Chicago-based developer Alter Group has leased its Loudoun Gateway III building, the third structure of a planned five building, 510,000-sf office development, to fast-growing Atlantic Coast Airlines Holdings, Inc. The other two buildings in Alter’s Gateway development are expected to be leased quickly as demand for space soars in booming Northern Virginia.

“Nearby Washington Dulles International Airport is busy partly because the Northern Virginia high-tech corridor is growing so fast,” says Tom Silva, communications director at Alter. “We benefit because our client, Atlantic Coast, has benefited from increased air travel demand and needs to expand.”

Brokers in Northern Virginia’s Loudoun County, which borders the nation’s capitol, say development and leasing activity in the area’s high-tech corridor are proceeding at a frantic pace, with big deals rumored or announced almost daily.

“It’s my understanding that Exodus Communications is about to sign for one million sf at Ashburn Corporate Center, which is right across the street from America Online’s headquarters in Dulles, VA,” says Andy Klaff, SVP at Grubb & Ellis’ Vienna, VA office. “The growth in the real-estate market here is following the massive growth being created by the convergence of the Internet and telecom industries.”

Silva says that Loudoun County’s vacancy rate is a scant 3.27% and heading lower. “The second quarter prelease rate was 65% in the area, so there’s a huge incentive to speculative build on the part of developers.”

“Most of the companies that we are talking to about the last two buildings at Loudoun Gateway are in the Internet and telecommunications industries,” says Kurt Rosene, SVP national development at Alter. “Depending on how preleasing goes, we expect that the fourth building will be complete by next June, with the fifth building possibly complete by the fourth quarter of next year.

Alter Group has 6.7 million sf of office space under development nationwide, worth over $750 million.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Dig Deeper


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join now!

  • Free unlimited access to's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.