ARLINGTON, VA–Nestlé USA is relocating its corporate headquarters here from Glendale, Calif. It will move into 1812 N Moore St., a high-profile 390 foot tall, 580,000-square-foot office tower designed to Platinum LEED  standards that delivered in 2013.

The move will start later this year and wrap up by the end of 2018.

To state the obvious, both building owner and the area is pleased with Nestlé's decision to relocate.

1812 N Moore hasn't secured its first tenant yet despite owner and developer Monday Properties' initial expectations that the building would quickly lease up.

Rosslyn's 26.4% Vacancy Rate

The company's move-in will also decrease Rosslyn's vacancy by 2.3%, according to JLL.

Rosslyn, once one of the tightest submarkets in the area, posted the largest year over year vacancy rate drop in Northern Virginia last year of 210 basis points for a vacancy rate of 26.4%, according to Cresa. Northern Virginia closed 2016 with a 20.2% vacancy rate, a change of 60 basis points.

Nestlé USA expects to bring approximately 750 jobs to area when it does open its doors here. The headquarters will house Nestlé USA's corporate functions, its Beverage and Confections & Global Foods divisions, its e-business team and Center for Marketing Excellence.

One of the reasons Nestle is moving across country to relocate is to be closer to its business operations, customers and other important stakeholders, according to a prepared statement by Nestlé USA CEO Paul Grimwood. The area also is attractive to its current employees while offering a great talent pool for the future, he added.

“We carefully considered a number of options and Arlington hits all the marks,” he said.

Currently, 75% of Nestlé USA's factories and 85% of its top customers are located in the eastern half of the United States. In addition, 80% of the company's products are sold east of the Mississippi River, the company said.

Virginia Pulls In Corporate Headquarters

Virginia has attracted a large number of corporate headquarters in recent years including Volkswagen, Hilton and VeriSign. It has lured some 56 new leases totaling 2.6 million square feet from within the region since 2003, according to JLL. From outside of the Washington DC region, it has brought in seven leases totaling 1.6 million square feet. [See chart below].

The company's decision to relocate to the RB Corridor market — along with the Trump administration's pivot back to refunding defense initiatives — also indicates the submarket will be seeing more activity, JLL said.

Instant Insights /

Nestlé USA's New HQ Will Whittle Down Rosslyn's High Vacancy Rate

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