The 2013 Arlington Real Estate Market Review and Forecast 02.26.2013
This Morning’s Presentation • The Washington Area Economy • The Office Market • The Residential Market • The Hotel Market • The Retail Market • Development Trends and Prospects • The Silver Line • Fiscal Status • Challenges
The Washington Area Economy
“I’ve stopped looking for work, which, I believe, helps the economic numbers.”
Annual Job Change United States (000s) 6,000
4,000
2,000
0
-2,000
-4,000
-6,000 1940
1950
1960
1970
1980
1990
2000
2010
Source: Bureau of Labor Statistics
Annual Job Change
Washington DC Metro Area (000s) 140 120 100 80 60
Average = 36
40 20 0 -20 -40 -60
1991
1993
1995
1997
1999
2001
2003
2005
2007
2009
2011
Source: Bureau of Labor Statistics
Change in All Job Sectors Washington DC Metro Area (000s)
Annual Month Over Year
80
Annual
2011
2010
2012
60 40 20 0 -20 -40
Nov
Sep
Jul
May
Mar
Jan
Nov
Sep
Jul
May
Mar
Jan
Nov
Sep
Jul
May
Mar
Jan
2008
2006
2004
-60
Source: Bureau of Labor Statistics
Change in Professional & Business Services Jobs Washington DC Metro Area (000s) Annual Month Over Year
35
Annual
2011
2010
2012
30 25 20 15 10 5 0 -5 Nov
Sep
Jul
May
Mar
Jan
Nov
Sep
Jul
May
Mar
Jan
Nov
Sep
Jul
May
Mar
Jan
2008
2006
2004
-10
Source: Bureau of Labor Statistics
Change in Hospitality Jobs Washington DC Metro Area (000s)
Annual Month Over Year
15
Annual
2011
2010
2012
10
5
0
-5
Nov
Sep
Jul
May
Mar
Jan
Nov
Sep
Jul
May
Mar
Jan
Nov
Sep
Jul
May
Mar
Jan
2008
2006
2004
-10
Source: Bureau of Labor Statistics
Change in Federal Jobs Washington DC Metro Area (000s)
Annual Month Over Year
30
Annual
2011
2010
2012
25 20 15 10 5 0 -5
Nov
Sep
Jul
May
Mar
Jan
Nov
Sep
Jul
May
Mar
Jan
Nov
Sep
Jul
May
Mar
Jan
2008
2006
2004
-10
Source: Bureau of Labor Statistics
Job Change by Sector 2011-2012 Washington DC Metro Area (000s) Education/Health Services State/Local Government Leisure/Hospitality Professional/Business Services Financial
45.7
Construction/Mining Transportation/Utilities Other Manufacturing Information -9.3
Wholesale Trade Federal Government Retail Trade -5.0
0.0
5.0
10.0
15.0
Source: Bureau of Labor Statistics
Job Change by Sector 2012-2017 Washington DC Metro Area (000s) Professional/Business Services Construction Education/Health Services Other Industries (3)* Retail Trade State/Local Government Leisure/Hospitality Information Financial Other Federal Government -50.0
0.0
50.0
100.0
150.0
* Wholesales Trande, Manufacturing, and Transportation/Utilities Source: George Mason University, Center for Regional Analysis
Unemployment 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Arlington
Virginia
US
Note: Arlington through November 2012 Source: Bureau of Labor Statistics
Principal Employers Government U.S. Department of Defense*
Jobs 27,000
Private
Jobs
Deloitte
5,826
U.S. Department of State*
6,000
Accenture
4,200
U.S. Department of Homeland Security*
5,600
SAIC
2,380
U.S. Department of Justice*
5,200
Virginia Hospital Center
2,268
Arlington County School Board
3,937
Marriott International, Inc.*
1,885
County of Arlington
3,698
Booz Allen Hamilton*
1,400
FDIC*
2,900
Lockheed Martin Corp
1,194
National Science Foundation
2,237
Corporate Executive Board
1,157
U.S. Environmental Protection Agency*
2,100
CACI
1,095
U.S. Department of Interior*
1,200
SRA International
Total
59,872
Total
957 22,362
*Estimate
The Office Market
“Yes, I do make things, son. I make things called deals.”
