WASHINGTON, DC–Since the Phase I of the Silver Line opened in 2014, leasing dynamics have changed dramatically in the area, according to a new analysis by JLL. Namely, in Tysons, vacancy for Class A buildings located within a half mile of Metro decreased 890 basis points since 2014, while vacancy increased 1,250 basis points in Class A buildings that are beyond a half mile from the Metro.
Likewise for Reston, where Class A vacancy dropped 1,120 basis points for buildings within a half mile of the Wiehle-Reston East station. Class A vacancy also fell 210 basis points for buildings beyond the half mile as the scheduled 2020 opening of Phase II of the Silver Line will add three more stations along the Toll Road. However, Class B office buildings beyond a half mile from Metro are posting nearly double the vacancy, just below 20%.
Much of the activity is happening at the newer buildings in these submarkets, JLL notes, citing Tysons Tower and 1775 Tysons Blvd., both developments which have attracted tenants from non-Metro accessible buildings. Buildings built since 2014 have posted 1.2 million square feet of positive net absorption since then, while Class A buildings built before that posted more than 900,000 square feet of negative net absorption.
Which brings JLL to the obvious conclusion in its analysis that:
The shift in tenant demand to Silver Line Metro-accessible office buildings will continue as every major office building in the pipeline in these locations is located within ½ mile of a Metro station.
WASHINGTON, DC–Since the Phase I of the Silver Line opened in 2014, leasing dynamics have changed dramatically in the area, according to a new analysis by JLL. Namely, in Tysons, vacancy for Class A buildings located within a half mile of Metro decreased 890 basis points since 2014, while vacancy increased 1,250 basis points in Class A buildings that are beyond a half mile from the Metro.
Likewise for Reston, where Class A vacancy dropped 1,120 basis points for buildings within a half mile of the Wiehle-Reston East station. Class A vacancy also fell 210 basis points for buildings beyond the half mile as the scheduled 2020 opening of Phase II of the Silver Line will add three more stations along the Toll Road. However, Class B office buildings beyond a half mile from Metro are posting nearly double the vacancy, just below 20%.
Much of the activity is happening at the newer buildings in these submarkets, JLL notes, citing Tysons Tower and 1775 Tysons Blvd., both developments which have attracted tenants from non-Metro accessible buildings. Buildings built since 2014 have posted 1.2 million square feet of positive net absorption since then, while Class A buildings built before that posted more than 900,000 square feet of negative net absorption.
Which brings JLL to the obvious conclusion in its analysis that:
The shift in tenant demand to Silver Line Metro-accessible office buildings will continue as every major office building in the pipeline in these locations is located within ½ mile of a Metro station.
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