brac update 2010

12
cassidyturley.com | 1 When originally announced in 2005, the recommendations of the Base Realignment and Closure (BRAC) Commission were expected to result in: The relocation of between 35,000 and 56,000 jobs from Washington, D.C., Arlington County and Alexandria, VA, and Bethesda, MD to Fort Belvoir, VA, Fort Meade and Aberdeen Proving Ground, MD, and the Marine Corps Base in Quantico, VA. Significant changes in commuting patterns for an estimated 19,000 to 30,000 employees from Washington, DC, Arlington, VA, Alexandria, VA, Bethesda, MD to Fort Belvoir and Quantico, VA. The relocation of a number of defense contractors due to federal agency moves. For every one federal job, history has shown 1.1 to 3 contractors will follow. An impact on up to 15 million square feet of public and private sector office space. Since the announcement of those recommendations in 2005, speculation has varied widely on the impacts of BRAC-related moves on the DC-Baltimore employment market and commercial real estate markets. This update explores the current and potential impacts of BRAC on Northern Virginia (suburban Washington, DC) and Baltimore, including the submarkets most likely to be affected, local employment trends, and the impact on office space. 2005 BRAC What is BRAC? According to the US Department of Defense, Base Realignment and Closure (BRAC) is “a Congressionally authorized process that the Department of Defense (DoD) uses to reorganize its military base structure to meet increased national security requirements”. BRAC 2005 was the fifth round of this process, and focused on reshaping the DoD by having multiple organizations share facilities. By statutory agreement, the realignment is to be completed by September 15, 2011. The City of Alexandria and Arlington and Fairfax Counties in Northern Virginia will be affected by the bulk of requirements for Fort Belvoir; Anne Arundel and Harford Counties in Maryland will experience most of the BRAC changes at Fort Meade and Aberdeen Proving Ground. Base Realignment and Closure (BRAC) Update Contents 2005 BRAC 1 Arlington County 2 Fairfax County, Fort Belvoir 3 Alexandria, Mark Center 4 Springfield/Newington 4 Anne Arundel County, Fort Meade 5-6 Harford County, Aberdeen Proving Ground 7 Public & Private Sector Spending 8 Government Contractors 9 Impacts & Outlook 9 Appendix 10-11 Contacts 12 Base Realignment and Closure (BRAC) Update DC Baltimore Region November 2010

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Page 1: BRAC Update 2010

cassidyturley.com | 1

When originally announced in 2005, the recommendations of the Base Realignment and

Closure (BRAC) Commission were expected to result in:

• The relocation of between 35,000 and 56,000 jobs from Washington, D.C., Arlington

County and Alexandria, VA, and Bethesda, MD to Fort Belvoir, VA, Fort Meade and

Aberdeen Proving Ground, MD, and the Marine Corps Base in Quantico, VA.

• Signifi cant changes in commuting patterns for an estimated 19,000 to 30,000

employees from Washington, DC, Arlington, VA, Alexandria, VA, Bethesda, MD to Fort

Belvoir and Quantico, VA.

• The relocation of a number of defense contractors due to federal agency moves. For

every one federal job, history has shown 1.1 to 3 contractors will follow.

• An impact on up to 15 million square feet of public and private sector offi ce space.

Since the announcement of those recommendations in 2005, speculation has varied widely

on the impacts of BRAC-related moves on the DC-Baltimore employment market and

commercial real estate markets. This update explores the current and potential impacts

of BRAC on Northern Virginia (suburban Washington, DC) and Baltimore, including the

submarkets most likely to be affected, local employment trends, and the impact on offi ce

space.

2005 BRAC

What is BRAC? According to the US Department of Defense, Base Realignment and Closure

(BRAC) is “a Congressionally authorized process that the Department of Defense (DoD) uses

to reorganize its military base structure to meet increased national security requirements”.

BRAC 2005 was the fi fth round of this process, and focused on reshaping the DoD by

having multiple organizations share facilities. By statutory agreement, the realignment is

to be completed by September 15, 2011. The City of Alexandria and Arlington and Fairfax

Counties in Northern Virginia will be affected by the bulk of requirements for Fort Belvoir;

Anne Arundel and Harford Counties in Maryland will experience most of the BRAC changes

at Fort Meade and Aberdeen Proving Ground.