Private Office Market Comparisons Submarket
Office Inventory SF
Vacancy Rate
Average Asking Rate
Downtown Philadelphia
44,202,474
14.7%
$26.10
Chicago Central Loop
41,099,407
13.1%
$31.54
Washington CBD
38,710,591
11.5%
$48.52
Boston CBD
37,473,147
12.7%
$43.79
Arlington County
36,735,543
16.1%
$41.13
Houston CBD
36,514,081
13.7%
$33.09
Los Angeles Downtown
31,125,339
18.0%
$34.32
Dallas CBD
29,799,042
28.1%
$18.93
Denver Downtown
25,608,414
14.1%
$25.45
Minneapolis CBD
23,348,562
17.4%
$12.46
Seattle CBD
20,267,129
14.4%
$31.891
Atlanta Downtown
18,377,678
24.6%
$18.09
1Class
A only Source: CB Richard Ellis; Colliers International; 4th Quarter 2012
Regional Office Availability Submarket
Building Area
Total Available
Sublet Available
Total Vacant
Direct Vacant
Average Asking Rate
Washington East End
47,112,991
6,281,031
648,645
9.9%
9.2%
$52.60
Washington CBD
44,530,121
6,097,619
674.580
10.7%
9.9%
$50.97
Tysons Corner
28,316,730
6,073,599
234,624
16.9%
15.9%
$29.98
RB Corridor
24,259,464
5,251,945
653,667
14.5%
13.4%
$41.24
Reston
18,678,964
4,491.914
784,301
19.1%
16.5%
$28.42
Crystal City/ Pentagon City
12,561,065
2,714,767
204,618
19.9%
19.0%
$39.48
Herndon
12,315,319
2,034,476
372,255
14.9%
13.4%
$26.73
Bethesda/ Chevy Chase
12,017,129
1,507,536
243,840
10.1%
9.0%
$35.80
NoMa
9,684,641
1,279,647
32,375
11.4%
11.0%
$45.27
Capitol Hill
6,230,795
915,330
96,608
9.3%
8.7%
$52.35
Capitol Riverfront
5,474,610
928,905
48,062
14.9%
14.5%
$43.15
Source: CoStar 1/25/13
Arlington Office Availability Submarket
Building Area
Total Available
Sublet Available
Total Vacant
Direct Vacant
Average Asking Rate
Ballston
7,605,009
1,669,674
275,081
14.0%
12.7%
$40.24
Clarendon/Courthouse
5,766,547
911,782
129,245
11.5%
10.0%
$41.26
11,600,017
2,826,176
198,433
22.6%
21.8%
$39.43
Pentagon City
1,232,333
17,546
0
1.4%
1.4%
N/A
Rosslyn
8,927,502
2,281,687
242,012
17.1%
16.4%
$42.32
Virginia Square
1,960,406
392,121
364,442
13.4%
12.0%
$40.11
Outside Metro Areas
2,346,838
274,798
11,773
5.1%
4.6%
$24.57
39,442,430
8,402,143
857,843
16.5%
15.4%
$40.15
Crystal City
Arlington County
Source: CoStar 1/25/13
Buildings Impacted by Federal Actions Building Address
Vacated (SF)
Status
1400 Crystal Drive (1411 Jefferson Davis Hwy)
278,332
Redevelopment for 308,000 SF underway; Completion expected 06/2013
1900 Crystal Drive (1851 S Bell Street)
393,587
Proposed 730,000 SF building approved
220 20th Street
197,804
Redeveloped into 265 apartment units
Presidential Towers 2511 Jefferson Davis Hwy
307,685
Currently marketing
400 Army Navy Drive
202,434
Purchased by LCOR affiliate, plans for multifamily redevelopment
3701 Fairfax Drive
172,837
Currently marketing
223 23rd Street S
185,500
Preliminary planning
4040 N Fairfax Drive
184,211
Renovations underway
Total
1,922,390
Expiration of BRAC Leases 1,000
2530 Crystal Drive 900 1700 N Moore Street 1225 S Clark Street 800 1515 Wilson Blvd
