economic development

Arlington to consider several ways to combat office vacancies this year, starting with looser parking restrictions

By Daniel Egitto
An office building with a leasing availability sign in Courthouse in December 2022 (via Google Maps)

Several measures designed to combat Arlington’s persistently high office vacancy rate are slated for discussion next month.

On the table are expanded opportunities for shared and offsite parking, as well as more lenient parking requirements for fitness centers. Officials are also set to consider whether to allow large media screens for outdoor entertainment in some business districts.

The Arlington County Board is scheduled to vote next month on whether to advertise requests to amend Arlington’s zoning ordinance to make these changes. County Manager Mark Schwartz told the Board last week he hopes that these and other ordinance changes can make it easier for Arlington businesses to get started and grow.

“Very often you’ll have a business that, if it could take advantage of parking very near to it, would be able to move ahead,” he said on Tuesday.

Schwartz noted that fitness centers have particularly strict parking requirements.

Large media screens, meanwhile, could assist with “placemaking” in certain commercial business districts. Currently, it’s an exceptionally arduous process to get large outdoor displays approved.

The county also plans to pursue bigger-picture ordinance changes, Schwartz said. Later this year, the Board is expected to discuss guidance on office-to-apartment conversions as well as potentially simplifying the major and minor site plan amendment process, which landowners must navigate when repurposing or renovating large development projects.

Within the next six months, Board members are also expected to consider plans to facilitate change of use within existing buildings and adopt a more flexible ordinance around signage.

Other possible ordinance changes concern storage uses at office buildings as well as the process for converting underutilized parking spaces.

“We promised we’d be coming to you with sort of a regular rhythm of items, and starting next month we will do that,” Schwartz told officials.

Arlington’s office vacancy rate is currently just over 22%, the county manager said — up from 21.5% in October. Arlington Economic Development predicted in October that this number would continue to rise, as about a quarter of Arlington office space is at risk of sustained vacancies.

The county has scrambled to find uses for its office buildings since the pandemic, passing several zoning changes on a compressed community engagement timeline. Recent adjustments allow urban farms, breweries and podcast studios to move into older office buildings without seeking special permissions.

Despite these efforts, a shrinking commercial base has left Arlington residents shouldering a growing portion of the county’s budget. Historically, the commercial and residential tax base split the budget 50-50 but in recent years, this has shifted to a 55-45 split.

Board member Matt de Ferranti last week called office vacancies “a huge challenge” and praised ongoing efforts by county staff.

“I think it is important to reiterate strong support for the direction we are going in,” he said.

Photo via Google Maps

What the Capitals’ move to Potomac Yard could mean for its Ballston practice facility and an at-grade Route 1

By Jo DeVoe
1/8

Ballston might remain the place where the Washington Capitals practice if everything goes to plan and the hockey team begins playing games in a newly announced sports arena in Potomac Yard.

The new arena for the Caps and Washington Wizards, as well as a concert venue, could open as soon as 2028 in the Alexandria neighborhood already seeing heavy investment, including a new Metro station and Virginia Tech’s forthcoming Innovation Campus.

Gov. Glenn Youngkin, Monumental Sports & Entertainment owner Ted Leonsis, the city of Alexandria and developer JBG Smith officially confirmed the murmurings of a move today (Wednesday), to which county officials and business leaders reacted with excitement.

Arlington County Board Chair Christian Dorsey called the news an “excellent opportunity for Arlington to continue to partner with Alexandria” and, in a statement, said that “it further cements our region among the world’s most innovative and dynamic places to live, play, and do business.”

But whether the Caps continue to practice at MedStar Capitals Iceplex, adjoining the Ballston Quarter mall, is just one of the moving pieces with impacts on Arlington, should the project move forward.

Another concern — top-of-mind for residents around Richmond Hwy (Route 1) — is what the new facility will mean for state plans to bring the key north-south artery to grade, which was part of a suite of transportation projects promised if Amazon settled in Pentagon City.

In today’s announcement, the expansion into Alexandria did not explicitly mention relocating the Capital’s practice facility from Ballston, though it was included in a map of the planned development.

Arlington County says Monumental has indicated it intends to negotiate a renewed lease in Ballston — even with the planned arena in Potomac Yard — as it prefers to separate practice facilities and administrative offices from their arena.

