DULLES, VA—Earlier this month we reported that DCT Industrial Trust secured a full pre-lease for a two-building, 299,000-square foot development in the Dulles/Route 28 Corridor submarket.

JLL has filled in the blanks for us, with the top line news being that a data center will be the tenant in the space.

The 25-acre industrial development site belonged to Second Generation LLC, which sold it to a joint venture between Seefried Properties and DCT Industrial for $12 million. The pre-lease was secured by the new owners.

JLL's Mid-Atlantic Industrial Practice Group's Mark Levy and John Dettleff represented the seller in the transaction. It also had a hand in procuring the tenant as it ushered the site from raw land status through the process permit to become practically a turnkey development ready for construction, Dettleff tells GlobeSt.com.

"It sold for about $40 FAR per square foot," Dettleff says. "That is a high water mark for the market." It also, he notes, is a price point on par with office FAR pricing in Dulles, illustrating industrial's strength at the moment.

That level of service that JLL provided, he added, is what institutional buyers of industrial properties are looking for right now. "They are not interested so much in raw land but rather what the site can offer in terms of development."

Dettleff declined to provide much information about the data center tenant other than to say it is a provider of data center services and not a company setting up its own data center operations. It's also not a REIT, he added.

There is about 638,000 square feet of industrial space under construction in the Dulles Corridor, of which 50% will be preleased by the end of 2015, JLL estimates. (The data center is not included in that calculation, as construction will start on the project early next year.) This supply is largely coming from two projects: Northwoods, a 2.1 million square foot master-planned business park located in Sterling and TransDulles, an office and industrial park also in Sterling. They are owned by Northwestern Mutual and Duke Realty, respectively.

Northwoods has leased about 16,000 square feet and has a lease out for another 120,000 square feet, Dettleff says. TransDulles has preleased about 50,000 square feet and is negotiating a lease on another 80,000 square feet.

As for new supply entering the pipeline in this market, well, the possibilities are limited. Prologis is under contract on a site and could break ground next year on about 270,000 square feet, Dettleff says, and Northwoods could develop another phase.

"We've gone over all the possible industrial development scenarios and no matter how you look at it, the class A market will remain in the sub 6% vacancy rate for the next three or four years. Net absorption will continue to be robust and we will only be delivering about 400,000 or 500,000 square feet a year."