ALEXANDRIA, VA-This morning ground is scheduled to break on a build-to-suit facility for the National Science Foundation.
The General Services Administration signed the lease in June, in a transaction that turned out to be the largest in 2013 for Northern Virginia. The NSF is taking 660,848 square feet in Q4 of 2016 at the Hoffman Town Center complex, at a rental rate that is more than 30% below the market rate. The deal also provided the government with $35 million, to be applied to further rent savings, relocation, and/or overall operational costs.
Besides the major coup scored by the developer--most federal agencies wind up staying in the current location despite the competitive rates available to them--the project is expected to encourage more development in the area, namely some 2.5 million square feet of office space and about 180,000 square feet of retail space, according to industry estimates.
The new building is expected to pursue LEED Gold certification when it delivers.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