Base Realignment and Closure (BRAC) UpdateContents

2005 BRAC

1

Arlington County

2

Fairfax County, Fort Belvoir

3

Alexandria, Mark Center

4

Springfi eld/Newington

4

Anne Arundel County, Fort Meade

5-6

Harford County, Aberdeen

Proving Ground

7

Public & Private Sector Spending

8

Government Contractors

9

Impacts & Outlook

9

Appendix

10-11

Contacts

12

Base Realignment and Closure (BRAC) UpdateDC − Baltimore Region November 2010

Page 2: BRAC Update 2010

cassidyturley.com | 2

Although some BRAC-related moves are on track to meet the September 2011 deadline,

some relocations have been delayed. Not all BRAC-related offi ce space will experience a

mass exodus by the deadline. In Arlington County alone, 900,000 square feet of offi ce leases

have been extended through 2012; additional leases totaling 2.3 million square feet have

been extended through 2013 or later.

Even with a large amount of government-related offi ce space vacated in the near term,

Arlington County projects total employment to grow in both Crystal City and Pentagon City by

almost 50 percent over the next 15 years.

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Arlington County could be the most signifi cantly affected jurisdiction due to BRAC-related

moves by the Department of Defense and its private sector contractors. This is especially

true for Crystal City and Pentagon City. The BRAC relocations are expected to have a great

impact on the local employment base and offi ce markets. Over 5.4 million square feet of

offi ce leases in 47 buildings are projected to be affected in Arlington as part of BRAC-related

moves. This accounts for approximately 17 percent of total offi ce inventory in Arlington

County, and approximately one-third of the inventory in the Crystal City submarket alone. In

fact, 3.7 million square feet of federal leases in Crystal City will be affected by BRAC.

Arlington County, Virginia

Arlington County: Release of Offi ce Space in BRAC

Arlington County Employment

Please refer to Appendix A for a detailed list of Arlington buildings affected by General Services

Administration (GSA) leases related to BRAC moves. Although these leases are related to BRAC,

there is the possibility that GSA may backfi ll some of these spaces with other federal tenants.

Source: Arlington Economic Development

Source: Arlington County Department of Community

Planning, Housing and Development

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Base Realignment and Closure (BRAC) UpdateDC − Baltimore Region November 2010

Page 3: BRAC Update 2010

cassidyturley.com | 3

Fort Belvoir

Fort Belvoir, located in southeastern Fairfax County, will be the new location for the headquarters of several U.S. Army and Department of

Defense (DoD) agencies. As such, Fairfax County and its surrounding areas are likely to be greatly impacted by the BRAC plan. The area

appeals to DoD agencies and federal contractors due to its proximity to Washington, DC and the Pentagon. As one of the largest employers

in Fairfax County, Fort Belvoir currently employs over 29,000 civilian and military personnel. According to the Fairfax County Economic

Development Authority, employment on and off base at Fort Belvoir is expected to grow by almost 43% and will eventually accommodate

19,300 civilian and military personnel from BRAC-related moves.

Agencies and facilities moving to Fort Belvoir include:

• National Geospatial Intelligence Agency (NGA)

• A new 120-bed hospital with expanded specialty care facilities

(formerly medical care functions were provided at Walter Reed

Army Medical Center in Washington, DC)

• Missile Defense Agency

• Inventory Control Point functions from military bases in

Pennsylvania and Ohio

• Emergency Services Center (FBNA)

Currently, there are 20 separate building projects underway at Fort

Belvoir, both renovation and new construction. The projects total

almost 6.2 million square feet of offi ce space and 7 million square

feet of parking structures with total construction costs estimated at

approximately $4 billion.

Fairfax County, Virginia

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

Main Post Ft Belvoir North Mark Center Rivanna Station

Current BRAC Non BRAC

Source: Fairfax County Economic Development Authority

Fort Belvoir Employment Growth

Fort Belvoir Agency Moves

Agency Relocation Site Employment Square Feet Cost Delivery

National Geospatial-Intelligence Agency

(NGA)

Engineering Proving

Ground

8,500 2.4 M SF $1.77 Billion - new construction Spring 2011

Washington Headquarters Services (WHS) Mark Center - Alexandria 6,400 1.8 M SF $1.08 Billion - new construction Fall 2011

Fort Belvoir Community Hospital Main Post - Ft. Belvoir 3,200 1.275 M SF $807 Million - New Construction Spring 2011

