WASHINGTON, DC–When the Federal Bureau of Investigation permanently put its search for a new headquarters on hold, it was a harsh setback for Prince George's County, which had high hopes of winning the project. But the county has moved on and, according to a JLL note by Senior Research Analyst Sara Hines, office leasing in the market is doing well considering the 1.3-million square feet of space it has lost over the last ten years.

Private sector leasing fueled by 2U helped drive nearly 300,000 square feet of occupancy gains at 7900 Harkins, she wrote — the first time since 2010 the county posted annual net absorption. The 2U lease also helped post the highest per square foot sales price of $252 in the county since 2007. The last time 7900 Harkins sold, in 2015, it was for $66 per square foot.

Other positive developments for the county include the US Department of Homeland Security – Citizenship and Immigration Services' plans to relocate near the Branch Avenue Metro, taking down 574,767 square feet by 2020. In addition, Kaiser Permanente has signed a lease for 172,863 square feet in New Carrollton starting in 2019.

A New Zoning Code

Perhaps most importantly, the county is rewriting its 50-year old plus zoning code to spur development. According to Hines:

The draft of the new code includes changes that would reduce parking minimums near Metro stations, streamline the development process from 67 to 20 regulatory hurdles, and encourage mixed-use development around transit.

The county's proposed office pipeline totals 19.6 millions square feet with 40% near transit, the note concludes — a significant increase for a county that has only added 2.3 million square feet of new inventory over the past 15 years.

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JLL: Prince George's New Zoning Code Will Spur Activity

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