A Monumental spokesperson told ARLnow where the Caps practice is one of many details that still need to be finalized, emphasizing that the Iceplex in Ballston is a state-of-the-art facility. The spokesperson said Monumental might renovate the second-floor office space to serve as the front office and athlete space after the business staff move to Potomac Yard, but it is also exploring building a new practice facility at Potomac Yard.

Tina Leone, CEO of the Ballston Business Improvement District, is optimistic the team will stick around. She spoke highly of the Capitals, who she called great supporters of Ballston for the 17 years they have practiced there.

“We can’t help but draw parallels between the evolution of Ballston, the Capitals, and Monumental Sports & Entertainment; and while there are still moving pieces, we couldn’t be happier for the Leonsis family, the Capitals organization, and the MSE team,” she told ARLnow in a statement.

“When the Capitals were looking for an urban setting with access, an amenity-rich neighborhood, and a community their players and coaches wanted to call home, they chose Ballston. Nearly two decades later, we’re proud Ballston continues to be all those things and more,” she continued. “We’ve been fortunate to have such a globally recognized, highly visible organization contribute to Ballston’s growing identity and culture.”

Monumental is similarly keeping a foot in both camps, for now, in D.C. In a letter to fans, circulating on social media, Leonsis said he hopes Capital One Arena and downtown D.C. “remain an essential part of our future.”

He said the company plans to invest in the existing arena so it can continue hosting large-scale events, from concerts to WNBA games and college sports. In the hours leading up to today’s announcement, D.C. Mayor Muriel Bowser unveiled legislation to support a complete, $500 million renovation of the Capital One Arena, if the NHL and NBA team stay.

While some NHL teams opt to keep games and practices under one roof, others maintain separate facilities for games and practices. Sometimes, this is out of necessity, if the location for games cannot accommodate practices. Other teams, however, view practice spaces as a way to engage the community and, with the right amenities, to help lure free agents.

The Iceplex, for instance, holds open practices that fans can watch as well as youth clinics, and it has served as a springboard for Monumental, which has also sponsored community events and invested in local organizations.

(more…)

GMU celebrates “topping out” of major expansion on Virginia Square campus

By James Jarvis
1/9

The outer structure of George Mason University’s $235 million expansion project in Arlington is complete.

The university celebrated the “topping out” milestone last Friday with tours of the under-construction FUSE at Mason Square structure on its Virginia Square campus.

During the event, students and faculty showcased the types of work the new, tech-oriented facility will house, including the development of robotic limbs and disaster simulation research.

The university broke ground on the 345,000-square-foot building at 3351 Fairfax Drive in January 2022. Previously, the site was home to the old Kann’s Department store, which was demolished in March 2021.

Construction is expected to be completed by the end of 2025. The new facility is expected to serve 750 students initially and up to 2,000 students within the next five years, according to a GMU spokesperson. It will dedicate 60% of its space to university programs and lease the remaining area for retail and private office use.

The building will house GMU’s Institute for Digital Innovation and the newly minted School of Computing, which will offer courses in artificial intelligence, data analytics and cybersecurity.

The Arlington campus is already a hub for several of GMU’s schools, spanning policy, law, conflict resolution and business.

The university’s president, Gregory Washington, told ARLnow that housing technology and social science disciplines under one roof will improve how society adopts new technologies, such as artificial intelligence.

“Engineers alone can’t do it. You need humanists. You need social scientists, and you need business people. We got all of them here working together on the next generation of problems,” he said. “That’s the difference you will see here that you don’t see many other places,”

Washington is also betting on the new facility in Arlington attracting talent that might otherwise choose bigger-name research institutions, such as the Massachusetts Institute of Technology.

“If you go to MIT, what you’ll find is that the facility we’re building is… better than 95% of the facilities they have,” he said.

During the event, Arlington Economic Development Director Ryan Touhill highlighted the potential for the new facility to energize the local tech sector, which has grown rapidly in recent years, particularly with the arrival of major tech companies like Amazon.

“This project can’t be coming online at a better time,” he said. “We’re really focused in Arlington County and regionally on growing our homegrown tech sector. And that’s part of our long-term economic growth strategy.”

