Northern Virginia PDF

Market Report
Northern Virginia | 3rd Quarter 2015
cushmanwakefield.com
Contents
DC Metropolitan Area Oveview...............................................................................3

Northern Virginia & Map........................................................................................4-6
Alexandria.........................................................................................................................7
Arlington...........................................................................................................................8
Tysons Corner................................................................................................................9
Reston/Herndon................... .......................................................................................10
50/66.................................................................................................................................11
Springfriend/Newington............................................................................................12
Route 28 South..............................................................................................................13
Loudoun County...........................................................................................................14
Appendix..........................................................................................................................15
Tables..........................................................................................................................15-24
Methodology & Definitions......................................................................................25
About Cushman & Wakefield.................................................................................26
Cushman & Wakefield | 2
Washington, DC Metropolitan Area
Necessary fiscal clarity coming from the federal government

added to the growing optimism throughout the region. After
nearly six years without a budget, the feds stepped up in
late 2014 with a one year budget that increased spending for
key federal agencies including the Department of Defense
and vital agencies within the Health and Human Services
Department. The passage of this budget was an inflection
point that reversed the tide of negative office-using job
growth of 2014 and led to the robust job growth that we are
currently experiencing. As of the end of the third quarter
of 2015, a follow-on two year budget has been passed that
will offer the regions largest employers a roadmap of fiscal
policy for the near term. This increases federal budget
authority by $80 billion over the caps imposed by budget
sequestration that initially hit the market in 2013. This
additional spending will be evenly split between defense and
domestic programs and will avert a debt ceiling debate and
government shutdown through September 2017. As was the
case with the budget that passed in late 2014, this two year
bill will offer fiscal clarity that will give the regions largest
employers the ability to make sound business decisions
including the acquisition of talent and the procurement of
real estate.
The regional vacancy rate for the office sector ticked
downward from 16.1% to 16.0% in the third quarter. This is
the second consecutive quarter of falling vacancy that has
followed 15 straight quarters of flat or rising vacancy. Net
absorption for quarter stands at 459,158 square feet (sf) which
brings the year-to-date total to 1.095 million sf. 5.3 million sf
is currently under construction. New and repositioned office
product continues to outperform the market as a whole
and the possibility of speculative construction in various
submarkets remains a possibility. Tenant concessions in
the marketplace remain at a highpoint. Look to when these
concessions start to tick down as the sign that leverage is
shifting back to the landlords favor.
Economic Indicators
Q3 14
Q3 15
DC Metro Employment
3.12M
3.18M
DC Metro Unemployment
4.9%
4.4%
U.S. Unemployment
6.1%
5.3%
Q3 14
Q3 15
Overall Vacancy
15.9%
16.0%
Net Absorption
-590k
460k
Under Construction
4.5M
5.3M
Deliveries
865k
1.2M
$35.83
$35.03
12-Month
Forecast
Market Indicators
Average Asking Rent (FS)
12-Month
Forecast
Net Absorption/Asking Rent

4Q TRAILING AVERAGE
2.0
$38.00
$37.00
1.0
$36.00
$35.00
0.0
$34.00
$33.00
-1.0
2010
2011
2012
2013
2014
Net Absorption, MSF
2015
$32.00
Asking Rent, $ PSF
Washington, DC Metropolitan Area

NET ABSORPTION - DELIVERIES - VACANCY
12
16%
10
8
12%
6
4
8%
2
0
Vacancy Rate
The Washington, D.C. Metropolitan regions economic

comeback has continued through the third quarter of 2015.
The unemployment rate has consistently declined, falling
to 4.4% in the third quarter compared to 4.9% in the third
quarter of 2014. Job growth throughout the region also
continues to be robust with 62,800 more jobs in September
of 2015, year-over-year, and easily exceeds the ten year
average of 35,000 jobs. Office-using employment has
added 20,800 jobs with the high-paying Professional and
Business Service sector leading the way with 20,500 new
positions.
WASHINGTON, DC METRO
MSF
Two Years of Clarity Ahead for the

Washington, D.C. Metropolitan Region
4%
-2
-4
05
06
07
08
Net Absorption
09
10
11
Deliveries
12
13
14
Vacancy Rate
YTD
15
0%
cushmanwakefield.com | 3
Northern Virginia
Economy
The Washington, D.C. Metropolitan regional economy continued to
gain momentum in the third quarter of 2015. The unemployment rate
for the region stood at 4.3% as of August 2015, with year-over-year
total nonfarm job growth totaling 64,000 positions. It is evident that
the region will handily surpass the historical average employment
creation of 30,000 net new jobs annually. In Northern Virginia (NoVA),
it is clear that the economic slowdown of 2014 that resulted from the
onset of sequestration has now passed. The unemployment rate for
Alexandria, Arlington, Fairfax and Loudoun Counties all ended the
third quarter of 2015 below 4.0%, with job growth surpassing 35,000
net new nonfarm positions compared to this same time last year. By
sector, the largest employment gains were seen in Education and
Healthcare and the Leisure and Hospitality industries. There was also
stronger activity in the Professional and Business Services (PBS)
sector. PBS the largest, highest paying, and most office-intensive
sector in the region added over 6,000 positions to Northern Virginia
payrolls in August 2015 month-over-year, with concentrated growth
in management-level and technical consulting subsectors.
Market Overview
The stronger job growth witnessed in the NoVA market contributed
to 97,400 sf of net absorption in the third quarter of 2015 bringing
the year-to-date total for the market to 270,000 sf. Vacancy
dropped another 0.2 percentage points (pp) to 18.6% at the end
of the third quarter, and is down 0.4 pp from the start of the year.
Federal leasing by the General Services Administration (GSA) has
picked up this quarter after little to no activity throughout the first
half of the year. The leasing arm for the government relocated the
Transportation Safety Administration (TSA) into 606,900 sf at
5001 Eisenhower Avenue, renewed the Department of Homeland
Security in place for 120,400 sf at 1110 North Glebe Road, and
renewed the U.S. Patent and Trademark office for 54,300 sf at 2051
Jamieson Avenue.
Outside of GSA activity, government contractor Calibre Systems
signed a renewal for 72,400 sf in Springfield, WGL Energy Services
signed for 51,200 sf in Tysons Corner, and accounting firm EY
signed for 123,900 sf in Tysons Corner, as well. EY will be the anchor
tenant at 1775 Tysons Boulevard which is expected to deliver in the
first quarter of 2016. Both new and high quality existing spaces
continue to outperform the suburban markets as a whole.
Looking forward, the onslaught of major consolidations within
Northern Virginias government contractor community in the wake
of sequestration appears to be nearing its end with only a few
contractors out of Tysons Corner, Merrifield, and Fairfax Center
currently in the market with headquarters-level requirements. Still,
it remains to be seen whether recent shakeups in senior leadership
in the House of Representatives will put a damper on the two year
budget currently being negotiated one whose passage would
add much needed clarity to the Northern Virginia regions largest
employers.
Market Indicators
Overall Vacancy
Q3 14
Q3 15
18.4%
18.6%
Net Absorption
(35K)
97K
Under Construction
1.9M
1.9M
Deliveries
Average Asking Rent
1.2M
308K
$31.73
$31.50
12-Month
Forecast
Net Absorption/Asking Rent

4Q TRAILING AVERAGE
1.2
$34.00
$33.00
0.8
$32.00
0.6
$31.00
0.4
$30.00
0.2
$29.00
$28.00
-0.2
$27.00
-0.4
2010
2011
2012
2013
Net Absorption, MSF
2014
$26.00
2015
Asking Rent, $ PSF
Overall Vacancy
20%
18%
Historical Average = 16.3%
16%
14%
12%
10%
2010
2011
2012
2013
2014
2015
Large Blocks of Contiguous Space

25-50k SF
Loudoun County
50-100k SF
Route 28 South
100-150k SF
Springfield/Newington
150-200k SF
200k+ SF
50/66
Reston/Herndon
Tysons Corner
Arlington
Alexandria
0
20
40
60
80
# of Blocks
Northern Virginia Office Submarkets

