TYSONS, VA–PS Business Parks has debuted the grand opening of Highgate, a luxury mid‐rise apartment community here. The 395-unit, 435,000 square foot building is located within The Mile, the REIT's 750,000 square foot, 45-acre office park.

PS Business Parks developed Highgate in a joint venture with Kettler.

Final construction of the apartment will be completed in the fourth quarter of this year.

The project is a significant one for the developers — as PS Business Parks CEO Maria Hawthorne notes, the project will improve its holdings in the Tysons, Virginia market and increase value of the park.

It also represents, at the same time, the larger development shift for apartments that is underway in the largest Washington DC area.

Read Where Transit Goes, Office Tenants Follow

As JLL points out in a new research note the Silver Line corridor is helping to drive significant apartment development activity, accounting for much of the current construction pipeline. It notes that:

Reston alone has 2,000 units under construction and Tysons is diversifying beyond an office-dominant market with 714 units under construction.

The Red and Green Lines

It should be noted that the Silver Line is also driving multifamily development in the District — as residents move into new apartments in DC and board the metro to their offices in Northern Virginia, according to an earlier JLL research note.

It reported in March that more new apartment construction is underway within a half mile of a Red Line station than any other line in the system and that approximately 70% of the multifamily growth around the Red Line is in DC, mostly in NoMa.

Multifamily development activity is strong along the Silver Line, which has close to almost 30% of the new multifamily units under construction in Northern Virginia, JLL says.

However, the Silver Line's related apartment development doesn't top what is happening along the Green Line, where 44% of the 9,200 new apartment units under construction are served by the Green Line, predominantly in Southwest and the Ballpark District.

Maryland Multifamily Development To Slow

Metro development won't give multifamily development in Maryland a boost though, according to the current JLL report. It writes that:

In Suburban Maryland, activity was historically centered inside-the-beltway in Silver Spring, Bethesda, and parts of Prince George's County, and then expanded along the I-270 Corridor into Gaithersburg and Germantown. Looking ahead, activity will slow across the market following rapid growth over the last several years. 11,470 units delivered from 2014-2016 versus 4,835 units in the pipeline, over half of which are in Silver Spring and Prince George's County.

Instant Insights /

The Bigger Story Behind A Multifamily Project In Tysons

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