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Case Study

Volkswagen of America: Driving real value

“Thanks to Jones Lang LaSalle, Volkswagen saved over 30 percent in real estate occupancy costs.
Now that’s what I call driving real value.”

-Stefan Jacoby
 President and CEO
 Volkswagen Group of America, Inc.

When Volkswagen, the world’s 4th largest automaker, was evaluating a move from their U.S. headquarters location in Auburn Hills, Michigan, they engaged Jones Lang LaSalle to conduct an extensive, top secret search for their new U.S. location.

Our team began a 10-month long search which involved key matters of importance: demographic analysis, airport access, state and local taxes, and economic incentives. When we presented Volkswagen with a final list of 14 locations in major metropolitan centers east of the Mississippi River, they ultimately choose Herndon, VA, as the location for their new headquarters.

The project was kept entirely confidential throughout the search and negotiations, up until Volkswagen officially announced the move. Woodland Pointe, a 6-story, Class A office building in Herndon, VA was the final choice because of its proximity to Dulles International Airport, distinctive architecture, and great signage exposure. Guided by their trust in our team, the landlord, Tishman Speyer, finalized the lease without knowing who the future tenant would be.

The Jones Lang LaSalle team negotiated and secured a 185,000 square foot lease in just six weeks. We were able to negotiate one of the highest tenant improvement allowances in the market, as well as $6 million in cash incentives from the Commonwealth of Virginia, plus additional tax benefits.

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