The building is owned by Advance Realty Group, which has 1.6million sf of assets in the DC market. For most of last year its DCportfolio was largely fully leased butthe firm is expecting some vacancies to develop this year as a fewleases come up for renewal, according to David Fisher, SVP andregional managing director of Advance'sWashington, DC region.Currently it has 72,000-sf of space available in its portfolio:35,154-sf at 3650 Concorde Pkwy., which is also located in theAvion Business Park, and 36,692-sf at 45240 Business Court atLoudoun Plaza I in Sterling. All together, it expects to have270,000 sf of space rolling over in its DC area portfolio thisyear.

Lease strategies for many Northern Virginia property owners arein flux as the region struggles to absorb delivery of new buildingsin the face of corporate and government spending retrenchment. Anew GVA Advantis report points to the decision by NorthropGrumman--another major government contractor--to renege on earlierplans to consolidate part of its workforce into one of the newspeculative projects in Herndon as an example. Instead, in Q4 '07it decided to keep workers in existing locations. In NorthernVirginia, by year-end 2007 vacancies rose to 11.3% from a Q3 rateof 10.6% and a 2006 rate of 9.4%, according to the report'sfigures. There is about 4.6 million sf of office space still underconstruction, GVA Advantis also reports.