Department of the Army Main Post - Ft. Belvoir 2,800 544,000 SF adaptive reuse and infi ll −

Program Executive Offi ce - Enterprise

Information Systems (PEO-EIS)

Main Post - Ft. Belvoir 400 185,000 SF adaptive reuse and infi ll −

Joint-Use Intelligence Analysis Facility

(JUIAF)

Rivanna Station 1,000 170,000 SF $61 Million - new construction −

Missile Defense Agency (MDA) Main Post - Ft. Belvoir 292 99,000 SF $38.5 Million - New Construction Nov-10

Emergency Services Center (FBNA) − 50 14,700 SF $7.2 Million - new construction Early 2011

Dental Clinic − 77 14,900 SF $12.6 Million - new construction Fall 2011

North Regional Medical Command

(NRMC)

− 232 − $17.5 Million - new construction Fall 2011

Total: 22,951 6,502,600 $3.7 Billion

Source: Fairfax County Economic Development Authority

Base Realignment and Closure (BRAC) UpdateDC − Baltimore Region November 2010

Page 4: BRAC Update 2010

cassidyturley.com | 4

Alexandria, VirginiaMark Center

When the BRAC recommendations were fi rst announced, an estimated 7,200 jobs and 1.4 million square feet of space were to be transferred

out of Arlington County. Because of the great number of building sites transferring to Fort Belvoir and the lack of suffi cient infrastructure,

the Department of the Army and the Commonwealth of Virginia agreed to limit the number of units moving to the Fort Belvoir Engineering

Proving Ground (EPG). Consequently, the Army searched for a site that could be developed as an “annex” to Fort Belvoir. To address this

requirement, Action 133 created Mark Center in Alexandria, in close proximity to the Pentagon. The Army purchased Mark Center land from

Duke Realty in September of 2008. With 6,400 jobs and 1.4 million square feet of offi ce space, Mark Center will be one of the largest BRAC-

related projects.

Mark Center will accommodate personnel from multiple agencies and units that include but are not limited to:

• Washington Headquarters Service (WHS)

• Defense Human Resources Activity (DHRA)

• Offi ce of the Secretary of Defense (OSD)

• Pentagon Force Protection Agency (PFPA)

• Defense Technology Security Administration (DTSA)

• DoD Inspector General (DoDIG)

• DoD Education Activity (DoDEA)

The offi cial groundbreaking on the Mark Center site occurred in March 2009. The building is being developed to meet the LEED Silver Rating

requirements and have a “campus like” atmosphere; it is set to meet the statutory deadline of September 15, 2011.

The offi ce inventory in Springfi eld/Newington – in close proximity to Fort Belvoir -- is comprised of 3.5 million square feet in 77 buildings. The

majority of the Springfi eld submarket’s inventory consists of freestanding offi ce and industrial buildings. However, there are two existing offi ce

parks in Springfi eld/Newington: MetroPark and Kingstowne.

As relocated agencies begin to settle in Fort Belvoir, Springfi eld will see demand for space from government contractors desiring proximity to

the respective agencies they support. Due to Springfi eld’s low vacancy rate and few large block options in existing buildings, new construction

may be the only way to meet new space needs.

• MetroPark: MetroPark buildings currently under construction include MetroPark VII -- fully leased to VSE Corporation, and MetroPark

VI -- where the Tauri Group preleased 75,000 square feet. MetroPark VII broke ground in the second quarter of 2010 and is scheduled

to deliver in the fourth quarter of 2011. MetroPark VI broke ground in the third quarter of 2010 and is scheduled to deliver in the fi rst

quarter of 2012.

• COPT/Patriot’s Ridge: Corporate Offi ce Properties Trust (COPT) broke ground in the fall of 2010 on Patriot’s Ridge, located just beyond

the Engineering Proving Ground. This 240,000 square foot building is scheduled to deliver in 2012, but construction commenced

without any preleasing. COPT plans for the park to eventually accommodate fi ve buildings totaling almost one million square feet.

Springfi eld/Newington, Virginia

Base Realignment and Closure (BRAC) UpdateDC − Baltimore Region November 2010

Page 5: BRAC Update 2010

cassidyturley.com | 5

Anne Arundel County, MarylandFort Meade

Fort Meade is located in Anne Arundel County, Maryland, southwest of Baltimore. It is one of the largest military bases in the United States

and is home to the fourth largest workforce on any U.S. Army installation, hosting 40,000 military, government service civilian and contractor

employees. The National Security Agency (NSA) is the largest agency currently located on-base. According to the Installation Management

Community (IMCOM), Fort Meade generates $2.2 billion annually in contracts. BRAC-related moves will bring an estimated $550 million

annually in additional contracts.