Northern Virginia Office Submarkets
LOUDOUN
LOUDOUN
PHASE II
2016
267
MARYLAND
metro
ROUTE
772
metro
ROUTE
606
metro
RESTON
RESTON
267
INNOVATION
CENTER
WASHINGTON
DULLES
INTERNATIONAL
AIRPORT
PHASE I
metro
HERNDON
metro
RESTON TOWN
CENTER
metro
267
WIEHLE - RESTON
EAST
TY
UN
TY
CO
UN
CO
X
SPRING
HILL
FA
OU
WASHINGTON, DC
metro
IR
UD
123
28
Y
NT TY
OU UN
X C CO
FA N
IR TO
FA ING
L
R
A
FA
LO
DI
ST
DULLES
AIRPORT
D
AN
YL IA
AR IN
M IRG
V
metro
RI MA
RY
CT
OF LA
N
D
CO
LU
M
BI
A
HERNDON
HERNDON
LOUDOUN COUNTY
50
FAIRFAX COUNTY
GREENSBORO
metro
metro
metro
MCLEAN
TYSONS
CORNER
286
ARLINGTON COUNTY
TYSONS
metro
495
WEST FALLS
CHURCH
metro
EAST FALLS
CHURCH
VIR
66
metro
metro
metro
BALLSTON
P
ALGONKIAN
50
metro
COURT HOUSE
CLARENDON
VIRGINIA SQUARE - GMU
495
VIENNA
66
IA
ROSSLYN
R-B CORRIDOR
29
FAIRFAX CENTER
AR
28
metro
metro
DUNN LORING/
MERRIFIELD
123
ROUTE 28 SOUTH
GIN
metro
29
66
50
50
metro
PENTAGON
CRYSTAL CITY
MERRIFIELD
AY
KW
29
395
RONALD
REAGAN
WASHINGTON
NATIONAL
NATIONAL
AIRPORT
AIRPORT
metro
236
I-395 CORRIDOR
286
FAIRFAX COUN
TY
PRINCE WILLIAM C
O
POTOMAC
RIVER
metro
VAN DORN
STREET
UNTY
EISENHOWER
AVENUE
metro
KING STREET
metro
OLD TOWN
ALEXANDRIA
EISENHOWER
AVENUE
PRINCE WILLIAM COUNTY
95
metro
FRANCONIA/
SPRINGFIELD
SPRINGFIELD/
NEWINGTON
Top Transactions
Key Lease Transactions 3Q 15
PROPERTY
SF
TENANT
TRANSACTION TYPE
SUBMARKET
5001 Eisenhower Avenue
606,900
TSA
New
I-395 Corridor
1775 Tysons Boulevard
123,900
EY
Relet
Tysons Corner
1110 North Glebe Road
120,400
GSA - Department of Homeland Security
Renewal
Ballston
6354 Walker Drive
72,400
Calibre Systems
Renewal
Springfield
2501 Jamieson Avenue
54,300
US Patent and Trademark Office
Renewal
Old Town Alexandria
8614 Westwood Center Drive
51,400
WGL Energy Services
Relet
Tysons Corner
PROPERTY
SF
SELLER/BUYER
PRICE
SUBMARKET
11911 Freedom Drive
802,323
Beacon Capital Partners / Boston Properties
$400,000,000
Reston
7950 Jones Branch Drive
787,000
Gannett / Tameres Group and Ilmarinen
$270,000,000
Tysons Corner
1500 Wilson Boulevard
248,909
American Real Estate Partners / Dune Capital
$100,000,000
Rosslyn
1550 Westbranch
152,000
Corporate Office Properties Trust / Rubenstein

Partners JV Griffith Properties
$27,750,000
Tysons Corner
Key Sales Transactions 3Q 15
Northern Virginia Office Market
Northern Virginia Office Market
Net Absorption - Deliveries - Vacancy, Third Quarter 2015
Inventory and Vacancy by Submarket, Third Quarter 2015

20%
35
8%
4%
-4
04
05
06
07
08
Net Absorption
09
10
Deliveries
11
12
13
14 YTD
15
Vacancy Rate
0%
25%
30
20%
25
MSF
MSF
12%
Vacancy Rate
16%
4
30%
40
15%
20
15
10%
Vacancy Rate
10
5%
5
0
Alexandria Arlington
Tysons
Leased
Toll Road
Vacant
50/66
Springfield Route 28
South
Loudoun
0%
Vacancy Rate
Alexandria
Market Indicators
*Arrows = Current Qtr Trend
Vacancy
19.1%
Net Absorption
Under Construction
538,200 SF
720,000 SF
Deliveries
Asking Rent
0 SF
$31.02 FS
Between the end of 2014 and Q3 2015, Alexandrias vacancy
Net Absorption Deliveries Vacancy
Alexandria contains one of the highest vacancy rates in Northern

area without mixed-use development. Additionally, the Old Town
submarket has one of the lowest rates due to lack of new supply
and consistent demand amongst tenants.
The I-395 Corridor submarket within Alexandria was the
epicenter of Northern Virginias largest office lease of the year
Square Feet, 000s
Virginia due to contractor move-outs and lack of interest in an
as Transportation Security Agency (TSA) signed a 15-year deal
1,800
24%
1,300
20%
800
16%
300
12%
-200
8%
-700
4%
-1,200
for 606,921 square feet (sf) at 5001 Eisenhower Avenue. This led
to a positive net absorption of 538,231 sf during the quarter, and
04
brings year-to-date absorption to a positive 321,003 sf. The TSA
05
06
07
08
Net Absorption
will be moving out of several buildings in the Pentagon City Area
09
10
11
12
Deliveries
13
14 YTD
15
Vacancy Rate
rate dropped from 20.6% to 19.1%. The I-395 Corridor within
0%
Vacancy Rate
when it occupies the entirety of the currently vacant building in

Q3 2018. This move is part of the General Service Administrations
Vacant and Available Space
commitment to cut its federal leasing footprint and consolidate
agency headquarters into one central location. In a year
characterized by contractor relocations out of the submarket and

downsizings within it, this large federal lease provides hope for
I-395 corridor. Other deals this quarter included: the US Patent &
Trademark Offices 54,300-sf renewal at 2051 Jamieson Avenue
MSF
nearby landlords that this deal will bring contractors back to the
1.6
1.5
3.9
3.8
Cherokee Avenue in I-395 Corridor, Bacon & Thomas renewal of
9,475 sf at 635 Slaters Lane in Old Town and Guardtimes new
lease of 5,033 sf at 1700 Diagonal Road, also in Old Town.
Q4 12
Q4 13
0.8
0.8
4.3
4.4
4.5
0.7
2.3
1.5
in Old Town, Marsh & McLennans 12,000-sf renewal at 5500
0.8
2.3
Q4 10
2.8
Q4 11
Vacant
In terms of development activity, the 720,000-sf future
Q4 14
Q1 15 Q2 15
4.0
Q3 15
Marketed Available (not yet vacant)
headquarters of the National Science Foundation is currently

under construction and set for a 2017 delivery. No other office
buildings are currently under construction, nor do any proposed
Asking Rent
buildings appear to be moving forward at the moment.
$37
Outlook

The TSA lease award noted above is currently subject

of dispute which adds some further uncertainty to the
Alexandria market.
Full Service PSF
$35
$33
$31
$29
$27
$25
2009
2010
2011
Class A
2012
2013
2014
2015
Class B
Arlington
Market Indicators
Vacancy
23.6%
Net Absorption
Under Construction
(418,300) SF
552,800 SF
Asking Rent
Deliveries
$39.69 FS
0 SF
Arlingtons vacancy rate has steadily risen over the past 5 years
vacancy currently stands at 22.1% and class B at 27.5%. Arlington

year-to-date. The class A average direct asking rental rate for
Arlington currently stands at $41.93 per square foot (psf), an
increase of 0.8% from a year ago. Class B remains at $37.33 psf,
a decrease of 1.2% from a year ago. Arlington, with its location on
the doorstep of DC and an abundance of Metro stops, currently
contains the highest rents in Northern Virginia.
Square Feet, 000s
reported 302,100 square feet (sf) of negative net absorption
Each of the four largest leases of Q3 were renewals: the Department
1,500
28%
1,000
24%
500
20%
16%
-500
12%
-1,000
8%
-1,500
4%
-2,000
of Defense renewed 355,000 sf at 2521 Jefferson Davis Highway
04
in Crystal City, Department of Homeland Security renewed
that of the American Society for Radiation Oncology, which
08
09
10
11
Deliveries
12
13
14 YTD
15
Vacancy Rate
0%
12
from Merrifield. The largest move-in of the quarter was 57,600
10
Arch Properties/Koch moved into 53,823 sf at 2300 Wilson,
8
MSF
sf by Politico, a relocation from 1000 to 1001 Wilson. In addition,
Courthouse Road.
07
signed for 26,631 sf at 251 18th Street in Crystal City, a relocation
while Americans for Prosperity occupied 42,133 sf at 1310 North
06
Net Absorption
120,435 sf at 1110 North Glebe, and Tetra Tech recommitted to

47,856 sf at 1515 Wilson Boulevard. The largest new lease was
05
Vacancy Rate
and currently sits at 23.6%, its highest rate in over 10 years. Class A
552,800-sf Corporate Executive Board Tower, which is 67% preleased to the anchor tenant and due for a mid-2017 completion.
The corridor has failed to attract the attention of many larger

tenants that have signed deals in Tysons and Reston/Herndon.
3.3
2.6
8.1
8.0
8.0
8.4
Q4 14
Q1 15
Q2 15
Q3 15
2.1
7.9
Q4 13
2.0
6
4
The only building currently under construction in the market is the
3.3
1.9
2.9
2.6
2.7
Q4 10
6.1
4.4
Q4 11
Q4 12
Vacant
Arlington lost a large potential deal for Advisory Board, which
has been offered up to $60 million in tax breaks and signed a

conditional lease in DC.
Asking Rent
$46
$44
Due to their close proximities to the Pentagon and

