orthern Virginia commercial real estate developer JBG Smith is eager to capitalize on retail giant Amazon.com’s decision to open half of its new headquarters in the market.
The Crystal City area of Arlington, Va.
JBG Smith is the dominant property owner in the mammoth Crystal City development, which has struggled in recent years after area military base closings and sequestration.
But now the game is changing, thanks to Amazon. JBG Smith has an exclusive leasing and development partnership with the Seattle-based behemoth as part of the company’s decision to invest $2.5 billion there. That will include leases at existing buildings and the development of a new headquarters location in a complex to be called National Landing. National Landing encompasses Crystal City, the eastern portion of Pentagon City and the northern portion of Potomac Yard. Within that area, JBG Smith owns 6.2 million square feet of existing office space and 2,850 units of existing multifamily space, and it also controls 7.4 million square feet of additional development space. Amazon will locate the second half of its new headquarters in Long Island City, N.Y.
As a result of Amazon’s selection of National Landing, JBG Smith says it intends to start developing the 130,000-square-foot Central District Retail center and a 272,000-square-foot, mixed-use office and retail property, plus a 750-unit multifamily building this year. JBG Smith is advancing through the planning, entitlement and design process for potential future development on the remainder of the square feet it controls.
A tarp draped over the 1851 S. Bell Street building in the Crystal City area of Arlington, Va.
That does not include Amazon’s agreement to acquire more land owned by JBG Smith, where one of the new Amazon buildings will be located.
“This decision is a game-changer for our local economy and will breathe new life into a market that is still recovering from the headwinds of BRAC, the global financial crisis and sequestration,” said JBG Smith CEO Matt Kelly, in a press release.
Amazon also has the option to expand its footprint in the National Landing area to 8 million square feet.
Virginia is also investing $195 million in infrastructure improvements, including improvements to the Crystal City and Potomac Yard metro station, a pedestrian bridge connecting National Landing and Reagan National Airport, and safety improvements for pedestrians crossing U.S. Route 1.
By Brannon Boswell
Executive Editor, Commerce + Communities Today