As a result of BRAC 2005 decisions, Fort Meade will be the host facility for three DoD agencies that are relocating:

• The Defense Information Systems Agency (DISA) will relocate from its current location in Arlington, VA to Fort Meade, MD. It is the

largest agency moving to Fort Meade. DISA will absorb 1,000,000 square feet of offi ce space in fi ve buildings. The project is scheduled

to be completed in February 2011 and will be the largest offi ce complex in Anne Arundel County.

• The Colocation of Defense/Military Adjudication Activities encompasses 152,000 square feet and will cost an estimated $51 million.

• Defense Media Activity (DMA) construction includes 186,000 square feet and will cost an estimated $78 million.

The relocation of these agencies also means

approximately 5,700 military, DoD civilians and

defense-related contractor employees will move

from other locations to work at Fort Meade.

In addition, the Howard County BRAC Offi ce

estimates an additional 9,000 off-base jobs could

be generated due to BRAC moves.

Even with these agency relocations from across

the DC-Baltimore region, Fort Meade is expected

to retain many of its current employees. For

example, DISA expects to retain up to 75 percent

of its 4,300 workers from the Arlington move.

This could mean fewer new jobs for local hires

around Fort Meade. We would expect this fi gure

to be lower, as the distance from Arlington to

Fort Meade is over 30 miles and thus would

signifi cantly impact the commuting patterns of

its workers.

Due to the expanded presence of government agencies at Fort Meade, developers and landlords can expect increased demand for offi ce

space to accommodate federal workers and government contractors. Business parks closest to Fort Meade are likely to be the greatest

benefi ciaries of BRAC-related demand. Planned construction in the area already has increased, though many of these developments have yet

to obtain fi nancing or commence construction.

Growth Components

Jobs on Fort Meade Jobs off Fort Meade Total

Jobs

Current Jobs on Fort Meade 40,000 94,000 134,000

BRAC 5,695 9,000 14,695

Other 2,000 3,000 5,000

NSA 4,000 6,000 10,000

Enhanced Use Lease 10,000 2,000 12,000

Cyber Command (HQ) 2,000 14,000 16,000

Total New Jobs 23,695 34,000 57,695

Total Jobs 63,695 128,000 191,695

Source: Fort Meade Regional Growth Management Committee (RGMC)

Fort Meade Employment

Base Realignment and Closure (BRAC) UpdateDC − Baltimore Region November 2010

Page 6: BRAC Update 2010

cassidyturley.com | 6

Forte Meade Offi ce Locations

Four notable business parks with up to 10 million square feet of developable offi ce space are located in close proximity to Fort Meade:

• National Business Park (NBP), currently under development by COPT, is the closest business park to Fort Meade. One of NBP’s biggest

selling points is a bridge that connects the offi ce park directly to Fort Meade. The project is scheduled to deliver multiple buildings

totaling 863,000 square feet by 2012. The southern portion of the business park is already 100 percent preleased.

• Konterra Realty’s Annapolis Junction Business Park is expected to benefi t from BRAC-related moves as well. The National Security

Agency (NSA) awarded a contract to Konterra for a “Mega Center” -- a fully secured offi ce building -- on a speculative basis. This park

will be built to Sensitive Compartment Information Facility (SCIF) standards. As part of the agreement with Konterra, NSA will outfi t the

building with the appropriate infrastructure (IT, telecom, security).

• Independence Park at Odenton Town Center is planned for development by Halle Development. The 128-acre site adjacent to Fort

Meade can accommodate offi ce buildings with up to 3.5 million square feet of space. Initial development would include two 150,000

square foot offi ce buildings and a 1,200 space parking garage.

• Trammell Crow’s Enhanced Use Leasing (EUL) Development could contain up to 2 million square feet of development. The Army Corps

of Engineers awarded Trammell Crow EUL space at Fort Meade to accommodate federal contractors. While the land is not within the

gates of Fort Meade, it is still within close proximity.