1750 Crystal Drive 2521 S Clark Street 1400-1450 S Eads 2221 S Clark Street
SF (000s)
700 600
3100 Clarendon Blvd* 200 S 12th Street 1101 Wilson Blvd 2450 Crystal Drive
2521 S Clark Street 201 S 12th Street 1401 Wilson Blvd 2451 Crystal Drive
500 400 300 200 100 -
2013
2014
2015
After 2015
*Entire building will be available in 4Q ‘13 Source: Arlington Economic Development
Net Office Absorption 2012 Firm Avison Young
Northern Virginia (2,404,751)
Arlington (1,562,487)
Transwestern
(2,594,000)
(2,146,000)
Cushman & Wakefield
(2,509,225)
(1,809,358)
Cassidy/Turley
(2,015,257)
(1,743,832)
CB Richard Ellis
(2,007,059)
(1,950,351)
Jones Lang LaSalle
(2,318,642)
(1,806,777)
CoStar
(1,409,946)
(1,523,419)
Source: Real Estate Firms
Top Lease Transactions 2012 Tenant GSA - ONR CNA Raytheon Corporate Executive Board E*Trade Financial DRS Technologies US Department of Labor GSA Pacific Architects and Engineers (PAE) GSA Rosetta Stone Arlington County School Board National Electrical Manufacturers Associations Interstate Hotels & Resorts Turner Construction Strategic Investment Management Environ International Corporation CRDF Global Decisive Analytics Corporation
SF 274,000 173,309 114,000 108,000 100,000 92,000 91,438 74,000 71,000 68,000 65,000 62,000 58,000 49,000 37,000 36,000 33,000 26,883 25,000
Address 875 N Randolph Street 3001 Washington Boulevard 1100 Wilson Boulevard 1777 N Kent Street 671 N Glebe Road 2345 Crystal Drive 1100 Wilson Boulevard 251 18th Street South 1320 N Courthouse Road 1225 S Clark Street 1919 N Lynn Street 2110 Washington Boulevard 1300 N 17th Street 4501 N Fairfax Drive 3865 Wilson Boulevard 1001 N 19th Street 4350 N Fairfax Drive 1776 Wilson Boulevard 1235 S Clark Street
The Residential Market
“Hold everything! The P.R. department just sent over this chart.”
Housing Sales & Prices Detached Year
Units Sold
Avg. Price
Condo
Attached Units Sold
Avg. Price
Units Sold
Avg. Price
2012
1,068
$776,044
288
$599,161
1,341
$408,142
2011
884
$750,019
236
$596,117
1,149
$385,080
2010
950
$742,406
276
$547,794
1,233
$371,937
2009
936
$701,059
254
$527,472
1,241
$363,989
2008
1,153
$736,673
284
$541,621
1,233
$392,948
2007
1,029
$804,352
268
$650,368
1,793
$404,591
2006
1,084
$767,858
328
$618,931
1,670
$396,931
2005
1,297
$773,007
386
$617,263
1,807
$384,222
2004
1,400
$641,826
438
$517,132
2,086
$325,521
2003
1,381
$527,910
377
$456,815
1,917
$261,657
Source: Real Estate Business Intelligence
Arlington Total Home Sales as a Percent of NOVA 17% 16.0%
16% 15%
14.5%
14% 13% 12%
11.4%
11.5%
11% 10%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Source: Northern Virginia Association of Realtors
Arlington Average Home Price as a Percent of NOVA 125% 120%
120%
114%
115% 110% 105% 100% 95%
98%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Source: Northern Virginia Association of Realtors
The Hotel Market
“We do all those old tricks electronically now.”