County says it needs new policies to tackle rising office vacancy rates

By Jo DeVoe
A partially vacant office building in Courthouse in December 2022 (via Google Maps)

(Updated at 12 p.m. on 10/19/23) County leaders say Arlington is facing a grim future due to its rising office vacancy rate, which now stands at 21.5%.

Arlington is leading the region with its vacancy rate, which works out to 9 million square feet of empty space, according to Arlington Economic Development Director Ryan Touhill. He predicts the vacancy rate will continue climbing, as AED has determined about one-quarter of office buildings are at risk of sustained vacancies.

Compounding the vacancy issues, many leased buildings have space available for sublease and significantly lower rates of people going into the office, according to Arlington Economic Development Commission.

These conditions are set to have serious impacts on Arlington County’s future budgets, with County Board members and County Manager Mark Schwartz already predicting belt-tightening this budget cycle.

Last week, staff told the Arlington County Board about new strategies and policies they are considering to further combat this issue as part of the ongoing Commercial Market Resiliency Initiative. Yesterday (Tuesday), the county’s Economic Development Commission discussed its own recommendations for dealing with these vacancy rates.

That follows several zoning changes made in the last 12 months — on a compressed community engagement timeline — to get emerging businesses into older office buildings by allowing them to operate without seeking special permissions. This includes micro-fulfillment centers, urban farms, breweries, dog boarding facilities, pickleball courts and podcast studios.

Board Chair Christian Dorsey said Arlington is facing a different challenge than it has before.

“This is a little bit different than some of the elevated rates of vacancy that we’ve experienced in the past,” Dorsey said last week.

During the Base Realignment and Closure process, for instance, the office vacancy rate peaked at 20.1% in 2015 after major Department of Defense offices decamped from the county, per the Economic Development Commission.

Arlington managed to bounce back by landing deals with Nestle, Boeing and RTX — formerly Raytheon — Amazon and Microsoft, Dorsey said.

“But this is a little bit different because this is in the midst of a paradigm shift in the commercial market,” he said, pointing to the impacts of remote work. “And then, of course, there’s a market which is in turmoil, with incredibly low valuations and commercial space, which impacts lending and trading.”

Rising office vacancy rate (via Arlington County)

With a potentially protracted dip in tax revenue from commercial properties in Arlington, residents will have to pay more for essential services, Touhill said.

“Historically, we’ve had that 50-50 split between our commercial and residential tax base,” he said. “But in recent years, we’ve seen that increase to more of a 55-45 split. And this means that our residents are carrying more of the burden to fund our essential services.”

To weather this storm, the economic development commission, AED and the Dept. of Community Planning, Housing and Development (CPHD) intend to streamline onerous county processes and tackle restrictive ordinances.

‘Work flows’ in the second stage of the Commercial Market Resiliency Initiative (via Arlington County)

One under scrutiny will be the major and minor site plan amendment process, which developers and property owners go through to repurpose or renovate large, existing development projects.

“The site plan process’s length and variability are amongst the biggest impediments to redevelopment,” says the commission, which calls for an expedited process for these types of projects. “As these buildings already exist, all that will change is the building’s use.”

(more…)

A popular noodle restaurant is moving to Pentagon City from Old Town Alexandria

By Matt Blitz
1/2

A popular noodle restaurant is leaving Alexandria and making the move to Pentagon City.

Yunnan By Potomac is looking to start serving its contemporary Yunnan cuisine on the ground floor of the new Milton building along 15th Street S. by March 2024, owner and executive chef Shao Bruce told ARLnow in an email.

The restaurant is relocating from its home in Old Town Alexandria, where it’s been since early 2019.

“We chose to relocate to Pentagon City because it offers us a wide base of both residential and office business to draw from and is projected to be one of the fastest growing markets locally,” Bruce said in response to why they decided to move.

Bruce said the Alexandria location will remain open until the 2,015-square-foot Pentagon City space is ready to be moved into.

Last year, Yunnan By Potomac was named one of the 100 best restaurants in the country by Yelp reviewers. The eatery specializes in mixian, a rice noodle popular in southwest China that often comes with braised meat, broth, and different sauces. Bao buns, dumplings, and shaokao barbecue are also on the menu.

