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Despite no FBI, office leasing within Prince George’s County has grown dramatically

  • ​During the past decade, the Prince George's County office market has experienced 1.3 m.s.f. of office occupancy declines, pushing vacancy above 20%. And then earlier this year, the county was informed that the U.S. Federal Bureau of Investigation (FBI) permanently put on hold their new HQ search, signaling a key loss.
  • Despite this news, the tide has shifted. Private sector leasing fueled by 2U helped drive nearly 300,000 s.f. of occupancy gains at 7900 Harkins, highlighting the first time since 2010 the county posted annual net absorption. Further, this long-term lease helped post the highest $ p.s.f. sales price in the county since 2007 as 7900 Harkins sold for $252 p.s.f. after selling for $66 p.s.f. in 2015.
  • Occupancy growth will continue ahead as the U.S. Department of Homeland Security – Citizenship and Immigration Services (CIS) announced plans to relocate into the county near Branch Avenue Metro and take down 575,000 s.f. by 2020. Further, Kaiser Permanente also cemented plans to grow in the county, taking down 172,863 s.f. in New Carrollton in 2019.​
  • In order to continue momentum from recent quarters, the county is rewriting the 50+ year-old zoning code. The draft of the new code includes changes that would reduce parking minimums near Metro stations, streamline the development process from 67 to 20 regulatory hurdles, and encourage mixed-use development around transit. The county’s proposed office pipeline totals 19.6 m.s.f., with 40% near transit. In a county that has only added 2.3 m.s.f. of new inventory over the past 15 years, a modernized zoning code will help make new development more realistic.​

Source: JLL Research




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