Washington National Airport Annual Change in Passengers 15% 10% 5% 0% -5% -10%
Total Passengers 2012 = 19,579,384 -15% -20%
2000
2002
2004
2006
2008
2010
2012
Source: Metropolitan Washington Airports Authority
Hotel Room Inventory 1,400
12,000
1,200 10,000
800
8,000
600 6,000 400 200
Total Rooms
Change in Rooms
1,000
4,000
0 2,000 -200 -400
1981
1986
1991
1996
2001
2006
2011
0
Source: Arlington Economic Development
Hotel Market Characteristics Area
Occupancy Annual 2012 Change
Average Daily Rate Annual 2012 Change
RevPAR Annual 2012 Change
Washington DC (CBD)
74.9%
-0.4%
$203.37
-1.3% $152.31
-1.7%
Arlington, VA
72.9%
0.8%
$156.99
-2.1% $114.43
-1.3%
Dulles Airport Area
70.5%
-1.0%
$107.27
-0.6%
$75.67
-1.5%
Fairfax/Tysons Corner
64.7%
-0.4%
$131.33
2.1%
$85.02
1.7%
Alexandria
66.9%
0.6%
$129.66
-0.4%
$86.69
0.2%
Bethesda/College Park
64.9%
2.4%
$123.96
-2.1%
$80.41
0.2%
Washington, DC-MD-VA
67.5%
0.3%
$143.84
-0.7%
$97.09
-0.5%
South Atlantic
60.9%
2.5%
$103.28
3.1%
$62.86
5.7%
United States
61.4%
2.5%
$106.10
4.2%
$65.17
6.8%
Source: Smith Travel Research
The Retail Market
Consumer Revenues
12-month rolling average (000$) $3,400
2009
2010
2012
2011
$3,200 $3,000 $2,800 $2,600 $2,400 $2,200 $2,000
Jan
May
Sep
Jan
May
Sep
Retail Sales Tax
Jan
May
Sep
Meals Tax
Jan
May
Sep
Development Trends & Prospects
“There, there it is again—the invisible hand of the marketplace giving us the f inger.”