“Yunnan By Potomac Noodle House strives to be an ambassador for the people and culture of Southwest China and add to the story of what it means to be Chinese-American through our lens on contemporary Yunnan cuisine,” the website says.

The Milton is an 11-story, 253-unit building with ground-floor retail that is part of the multi-phase redevelopment of the Pentagon Centre shopping center, which includes the perpetually busy Costco store. The apartment building opened for move-ins at the beginning of June and units remain available for leasing, a building employee tells ARLnow.

Two other retail spaces in the Milton have been leased so far, per a recent leasing brochure. First National Bank and a salon named “Sparkle & Pop” are also moving in along 15th Street S.

Three other spaces remain available in the building, including a 1,649 square foot space intended for a “fast casual restaurant” and a much larger 5,375 square foot space for a “full-service restaurant.”

This pilot program helped hopeful software engineers land jobs in the industry

By Jo DeVoe

Sponsored by Monday Properties and written by ARLnow, Startup Monday is a weekly column that highlights Arlington-based startups, founders, and local tech news. Monday Properties is proudly featuring 1515 Wilson Blvd in Rosslyn. 

(Updated at 2 p.m.) Participants in a county-led tech pilot program graduated on Friday and nearly all of them have jobs lined up already.

The Arlington Talent Pilot Program, hosted by Arlington Economic Development, began in 2022 as a way to bridge the workforce gap in the tech industry, according to AED. It got its start with funding from the Covid stimulus package dubbed the American Rescue Plan.

It provides on-the-job training to aspiring software engineers who miss out on  interviews owing to a lack of job experience.

During the program, the participants had temporary, full-time paid roles at the software company Exelaration and received mentorship from company developers.

AED says the company, which provides software solutions for organizations of all sizes, is the second-best tech and engineering internship provider in the U.S.

Working for Exelaration, participants saw an average pay increase of 26% and an average of 11 more hours per week of work. There were 11 participants — including one from Alexandria, who was admitted though technically separate from the program for Arlington residents. All 11 participants completed the program and 80% have jobs.

Local and state officials attended a graduation luncheon on Friday to congratulate the participants and stressed the need for more programs like this one, according to a press release from Exelaration.

The dignitaries present included Arlington County Board Vice-Chair Libby Garvey, Virginia State Sen. Barbara Favola and Rep. Don Beyer, as well as Exelaration CEO Steve Cooper.

“This program works because Northern Virginia companies stepped up to be clients of the program,” Cooper said during the event, per the release. “Our expert-led teams, staffed with our new engineers, built valuable working software that clients desperately need.”

Arlington Talent Pilot Program participant Eric Enkhbold Bayarsaikhan and Exelaration CEO Steve Cooper (courtesy Exelaration)

He praised Arlington for meeting a regional shortage of tech workers. The region is also pinning its hopes for a larger tech workforce on the forthcoming Virginia Tech Innovation Campus in Alexandria.

“NoVA’s tech leaders said they needed experienced tech talent and Arlington is delivering it,” Cooper said.

AED highlighted the program and its participants in a recent video.

New zoning proposal would allow podcasting studios in office buildings without additional permits

By Jo DeVoe
Chris Farley (center) of Pacers recording his Pace the Nation podcast (file photo)

Currently, in Arlington County, a podcasting studio would need to go through a county permitting process to inhabit an office building.

But that is likely changing.

A proposal to allow more “untraditional” uses in traditional office buildings is headed to the Arlington County Board this weekend.

On Saturday, the Board is set to consider revising the zoning ordinance to allow broadcasting studios and businesses in the audio-visual production field to occupy commercial space by right. It is also expanding what counts as research and development while allowing those uses by right, too.

Under the changes, entrepreneurs would no longer need a permit to outfit an office for podcasting and influencer studios — Instagram-ready backdrops for people to take photos and record content.

Arlington’s extensive roster of cybersecurity and artificial intelligence startups, meanwhile, would no longer need a permit to conduct research and development. Facilities doing technological, electronic, biological, scientific and engineering research would be able to lease a typical office building in the same way as any other office tenant.

These businesses could also engage in small-scale product design, development, prototyping and testing. The changes will not allow industrial scale production or manufacturing.

