R.
Rogers
18 April 2012
Highlights: 17 April 2012 Reston Master Planning Task Force Meeting
Summary and Comment: The meeting focused on trends in the
commercial market in the Washington
area with special reference to Reston. In general, the office market is slow in the
region and even slower in Fairfax. The longer term outlook for Reston,
particularly the town center, looks somewhat better, particularly if it can
fulfill younger workers expectations of a more urban lifestyle.
Metro Silver Line
Patti Nicoson said
she had talked with Ken Plum before the meeting on the Virginia Senate’s action
on the budget. Plum
said the situation was uncertain but that presumably the budget will go back to
the Senate-House reconciliation committee. She also said the MWAA seemed likely
to defer a request for qualifications (RFQ) until the issue of Loudoun
participation becomes clear.
FC Planning
Terry Maynard raised
the issue of concern in Reston about forthcoming
FC planning action on revisions to the planning maps. Heidi said this was a routine
action to update the maps, which was last done in 1995. The aim is to reflect more accurately
existing county guidelines. Among other things it aims to better reflect county
vs private open space. She said the report and maps will be available for
public inspection soon.
Trends in the Commercial
Office Market.
The bulk of the meeting
was a presentation by Harry Klaff and Scott Homa (head of research) of Jones
Lang LaSalle (JLL)on trends in the regional commercial real estate market. JLL has done consulting work for DPZ on various
issues including COMSTOCK. The presentation was data rich and will be on the
county website.
Current regional trends: The Washington
area is suffering with limited current absorption of office space. In fact, the area lost 1.5 million GSF of
occupied space with NoVa representing
1.3 million of this in the first quarter of 2012. This is in contrast with the
first decade of the century when the Washington area led the nation because of
the federal anti-recession programs and the federal spending boom earlier in
2002-2007.
JLL thought there were several factors at work—the
election cycle, divided government, the absence of a federal budget, and the
federal deficit—that generated this market stagnation. On top of this was a drive by tenants for
greater space efficiency and some downsizing. All this has led companies,
particularly government contractors, to defer decision on new space.
Job Numbers: Still, regional job
creation is only a little bit below trends. This has partly been because of
qrowth in “green” businesses and social media organizations, but most of this
has been downtown. (“Living Social” was mentioned several times. See today’s Washington Post for an
article and picture. It has grown from
50 employees to 3,500 in four years.)
Longer term, JLL said they foresaw the entire region growing at
about 37,000 jobs per year, somewhat lower than the 50,000 per year trend line. There was some (confusing) discussion about
how this agrees with recent revisions by GMU lowering their job projections.
Space downsizing: Job growth and weak
office demand is in part due to contractors and even the government using less
space per employee. GSA has been seeking space at 110-185 GSF per
employee. Downsizing to 80-120 sq. ft
per employee is not uncommon. Telecommuting, work at home and technology is
part of this, although JLL did not distinguish from employment in place or at
home in its estimates.
Generation Y: Another factor at work is
the interest in workers in their 20s in a more urban, walkable, 24/7 environment
with nearby housing and various amenities, particularly restaurants. (JLL cited a figure of 77% wanting such an
environment). Rosslyn-Ballston has profited from this trend. (Terry comment:
In general, the presentation did not address non-singles households as
largely represented by Gen Y. In
particular, there were no insights into senior living or traditional family (2
adults plus kids) market demand or accommodations.)
Reston Area
These trends are
apparent in the Reston area, they said. Overall, there is a 16% vacancy with much it
in the older, suburban style properties.
Someone looking for space here has 25-40 options now. However, Town
Center has only a 3% vacancy rate and can command a 42% rental premium because
of the available amenities.
Although the
growth drivers appear to be downtown, JLL
saw potential in the suburban areas for contractors focusing on cyber security,
photo reconnaissance and information technology.
One factor in
Reston that may impact jobs is the need for more affordable rental
housing. In addition, a good quality walk
able supermarket is a big draw for younger residents.
Impact of Metro: In response to a
question, JLL said that Metro should
open up Reston for other types of users. For example, GSA strongly favors locations near Metro in relocations. However, in the short term, there may be some
concern about the impact of Metro dislocation and construction disruption. They noted that this is currently evident at Tysons.
Parking: Downtown there has been a
marked trend toward auto-less households.
This is partly economic, but also driven by the viability of Zipcars.
In Fairfax County, almost all households and job holders
are car dependent. Some TF members thought
this would mean that new construction in Reston
would be strongly auto-oriented. JLL
agreed that in the Reston-Herndon area parking will be essential—curtailing it
would be a “mistake”-- at least in the intermediate term. However, Roslyn-Ballston shows that over time
parking can be less essential. There was
some interest from TF members in the TF for taking a closer look at parking
issues.
Old Business
Heidi said that
DPZ is working with FC schools to develop a more qualitative analysis of school
needs. She mentioned the possibility
that school needs might be met by the expansion of facilities rather than new
construction.
Parks: Heidi noted discussion at the
last meeting about the interaction of Phase I and Phase II re parks and
recreation needs. She noted that Parks
was trying to better define which needs could be met in the TOD areas and which outside it. Phase II would
include discussion of those needs that can be met in the Phase II area by new
or nearby facilities
Next Up
April 24: An overview of the by FC transportation
analysts of the process they are using to determine transportation needs. Heidi
noted they are particularly using the Vision Committee analysis in this.
May 8:
Meeting canceled because FC transportation results will not be completed.
May 22: Public security and public utility
needs.
June 12: Results of the transportation
analysis. FC DOT is trying to take into account among other things the impact
of an increase in the DTR tolls.
The analysis of increased traffic due to increased DTR tolls should provide information from independent sources on actual decreases in toll road use when tolls increased and where parallel free roads were available.
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