DC, the Rosslyn-Ballston Corridor and Crystal City
submarkets have been predominantly comprised of
federal government and government contractors.
Now that the market has weathered one sequestration,
and with the effects of BRAC also waning, the impacts
of any future sequestrations on the Crystal City
submarket should be more subdued. Many federal
agencies and government contractors have already
right-sized in response to the last sequestration,
signing over 6.7 msf throughout Northern Virginia
since 2012, with a majority of these leases now expiring
after 2022. Arlington appears to be one of the last
submarkets to recover from these recent shocks.
Full Service PSF
Outlook
$42
$40
$38
$36
$34
$32
2009
2010
2011
Class A
2012
2013
2014
2015
Class B
Tysons Corner
Net Absorption
Under Construction
Deliveries
Asking Rent
(11,700) SF
476,900 SF
0 SF
$31.05 FS
Through the first three quarters of the year, Tysons Corner

submarket has absorbed nearly 62,000 sf of office space. The
vacancy has dropped from 18.9% at year-end 2014 to 18.0% and
continues to experience some of the strongest leasing activity
across Northern Virginia (NoVA). Throughout the third quarter,
the submarket was home to 56 deals which totaled 558,600 sf.
The top deal of the quarter was that of Ernst & Young at 1775
Tysons Boulevard, the first lease within the new project and also
the largest private- sector lease in NoVA this quarter. One of the
big four audit firms, expanded their footprint in the submarket
and leased the top four floors of the project set to deliver in
the first quarter of 2016. One development that has performed
extremely well is Tysons Tower at 7900 Tysons One Boulevard.
After signing Transwestern to a modest 13,200 sf last quarter, the
building became home to another 13,000- sf tenant in IronNet
Cyber Security. The technology and cyber security consultant
will bring the building to nearly 85% leased as NoVA tenants
have continued to display a preference for top-quality product in
locations proximate to Metro.
Rents dropped slightly from the previous quarter to $31 .05
from $31.19 psf. The spread between Class A and B rents in
the submarket rose to $6.80 with Class A rents currently at
$34.04 psf. Owners of commodity product have lowered rates
in an attempt to compete on a pricing basis with higher quality
buildings. Vacancy could increase in the near term with the
delivery of 1775 Tysons Boulevard in the first quarter of 2016 as
new product is added to inventory and pulls tenants from existing
buildings. But as older buildings are renovated, repositioned or
demolished, vacancy should return to equilibrium.

1,500
20%
1,000
16%
500
12%
8%
-500
4%
-1,000
04
05
06
07
08
Net Absorption
09
10
11
12
14 YTD
15
Vacancy Rate
Deliveries
13
Vacancy Rate
Vacancy
18.0%
Square Feet, 000s
0%

7
6
1.8
0.9
1.3
4.3
4.5
4.1
4.1
Q4 10
Q4 11
Q4 12
Q4 13
5
MSF
Market Indicators
1.9
1.3
1.3
1.8
1.9
4.9
4.9
4.7
4.7
Q4 14
Q1 15
Q2 15
Q3 15
4
3
2
1
0
Vacant
Asking Rent
$39
The arrival of the Silver Line Metro in Tysons has created

a bifurcated market in which buildings proximate to
Metro stations have captured the majority of demand
and those farther off Metro have either returned space
or lost deals. In an effort to become more competitive,
owners of buildings located off Metro will either have
to lower rates, build competitive spec suites, or find
a way to activate retail in the properties to entice
tenants.
$37
Full Service PSF
Outlook
$35
$33
$31
$29
$27
$25
2009
2010
2011
Class A
2012
2013
2014
2015
Class B
Reston/Herndon
Vacancy
13.1%
Net Absorption
Under Construction
Deliveries
Asking Rent
43,400 SF
0 SF
0 SF
$27.78 FS
The Toll Road submarkets command rates which are among the
highest asking rents outside the Beltway, averaged $30.09 per

2,500
20%
end of the third quarter of 2015. Over the past five years, the Toll
2,000
16%
Road submarkets have displayed strong leasing fundamentals,

as Reston and Herndon have absorbed 946,000 square feet per
year. In the third quarter alone, Reston/Herndon accounted for
nearly 43,500 sf of net absorption. Tenants in Northern Virginia
continue to exhibit a preference for quality space and the Toll
Road submarket boasts 23.7 million square feet of Class A
Square Feet, 000s
square foot, full service for existing Class A direct space at the
1,500
12%
1,000
product. With a large supply of quality product, the Toll Road
8%
500
4%
0
-500
continues to benefit from robust demand drivers and amid limited
Vacancy Rate
Market Indicators
04
new deliveries, Reston and Herndon have seen their vacancy
05
plummet. Vacancy currently sits at 13.1%, well below the 18.6%
06
07
08
Net Absorption
measured across the entire region and by far the lowest among
09
10
11
12
Deliveries
13
14 YTD
15
0%
Vacancy Rate
NoVA submarkets. There were a number or large leases signed

throughout the submarket in the third quarter notably Parsons
Brinckerhoffs 31,000 sf lease at 13530 Dulles Technology Drive
and American Institute of Aeronautics and Astronautics 16,600
sf lease at 12700 Sunrise Valley Drive.
in Northern Virginia, but among suburban markets nationwide.
2.3
1.2
1.8
4.8
4.6
4.5
Q4 10
Q4 11
Q4 12
5
MSF
Reston Town Center (RTC) continues to be a stronghold not only
countless amenities, RTC has the lowest vacancy rate of any
minimarket in Northern Virginia at 3.0% (Northern Virginia at
1
0
high as $44.81 per square foot.
Vacant
Outlook
Construction could be around the corner for the Toll

Road as the last completed office project delivered in
2009.

With the ever-increasing competitive nature of RTC,

expect tenants to extend their search for quality space
in the direct surrounding areas in order to remain close
to the amenities and the strong tenant base located
at RTC. This search for quality also makes speculative
development a distinct possibility in the next two
2.2
4.0
4.2
4.2
4.0
4.0
Q4 13
Q4 14
Q1 15
Q2 15
Q3 15
$32
The Toll Road currently has 23.7 msf of Class A

product but only 2.5 msf of that was built after 2006.
2.2
Asking Rent
$30
Full Service PSF
2.2
With a majority of the office product built after 2000 and
18.6% overall). In 2013 and 2014, RTC achieved average rents as
2.7
2.2
$28
$26
$24
$22
$20
2009
2010
2011
Class A
2012
2013
2014
2015
Class B
years.
50/66
Vacancy
16.3%
Net Absorption
Under Construction
Deliveries
Asking Rent
(91,900) SF
0 SF
0 SF
$28.59 FS
The 50/66 corridor, composed of the submarkets Merrifield,

Vienna, Oakton, Fairfax Center and Fairfax City, saw a decline in

600
(sf) during the third quarter of 2015. The largest lease in the
400
corridor during the third quarter was that of Pulte which signed
for 32,500 sf of relet space at 9302 Lee Highway in Vienna.
For the 26-building, 1.2 million sf submarket, Vienna noticed its
vacancy rate dip by a full 2.0% from the previous quarter, down to
5.0%. The submarket continued to show noticeable activity in the
Square Feet, 000s
demand as net absorption totaled negative 91,900 square feet
20%
16%
200
0
12%
-200
8%
-400
-600
government contractor sector. Providing NASA and the Federal
-800
government with cloud support and state-of-the-art IT solutions,
-1,000
Accelera Solutions Inc. signed a renewal and expansion for a total
Vacancy Rate
Market Indicators
4%
04
05
of 21,500 sf at 12150 Monument Drive in Fairfax Center.
06
07
08
Net Absorption
09
10
Deliveries
11
12
13
14 YTD
15
0%
Vacancy Rate
After a second quarter that registered competition in both class

