Contact Us

Microsoft Growing By 400K SF In Northern Virginia

Technology giant Microsoft is planning to create 1,500 new jobs in Northern Virginia in newly leased office space at Reston Town Center

The Two Freedom Square office building at Reston Town Center, where Microsoft leased 400K SF.

Virginia Gov. Ralph Northam announced Wednesday Microsoft has agreed to lease 400K SF at Reston Town Center's Two Freedom Drive, and it plans to begin occupying the space next summer.

“Virginia, like the rest of the nation, is facing unprecedented job loss due to COVID-19, so this announcement couldn’t come at a better time,” Northam said. “Microsoft Corp. and Virginia share a strong history, and we are proud that this major operation in Fairfax County will add to the company’s significant job count across our commonwealth."

The lease represents a major expansion for the Redmond, Washington-based tech company, which will retain its existing Reston office, a 153K SF spread at 12012 Sunset Hills Road. Microsoft also has offices in Richmond and Chevy Chase, Maryland.

The new Reston office will focus on software development, and the company also plans to open a retail space in the building. Microsoft is eligible for a $22.5M grant, which must be approved by the Virginia General Assembly. 

“We’ve had a presence in Reston for many years now, and this expansion will allow Microsoft to deliver even more solutions from a region known for its innovation and passion for technology," Microsoft General Manager Terrell Cox said in a release. 

The office building where Microsoft is expanding, a 422K SF property at 11955 Freedom Drive, was previously home to Leidos, which signed on in 2018 to shift to a new 17-story office building at Reston Town Center. Boston Properties owns both buildings.

BXP signaled on its Q1 earnings call that it had reached a deal to fill the space Leidos is vacating. Transwestern Executive Vice President Joe Ritchey, who represents the landlord in leasing Reston Town Center, told Bisnow earlier this month he is seeing strong demand from technology companies.

The lease is the latest in a series of West Coast technology companies expanding their presence in the D.C. region, a trend experts have predicted will continue despite the economic crisis. 

Amazon in November 2018 selected Northern Virginia as the landing spot for its second headquarters, where it has committed to create at least 25,000 jobs. Last year, Google signed on for 165K SF at Reston Station. In the District, Facebook and Yelp have both opened 70K SF-plus offices at Chinatown's Terrell Place in recent years. 

"Microsoft can choose from any number of technology hubs for its operations, and we are so pleased that the company chose to expand its operations in Fairfax County and Northern Virginia," Fairfax County Economic Development Authority CEO Victor Hoskins said. "Because of our wealth of technology talent and the tech ecosystem here, this area is a great match for the company's talent needs as well as its business goals."

Microsoft, whose share price is up roughly 10% on the year as the company's Teams app has grown heavily in usage amid stay-at-home orders, also signed a major lease for new space in Atlanta this month.