Development Pipeline Summary No. of Projects
Other SF
Housing Units
Hotel Rooms
Office SF
Under Construction
18
1,621,413
192,259
21,031
3,261
183
Near-term Construction Starts
8
1,995,703
78,535
12,985
721
148
Awaiting Market or Phasing
15
2,186,598
173,905
389,072
1,986
0
Zoning Review
8
3,677,529
131,637
0
1,922
968
Total Pipeline
49
9,442,243
576,700
423,088
7,890
1,299
Stage
Retail SF
Source: Arlington Economic Development
Major Nonresidential Projects Completed Project
2009 0
2010 0
2011 2012 0 309,281
800 N. Glebe Rd.
Submarket Ballston
900 N. Glebe Rd.
Ballston
0
0 142,776
DARPA Building Clarendon Center - North
Ballston Clarendon
0
0
0 120,907
0
0
Clarendon Center - South
Clarendon
0 161,392
0
0
Residence Inn Courthouse
Courthouse
151,110
0
0
Marriott Renaissance & Residence Inn Crystal City
0
0 440,000
0
0
0
0 0
374,379
0
0
0 355,530
National Gateway 1 & 2
Crystal City
Marymount Univ. 26th Street
Outside Metro
0 129,031
0
1776 Wilson Blvd.
Rosslyn
0
0
0 136,749
Hilton Garden Inn
Shirlington
111,222
0
0
0
Randolph Square
Shirlington
195,000
0
0
0
GMU Founder's Hall Total
Virginia Square
0 244,000
0
0
831,711 411,330 826,776 801,560
Source: Arlington Economic Development
Major Nonresidential Projects Under Construction
Office SF
Retail SF
Hotel Rooms
0
1,880
183
0
Clarendon
284,012
22,479
0
0
1400 Crystal Drive
Crystal City
302,765
0
0
0
Boeing Regional Headquarters
Crystal City
453,422
0
0
0
1812 N Moore St
Rosslyn
569,739
11,020
0
21,031
1,609,938
35,379
183
21,031
Project
Submarket
Founder's Square - Marriott
Ballston
3001 Clarendon Blvd.
Total
Other SF Delivery 2Q/13 1Q/14 1Q/13 3Q/14 4Q/13
Source: Arlington Economic Development
Major Nonresidential Projects Approved Project
Submarket
Founder's Square North Office
Ballston
418,810
7,670
0
0
2311 Wilson Blvd.
Courthouse
150,002
7,812
0
14,900
1900 Crystal Drive
Crystal City
719,704
11,290
0
0
National Gateway 3-4-5-6
Crystal City
1,064,298
41,325
0
0
Pentagon Centre
Pentagon City
489,911
33,495
0
0
Central Place
Rosslyn
570,459
44,554
0
9,555
Rosslyn Gateway (2 bldgs.)
Rosslyn
490,056
18,689
148
0
3901 Fairfax Dr.
Virginia Square
178,131
3,200
0
12,985
4,081,371
168,035
148
37,440
Total
Office SF
Hotel Retail SF Rooms Other SF
Source: Arlington Economic Development
Major Residential Projects Completed Submarket
2009 2010 2011 2012 Projects
Ballston
0
0
90
Clarendon
0
244
0
Columbia Pike
423
81 The Jordan, Buckingham Village Towns, Thomas St. Apts. 268 Clarendon Center S., Views at Clarendon, Garfield Park
0 299
0 55 Hundred, Siena Park, Penrose Square
Courthouse
89
0
0
0 Rhodes Hill Square*
Crystal City
266
184
0
0 220 20th Street, North Tract Lofts
0
214
0
0 Crescent Apartments
94
171
0
0 The Shelton, Shirlington Crest*
0
300
0
0 The Millennium
Rosslyn
347
0
0
Virginia Square
108
0
0
Outside Metro
234
217
58
460
1,561 1,330
447
993
East Falls Church Nauck Pentagon City
Total
184
Hilltop House 100*, Turnberry Tower*, Gaslight Square*, Grayson Flats
0 The Amelia The Madison, Alexan 24, Brompton's Cherrydale, The Macedonian, Buckingham Bldg. B, Mosaic at Clarendon
*Condominium Source: Arlington Economic Development
Major Residential Projects Under Construction Project Founder's Square - N. Residential
Submarket Ballston
Units 257
Retail SF 9,035
Delivery 1Q/14
Beacon at Clarendon West
Clarendon
187
18,450
2Q/14
19Nineteen Clarendon Blvd.
Courthouse
198
24,657
4Q/13
2001 Clarendon Blvd.
Courthouse
154
32,840
4Q/13
The Tellus
Courthouse
254
4,354
2Q/14
Arlington Mill
Columbia Pike
122
2,250
4Q/13
Pike 3400
Columbia Pike
301
15,443
2Q/14
Dominion Heights
Lee Highway
66
8,420
1Q/13
Archstone Parkland Gardens
Outside Metro
325
0
2Q/14
Acadia at Metropolitan Park
Pentagon City
411
16,345
2Q/14
Sedona & Slate
Rosslyn
479
12,635
1Q/13
Virginia Square Towers
Virginia Square
540
12,815
2Q/14
3,294
157,244
Total
Source: Arlington Economic Development
Major Residential Projects Approved Project
Submarket
Units
Retail SF
650 N. Glebe
Ballston
163
2,230
The Shell
Columbia Pike
83
6,700
Wakefield Manor
Courthouse
104
0
Airport Plaza IV
Crystal City
198
0
Crystal House Lofts
Crystal City
252
0
Brittany East
Crystal City
360
16,503
Brittany West
Crystal City
331
15,868
2145 Lee Highway
Lee Highway
202
13,257
Central Place
Rosslyn
350
0
Rosslyn Gateway (2 bldgs.)
