- 15-year extension will save $1.6+ million in annual rent
- Decision made after exhaustive study of options
- Will enable restructuring of work environment to provide better service
The Arlington County Board today approved an amendment to extend its office lease at 2100 Clarendon Boulevard for 15 years with Vornado. The County leases nearly 235,000 square feet at the site for its administrative offices. Under the lease amendment, the County will save more than $1.6 million annually in rent.
“This is a great deal for Arlington taxpayers,” said Arlington County Board Chair Jay Fisette. “The County will stay in this prime Courthouse location, home to County Government since 1989, at a savings of millions of dollars over the term of the extension. We conducted an exhaustive search and study of available options, and this truly is the best deal we found. Under the lease terms, we will be able to restructure our work environment here at Courthouse Plaza to provide even better service to our residents and businesses.”
The 15-year term will give the County time to consider whether or not to plan and build a new administrative building as envisioned in the adopted Courthouse Square Plan.
The Board voted 5 to 0 as part of the consent agenda to amend the new lease. To read the staff report on this item, visit the County website. Scroll down to Item No. 23 on the agenda for the Saturday, February 25, 2017 Regular County Board Meeting.
Terms of lease
The lease covers 2100 Clarendon Boulevard, along with 4,281 square feet of storage space, through October 31, 2033. The County will retain its right to further extend the lease in five year increments through January 2062. Once the new rent takes effect in November 2018, the total rent will be reduced from $11.5 million to $9.8 million per year or $42 per square foot.
The agreement also will require the landlord to provide a tenant improvement allowance of $23.7 million and permit the County to expand the building to make room for a day care facility. In addition, the County will be able to install a backup power unit serving its emergency communications equipment at 2300 Clarendon Boulevard.
Mobile work environment
For the past few years, Arlington has been becoming an increasingly flexible organization by gradually changing the way we work and interact with customers, residents and visitors. With Courthouse Plaza currently housing nearly a third of the County’s workforce, it is important that we continue to think ahead, and design a space that meets our business needs and serves our customers. The County now has the opportunity to accelerate our progress in the areas of mobility and flexibility and make it an integral part of the business process at Courthouse Plaza. The tenant improvement allowance that comes with our lease extension will help the County continue to be an innovative place to work, live and do business. In the coming year we will be evaluating all of the elements that will enable us to plan for that future.