Government Contractor Leases Nearly 100,000 SF in Northern Virginia
- Jul 26, 2010
July 26, 2010
By Barbra Murray, Contributing Editor
The federal government and government contractors like ASM Research Inc. continue to liven up the market in suburban Washington, D.C. The technology solutions provider has just signed a new lease for approximately 91,400 square feet of premier space at the 410,000-square-foot Centerpointe office complex in Fairfax, Va.
Located about 20 miles west of the District, Centerpointe sits on Legato Road at the intersection of I-66 and Route 50, and consists of Centerpointe I and Centerpointe II, twin structures that were developed in 1987 and 1989, respectively. Los Angeles-headquartered Thomas Properties Group Inc. has owned the two-building office park since 2007. ASM will make its home at Centerpointe II, consolidating employees from two Fairfax locations. The company’s current offices total 80,000 square feet, so ASM is actually absorbing 20,000 square feet in the market.
Real estate services firm CB Richard Ellis represented Thomas Properties Group in the lease transaction, while Newmark Knight Frank stood in for the tenant. Laurence D. Bank, managing principal with Newmark Knight Frank, told CPE, “It was a combination of location, quality of the building and the economics that led to the selection of Centerpointe.”
While the Northern Virginia office market has not escaped the ravages of the economic downturn, it is reaping the rewards of federal government expansion. According to a second quarter report by CB Richard Ellis, growth among the federal government and government contractors resulted in an increase in net absorption during the second quarter. Additionally, the office vacancy rate in Northern Virginia decreased from 14.4 percent to 14.2 percent, quarter-over-quarter.
While stabilization is afoot, it is still a tenants’ market. “We don’t see that changing for a couple of years,” Bank said. “When we’re getting an overall vacancy rate of 5 to 10 percent, that is more of a landlords’ market.”