A and class B properties, the third quarter experienced quite the
opposite. Throughout the third quarter, class A product captured
6.0
the majority of demand registering 40,600 sf of net absorption
5.0
while Class B commodity product was subject to 136,500 sf of
4.0
(psf) from $28.69 psf at mid-year to $28.59 at the end of the

third quarter. The separation between class A properties and
MSF
negative net absorption. Rents dropped by $0.10 per square foot
3.0
commodity product continues to be particularly wide as top class
2.0
properties are asking for $6.76 psf higher rents than class B.
1.0
0.0
0.9
3.1
Q4 10
0.3
1.2
1.2
1.1
3.1
2.9
3.0
3.0
With no construction projects currently underway and

with the success of the Mosaic District, expect future
development in the area to place more emphasis
on amenities to meet changing tenant preferences.
Rumors that the Mosaic District could move on a spec
office site to follow on the success of 2905 District
Avenue have been whispered.
Government contractors continue to be one of the
primary drivers of the 50/66 office market. The
two year budget recently passed with $80 billion in
increased spending should provide increased demand
for office space through 2017.
1.4
3.2
3.2
3.3
Asking Rent
$34
$32
Full Service PSF
1.6
Q4 11 Q4 12 Q4 13 Q4 14 Q1 15 Q2 15 Q3 15
Vacant
Outlook
1.3
$30
$28
$26
$24
$22
2009
2010
2011
Class A
2012
2013
2014
2015
Class B
Vacancy
26.4%
Under Construction
Net Absorption
0 SF
17,200 SF
The Springfield/Newington submarket experienced positive Q3

net absorption of 17,189 square feet (sf), bumping year-to-date
Deliveries
Asking Rent
0 SF
$31.51 FS

500
32%
at 26.1%, 2.1 percentage points lower than the level seen at the
400
28%
300
24%
200
20%
100
16%
12%
end of 2014, but much higher than its 2010 level of 7.9%. Class
A vacancy is the highest in the region, at 37.7%, with class B at
19.0%. Despite maintaining the highest class A vacancy in the
region, class A rents remain higher than those of any submarket
Square Feet, 000s
absorption up to 83,700 sf. The vacancy rate currently stands
-100
8%
deal of the quarter was Calibre Systems renewal of 72,344 sf at
-200
4%
6354 Walker Drive. This deal is characteristic of the contracting
-300
outside the Beltway, averaging $37.93 per square foot. The largest
sector as a whole, which after several years of downsizing due
04
05
to sequestration and general budgetary uncertainty, is now
06
07
08
Net Absorption
stabilizing.
09
10
11
12
Deliveries
13
14 YTD
15
Vacancy Rate
Market Indicators
0%
Vacancy Rate

The Springfield/Newington submarket appeared to lose out
2.5
on landing the half-million-sf TSA requirement as the agency

announced that it had signed a deal at 5001 Eisenhower Avenue.
2.0
now being considered in federal courts. Boston Properties had

lobbied for an alternate location near the Franconia-Springfield
MSF
But a dispute surrounding the merits of awarding that deal is
Metro and maintains that its location is superior given the agency
requirements and criteria. The Springfield/Newington submarket
1.5
0.5
is the smallest out of 8 tracked submarkets in Northern Virginia,

at 5.6 msf (million square feet), and would thus disproportionally
0.0
benefit from landing a large tenant such as the TSA, or a few
0.4
1.0
0.3
0.9
0.4
0.4
0.5
1.5
1.6
1.5
0.7
0.7
1.5
1.4
0.4
0.9
0.4
Q4 10
years into the future, the FBI, which has also expressed interest
Q4 11 Q4 12 Q4 13 Q4 14 Q1 15 Q2 15 Q3 15
Vacant
in the area.
Asking Rent
$40
With the Springfield Malls overhaul and transformation

into the Springfield Town Center, the surrounding area
may soon be seeing over 1.0 msf of office development
and various multifamily projects. Springfield will have
an opportunity to turn the mall and surrounding area
into a hub of activity centered on a retail district,
similar to how the Mosaic District has transformed
Merrifield. Springfields location at the interstation of
I-95, I-495, and I-395 make this an attractive location
for logistics companies and workers seeking lessexpensive housing with a quick commute to Tysons,
Alexandria, and Arlington.
Full Service PSF
Outlook
$36
$32
$28
$24
$20
2009
2010
2011
Class A
2012
2013
2014
2015
Class B
Route 28 South
Vacancy
19.6%
Net Absorption
Under Construction
Deliveries
Asking Rent
35,000 SF
161,000 SF
0 SF
$24.69 FS
Vacancy in the Route 28 South submarket currently stands at

19.6%. This level has increased steadily since 2011, as leasing
has trended towards more transit-accessible submarkets such

currently stand at $26.34 per square foot (psf), an increase of
0.3% from a year ago, and class B at $21.38 psf, a year-overyear decrease of 5.6%. Rental rates in western Fairfax County
submarkets, including the Route 28 South corridor, provide a
meaningful discount to closer-in markets such as Tysons Corner
and Merrifield. As such, these western submarkets continue to
Square Feet, 000s
as Reston/Herndon and Tysons. The class A average direct rent
2,000
24%
1,500
20%
16%
1,000
attract companies looking to capitalize on this value while still
12%
500
0
-500
demanding quality space. The submarket experienced positive
8%
net absorption this quarter, as OG Systems moved into 35,000
4%
04
05
square feet (sf) at 14291 Park Meadow Drive and a confidential

contractor expanded by 35,000 sf at 15059 Conference Center
Drive. The largest new lease was that of Stanley Martin Companies,
07
08
09
10
11
12
Deliveries
13
14 YTD
15
0%
Vacancy Rate

4.0
3.5
In July, Akridge proposed infusing the Westfields Corporate
1.0
3.0
Center campus with 650 multifamily units, 20,000 sf of retail,
2.5
MSF
walking trails, and a performance center. This mixed-use project

and provide inspiration for other high-vacancy suburban office
06
Net Absorption
which took 14,299 sf at 14200 Park Meadow Drive.
could breathe life into submarket lacking mixed-use development
Vacancy Rate
Market Indicators
parks looking for a refresh. The second of COPTs two Stonecroft
2.0
0.5
0.5
date in the second quarter of 2016. Initially, it was thought the
0.5
U.S. Government would occupy both 4850 and 4870 Stonecroft
0.0
Boulevard; while that remains a possibility it now appears that
2.3
Q4 10
the building will be marketed for lease. Demand for a new quality
1.9
1.1
2.2
2.5
2.7
2.7
2.7
Q4 11 Q4 12 Q4 13 Q4 14 Q1 15 Q2 15 Q3 15
Vacant
building proximate to a government tenant will be a good
2.1
0.9
0.9
1.5
1.0
buildings remains under construction with an anticipated delivery
0.4
0.8
indicator of where the submarket is trending.
The passing of a 2-year budget deal with $80 billion

in increased spending authority provides longneeded clarity to government contractor tenants that
dominate the Route 28 S market. Tenants interested
in being close to the National Reconnaissance Office,
Central Intelligence Agency, and a variety of private
contractors such as SRA, Scitor, Lockheed Martin,
Boeing, and Booz Allen, would be well-suited to
consider this corridor. With the effects of sequestration
and BRAC waning, existing government contractors in
the area are experiencing relative stability, and those
looking to locate near this critical mass of agencies
and defense companies have the ability to do so at
attractive rental rates.
Asking Rent
$30
$28
Full Service PSF
Outlook
$26
$24
$22
$20
$18
2009
2010
2011
Class A
2012
2013
2014
2015
Class B
Loudoun County
Vacancy
16.9%
Net Absorption
Under Construction
Deliveries
Asking Rent
(14,600) SF
20,500 SF
0 SF
$23.53 FS
Although Loudoun County experienced negative net moveouts in Q3 to the tune of 14,622 square feet (sf), year-to-date
net absorption remains positive at 159,200 sf. Vacancy currently
quarter. The class A rental rate currently stands at $24.53 psf (per
square foot), a decrease of 1.2% from last year, and class B at
$19.75 psf, a year-over-year decrease of 5.4%. Loudoun rents are
the lowest out of the 8 tracked submarkets in Northern Virginia.
The largest move-in of the quarter was that of CGI, which took
58,000 sf at 22980 Indian Creek Drive. The largest new deal of
Square Feet, 000s
stands at 16.9%, a decrease of 0.1 percentage point from last
800
700
600
500
400
300
200
100
0
-100
-200
the quarter was Carpathia signing for 25,024 sf at 21000 Atlantic
24%
20%
16%
12%
8%
Vacancy Rate
Market Indicators
4%
04
05
Boulevard. CGI and Carpathia are both technology companies
06
07
08
Net Absorption
and further add to the base of government contractors and
09
10
11
12
Deliveries
13
14 YTD
15
0%
Vacancy Rate
tech companies taking advantage of lower rents and abundant

fiber connections found in Loudoun County. Over the past two
years, the Loudoun data center market has experienced more
3.0
absorption than other data center market in the country, and this
2.5
demand is expected to grow.
5 million-sf development on 335 acres. Plans involve transforming
MSF
In September, the Loudoun board voted to approve Waterside, a
0.7
2.0
0.4
0.4
0.1
0.3
0.3
0.1
1.5
1.0
a former quarry into a walkable, mixed-use community to include
0.6
1.9
2.0
1.9
2.1
2.1
2.0
1.9
1.9
Q4 10
Q4 11
Q4 12
Q4 13
Q4 14
Q1 15
Q2 15
Q3 15
0.5
2,200 multifamily units, and 3.8 million sf of office, hotel, retail,
0.0
and civic use. Although this development will take several decades
to complete, it has the potential to transform an area known for
Vacant
office parks and industrial facilities into a future edge city and can
provide a blueprint and case study for other communities looking

to do the same.
Asking Rent
$28
Outlook
Loudoun County is one of the fastest growing counties
in the nation. It has struggled to find an appropriate
balance between residential developmentwhich
is in high demand but takes a heavy toll on public
resources (such as roads and schools)and
commercial development which generally pays more
into the tax base than it draws. Expect to continue to
see conditions that require the commercial portions
of large developments to be constructed prior to
allowing additional residential development.
Full Service PSF
$26
$24
$22
$20
$18
$16
2009
2010
2011
Class A
2012
2013
2014
2015
Class B
Appendix
Table Summaries
Metro Washington Office
Market Summary
13
Employment Data
13
Office Availability, Vacancy,
and Net Absorption
14
Metro Washington Office Market Summary: Third Quarter 2015p

