Monday

07-21-2025 Vol 2028

Arlington’s Office Vacancy Rate Falls as Conversion Projects Gain Momentum

Arlington County has experienced a drop in its office vacancy rate, which now stands at 22.2%, following the approval of three significant adaptive reuse projects aimed at revitalizing aging, underutilized office buildings.

This initiative is seen as a crucial step towards encouraging developers and attracting corporate tenants, according to County Manager Mark Schwartz.

During a recent County Board meeting, Schwartz emphasized the importance of these projects, labeling them as a “big deal” in addressing the county’s persistent challenges with vacant office space.

The approved conversions of buildings located at 2100 Crystal Drive, 2200 Crystal Drive, and 3601 Wilson Blvd validate the county’s recently adopted Adaptive Reuse Policy, which streamlines the approval process for transforming offices into residential units or hotels.

Board Chair Takis Karantonis expressed excitement about the progress, stating, “We’re very, very excited about this ongoing work.”

By removing these properties from the vacant office inventory, the county’s office vacancy rate will improve, potentially falling below 22% with additional projects on the horizon.

Arlington faces an ongoing challenge with 10.5 million square feet of vacant office space, which adversely affects both the local economy and government budget.

Board member Maureen Coffey remarked on the significance of these changes, noting, “That is a huge benefit to Arlington, because these are buildings that are not going to be filled otherwise.”

July 19 is seen as a pivotal moment in the county’s efforts, as noted by Coffey.

An acknowledgment came from Board member Susan Cunningham, who remarked that while the adaptive-reuse effort is still finding its footing, improvements are expected as more projects are initiated.

Specific outcomes from the recent County Board meeting included:

For the 2100 and 2200 Crystal Drive locations, a unanimous vote approved the transformation of JBG Smith office buildings into a 344-room hotel and 195 residential units, respectively.

The Planning Commission offered its support, forwarding the project with a positive recommendation.

Denyse “Nia” Bagley, vice chair of the Planning Commission, expressed enthusiasm, stating, “We’re extremely excited about this project, and we also are excited to see what comes down the pike along these lines, as well.”

The removal of substantial amounts of vacant office space, according to Board member JD Spain, Sr., will stimulate the local economy.

Spain remarked, “This project is going to stimulate our economy. We just need to continue to push [for others].”

Feedback during the public hearing was mixed, with community members expressing both support and concerns.

Graduate student Anshu Sharma voiced enthusiasm about both the apartments and hotel rooms, indicating their potential benefits for local residents.

John Musso, representing the Arlington Chamber of Commerce, affirmed support for the project, labeling it a perfect demonstration of the transformative potential of the adaptive-reuse policy.

However, some speakers expressed concerns about the lack of involvement for organized labor during the reconstruction and operational phases.

Keith Willis, an AFL-CIO representative, argued for the inclusion of project-labor standards.

In a reflection of past advocacy for adaptive reuse, perennial County Board candidate Audrey Clement highlighted her long-standing support for such initiatives.

Clement stated, “I’ve been pushing office to residential conversions — aka adaptive reuse — of obsolete office buildings as a candidate since 2022. Instead of a told-you-so moment, I’m just delighted that County Board and JBG now embrace the concept and that they are implementing it.”

In another project, the Board approved the conversion of 119,564 square feet of vacant office and commercial space at 3601 Wilson Blvd into 94 residential units along with about 5,600 square feet of ground-floor retail space.

Set near the Virginia Square-GMU Metro station, this project is poised for significant impact.

Board members adopted this conversion as part of the monthly consent agenda, marking its status as the first action under the newly instated adaptive reuse policy.

Karantonis noted the strong start of this initiative, attributing it to the ongoing collaborative efforts of the County Board.

Additionally, updates to the 2012 sign ordinance were introduced, which aim to facilitate the process of securing exterior signage approvals for property owners and tenants, thereby enhancing the visibility of businesses within Arlington.

Karantonis asserted that these changes would help attract major corporate tenants who often desire visible branding.

The recent updates represent an initial step in a broader strategy to bolster commercial-market resilience, which started back in 2022.

The county’s revitalization efforts focus on five tracks: office conversion, repositioning, redevelopment, tenant support, and placemaking.

In conclusion, Arlington County’s commitment to repurposing underutilized spaces appears to be gaining traction, reflecting a forward-looking approach to enhancing its economic landscape.

image source from:arlnow

Charlotte Hayes