Redland Corporate Center II Leases Up Under First Potomac

ROCKVILLE, MD-In the space of six months, First Potomac Realty Trust has brought Redland Corporate Center II to 64% occupancy--from a 99% vacancy rate at its acquisition. The REIT inked a five-year lease deal for 23,033-square feet with its latest tenant, DRS Defense Solutions LLC, last week. First Potomac has a talent for finding well-built properties that are empty or close to it and then rapidly leasing them up. It also acquired the largely empty Atlantic Corporate Park in Sterling, VA, in October 2010, which is now 20% leased with three tenants, Tim Zulick, senior vice president of leasing tells GlobeSt.com. According to Zulick, First Potomac relies on a couple of strategies to promote its buildings. “Asking rates are key and we have a close relationship with brokers,” he says.

For example, the asking rate at Redland Corporate Center II is between $33 per square foot to $35 per square foot, with a range that takes into account the varying views from the different floors. There are also slightly different TI packages as well, he says. Relationships with the city’s brokers, though, are key. “We spend a lot of time working with them, entertaining them and building solid relationships with them” and as a result, he says, “we’ve been able to get deals away from other buildings.”

First Potomac acquired both Redland Corporate Center II and III in November 2010 from Perseus Realty, which retained a minority ownership position. Redland III was 100% leased to BAE Systems at the time of the trade, but Redland II, a 210,862 square foot building, was largely empty. Combined, the two buildings now have a 79% occupancy rate. DRS Defense Solutions will occupy the entire ninth floor at Redland Corporate Center II.