Total
Inventory
Total Space
Vacant
Vacancy
Rate
Q3 2015
Absorption
YTD
Absorption
Washington, DC
123,122,911
13,612,467
11.1%
268,706
518,835
Northern Virginia
163,278,088
30,366,384
18.6%
97,405
270,010
Suburban Maryland
72,899,650
13,600,005
18.7%
93,027
306,374
Regional Totals
359,300,649
57,578,856
16.0%
459,138
1,095,219
Trailing 12-Month Data

15
Historical Year-End Data
16
Metro Washington Current Employment Data

Non Farm
Employment
(Jan-Sep 2014)
Non Farm
Employment
(Jan-Sep 2015p)
Jobs Added/
Lost*
Percent Change
Washington, DC
751,400
763,400
12,000
1.6%
Northern Virginia
1,377,800
1,401,700
23,900
1.7%
957,900
976,700
18,800
2.0%
3,104,700
3,162,800
58,100
1.9%
Market Statistics by Class

17-18
Survey of New Office Space
by Submarket
19-22
Methodology & Definitions
23
Suburban Maryland
Regional Totals
SOURCE: U.S. Bureau of Labor Statistics (Not seasonally adjusted)

* Average per year to date
p - preliminary
441,774
1,337,375
895,601
0
336,174
7,821,644
11,036,748
1,781,463
35,700,235
22,882,024
8,059,172
4,883,598
7,914,855
20,857,625
56,557,860
26,087,223
18,308,262
11,737,088
7,878,879
1,170,945
1,010,261
6,538,055
Ballston
Crystal City
Pentagon City
Arlington County
Old Town
Eisenhower
I-395
Alexandria
Inside the Beltway2
Tysons Corner
Reston
Herndon
Merrifield
Vienna
Oakton
Fairfax Center
0
84,660
212,761
19,950,905
6,160,982
4,290,607
1,048,948
11,500,537
106,720,228
163,278,088
50/663
28 North
Route 7
Leesburg
Loudoun County
Outside the Beltway2
Northern Virginia
551,291
25,590,398
15,439,313
1,548,796
110,373
731,223
707,200
3,145,756
13,890,517
775,700
2,348,500
466,893
980,457
278,090
58,507
1,361,809
1,205,930
2,326,840
4,087,791
10,151,085
3,315,723
2,340,324
147,417
827,982
4,121,383
6,835,362
791,219
1,922,760
1,263,632
239,508
495,823
2,122,420
Relet Space
Vacant
1,724,078
1,151,078
85,688
6,560
10,640
68,488
71,251
1,065,390
119,272
134,164
9,788
31,486
5,453
24,524
156,951
208,411
375,341
573,000
327,017
236,919
19,743
70,355
192,756
245,983
53,227
46,671
52,023
62,126
31,936
Sublet Space
Vacant
30,366,384
17,968,750
1,942,512
127,540
954,624
860,348
3,252,070
16,026,238
1,446,263
2,666,229
476,681
1,011,943
283,543
58,507
1,421,396
1,399,036
2,571,812
4,690,828
12,397,634
3,978,914
2,577,243
500,097
901,574
5,209,740
8,418,720
791,219
2,417,761
1,385,250
291,531
831,801
2,701,158
Total Space
Vacant
18.6%
16.8%
16.9%
12.2%
22.2%
14.0%
16.3%
16.8%
26.1%
19.6%
14.2%
15.5%
28.1%
5.0%
18.0%
11.9%
14.0%
18.0%
21.9%
19.1%
32.6%
10.2%
11.2%
22.8%
23.6%
44.4%
21.9%
17.7%
26.0%
16.2%
30.6%
Vacancy
Rate
679,764
40,162
13,547
1,338
7,690
4,519
26,615
5,178
21,437
639,602
605,998
605,998
33,604
33,604
33,604
New Space
Absorption
(717,056)
(174,779)
(29,392)
(3,533)
(2,767)
(23,092)
(133,841)
(145,387)
5,589
43,960
(28,340)
(66,571)
(45,209)
26,283
(20,004)
(42,404)
39,209
(57,900)
(542,277)
(66,133)
(36,807)
4,786
(34,112)
(44,605)
(476,144)
(509,463)
77,924
(66,508)
107,846
(85,943)
Relet
Absorption
134,697
112,041
1,223
(1,150)
(9,102)
11,475
41,921
110,818
6,422
(8,964)
400
21,139
(2,244)
22,626
(10,071)
56,715
24,795
22,656
(1,634)
(9,318)
(8,940)
16,624
44,071
24,290
(19,781)
3,221
1,876
7,638
31,336
Sublet
Absorption
P - Preliminary
1 The Rosslyn/Ballston (R/B) corridor is comprised of Rosslyn, Clarendon/Courthouse, Virginia Square, and Ballston submarkets.

2 Inside the Beltway is comprised of Arlington County and Alexandria/Outside the Beltway is comprised of Fairfax and Loudoun Counties