Rosslyn
273
7,687
2,316
62,245
Total
Source: Arlington Economic Development
Development Cycles
Current Cycle Stage
Future Cycle Stage [+12 Months]
Apt.
Stage 1
Senior Senior
PEAK
Indu Indus.
Stage 6
Hote Hotel
Stage 1
Early
PEAK
For-S For-Sale
Stage 3 ow nt ur n
E m Botto
e yR arl
co
E v
ery
ta
Stage 5
Stage 4
RCLCO
L
rn
ll D
Office
yS arl
ble
le
ntu ow
turn
Resort Resort
ab St e at
D rly
Retail Retail
Stage 2
Office
Fu
Land
Ea
Down
Land
The Silver Line
“My contractor told me Rome would only take a day.”
Office Construction 1980-2012 Arlington and Tysons Corner Rosslyn-Ballston Corridor % Metro
Jefferson Davis Corridor % Metro
Sq Ft
Tysons Corner Sq Ft
% Metro
Washington Metro Sq Ft
% Metro
Period
Sq Ft
1980-1990
8,901,705
5.3%
6,410,358
3.8%
14,266,734 8.5%
168,258,530 100.0%
1991-2000
3,972,728
6.7%
-
0.0%
3,944,016 6.6%
59,712,715 100.0%
2001-2006
3,504,482
5.7%
621,824
1.0%
3,780,588 6.2%
61,278,972 100.0%
2007-2012 Subtotal 1980-2012
2,250,149
5.8%
409,744
1.0%
966,739 2.5%
39,032,654 100.0%
18,629,064
5.7%
7,441,926
2.3%
22,958,077 7.0%
328,282,871 100.0%
2012 Base
24,259,464
5.1%
13,071,653
2.8%
28,316,730 6.0%
475,237,990
100.0%
Source: CoStar
Office Construction 2010-2014 Arlington and Tysons Corner
Submarket Arlington Tysons Corner Northern Virginia Arlington Share of NOVA
2010
2011
2012
2013
2014
171,301
144,000
765,943
858,274
203,365
0
0
0
0
524,432
359,000 1,403,936 1,609,171
727,797
837,701 20.4%
40.1%
54.6%
53.3%
Source: Cassidy Turley
27.9%
Arlington and Tysons
Share of Northern Virginia Occupied Office Space 25% Arlington
Tysons
20%
15%
10%
5%
0%
Current
2011
2009
2007
2005
2003
Source: CoStar
Arlington and Tysons
Share of Washington Metro Occupied Office Space 25% Arlington
Tysons
20%
15%
10%
5%
0%
Current
2011
2009
2007
2005
2003
Source: CoStar
Job Projections 2005-2030 Arlington and Tysons Corner
Rosslyn-Ballston Corridor
Jefferson Davis Corridor
Tysons Corner
Washington Metro
2005 Jobs
80,963
41,435
92,603
3,050,600
2030 Jobs
115,961
68,365
143,036
4,236,900
# Change
34,998
26,930
50,433
1,186,300
Regional Share
3.0%
2.3%
4.3%
100.0%
Source: Metropolitan Washington Council of Governments
Summary of Tax Rates (FY 2013) Arlington and Tysons Corner
Rosslyn Crystal City
Ballston
Tysons
$0.958
$0.958
$0.958
$1.075
Business Improvement District Taxes
0.078
0.045
0.043
0.000
Commercial Transportation Tax
0.125
0.125
0.125
0.110
Stormwater Management Fees/Taxes
0.013
0.013
0.013
0.020
Dulles Rail Phase I
-
-
-
0.220
Pest Infestation
-
-
-
0.001
Tysons Corner Service District1
-
-
-
0.070
$1.174
$1.141
$1.139
$1.496
Real Property Tax
Per $100 Assessed Value (AV) 1Estimated Source: Arlington Economic Development
Household Projections 2005-2030 Arlington and Tysons Corner
Rosslyn-Ballston Jefferson Davis Corridor Corridor
Tysons Corner
Washington Metro
2005 Households
5,897
8,934
7,879
1,871,300
2030 Households
10,114
14,888
17,589
2,531,300
# Change
4,217
5,954
9,710
660,000
Regional Share
0.6%
0.9%
1.5%
100.0%
Source: Metropolitan Washington Council of Governments
