodes scholars. [Associated Press, MIT News]

Juvenile Hospitalized After Nauck Hit and Run — An individual under the age of 18 was reportedly struck by a car on the 2400 block of Shirlington Road, in the Nauck area, over the weekend. The car’s driver drove off after hitting the juvenile, who suffered non-life threatening injuries. [WJLA]

Nestle Lease Lauded in Commercial RE Awards — The lease of 1812 N. Moore Street in Rosslyn to serve as Nestle’s new U.S. headquarters was given the “Award of Excellence” in the Real Estate Transaction category at the 2017 NAIOP Northern Virginia commercial real estate awards. It was among six Arlington-related winners at the awards ceremony, including the new Marymount University Ballston Center development. [NAIOP]

Flickr pool photo by Chris Guyton

Morning Notes

By ARLnow.com

Beyer Blasts GOP Tax Bill — Says Rep. Don Beyer (D-Va.) regarding the tax bill that passed the House yesterday: “I am adamantly opposed to the House Republican tax bill, H.R.1. The bill will raise taxes on millions of middle class Americans in order to fund tax cuts for the wealthy, and yet still manages to explode the deficit.” [Rep. Don Beyer]

Crystal City Scores 320 Jobs — A Georgetown-based nonprofit is moving much of its staff to a new office in Crystal City, leasing 90,000 square feet and adding 320 jobs in Arlington County. The move was announced by Virginia Gov. Terry McAuliffe, who approved a $500,000 state grant to assist Arlington with the project. [Virginia Business, Bisnow]

Dems Seek Ways to Defeat Vihstadt — “John Vihstadt, who in 2014 broke the Democratic stranglehold on the Arlington County Board, is ready to go back to the voters in 2018. And Arlington Democrats already are strategizing on how to oust him from office.” [InsideNova]

Charges Dropped Against ‘Laughing Librarian’ — Arlington librarian and Code Pink activist Desirée Fairooz, who was arrested after laughing during the confirmation hearing of Attorney General Jeff Sessions, has had the case against her dropped by the Justice Department. [American Libraries, NPR]

Incident at Kenmore Middle School — A tipster tells ARLnow.com that a Kenmore Middle School student was arrested yesterday afternoon for assaulting a PE teacher. An Arlington Public Schools spokesman, however, did not confirm that an arrest was made, saying: “There was an incident earlier today between a student and a teacher. Staff is following normal disciplinary procedures. But beyond that, we can’t disclose anymore because it is a student matter.”

Flickr pool photo by Michael Coffman

Sources: Crystal City a Likely Finalist for Amazon’s HQ2

By ARLnow.com

Arlington County and seemingly every other place in North America is competing to host Amazon’s second corporate headquarters. But while the odds seem long, Crystal City actually has a good shot at being one of the finalists in Amazon’s search.

The D.C. area is widely regarded as a likely contender for “HQ2,” but sources tell ARLnow.com that the District itself is unlikely to get the headquarters, in part due to high taxes, high real estate costs, a lack of available contiguous space that meets Amazon’s expectations and a lack of congressional representation.

That would leave the areas surrounding D.C. as contenders, and none has the available space and is more accessible to downtown, transit and an airport than Crystal City.

Specifically, commercial real estate sources tell us, Crystal City and Potomac Yard are, in combination, regarded by many as the region’s best chance at landing HQ2. Among the advantages:

  • Available contiguous office space and developable land, thanks to BRAC and the development of Potomac Yard.
  • Only having to deal with one primary property owner, JBG Smith, which owns much of Crystal City and Potomac Yard. (The company did submit a bid, the Washington Business Journal confirmed this week.)
  • Proximity to Metro’s Yellow and Blue lines.
  • Close proximity to a major airport, Reagan National.
  • An urban “downtown”-like setting with restaurants, hotels, shopping and other amenities within walking distance.
  • Congressional representation.
  • Low state taxes.

As outlined by Washingtonian, Crystal City also comes with all of the benefits of the D.C. region: ample tech talent and universities nearby, proximity to the federal government, and an easy drive for Amazon CEO Jeff Bezos from his new Kalorama mansion. It also comes with some of the negatives: higher real estate costs than smaller cities, high cost of living for workers and thus higher salary costs.

Fresh off of its big win in attracting Nestle’s U.S. headquarters, Rosslyn has also tossed its hat into the HQ2 ring, sources tell us. Rosslyn has many of Crystal City’s pluses but, we’re told, lacks developable space and would be tight quarters for the online giant.