3 The 50/66 corridor is comprised of Merrifield, Vienna, Oakton, Fairfax Center, and Fairfax City submarkets.

****New Space Available and New Space Absorption based on buildings delivered 2005 to present
3,051,908
1,378,359
308,028
10,607
35,063
1,070,331
5,551,040
95,219,691
183,565
Fairfax County
28 South
35,063
36,155
36,561
227,696
1,673,549
332,937
3,237
3,352,765
13,585,173
Fairfax City
R/B Corridor
74,947
1,120,831
Virginia Square
273,852
5,122,147
Clarendon/Courthouse
546,802
8,817,402
New Space
Vacant
Rosslyn
Total
Inventory
Office Availability, Vacancy, and Net Absorption, Third Quarter 2015p
97,405
(22,576)
(14,622)
(3,345)
(4,179)
(7,098)
(91,920)
(7,954)
17,189
34,996
(27,940)
(45,432)
(47,453)
26,283
2,622
(52,475)
95,924
(11,668)
119,981
538,231
559,873
(4,154)
(17,488)
33,070
(418,250)
(509,463)
58,143
(63,287)
1,876
149,088
(54,607)
Total Net
Absorption
Appendix
7,332,378
11,245,356
7,914,855
20,908,388
7,878,879
1,170,945
1,120,831
7,332,378
11,245,356
1,781,463
35,160,246
22,133,427
8,109,935
4,883,598
7,914,855
20,908,388
56,068,634
26,087,223
18,308,262
11,737,088
7,878,879
1,219,275
1,010,261
6,538,055
VA Square
Ballston
Crystal City
Pentagon City
Arlington Cnty
R/B Corridor1
Old Town
Eisenhower
I-3954
Alexandria
Inside the Beltway2
Tysons
Reston
Herndon
Merrifield
Vienna
Oakton
Fairfax Center
162,590,838
Northern Virginia
162,681,793
106,671,129
11,451,438
6,111,883
19,950,905
95,219,691
5,551,040
162,739,763
106,720,228
11,500,537
1,048,948
4,290,607
6,160,982
19,950,905
95,219,691
5,551,040
13,585,173
3,352,765
6,538,055
1,010,261
1,170,945
7,878,879
11,737,088
18,308,262
26,087,223
56,557,860
20,857,625
7,914,855
4,883,598
8,059,172
22,882,024
35,700,235
1,781,463
11,036,748
7,821,644
1,120,831
5,122,147
8,817,402
2nd Qtr
2015
163,278,088
106,720,228
11,500,537
1,048,948
4,290,607
6,160,982
19,950,905
95,219,691
5,551,040
13,585,173
3,352,765
6,538,055
1,010,261
1,170,945
7,878,879
11,737,088
18,308,262
26,087,223
56,557,860
20,857,625
7,914,855
4,883,598
8,059,172
22,882,024
35,700,235
1,781,463
11,036,748
7,821,644
1,120,831
5,122,147
8,817,402
3rd Qtr
2015p
18.8%
17.1%
17.9%
12.9%
24.4%
14.2%
15.1%
17.0%
28.2%
18.8%
13.9%
14.8%
23.0%
10.5%
15.7%
12.7%
14.4%
18.9%
22.1%
20.6%
36.6%
10.2%
11.2%
22.9%
22.9%
14.4%
24.4%
19.0%
26.1%
14.0%
30.7%
4th Qtr
2014
19.0%
17.3%
17.1%
13.7%
23.2%
13.5%
16.3%
17.4%
26.8%
20.2%
13.7%
15.0%
23.1%
7.2%
18.9%
12.4%
14.6%
18.9%
22.1%
20.9%
37.1%
10.6%
11.4%
22.6%
22.8%
14.4%
24.5%
18.8%
26.0%
14.0%
30.2%
1st Qtr
2015
18.7%
16.8%
16.8%
11.8%
22.2%
13.8%
15.8%
16.8%
26.4%
19.9%
13.4%
14.8%
23.4%
7.2%
18.1%
11.5%
14.6%
17.9%
22.1%
21.7%
39.6%
10.2%
11.0%
22.9%
22.4%
15.8%
22.4%
16.9%
26.2%
19.1%
30.0%
2nd Qtr
2015
Office Vacancy Rate
18.6%
16.8%
16.9%
12.2%
22.2%
14.0%
16.3%
16.8%
26.1%
19.6%
14.2%
15.5%
28.1%
5.0%
18.0%
11.9%
14.0%
18.0%
21.9%
19.1%
32.6%
10.2%
11.2%
22.8%
23.6%
44.4%
21.9%
17.7%
26.0%
16.2%
30.6%
3rd Qtr
2015p
(426,322)
(361,641)
25,197
2,246
17,335
5,616
8,350
(386,838)
(71,313)
(67,674)
(5,722)
10,012
7,584
3,116
(6,640)
(25,003)
102,302
(333,500)
(64,681)
(111,871)
(168,789)
25,021
31,897
(73,891)
47,190
121,081
(55,519)
(10,746)
(18,880)
11,254
4th Qtr
2014
(197,473)
(166,656)
91,512
(7,481)
52,399
46,594
(219,294)
(258,168)
42,427
(63,042)
5,522
(13,442)
(800)
(4,644)
(205,930)
40,964
(41,206)
(18,017)
(30,817)
(74,420)
(35,734)
(18,575)
(20,111)
56,346
43,603
(12,743)
13,587
1,143
1,430
40,186
1st Qtr
2015p
370,078
440,293
82,262
19,042
43,631
19,589
89,454
358,031
24,120
37,960
11,249
12,228
(2,775)
(99)
68,851
103,512
11,948
91,037
(70,215)
(142,808)
(203,437)
19,343
41,286
28,770
72,593
(24,907)
68,730
54,352
(1,726)
(42,144)
18,288
2nd Qtr
2015
Total Office Absorption

2 Inside the Beltway is comprised of Arlington County and Alexandria/Outside the Beltway is comprised of Fairfax and Loudoun Counties.


4 The I-395 and Springfield/Newington submarkets were updated in the second quarter of 2012 with additional inventory.

p- preliminary
106,613,159
Outside the Beltway2
1,048,948
Route 7
1,048,948
6,111,883
4,290,607
28 North
11,451,438
19,999,235
50/663
Leesburg
95,161,721
Fairfax County
Loudoun County
4,290,607
5,598,640
Springfield/
Newington4
3,352,765
28 South
13,585,173
3,352,765
13,431,273
Fairfax City
6,538,055
1,010,261
11,737,088
18,308,262
26,087,223
56,068,634
4,883,598
8,109,935
22,133,427
35,160,246
1,781,463
1,120,831
4,862,816
4,862,816
Clarendon/
Courthouse
8,817,402
8,817,402
1st Qtr
2015
Total Office Inventory
Rosslyn
4th Qtr
2014
Trailing 12-Month Data
97,405
(22,576)
(14,622)
(3,345)
(4,179)
(7,098)
(91,920)
(7,954)
17,189
34,996
(27,940)
(45,432)
(47,453)
26,283
2,622
(52,475)
95,924
(11,668)
119,981
538,231
559,873
(4,154)
(17,488)
33,070
(418,250)
(509,463)
58,143
(63,287)
1,876
149,088
(54,607)
3rd Qtr
2015p
Appendix
22,001,420
20,908,388
56,095,887
25,471,289
18,308,262
11,737,088
20,063,883
13,056,023
5,558,640
94,195,185
11,395,757
105,590,942
161,686,829
R/B Corridor2
Alexandria4
Inside the Beltway1
Tysons Corner
Reston
Herndon
50/663
28 South
Springfield/Newington4
Fairfax County
Loudoun County
Outside the Beltway*
Northern Virginia
162,681,793
106,613,159
11,451,438
95,161,721
5,598,640
13,431,273
19,999,235
11,737,088
18,308,262
26,087,223
56,068,634
20,908,388
22,133,427
35,160,246
2014
Total Inventory
163,278,088
106,720,228
11,500,537
95,219,691
5,551,040
13,585,173
19,950,905
11,737,088
18,308,262
26,087,223
56,557,860
20,857,625
22,882,024
35,700,235
2015p
17.6%
15.9%
18.0%
15.7%
27.2%
16.5%
14.8%
11.2%
14.7%
16.3%
20.9%
18.1%
20.5%
22.5%
2013
18.8%
17.1%
17.9%
17.0%
28.2%
18.8%
15.1%
12.7%
14.4%
18.9%
22.1%
20.6%
22.9%
22.9%
2014
Vacancy Rate (%)
18.6%
16.8%
16.9%
16.8%
26.1%
19.6%
16.3%
11.9%
14.0%
18.0%
21.9%
19.1%
22.8%
23.6%
2015p
(174,990)
399,258
(127,022)
526,280
(239,973)
270,089
(77,341)
280,780
400,148
(107,423)
(574,459)
145,837
(836,033)
(720,085)
2013
(379,784)
(117,331)
87,697
(205,028)
(27,485)
217,655
(116,436)
(181,319)
33,134
(130,577)
(262,453)
(179,900)
(321,501)
(82,553)
2014
85,116
116,196
2015p
172,605
273,637
173,774
99,863
66,547
(25,082)
(129,840)
144,476
(29,258)
73,020
(101,032)
(217,228)
Total Annual Absorption
1 Inside the Beltway is comprised of Arlington County and Alexandria/Outside the Beltway is comprised of Fairfax and Loudoun Counties



