TYSONS CORNER, VA—With the impending arrival of The Silver Line Metrorail service in Tysons Corner and Reston, VA, CBRE says Phase 1 of the Silver Line will spur increases in commercial office leasing and development in the area.

CBRE released a special report entitled “The Silver Line: Transforming Commercial Real Estate" that estimates an average of 200,000 square feet of net office demand annually through 2017 in Tysons Corner due to increased employment growth and Metro ridership linked to the completion of Phase 1 of the Silver Line this summer. The nearly $3 billion, 11.4-mile Phase 1 of the Silver Line has been under construction for about five years. Phase two of the project that will extend Metrorail another 23 miles through Fairfax County into Loudoun County, VA will be finished in 2018.

CBRE believes the development of high-quality office space in the area will increase rental rates for the Tysons Corner submarket. The report states that nearly 75% of the new development will be located within a 10-minute walk of a Metrorail station. It also recommends that developers focus on building needed multifamily projects and cultivate initiatives geared to attracting young, urban professionals to their projects and the area.

“The Silver Line will transform the landscape of Northern Virginia, driving population and employment growth around the new Metrorail stations,” the report predicts. “By 2050, the population of Tysons Corner is expected to grow six-fold, while employment will almost double.” The report states that the development of the Silver Line will spur an additional 30,000 jobs in Tysons Corner by 2020 and almost double its employment to 200,000 workers by 2050.

The Washington Metropolitan Area Transit Authority predicts the Silver Line will attract approximately 740,000 riders per month in the first year of operation.

The anticipated conclusion of Phase 1 construction has already had its impact on area office rental rates. CBRE states that office rental rates rose 9% to 11% last year for buildings near the Greensboro, Spring Hill and Tysons Corner stations. In addition, new development and redevelopment projects such as Tysons Tower, which has secured some of the highest rates in the area, could eliminate some Class B and C lower-priced space options, thereby driving office rents even higher.