Annual Report 2006 - Fairfax County Economic Development Authority

trends in real estate
With an inventory of more than 105 million square feet, Fairfax County is the largest office market in the Commonwealth
of Virginia and one of the largest in the nation.
More than a million square feet of new space was added to the county’s existing office inventory last year. The office
vacancy rate stood at 9.2 percent as of yearend 2006. Fueled by continuing federal contracting activity, office leasing
reached a near-record level in 2006, exceeding 10 million square feet. This, along with the dramatic rise in speculative
office development in the county, underscores the strong and stable demand for office space.
Industrial/flex inventory in Fairfax County stood at 38.4 million square feet at the end of the year, with a vacancy rate
of 7.8 percent. By June, 700,000 square feet in 11 buildings had been added to the flex market; this total is greater
than the flex space deliveries for each full year from 2002 through 2005. Demand for industrial/flex space remains
strong, with leasing activity exceeding 1.3 million square feet by year’s end.
FCEDA
AR 06
18 | 19
OFFICE SPACE INVENTORY
(by submarket, as of yearend 2006)
Annandale .................................. 1,819,053
Baileys Crossroads ..................... 3,211,465
Burke ............................................ 527,834
Centreville ..................................... 981,928
Chantilly ..................................... 9,038,042
Dulles ......................................... 6,939,639
Fairfax Center/Oakton ................. 9,415,637
Herndon ...................................... 5,686,766
McLean/Great Falls ..................... 4,239,118
Merrifi eld .................................... 9,829,915
Newington/ Lorton ......................... 551,309
Reston ......................................18,325,027
Richmond Highway ..................... 1,044,644
Seven Corners ............................ 1,022,086
Springfi eld/Franconia .................. 4,254,628
Tysons Corner ...........................25,766,246
Vienna ........................................ 2,525,896
Total ................................... 105,185,233
OFFICE SPACE TRENDS: 1980-2006 (square footage and vacancy rates)
Square
Feet
110 mil
100 mil
90 mil
80 mil
70 mil
60 mil
50 mil
40 mil
30 mil
20 mil
10 mil
0
Vacancy
Rate (%)
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
Vacancy rate includes sublet space (figures available for 2001–2006 only)
20
15
10
5
0