The EUL program allows the military to partner with private industries by leasing underutilized assets to generate rent or receive “in kind”

services for the assets. This allows the military to lease land and/or buildings and receive income from on-base leased property. The

income from ground leases is typically up to 50 years.

Base Realignment and Closure (BRAC) UpdateDC − Baltimore Region November 2010

Page 7: BRAC Update 2010

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Harford County, MarylandAberdeen Proving Ground

Aberdeen Proving Ground (APG) will be the Department of Defense’s center for communications and software development, resulting from

the relocation of the following commerce centers:

• Command & Control, Communications, Computers, Intelligence, Sensors & Reconnaissance systems (C4ISR)

• Army Test & Evaluation Command (ATEC)

• Joint Program Executive Offi ce for Chemical & Biological Defense (JPEO-Chem Bio)

• Medical Research Institute of Chemical Defense (MRICD)

As a result of BRAC, APG will experience job growth of 8,000 to 9,000 employees on base. Additionally, private sector contractors and

support-related workforce could generate 1.5 to 3 jobs per public sector job.

In addition, 28 new defense contractors have moved to Harford County and include:

MITRE – 54,000 square feet at North Gate

Raytheon- 80,000 square feet at The Gate

L-3 – 74,000 square feet at The Gate

CAC 1 – 60,000 square feet at The Gate

Boeing – 6,000 square feet at The Gate

General Dynamics – 10,000 square feet at The Gate

BRAC has enabled the following local contractors to expand:

Service Engineering

Booz Allen Hamilton

SAC

Northrop Grumman (Logicon Division)

ManTech

Logistic Management Institute (LMI)

RTR Technologies

Smith Detection

Base Realignment and Closure (BRAC) UpdateDC − Baltimore Region November 2010

Page 8: BRAC Update 2010

cassidyturley.com | 8

Public and Private Sector SpendingAs the 2011 deadline for BRAC-related moves approaches, DoD spending on BRAC is

projected to drop signifi cantly to $2.2 billion dollars in 2011. At the same time, overall DoD

spending is projected to hold steady or increase slightly in Northern Virginia and Maryland

through 2011. Though, there is risk associated with possible decreases in defense

spending. Secretary of Defense Robert Gates recently announced mandates for a 10

percent per year reduction (called 10, 10, 10) in defense contractor spending over the next

three years.

Northern Virginia and Maryland have traditionally received a large portion of Department

of Defense (DoD) spending. Additionally, government contractors have benefi ted from

increases in procurement spending. If we use historical growth levels as a guide to future

projections for DoD expenditures and procurement (contractor) spending, Fairfax County

alone could receive up to $14.5 billion in DoD Total Direct Expenditures and $13.6 billion in

procurement spending by 2011.

Department of DefenseBRAC Military Obligations

$-$1.0$2.0$3.0$4.0$5.0$6.0$7.0$8.0$9.0

$10.0

2008 act. 2009 act. 2010 est. 2011 est.

$ bi

llion

s

Source: Government Printing Offi ce (GPO)

Department of DefenseTotal Direct Expenditures

$0.0

$2.0

$4.0

$6.0

$8.0

$10.0

$12.0

$14.0

$16.0

2007 2008 2009e 2010p 2011p

Alexandria Arlington County Fairfax County Anne Arundel County

e = estimated p = projected

Source: US Census Bureau, GPO, Cassidy Turley

Department of DefenseTotal Procurement

$0.0$2.0$4.0$6.0$8.0

$10.0$12.0$14.0$16.0

2007 2008 2009e 2010p 2011p

Alexandria Arlington County Fairfax County Anne Arundel County

e = estimated p = projected

Source: US Census Bureau, GPO, Cassidy Turley

$ bi

llion

s$

billi

ons

Base Realignment and Closure (BRAC) UpdateDC − Baltimore Region November 2010

Page 9: BRAC Update 2010

cassidyturley.com | 9

Government ContractorsThe full impact of BRAC-related developments on local defense contractors remains uncertain. It is estimated that for every federal job

that moves, 1.1 to 3 government contractor jobs will follow. However, many of the contractors are already located in Northern Virginia and

Maryland and would most likely remain in their current locations, at least in the short term. The distances between contractors’ current

locations and the Mark Center or Fort Belvoir are not signifi cantly different, although in the longer term, the resulting increases in traffi c along

I-395 and I-95 may encourage businesses to move closer to Fort Belvoir, Fort Meade, and Aberdeen Proving Ground.

