DULLES, VA-Raytheon Co. is taking 102,691 square feet in two industrial/flex buildings at 23010 and 23011 Ladbrook Dr. here. The two buildings are located within the 340-acre, 1.9-million-square-foot Northwoods flex/industrial park, a development owned by Northwestern Mutual, Broad Street Equities and the Ardent Co.

Raytheon will occupy one entire 70,173-square-foot building and 32,518 square feet in the other. Transwestern’s Caulley Deringer and Stephen Beggs represented the park’s owners. Raytheon was represented by Bob Shue and Steve Burman of Jones Lang LaSalle.

The Raytheon lease brings phase one of the Northwoods project--at 364,829 square feet--to two-thirds occupancy. Other recently completed leases at the park include Niitek, which leased 43,803 square feet, and Kuehne & Nagel, Inc., which leased 30,253 square feet in October 2009. Also, Ward North America leased 64,539 square feet in May 2010 at 22300 Ladbrook Dr. Asking rates at the complex range from $7.75 per square foot triple net to $9.75 per square foot triple net. 

These leases, along with others rumored to be close to completion, are raising hopes that the high vacancy rate along Route 28 North is starting to lessen. Indeed, Northwoods’ location is further away from the airport than other buildings along the corridor--adding credence to the anecdotal evidence that suggests a revival here is in the offing. 

"Yes, I would say this is the beginning of a turnaround for the Corridor," Deringer tells GlobeSt.com. Altogether, he estimates, there have been about 250,000 square feet worth of leases inked along Route 28 North since the beginning of the year. There are also rumors of another tenant about to sign an LOI for 80,000 square feet, he adds. 

Since the beginning of the year, Deringer says, the industrial vacancy rate along the corridor has dropped by slightly less than 10% to approximately 14.6%. He thinks the rate will drop even further, by as much as another 10% to 15% within the next quarter as these new leases are counted. "A lot of these tenants--such as Raytheon--haven’t moved in yet,” Deringer adds. “Once tenants actually occupy the space it triggers a change in absorption levels."