Regions Midatlantic | Washington, DC
Oct 1, 2008
By: Barbra Murray, Contributing Editor
The U.S. Department of the Army, acting under the direction of the U.S. Department of Defense, has decided to make a new home at the 350-acre Mark Center in Alexandria, Va., and Duke Realty Corp. is going to provide the land and the development services for the 1.7 million-square-foot office compound. Construction of the approximately $1 billion project will allow for the unification of a group of 6,400 predominantly Army personnel from various leased office buildings in Northern Virginia at a single location.
The massive consolidation effort is in accordance with the Defense Department's Base Realignment and Closure Act of 2005.
Located off I-395 and Seminary Rd., about four miles from the Pentagon and eight miles from Capitol Hill, Mark Center is a behemoth park where Duke owns, leases and manages 12 office buildings accounting for an aggregate 1.3 million square feet, which is the majority of the office space at Mark Center. The company also has possession of 16 acres of developable land that will eventually give rise to the Defense Department project.
The deal between Duke and the Defense Department is two-fold. It consists of the developer's agreement to sell the government the aforementioned land, which will officially become a part of Fort Belvoir, and to serve as project developer for the new office complex that will also be owned by the government. Clark Construction has been tapped as general contractor.
Alexandria is a thriving submarket of Washington, D.C., bolstered in great part by a strong government presence. The city allows for large developments unavailable in the District, and for leasing opportunities at significantly lower rates than those offered in the District. During the second quarter, the average rental rate for Class A office space in Alexandria was $34.69, compared to $47.65 in Washington, D.C., according to a report by real estate services firm GVA Advantis. "Not to say that we're immune to challenges, but the resurgence of Crystal City through the work developer Vornado has done; the strength of the neighboring Rosslyn/Ballston submarket; the U.S. Patent and Trademark Office's relocation to a new 2.5 million-square-foot complex in 2005; and tagalong contractors have really driven activity in the area," Peter Scholz, senior vice president for Duke's Washington, D.C. Group, told CPN.
Also, a vast majority of landlords affected by BRAC have been aware of it since 2005 when the legislation was passed, he noted, adding, "so they have been anticipating and planning what their strategy will be."
Duke has a tight deadline for completing the Defense Department project. As is stipulated by the BRAC legislation, the office campus must be completed in time for Army personnel's relocation in 2011.
"It's an ambitious schedule but we spent so much time modeling it and working on the details that we're sure we can do it," Scholz said. Construction is on schedule to get underway in the first quarter of 2009.
By: Barbra Murray, Contributing Editor
The U.S. Department of the Army, acting under the direction of the U.S. Department of Defense, has decided to make a new home at the 350-acre Mark Center in Alexandria, Va., and Duke Realty Corp. is going to provide the land and the development services for the 1.7 million-square-foot office compound. Construction of the approximately $1 billion project will allow for the unification of a group of 6,400 predominantly Army personnel from various leased office buildings in Northern Virginia at a single location.
The massive consolidation effort is in accordance with the Defense Department's Base Realignment and Closure Act of 2005.
Located off I-395 and Seminary Rd., about four miles from the Pentagon and eight miles from Capitol Hill, Mark Center is a behemoth park where Duke owns, leases and manages 12 office buildings accounting for an aggregate 1.3 million square feet, which is the majority of the office space at Mark Center. The company also has possession of 16 acres of developable land that will eventually give rise to the Defense Department project.
The deal between Duke and the Defense Department is two-fold. It consists of the developer's agreement to sell the government the aforementioned land, which will officially become a part of Fort Belvoir, and to serve as project developer for the new office complex that will also be owned by the government. Clark Construction has been tapped as general contractor.
Alexandria is a thriving submarket of Washington, D.C., bolstered in great part by a strong government presence. The city allows for large developments unavailable in the District, and for leasing opportunities at significantly lower rates than those offered in the District. During the second quarter, the average rental rate for Class A office space in Alexandria was $34.69, compared to $47.65 in Washington, D.C., according to a report by real estate services firm GVA Advantis. "Not to say that we're immune to challenges, but the resurgence of Crystal City through the work developer Vornado has done; the strength of the neighboring Rosslyn/Ballston submarket; the U.S. Patent and Trademark Office's relocation to a new 2.5 million-square-foot complex in 2005; and tagalong contractors have really driven activity in the area," Peter Scholz, senior vice president for Duke's Washington, D.C. Group, told CPN.
Also, a vast majority of landlords affected by BRAC have been aware of it since 2005 when the legislation was passed, he noted, adding, "so they have been anticipating and planning what their strategy will be."
Duke has a tight deadline for completing the Defense Department project. As is stipulated by the BRAC legislation, the office campus must be completed in time for Army personnel's relocation in 2011.
"It's an ambitious schedule but we spent so much time modeling it and working on the details that we're sure we can do it," Scholz said. Construction is on schedule to get underway in the first quarter of 2009.
Recent Washington,DC Headlines
Nov. 21, 2008
Nov. 20, 2008
Nov. 14, 2008
Nov. 14, 2008
Nov. 13, 2008