Since the announcement of the 2005 BRAC recommendations, the total net impact on the DC metro continues to evolve. According to the

latest information, we foresee the following:

• Over 5.4 million square feet of offi ce space will be impacted in Arlington County, with approximately one third of the total offi ce inventory

in Crystal City.

• While this presents a risk for the Arlington offi ce market, it also offers a rare opportunity for redevelopment. As of this writing, Crystal City

recently approved a 40-year plan that will include major renovations or redevelopments of several buildings in the area.

• Although many agencies will meet the 9/15/11 deadline, many will need to extend their leases in order to buy time. In Arlington County

alone, one-third of BRAC-affected offi ce space will be released in 2010/2011, while the other two-thirds will be released in 2012 or later.

• Some BRAC moves will have a “domino effect” on offi ce buildings. For example, the National Geospatial-Intelligence Agency (NGA) will

vacate two buildings in Reston, Virginia as part of BRAC requirements. The Defense Intelligence Agency (DIA) will backfi ll space in these

buildings by relocating from the Clarendon and Skyline submarkets in Northern Virginia. The Federal Government will either need to fi nd

new tenants for this vacated space, or the offi ce space will need to be retrofi tted for private sector use.

• Roads, infrastructure, and public transportation around Fort Belvoir, Fort Meade and the Mark Center will be stressed as commuting

patterns change.

• In the medium- to long-term, opportunities will exist for retail and housing to accommodate increases in employment at the Forts. In

contrast, areas from which a large number of jobs will be relocating (like Crystal City) could be negatively impacted.

• Plans change. When the BRAC recommendations were fi rst announced, an estimated 7,000 jobs of the Washington Headquarters

Services were to relocate from Alexandria to Fort Belvoir, Virginia. Since then, 6,400 jobs are planned to transfer instead to the 1.4 million

square foot Mark Center in Alexandria in close proximity to the agency’s current location.

• Overall, regional DC-Baltimore employment should remain healthy in spite of BRAC moves. For example, jobs will relocate from Crystal

City in Arlington County to Mark Center in Alexandria. The two locations are located only a few miles apart from each other, thus the net

impact from this move should be minimal.

• Defense contractors will NOT move immediately to coincide with agency moves. Any private business relocations will happen gradually.

Moves will depend on the types and longevity of agreements contractors have with the DoD and existing lease agreements. However,

the areas with the most opportunity for increased offi ce space demand are in close proximity to Fort Belvoir, Fort Meade, and Aberdeen

Proving Ground.

• Large defense contractors will be cautious about future growth projections. For instance, Lockheed Martin recently announced more

conservative 2011 revenue projections due to anticipated defense spending cuts by the Federal Government.

Impacts & Outlook

Base Realignment and Closure (BRAC) UpdateDC − Baltimore Region November 2010

Page 10: BRAC Update 2010

cassidyturley.com | 10

Appendix

Arlington County BRAC Affected Buildings

Address Building Name RBA (square feet) GSA Leases1 (square feet)

901 N Stuart St Ballston Metro Center 234,937 108,797

1010 N Glebe Rd One Ballston Plaza 140,000 56,0002

875 N Randolph St One Liberty Center 316,348 273,8632

4015 Wilson Blvd Tower 3 160,000 64,000

4040 North Fairfax Dr Webb Building 147,299 138,653

Ballston Submarket Total: 998,584 641,3133100 Clarendon Blvd 3100 Clarendon Boulevard 242,358 182,264

2000 N 15th St Arlington Plaza 193,657 5,841

2300 Clarendon Blvd Courthouse Plaza 2 260,067 27,994

Clarendon/Courthouse Submarket Total:

