Amazon Adds To HQ2 Deal With New 48K SF Lease
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The tech giant plans to begin moving into the office within the next few months, JBG Smith said. It did not disclose the length or price of the lease terms.
Earlier this month, JBG Smith announced Amazon executed three leases in Crystal City for 537K SF. It plans to occupy two of those spaces this year: a 191K SF space at 1800 South Bell St. and an 88K SF space at 241 18th St. South. It plans to move into the largest of the leased spaces, a 258K SF office at 1770 Crystal Drive, by the end of 2020.
The three previous leases were introduced when Amazon selected National Landing in November, but the latest deal represents an increased footprint from its original plan. Amazon has committed to create 25,000 jobs in National Landing, but the incentive agreement Arlington County approved last month includes an option to create an additional 12,850 jobs.
"Amazon's additional investment in National Landing reflects their commitment and the warm welcome they have received through our public-private partnership with Arlington County and the Commonwealth of Virginia," JBG Smith CEO Matt Kelly said in a release.
Amazon has also signed agreements with JBG Smith to buy development sites in Pentagon City that can support over 4M SF of new buildings. The sales have yet to close, and JBG Smith aims to time them up with acquisitions to execute tax-friendly 1031 exchanges.
JBG Smith has an additional 6.9M SF of development opportunities in National Landing beyond Amazon HQ2. It is currently developing over 100K SF of retail space anchored by Alamo Drafthouse, and it plans to break ground next year on two high-rise residential towers with ground-floor retail.