4 The I-395 and Springfield/Newington submarkets were updated in the second quarter of 2012 with additional inventory.
35,187,499
Arlington County
2013
Historical Year-End Data
Appendix
Market Statistics
Northern Virginia 3rd Quarter 2015 Market Statistics
Buildings
Total
Inventory
(SF)
New
Vacancy
(%)
Relet
Vacancy
(%)
Sublet
Vacancy
(%)
Total
Vacancy*
(%)
Total
Availability
(%)
Net
Absorption
Current QTR
(SF)
Under
Construction
(SF)
Average
Asking
Rent
(FS)
Alexandria
Class
A
77
11,247,435
3.0%
13.4%
2.6%
19.0%
23.8%
566,713
720,000
$31.83
138
8,717,254
0.0%
20.3%
0.4%
20.7%
21.5%
(18,266)
$30.55
36
892,936
0.0%
4.0%
0.0%
4.0%
4.5%
(10,216)
$22.98
TOTAL
251
20,857,625
2.6%
15.9%
1.6%
19.1%
22.3%
538,231
720,000
$31.02
87
22,558,060
5.9%
15.3%
0.9%
22.1%
31.3%
50,811
552,781
$41.93
67
11,813,994
0.0%
27.1%
0.4%
27.5%
29.2%
(446,049)
$37.33
15
1,328,181
0.0%
14.0%
0.0%
14.0%
52.0%
(23,012)
$33.66
TOTAL
169
35,700,235
3.7%
18.2%
0.7%
23.6%
31.0%
(418,250)
552,781
$39.69
Arlington
Class
Tysons Corner
Class
A
76
17,554,706
1.3%
14.8%
1.5%
17.6%
24.6%
(15,929)
476,913
$33.74
89
8,395,873
0.0%
17.5%
1.3%
18.8%
27.5%
2,661
$27.20
136,644
0.0%
11.3%
0.0%
11.3%
7.3%
1,600
$23.81
170
26,087,223
1.1%
15.7%
1.4%
18.0%
25.2%
(11,668)
476,913
$31.05
TOTAL
Reston/Herndon
Class
A
150
23,736,978
0.2%
10.7%
1.5%
12.4%
20.3%
76,128
$29.41
151
6,101,108
0.0%
16.0%
0.2%
16.3%
20.3%
(18,881)
$21.73
207,264
0.0%
19.2%
0.0%
19.2%
34.6%
(13,798)
$21.84
310
30,045,350
0.2%
11.8%
1.2%
13.1%
20.5%
43,449
$27.78
89
12,343,025
0.3%
18.3%
0.3%
18.9%
27.7%
40,640
$30.39
167
7,109,828
0.0%
11.9%
0.4%
12.4%
16.9%
(136,457)
$23.63
29
498,052
0.0%
7.5%
1.1%
8.6%
12.8%
3,897
$22.08
TOTAL
285
19,950,905
0.2%
15.7%
0.4%
16.3%
23.3%
(91,920)
$28.59
TOTAL
50/66
Class
* Vacancy Current - the vacancy rate is calculated using the combined total of vacant direct, sublease and new space.
Market Statistics
Northern Virginia 3rd Quarter 2015 Market Statistics
Buildings
Total
Inventory
(SF)
New Vacancy
(%)
Relet
Vacancy
(%)
Sublet
Vacancy
(%)
Total
Vacancy*
(%)
Total
Availability
(%)
Net
Absorption
Current QTR
(SF)
Under
Construction
(SF)
Average Asking
Rent
(FS)
Class
A
19
2,302,487
23.9%
8.6%
5.2%
37.7%
40.6%
8,014
$37.93
44
3,033,365
0.0%
19.0%
0.0%
19.0%
39.4%
9,175
$23.24
215,188
0.0%
0.0%
0.0%
0.0%
0.0%
TOTAL
64
5,551,040
9.9%
14.0%
2.1%
26.1%
38.4%
17,189
$31.51
Route 28 South
Class
A
70
9,718,536
1.9%
16.8%
0.4%
19.1%
28.2%
29,915
161,030
$26.34
75
3,848,845
0.0%
18.2%
2.5%
20.7%
29.7%
5,081
$21.38
17,792
0.0%
100.0%
0.0%
100.0%
44.4%
$14.79
148
13,585,173
1.4%
17.3%
1.0%
19.6%
27.9%
34,996
161,030
$24.69
TOTAL
Loudoun County
Class
A
69
6,965,385
4.4%
12.3%
1.1%
17.8%
17.9%
2,594
$24.53
128
4,371,562
0.0%
15.3%
0.2%
15.4%
17.6%
(18,376)
20,500
$19.75
163,590
0.0%
15.7%
0.5%
16.3%
27.3%
1,160
$18.01
202
11,500,537
2.7%
13.5%
0.7%
16.9%
18.0%
(14,622)
49,099
$23.53
TOTAL
Northern Virginia
Class
A
637
106,426,612
3.6%
14.1%
1.3%
18.3%
25.4%
758,886
1,910,724
$32.56
859
53,391,829
0.0%
19.1%
0.6%
19.7%
24.7%
(621,112)
20,500
$28.81
103
3,459,647
0.0%
10.3%
0.2%
10.5%
21.9%
(40,369)
$28.80
1,599
163,278,088
2.3%
15.7%
1.1%
18.6%
24.6%
97,405
1,931,224
$31.50
TOTAL
* Vacancy Current - the vacancy rate is calculated using the combined total of vacant direct, sublease and new space.
The JBG Companies
David Cantrall & Associates
109-111 East Market Street
Corporate Office Properties Trust
4870 Stonecroft Boulevard
Operating Expense and Real Estate Tax Base

FS = Full Service NN = Plus Electric & Char
N = Plus Electric NT = Plus Taxes
NNN = Net of all Operating Expenses and Taxes
Status
N/A
RENTAL RATE
$25.00-$27.00 FS
U/C = Under Construction

U/R = Under Renovation
Total
OWNER/DEVELOPER
BUILDING ADDRESS
Route 28 South
Total
OWNER/DEVELOPER
BUILDING ADDRESS
Leesburg
RENTAL RATE
N/A
USAA Real Estate Company/Lowe

Enterprises
Total
RENTAL RATE
OWNER/DEVELOPER
$55.00-$65.00 FS
RENTAL RATE
BUILDING ADDRESS
Eisenhower Avenue
Total
OWNER/DEVELOPER
BUILDING ADDRESS
Rosslyn
2Q16
DELIVERY
DATE
4Q15
DELIVERY
DATE
1Q17
DELIVERY
DATE
1Q18
DELIVERY
DATE
N/A = No Space Available
U/C
STATUS
U/C
STATUS
U/C
STATUS
U/C
STATUS
161,030
161,030
RENTABLE
BUILDING AREA
20,500
20,500
RENTABLE
BUILDING AREA
720,000
720,000
RENTABLE
BUILDING AREA
552,781
552,781
RENTABLE
BUILDING AREA
Northern Virginia Survey of Office Space Under Construction/Under Renovation
161,030
161,030
AVAILABLE
SPACE
20,500
20,500
AVAILABLE
SPACE
18,012
AVAILABLE
SPACE
195,700
195,700
AVAILABLE
SPACE
0%
0%
PERCENT
PRELEASED
0%
0%
PERCENT
PRELEASED
100%
97%
PERCENT
PRELEASED
65%
65%
PERCENT
PRELEASED
N/A
MAJOR TENANTS
N/A
MAJOR TENANTS
The National Science Foundation
MAJOR TENANTS
Corporate Executive Board
MAJOR TENANTS
Lerner Enterprises
1775 Tysons Boulevard
1Q16
DELIVERY
DATE
U/R = Under Renovation

= Plus Electric NT = Plus Taxes
= Full Service NN = Plus Electric & Char
1,931,224
TOTAL CURRENTLY UNDER

CONSTRUCTION/RENOVATION
FS
552,781
2018 DELIVERIES
Status
720,000
2017 DELIVERIES
U/C = Under Construction
20,500
RENTABLE
BUILDING AREA
476,913
476,913
RENTABLE
BUILDING AREA
637,943
U/C
STATUS
2016 DELIVERIES
$55.00 FS
RENTAL RATE
2015 DELIVERIES
Northern Virginia
Summary
Total
OWNER/DEVELOPER
BUILDING ADDRESS
Tysons Corner
Northern Virginia Survey of Office Space Under Construction/Under Renovation
748,198
195,700
18,012
513,986
20,500
AVAILABLE
SPACE
352,956
352,956
AVAILABLE
SPACE
61%
65%
97%
0%
PERCENT
PRELEASED
26%
0%
PERCENT
PRELEASED
N/A
MAJOR TENANTS
Penzance Companies
Invesco Realty Advisors / Penzance
Macerich / Hines
The Peterson Companies
Buckeye Development, LLC
Hoffman Management Company
MRP Realty, Inc.
3001 Washington Boulevard
3003 Washington Boulevard
7900 Tysons One Place
3443 Historic Sully Way
19490 Sandridge Way
7940 Jones Branch Drive
$16.00 NNN
N/A
$55.00-$60.00 FS
$54.00 FS
*Vacancy rate for new space- does not include relet or sublet space available
Tysons Corner
$50.00-$52.00 FS
Eisenhower Avenue Corridor
Route 7
Route 28 South
Tysons Corner
SUBMARKET
Route 28 South
Delivered 4Q14
Renovation
$39.75-$45.00 FS
Completed 3Q14
Delivered 3Q14
Delivered 2Q14
Delivered 2Q14
Delivered 2Q14
Withheld
N/A
RENTAL RATE
N/A
Route 28 North
SUBMARKET
FS
Total
Delivered 1Q14
I-95 Business Parks / Colchester Land

Company
10718 Richmond Highway

Delivered 2Q14
STATUS
OWNER/DEVELOPER
Delivered 1Q15
BUILDING ADDRESS
2014 Deliveries
Total
Corporate Office Properties Trust
$28.00-$29.00 FS
Comstock Partners
43777 Central Station Drive
Delivered 2Q15
Renovation
$44.00-$49.00 FS
Completed 2Q15
Piedmont Office Realty Trust
3100 Clarendon Boulevard
RENTAL RATE
STATUS
OWNER/DEVELOPER
BUILDING ADDRESS
2015 Deliveries
Northern Virginia Survey of New Office Space
1,949,576
321,965
328,626
55,681
375,020
524,979
211,170
92,135
40,000
RENTABLE
BUILDING AREA
462,330
153,900
49,099
259,331
RENTABLE
BUILDING AREA
658,969
140,094
328,404
24,318
97,535
6,649
61,969
NEW SPACE
AVAILABLE
280,983
49,099
231,884
NEW SPACE
AVAILABLE
34%
44%
100%
44%
0%
19%
3%
67%
0%
VACANCY RATE (AS OF

