McLEAN, VA—Tysons Dulles Plaza, a 487,775-square foot three-building complex here that is owned by KBS REIT I, has been repositioning itself to attract new tenants via a variety of strategies. One, it is renovating the property-"a gentrification through a capital assets program," as KBS Capital Advisors Regional President Marc DeLuca, tells GlobeSt.com. Two, it is building speculative office suites aimed at local tenants that waited a bit too long to renew their leases in the hopes of outlasting the construction disruption.

Those are working very well, DeLuca says.

"We are found that a lot of tenants waited to see what would happen with the metro and other projects, and ran out of time to find new space." Usually tenants begin to look for space 12 to 18 months out.

These suites range from 3,000-square feet to 7,000-square feet. The company completed three a few months ago and has already leased two of them. Asking rates are in the low 30s per square foot.

Other developers, such as Vornado Property Trust, have tried this approach as well, especially with buildings emptied out by BRAC. DeLuca thinks the market can support more of these projects, particularly in Northern Virginia.

The building's renovation is also an important part of the repositioning strategy, not to mention the forthcoming metro stop.

"If you look at the rental rate delta between class A and class B product you will see it is substantial. We are adding a fitness center, a new lobby and restaurant and other amenities," DeLuca says. The building will also offer shuttle service to the metro stop and nearby Tysons Corner shopping center.