Sites in Fairfax and Loudoun counties — near existing Amazon data centers and offices — have been pitched, but sources expect a site closer to the District to be more attractive to Amazon for HQ2.

Arlington Economic Development, meanwhile, is keeping its pitch to Amazon close to the vest, publicly revealing few details. Likewise Angela Fox, CEO of the Crystal City Business Improvement District, declined to comment for this article.

Morning Notes

By ARLnow.com

Family Still Searching for Missing Arlington Woman — Family and friends spent the weekend searching for Katherine Hawald, who went missing Thursday, last seen in Arlington. Volunteers checked places Hawald would hang out and handed out flyers, enlisting others to assist in the search effort. [Fox 5]

Veep Participates in Veterans Day Ceremony — Vice President Mike Pence participated in the annual Veterans Day ceremony at Arlington National Cemetery on Saturday. “From the hour of our nation’s birth, our best and bravest have stepped forward to defend our freedom,” Pence said. “And as we speak, a new generation of American veterans is being forged across the wider world.” [Dept. of Defense]

Millennials Moving Out = Lower Rents — “More millennials are leaving Greater Washington than moving in, and that could spell trouble for commercial real estate developers across the region. Those young professionals helped the region avoid oversaturation of new apartments, but the diminishing pool will likely shrink demand for those units, among other potential consequences.” [Washington Business Journal]

Which Restaurants Are Open on Thanksgiving — Those hoping to avoid the hassle of making a turkey at home have a few options for dining out in Arlington on Thanksgiving. [Patch]

Burrito Bros Now Offering Taco — Perhaps responding to competition down the street, the Burrito Bros stand on Columbia Pike — formerly known as Pedro & Vinny’s — is now offering tacos. [Twitter]

Flickr pool photo by TheBeltWalk

Auction: 1,920 Sq. Ft. Office Building on Leesburg Pike

Property: 5136 Leesburg Pike, Alexandria VA
Auction: Wednesday, November 1 at noon
Previews: Oct 18 from 10-11 a.m. and Oct 25 from 11 a.m.-noon

Opportunity knocks! Two story office condominium in Skyline Court. Perfect for professionals or investors!

The property is currently leased to 2 tenants but leases can be terminated by new owner with 30 day notice. Great location convenient to Alexandria, Arlington and DC! The ground level is configured as a massage spa with a large reception area, 3 treatment rooms, a break room, utility room and 1/2 bath.

The upstairs is laid out as office space with a large open office/reception area and 4 private offices along with a storage room and 1/2 bath. There is ample parking in front of the building.

Complete financials and leases can be found on tranzon.com. 2% paid to registered brokers.

Contact:

Tranzon Fox
Jeff Stein
[email protected]
888-621-2110

Morning Notes

By ARLnow.com

Arlington Kicking Off Budget Process Early — Normally it is a conversation that starts later in the year, but for the upcoming Fiscal Year 2019 budget process Arlington County is holding “an earlier-than-ever-before series of roundtable discussions on budget priorities and challenges.” The first is scheduled to take place at Westover Library on Friday, Sept. 29. [Arlington County]

More Renovations for Crystal House — The second phase of an extensive renovation process at the massive, historic Crystal House apartment complex in Crystal City is complete: “Some of the amenities include two rooftop ‘sky decks’ with billiard tables, rooftop grilling and dining areas, and a fitness center with a yoga studio. There is also an Olympic-sized swimming pool, new lobbies with Wi-Fi, a clubroom, and a conference room.” [Curbed]

Arlington’s Little League Coach of the Year — Arlington Little League coach Larry Patent beat out 276 other coaches in the league to win the honor of Coach of the Year. “What makes Larry Patent special,” writes a reporter for TV station WUSA 9, “is that he coaches a team made up of players with mental and physical disabilities.” [WUSA 9]

County to Issue New Bonds — Arlington County is expected to sell tens of millions of dollars worth of revenue bonds next month. The bonds will fund the acquisition of the Buck property across from Washington-Lee High School, the “acquisition, design and construction of an office building at 2920 S. Glebe Road,” and “upgrades to the County’s Assessment and Collection system and Enterprise Payments System.” The bonds will also refinance older bonds and save up to $3.8 million. [Arlington County]

Jimmy Carter Can’t Help Local Office Market — Despite the protestations of a local civic activist, Arlington County officials say they cannot successfully sue the federal government over a 1970s-era executive order from President Jimmy Carter that gave D.C. and Arlington “priority in the location of federal agencies in the Washington area.” Federal offices have been moving out of Arlington for cheaper office space farther away from the District. [InsideNova]

Photo courtesy Joe Cashwell

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