Development Intensities Arlington and Tysons Corner
Rosslyn Acres Jobs Change (2005-2030) Household Change (2005-2030)
Ballston/ Crystal City/ Virginia Square Pentagon City
Tysons Corner
302
534
646
2,412
14,717
13,608
26,930
50,433
4,217
4,526
5,864
9,710
Intensity 2005
111.4
78.8
78.1
41.7
Intensity 2030
174.1
112.8
128.9
66.6
62.7
34.0
50.8
24.9
Intensity Change 2005-2030
Source: Arlington Economic Development; Metropolitan Washington Council of Governments
Projects Under Construction 6.0
5.3
GSF (millions)
5.0 4.0
3.2
3.0
3.0
Hotel Retail Residential
1.6
2.0
Office
1.0 0.0
Arlington
Capitol Riverfront
NoMa
Tysons
Sources: Washington DC Economic Partnership data as of 08/12; Fairfax County Department of Planning & Zoning data as of 10/12.
Development Pipeline 20.0
18.3 15.6
15.0
GSF (millions)
15.0
10.0
Hotel Retail
7.3
Residential Office
5.0
0.0
Arlington*
Capitol Riverfront
NoMa
Tysons*
*Arlington has an additional 6.6M and Tysons 36.7M GSF currently in zoning review
Sources: Washington DC Economic Partnership data as of 08/12; Fairfax County Department of Planning & Zoning data as of 10/12.
Fiscal Status
Real Estate Tax Base 65% 59%
60%
60% 58%
56%
55% 50% 45%
52%
55%
53%
35%
54%
54% 51% 51%
49% 51% 48%
49% 49% 47% 45%
44%
40%
57%
41%
42%
46%
46% 43%
40%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Residential
Commercial/Apartment
Source: Arlington County Department of Management and Finance
Real Estate Tax Base Northern Virginia
Alexandria City Arlington County Fairfax City Fairfax County Falls Church City Loudoun County Prince William County 0%
20%
40%
Commercial/Apartments
60%
80%
100%
Residential Source: Arlington Economic Development
Taxes from Business Revenue ($Mil)
% of Total Taxes
$286.0
32.8%
Gross Receipts
61.5
7.0
Personal Property
34.3
3.9
Sales Tax
38.5
4.4
Meals Tax
32.8
3.8
Transient Occupancy
21.8
2.5
Commercial Utility
12.9
1.5
Other
17.2
2.0
$505.2
57.9%
Tax Real Estate
Subtotal
Source: Arlington County Department of Management and Finance
Major Sales Transactions Office Address
Year Built
1005 N Glebe Road
1988
1010 N Glebe Road
Size (SF)
Sales Price
Price/SF
Sale Date
147,880 $52,250,000
$353
2Q12
1986
142,833 $48,992,000
$343
3Q12
400 Army Navy Drive
1964
253,723 $39,000,000
$154
4Q12
2511 Jefferson Davis Highway
1972
383,524 $48,324,000
$126
3Q12
Residential Address
Year Built
Units
Sales Price
320 23rd Street South
1971
451
$175,000,000
Price/Unit Sale Date $388,000
1Q12
Challenges
Challenges in 2013 • Residual BRAC Space 25 Buildings Still Occupied (65 Leases) • Unpredictable Federal Market - OMB; GSA; Politics • Soft Private Market - Space Utilization; Less Contract Volume; Consolidation • Space Utilization - Changed Workplace Practices • Labor Shortages in High End Labor - Migration & Immigration; Federal Retirements • Increased Potential Office Supply - Crystal City; Tysons; NOMA; S. Capitol • Competitiveness - Taxes; Regulations; Incentives
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