696,082 216,099

1400-1450 S Eads St 1400-1500 S Eads St 77,000 76,164

1919 S Eads St 1919 S Eads Street 98,750 9,484

400 Army Navy Drive 400 Army Navy Drive 235,983 202,434

2450 Crystal Drive Century One at Century Tower 389,732 78,789

1235 S Clark St Crystal Gateway 1 372,000 85,933

1225 S Clark St Crystal Gateway 2 287,000 106,368

1215 S Clark St Crystal Gateway 3 352,886 36,277

200 12th St S Crystal Gateway 4 206,500 73,761

201 12th Street S Crystal Gateway North 342,000 203,278

1801 S Bell St Crystal Mall 2 290,500 49,396

1851 S Bell St Crystal Mall 3 393,587 309,629

1901 S Bell Street Crystal Mall 4 278,700 82,186

2011 Crystal Drive Crystal Park 1 442,800 105,656

2231 Crystal Drive Crystal Park 3 466,200 11,492

2451 Crystal Drive Crystal Park 5 407,300 96,679

223 23rd St S Crystal Plaza 5 185,500 38,559

2221 S Clark St Crystal Plaza 6 177,500 77,683

1550 Crystal Drive Crystal Square 2 448,600 97,629

1750 Crystal Dr Crystal Square 3 242,100 205,575

241 18th St S Crystal Square 4 329,900 149,281

251 18th St S Crystal Square 5 308,700 27,440

2521 S Clark St James Polk Building 355,001 314,317

1411 Jefferson Davis Hwy Jefferson Plaza 1 278,332 111,3332

1421 Jefferson Davis Hwy Jefferson Plaza 2 271,285 337,9843

Base Realignment and Closure (BRAC) UpdateDC − Baltimore Region November 2010

Page 11: BRAC Update 2010

cassidyturley.com | 11

2800 Crystal Drive Potomac Gateway North 177,473 70,9892

2511 Jefferson Davis Hwy Presidential Towers 332,928 307,685

2530 Crystal Dr Zachary Taylor Building 558,187 486,909

Crystal City Submarket Total: 8,306,444 3,752,9101101 Wilson Blvd 1101 Wilson Boulevard 330,528 41,641

1500 Wilson Blvd 1500 Wilson Boulevard 247,726 10,060

1560 Wilson Blvd 1560 Wilson Blvd 126,000 50,4002

1600 Wilson Blvd 1600 Wilson Boulevard 166,000 11,623

1815 N Fort Myer Dr 1815 N Fort Myer Drive 91,809 36,7242

1501 Wilson Blvd Art Associates 123,183 30,221

1515 Wilson Blvd Art Associates West 124,081 17,758

1555 Wilson Blvd Mill Court 170,767 35,026

1400 Key Blvd Nash Street Building 170,300 73,660

1401 Wilson Blvd Oakhill Offi ce Building 189,632 103,306

1700 N Moore St Rosslyn Metro Center 409,749 150,417

1777 N Kent Street Rosslyn Plaza North 263,462 242,532

Rosslyn Submarket Total: 2,413,237 803,368

Arlington County Total: 12,414,347 5,413,690

Number of Buildings Affected

Submarket Submarket Total Offi ce Inventory

GSA Leases1 (square feet)

% Submarket

27 Crystal City 11,353,823 3,752,910 33.05%

12 Rosslyn 8,507,630 803,368 9.44%

5 Ballston 7,023,009 641,313 9.13%

3 Clarendon/Courthouse 4,580,232 216,099 4.72%

47 31,464,694 5,413,690 17.21%

Source: Arlington County Economic Development & Cassidy Turley

1 GSA leases related to BRAC2 Estimated square footage based on market average3 Combined RBA for 1421 and 1411 Jefferson Davis

Base Realignment and Closure (BRAC) UpdateDC − Baltimore Region November 2010

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Researchers’ information:

Cassidy Turley

Jeffrey KottmeierDirector of Research

2101 L Street, NW

Suite 700

Washington, DC 20037

Tel: 202-463-2100

Sazshy Valentine2101 L Street, NW

Suite 700

Washington, DC 20037

Tel: 202-463-2100

Carey HeymannMarket Analyst, Northern Virginia

2101 L Street, NW

Suite 700

Washington, DC 20037

Tel: 202-463-2100

Disclaimer

This report and other research materials may be found on our website at www.cassidyturley.com. This is a research

document of Cassidy Turley in Washington, DC. Questions related to information herein should be directed to the

Research Department at 202-463-2100. Information contained herein has been obtained from sources deemed

reliable and no representation is made as to the accuracy thereof. Cassidy Turley is a leading commercial real estate

services provider with over 2,800 professionals in 60 offi ces nationwide. The fi rm completed transactions valued over

$13 billion in 2009, manages over 420 million square feet on behalf of private, institutional and corporate clients and

supports over 25,000 domestic corporate services locations.

Base Realignment and Closure (BRAC) UpdateDC − Baltimore Region November 2010