Department of Defense Renews Leases of Over 900k SF in Crystal City
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The GSA has renewed leases for the Department of Defense to remain in two connected Crystal City office buildings until 2025.
The DOD will continue to occupy over 900k SF in the 353k SF James K. Polk building at 2521 S Clark St and the 558k SF Zachary Taylor building at 2530 Crystal Dr. The GSA decided to renew the leases with Beacon Capital Partners after exploring a number of competing offers, the Washington Business Journal reports. Beacon was represented by Cushman & Wakefield, while CBRE handled negotiations on behalf of the GSA.
The renewal of the DOD leases is a big win for the Arlington County office market, which has had its share of struggles and hovers above a 20% vacancy rate. The city has lost out on several high-profile leases over the past year, including the Advisory Board, which decided to remain in DC and relocate to a new HQ in a planned development in Mount Vernon Triangle after flirting with Arlington.
Earlier this month, Arlington requested additional incentive programs from the Virginia General Assembly as part of its 2016 legislative package in hopes of leveling the playing field with the District. [WBJ]