ARLINGTON, VA-CSR Inc. is taking 18,479-square feet in a new lease it has signed with Piedmont Office Realty Trust. The company is moving from its current location at 2107 Wilson Blvd., also in Arlington, later this year to 4250 North Fairfax Dr. Studley represented CSR in the deal. Jones Lang LaSalle represented the property owner.
It is a relatively rare new lease—many tenants, aware of the power they still hold in the current real estate market, negotiate better terms with their current landlords as their leases roll over. When tenants do move, it is usually because the space provided in the new office is more efficient and flexible. That was the case with this transaction, according to John Foster-Bey, president and CEO of CSR.
"This process afforded us an opportunity to explore all areas of our organization and map out our short and long term goals," he says in a prepared statement.
Studley's Gary Stein, who along with Jon Glass, negotiated the transaction, says the broker analyzed CSR's operations to determine what space would best suit CSR's financial and operational goals.
A report last month from Jones Lang LaSalle suggests that some measure of greater equilibrium will be reached in the local leasing market this year, although it won't return to favor the landlord's market.
The overall construction pipeline in the metropolitan Washington region, including the Virginia and Maryland suburbs, is 58.5% preleased, significantly above the long-term average of 47.3%. Mike Ellis, Mid-Atlantic Market Director, of JLL believes this will lead to a "right-sizing tipping point."
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