Arlington Economic Development says these are some emerging trends it is looking to pounce to tackle its office vacancy rate and remain competitive in a changing economic landscape. Otherwise, it may lose out to peer cities, such as Seattle and Cambridge, Massachusetts.

“In the past, [AED] has had prospects come through looking for flexible research and development space to locate their semiconductor and microchip, cyber and quantum computing, as well as artificial intelligence and machine learning companies,” according to a county report. “However, the AED team was not always readily able to accommodate those prospects due to zoning barriers.”

“The competition for attracting research and development investment is fierce, the market for these uses is strong, and technological advances have allowed these uses to fit seamlessly into existing business districts,” it continued.

This is the fourth zoning code update headed to the County Board in 13 months under the “Commercial Market Resiliency Strategy.”

Through this strategy, the county established a streamlined public engagement process that expedited the approval process for these changes. Some Planning Commissioners have balked at the shortened engagement period and the nuisances that may arise.

Despite these misgivings, the strategy has already been used to allow micro-fulfillment centers, urban agriculture, breweries and distilleries, and artisan workshops to operate in office buildings, without additional red tape.

Most recently, the County Board approved a broader definition of by-right indoor recreation use, meaning pickleball courts and ax-throwing could be coming to an office building near you.

A wording change could spell tax relief for more Arlington tech companies

By Jo DeVoe
A woman coding (via Unsplash/[email protected])

(Updated at 3:50 p.m.) When Arlington Economic Development tried to help a local tech business take advantage of a county tax incentive program some 2.5 years ago, it hit a snag.

The Commissioner of Revenue denied the company’s application to be recognized as a “qualified technology business,” per a county report. Under this designation, as part of the county’s “Technology Zone” program, it would have paid half the rate normal rate for the Business, Professional, Occupational License (BPOL) tax.

“Technology Zone” allows qualifying companies in Arlington’s “high-technology business corridors” to pay $0.18 per $100 of gross receipts for 10 years, as opposed to the $0.36 that many companies pay for a business license.

AED says the program is one of its “most effective tools” to recruit and retain tech companies, and a spokeswoman for the division tells ARLnow that 105 businesses have been approved for this designation since its inception in 2014.

After talking with the tax assessor’s office, AED learned the business was denied because it used a third-party organization, known as a Professional Employer Organization, to manage company payroll. It also learned “several” other businesses had been turned away for the same reason.

To qualify for the tax break, businesses must show, and the Virginia Employment Commission must verify, they increased their full-time employees by at least 25% within the 12 months before applying for the program.

“PEOs report a company’s employees and wages to the VEC under the PEO’s federal employer identification number, and the reports indicate that the employees are affiliated with the PEO rather than with the company,” said the staff report to the Arlington County Board. “This leaves the company unable to demonstrate employment growth to the County via its own VEC filing and therefore unable to meet the Technology Zone program’s criteria.”

This affects between four and six companies interested in applying for the program every year, AED spokeswoman Cara O’Donnell said.

Now, AED and the Commissioner of Revenue are asking the County Board to allow businesses that use these services to be eligible. The Board is set to review the request during its meeting on Saturday.

“The language does not align with current business processes and trends in the technology industry, specifically the increasing usage of third-party organizations to manage and process company payroll,” the staff report says, asserting that this is “inconsistent with the original intent” of the ordinance.

The proposed changes would also update the definition of “qualified technology business,” which the county says is “vague and outdated.”

County code currently says that a “qualified technology business” has a “primary function in the creation, design, and/or research and development of technology hardware or software.”

It adds that using computers, telecommunications services or the internet “shall not, in itself, be sufficient to qualify as a qualified technology business.”

But AED says this “does not capture many new business models” and recommend emphasizing proprietary technology instead.

Lastly, businesses would have 24 months, rather than 18, to apply to be “qualified technology businesses” after setting up a business in Arlington.

“The proposed amendments are minor technical changes to the ordinance language, not expansive policy changes,” the staff report says. “Together, these changes would enhance the effectiveness of the Technology Zone incentive as a business attraction and retention tool.”

Arlington Economic Development trains entrepreneurs in business basics with two-day ‘bootcamp’

By Jo DeVoe

Sponsored by Monday Properties and written by ARLnow, Startup Monday is a weekly column that highlights Arlington-based startups, founders, and local tech news. Monday Properties is proudly featuring 1515 Wilson Blvd in Rosslyn. 

