County Signs $112M Lease Renewal

ARLINGTON, VA-The powers that be in Arlington County have signed a new lease valued at $112 million on their current digs at 2100 Clarendon Blvd., scrapping previous considerations of relocating to a larger building elsewhere. The 15-year arrangement involves the extension of the county’s current 180,000-sf office lease–which was due to expire next summer–as well as 28,000 sf of additional space in the 350,000-sf structure. But more room to grow in is not the only new feature of the deal. Building owner Charles E. Smith Commercial Realty has committed to spending millions on building renovations

Located in the Courthouse neighborhood of Arlington, the structure at 2100 Clarendon Blvd. was built in 1988, once the County executed its first 15-year lease on the space. It carries a current assessment value of nearly $56 million, and the land on which it sits–which is actually owned by the County–is valued at approximately $11 million. Arlington’s commitment to the new lease, was never a sure bet. In June the five-member board opted to bring in real estate services firm Cassidy & Pinkard/Irving Group to help shed light on all possible options for accommodating the department’s office space needs. At the same time that the county was considering other locations, property owner Charles E. Smith was calling on the talents of Gensler Architecture, Design and Planning Worldwide to develop redesign and upgrade options for the 2100 building. “In the final analysis, the client decided to stay in the Courthouse area, and we made the deal happen,” Cassidy & Pinkard’s Jim Hunter tells GlobeSt.com

“We worked with Cassidy & Pinkard and looked at what was available in the market, and found there were three properties that could meet our needs,” Arlington County project coordinator Tom O’Reilly shares with GlobeSt.com. The three potential properties were the in-progress Hartford Building in Clarendon, the Qwest Communications building in Ballston, and the 2100 Clarendon building. “We negotiated seriously with two of the offers and ended up signing a letter of intent with Charles E. Smith in our current building for $30 per-sf,” O’Reilly reveals. “Smith is contributing over $10 million in improvements, reworking the lobby and common areas, as well as our office spaces. And some of that money will be held aside for the county for future use. Plus, they’re going to spend $3 million on other internal improvements.” The agreement also includes an option for an additional 17,000 sf, as well as the first right on any other space that may become available.