CURRENT QUARTER) *
61%
0%
100%
89%
VACANCY RATE (AS OF

CURRENT QUARTER) *
66%
56%
0%
0%
100%
61%
89%
1%
100%
PERCENT LEASED
UPON DELIVERY
39%
100%
0%
11%
PERCENT LEASED
UPON DELIVERY
Monday Properties
Lowe Enterprises
Monument Enterprises
Rubenstein Partners, LP
Halle Enterprises
Beulah Street LLC II
Zumot Real Estate Management
Duke Realty
1812 North Moore Street
1400 Crystal Drive
901 South Clark Street
7951-7961 Loisdale Road
5680 King Center Drive
6400 Beulah Street Office II
14399 Penrose Place
Clark Enterprises/Fred Schnider Investment

Group/The Shooshan Company
The JBG Companies
Edens, Inc.
ING Clarion Partners, LLC
COPT, Inc.
675 North Randolph Street
800 North Glebe Road
2910 District Avenue
6361 Walker Lane
7770 Backlick Road
*Vacancy rate for new space- does not include relet or sublet space available
Merrifield
N/A
$41.00-$43.50 FS
N/A
Ballston
Ballston
Rosslyn
SUBMARKET
Route 28 South
Route 28 South
Pentagon City
Crystal City
Rosslyn
SUBMARKET
Delivered 4Q12
Delivered 1Q12
Delivered 2Q12
$49.00-$52.00 FS
N/A
$46.00-$47.00 FS
RENTAL RATE
N/A
$29.50 FS
$32.00 FS
$34.50-$37.50
Withheld
N/A
$44.00-$52.00 FS
$50.00-$65.00 FS
RENTAL RATE
FS
Total
Delivered 1Q12
Skanska
Delivered 1Q12
Delivered 4Q12
OWNER/DEVELOPER
STATUS
Delivered 2Q13
Delivered 2Q13
Delivered 3Q13
Delivered 3Q13
Delivered 3Q13
Delivered 4Q13
Delivered 3Q13
Delivered 4Q13
STATUS
BUILDING ADDRESS
2012 Deliveries
Total
OWNER/DEVELOPER
BUILDING ADDRESS
2013 Deliveries
Northern Virginia Survey of New Office Space
1,452,697
240,565
330,582
78,499
311,776
352,740
138,535
RENTABLE
BUILDING AREA
1,922,260
254,578
104,000
35,000
110,047
242,272
332,084
308,898
535,381
RENTABLE
BUILDING AREA
369,207
116,670
166,150
74,947
11,440
NEW SPACE
AVAILABLE
1,136,318
73,000
2,353
73,867
221,316
230,401
535,381
NEW SPACE
AVAILABLE
25%
48%
50%
0%
24%
0%
8%
VACANCY RATE (AS OF

CURRENT QUARTER)*
59%
0%
70%
23%
67%
100%
0%
75%
100%
VACANCY RATE (AS OF

CURRENT QUARTER)*
75%
43%
27%
7%
32%
100%
82%
PERCENT LEASED
UPON DELIVERY
41%
100%
25%
67%
0%
0%
100%
0%
0%
PERCENT LEASED
UPON DELIVERY
Methodology & Definitions

Methodology
Explanation of Terms
Market statistics are calculated

from a base building inventory
made up of office properties
deemed to be competitive in the
typical Washington, DC office
market. Single-tenant buildings and
privately-owned buildings in which
the federal government leases space
are included.
Generally, owneroccupied
and
federally-owned
buildings are not included. Older
buildings unfit for occupancy or ones
that require substantial renovation
before
tenancy
are
generally
not included in the competitive
inventory. Vacant space is defined
as space that is physically vacant and
available immediately. Sublet space
still occupied by the tenant is not
counted as vacant space.
Total Inventory: The total amount

of office space (in buildings greater
than 10,000 square feet) that can be
rented by a Fourth party.
New Space Vacant: First generation,
never-occupied office space in
newly constructed or substantially
renovated buildings, being actively
marketed by a landlord.
Relet
Space
Vacant:
Secondgeneration,
unoccupied
office
space being actively marketed by a
landlord. (Space that is marketed but
largely occupied is not counted as
vacant space.)
Sublet Space Vacant: Secondgeneration, unoccupied space being
actively marketed by a tenant.
(Sublet space that is marketed but
still occupied is not counted as
vacant space.)
Total Space Vacant: The sum of
new, relet, and sublet space that
is unoccupied and being actively
marketed.
Vacancy Rate: The amount of
unoccupied space (new, relet, and
sublet) expressed as a percentage of
total inventory. (Total Space Vacant
divided by Total Inventory.)
Total Space Available: The total

amount of space, both vacant and
occupied, being actively marketed
for lease by a tenant or landlord.
(This includes space that is currently
occupied but marketed for future
availability.)
Availability Rate: The total amount
of space being actively marketed for
lease (both vacant and occupied)
expressed as a percentage of total
inventory. (Total Space Available
divided by Total Inventory.)
Absorption: The net change in
occupied space between two points
in time. (Total occupied space in the
previous quarter minus total occupied
space in the current quarter, quoted
on a net, not gross, basis.)
New Space Absorption: The net
change in occupied new space
between two quarters.
Relet/Sublet Absorption: The net
change in occupied relet and sublet
space between two quarters.
Total Absorption: The The net
change in total occupied (new, relet,
and sublet) space between two
quarters.
Disclaimer
This report and other research materials may be found on our website at www.cushmanwakefield.com. This is a research document of Cushman
& Wakefield in Washington, DC. Questions related to information herein should be directed to the Research Department at 202-463-2100.
Information contained herein has been obtained from sources deemed reliable and no representation is made as to the accuracy thereof.
About Cushman & Wakefield
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+1 202 463 2100
About Cushman & Wakefield

Cushman & Wakefield is a leading global real estate services firm that helps clients
transform the way people work, shop, and live. The firms 43,000 employees in more
than 60 countries provide deep local and global insights that create significant value for
occupiers and investors around the world. Cushman & Wakefield is among the largest
commercial real estate services firms with revenue of $5 billion across core services
of agency leasing, asset services, capital markets, facility services (C&W Services),
global occupier services, investment & asset management (DTZ Investors), project &
development services, tenant representation, and valuation & advisory. To learn more,
visit www.cushmanwakefield.com or follow @CushWake on Twitter.
Publication date: 11.12.15

Copyright 2015 Cushman & Wakefield. All rights reserved.
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Market Report

Northern Virginia | 3rd Quarter 2015

DC Metropolitan Area Oveview...............................................................................3

Cushman & Wakefield | 2

Washington, DC Metropolitan Area

Necessary fiscal clarity coming from the federal government

Average Asking Rent (FS)

Net Absorption/Asking Rent

Net Absorption, MSF

Asking Rent, $ PSF

Washington, DC Metropolitan Area

The Washington, D.C. Metropolitan regions economic

Two Years of Clarity Ahead for the

Net Absorption/Asking Rent

Net Absorption, MSF

Asking Rent, $ PSF

Historical Average = 16.3%

Large Blocks of Contiguous Space

Cushman & Wakefield | 4

Northern Virginia Office Submarkets

VIRGINIA SQUARE - GMU

5001 Eisenhower Avenue

1775 Tysons Boulevard

1110 North Glebe Road

GSA - Department of Homeland Security

6354 Walker Drive

2501 Jamieson Avenue

US Patent and Trademark Office

Old Town Alexandria

8614 Westwood Center Drive

WGL Energy Services

11911 Freedom Drive

Beacon Capital Partners / Boston Properties

7950 Jones Branch Drive

Gannett / Tameres Group and Ilmarinen

1500 Wilson Boulevard

American Real Estate Partners / Dune Capital

Corporate Office Properties Trust / Rubenstein

Key Sales Transactions 3Q 15

Northern Virginia Office Market

Northern Virginia Office Market

Net Absorption - Deliveries - Vacancy, Third Quarter 2015

Inventory and Vacancy by Submarket, Third Quarter 2015

Cushman & Wakefield | 6

Between the end of 2014 and Q3 2015, Alexandrias vacancy

Net Absorption Deliveries Vacancy

Alexandria contains one of the highest vacancy rates in Northern

Square Feet, 000s

Virginia due to contractor move-outs and lack of interest in an

as Transportation Security Agency (TSA) signed a 15-year deal

brings year-to-date absorption to a positive 321,003 sf. The TSA

will be moving out of several buildings in the Pentagon City Area

rate dropped from 20.6% to 19.1%. The I-395 Corridor within

when it occupies the entirety of the currently vacant building in

Vacant and Available Space

commitment to cut its federal leasing footprint and consolidate

agency headquarters into one central location. In a year

characterized by contractor relocations out of the submarket and

Cherokee Avenue in I-395 Corridor, Bacon & Thomas renewal of

9,475 sf at 635 Slaters Lane in Old Town and Guardtimes new

lease of 5,033 sf at 1700 Diagonal Road, also in Old Town.

in Old Town, Marsh & McLennans 12,000-sf renewal at 5500