Last week, 15 entrepreneurs spent two days training in a business “bootcamp” hosted by the BizLaunch team of Arlington Economic Development.

They came from Arlington and around the D.C. area to learn how to use software to simplify business operations, file their taxes and learn how to market their product or service, among a host of other skills entrepreneurs have to figure out for themselves.

Realtor and Arlington resident Miranda Carter came to hone her business’ value proposition. She is preparing to launch a business building net-zero emissions, sustainably finished accessory dwelling units that may have a small footprint but don’t sacrifice luxury.

“For me, it’s been good at clarifying and filling in the blanks for things I haven’t thought through,” said Carter. “I knew I needed discipline, and this would force it on me to come back with a viable plan in two days. I know I’m one of those people who’ll have a good idea but won’t do anything about it. It forces me to take action instead of having a plan for five years. I’m hopeful this takes off.”

Carter, who has showed homes to potential buyers and undertaken environmentally sustainable home renovations for years, said the program helped her identify her target customer, refine her elevator pitch and learn how to track metrics.

Arlington Economic Development small business ‘bootcamp’ on Friday, Jan. 27, 2023 (staff photo)

Another attendee, Yvonne Tazem, spent two decades selling cosmetics before deciding to launch a Vitamin C serum that would work on her sensitive skin. It has since been featured in Vogue and she’s now working on a full line of products. She signed up to learn more about online marketing and also came away with some software she could use to simplify how she tracks online sales.

“I love the ability to give women the option to wear makeup or not,” she said. “Makeup should be a choice. You should be able to have beautiful, healthy, glowing skin without it.”

Carter and Tazem are examples of subject-matter experts who need help with running a business, said Alex Held, AED’s Small Business Manager and the event’s organizer.

“They come to us because they don’t know what they don’t know,” he said. “We help them avoid expensive missteps and start on the right foundation.”

Registration for the free event “sold out” in minutes due to the number of people who recently quit their jobs to start their own businesses, and are part of an ongoing economic trend dubbed the “Great Resignation,” said AED spokeswoman Cara O’Donnell. It was the first time AED has offered something like this in 15 years.

The two-day conference was funded with American Rescue Plan Act funding, but the plan is to make it a permanent offering from AED twice every calendar year. The economic development division partners with Boston-based Revby, which works with municipal and state governments across the country to help small businesses with marketing, online presence and finances. (more…)

Zoning changes give urban farms, breweries and colleges a quick process for taking over office spaces

By Jo DeVoe
Area 2 Farms, an indoor vertical farm, is opening in Green Valley (staff photo by Matt Blitz)

Urban farms and breweries could be coming to a vacant office near you.

Over the weekend, the Arlington County Board approved a series of zoning changes aimed at tackling the stubborn office vacancy rate. They would allow the following tenants to move into offices by right:

  • animal boarding facilities, provided animals are under 24-hour supervision
  • urban farms
  • urban colleges and universities
  • breweries, distilleries and facilities making other craft beverages, such as kombucha and seltzer
  • artisan workshops for small-scale makers working in media such as wood or metal, laser cutters, 3D printers, electronics and sewing machines

Colleges and universities or urban farms previously needed to seek out a site plan amendment, which requires Arlington County Board approval, to operate in spaces previously approved for office or retail use.

The code requires all animal boarding, farming and artisan product-making activities to occur inside the building.

A county report describes this existing process as “overly cumbersome” for entrepreneurs trying to prove their business concept as well as for landlords, “who may be averse to take a risk on a new type of use that may require significant building improvements.”

The changes require farms, craft beverage facilities and artisan workshops to maintain a storefront where they can sell goods made on-site to walk-in customers, which the report says could reinvigorate dead commercial zones.

“Artisan beverage uses can bring new life to vacant buildings, boost leasing demand and, when located in a walkable neighborhood, can attract both existing and potential residents, while creating active third places for the community to gather,” the report said. “By fostering space for small-scale makers, artisans, and the like, a creative economy can grow, and people who may not have the space for such activities in their urban apartments may see this as an attractive neighborhood amenity.”

Some of these uses were allowed along Columbia Pike in the fall of 2021 to encourage greater economic revitalization. At the same time, D.C.-based animal boarding company District Dogs was appealing zoning ordinances curtailing the number of dogs it could board overnight in Clarendon, prompting discussions about expanding the uses approved for the Pike throughout the county.

The next spring, County Manager Mark Schwartz developed a “commercial market resilience strategy” aimed at bringing down the county’s high office vacancy rate, fueled by persistent remote work trends catalyzed by the pandemic. The tool, which includes an expedited public review process, was first used last fall to allow micro-fulfillment centers to operate by-right in vacant office spaces.

In a letter to the County Board, Arlington Chamber of Commerce CEO Kate Bates said the rapid approval of these commercial activities is critical for attracting new and emerging businesses.

“The Chamber believes that the Zoning Ordinance needs reform, and that unnecessary restrictions on commercial use should be removed to help the economy of the County grow,” Bates wrote. “In the wake of record high commercial vacancy, timely change is needed. It is imperative that the County focuses on long-term solutions for new business models, both through increased adaptability for new uses and expedited timeframes for approval of these new uses.” (more…)

Avis looks to rent cars from garages under vacant TSA buildings in Pentagon City

By Jo DeVoe
Vacant TSA headquarters at 601 and 701 12th Street S. in Pentagon City (via Google Maps)

The old Transportation Security Administration buildings in Pentagon City, vacant and awaiting redevelopment, could get put to a new, temporary use.

Avis Car Rental is looking to add rental operations to the pair of offices and their underground garages at 601 and 701 12th Street S. The business, which currently has a location at 2600 Richmond Hwy, has filed two applications, one for each building, with the county.

The TSA announced in 2015 that it would be leaving its headquarters for offices in Alexandria after the expiration of the five-year lease it signed in 2013. That stalled and amid the pandemic, the agency switched course and instead moved to Springfield, opening its headquarters in 2021.

At the time of the announcement, Arlington was coping with relatively high office vacancy rates driven in part by the departure of major tenants — including the U.S. Fish and Wildlife Service and the National Science Foundation — in search of cheaper leases.

After a dip down, the pandemic hit, sending the office vacancy rate even higher, where it has remained due to lasting remote work trends Covid catalyzed.

Avis proposes an alternative use until the owner of the office buildings, Brookfield Properties, razes these towers and builds four new towers with a mix of residential, office and retail uses. Brookfield’s redevelopment plans, first filed in 2019, are currently on hold.

“The proposed Vehicle Rental Use will further Arlington County’s goals and aims for a resilient commercial market,” attorney Matthew Weinstein, representing the car rental company, wrote in an application. “The Property is currently operating as a vacant office building until future redevelopment. The Vehicle Rental Use will improve existing conditions by activating space that would otherwise remain vacant for the short to mid-term. Moreover, the Vehicle Rental use will benefit the National Landing area by allowing customers arriving at National Airport to have a reliable and efficient option for renting vehicles during their visit to the Washington, D.C. area.”

Avis plans plans on using 50-250 spaces daily per garage, but is leasing some 922 parking spaces between the two TSA buildings to have extra space “depending on the operational needs,” such as handling overflow from other facilities, Weinstein writes.

Customers will access the facility from the lobbies of both buildings, where there will also be service counters. Avis plans to serve customers and rideshare drivers and rent an estimated 40-50 vehicles per day. The proposed hours of operation are 7 a.m. to 7 p.m., seven days a week.

“The Applicant’s vehicle rental facility network works cohesively to ensure each rental facility is meeting customer demands and the Applicant’s operational needs. This means that at certain times each vehicle rental facility in the Applicant’s network will back up and supplement each other depending on demand and operational requirements.”

Meanwhile, plans to redevelop the TSA buildings have been on hold since 2020, at the request of Arlington County planners, Brookfield previously told the Washington Business Journal. At the time, they were working on a new sector plan to guide future development in Pentagon City.

The plan that was in place when Brookfield filed preliminary redevelopment plans reached the end of its useful life in light of Amazon’s second headquarters. Despite some vocal opposition, the Arlington County Board approved a new plan that focuses on residential infill development and “ribbons” of tree- and plant-lined walking paths.

Brookfield did not return a request for comment about an updated timeline for redevelopment.

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