►
Description
The second meeting of the Arlington VA Community Facilities Study Committee featured Alex Iams and Victor Hoskins, both of Arlington Economic Development, speaking on Arlington's economic overview. For more information, go to http://commissions.arlingtonva.us/community-facilities-study/
A
B
Good
evening
my
name
is
Alex
imes
and
I'm.
The
deputy
director
at
Arlington
economic
development,
just
to
clarify
Victor
Hoskins,
will
be
speaking
immediately
after
me.
There's
a
transition
slide,
and
so
I
will
turn
it
over
to
him.
At
some
point,
I
promise,
masood
and
Terry
I
haven't
been
hiding
this
from
you.
It
came
my
way
in
the
audience,
so
I'm
gonna
tempt
to
to
turn
over
my
own
slides
here.
B
So,
let's
just
get
right
into
it:
kind
of
kind
of
lead,
with
with
some
of
the
conclusive
information
hero
and
at
the
last
meeting
it
was
asked.
How
much
does
each
percentage
point
of
office
occupancy
contribute
to
the
local
tax
base
and
the
answers
is
about
3.4
million
dollars
and
on
a
sample,
400,000
square
foot
building.
We
chose
400,000
square
feet
because
that's
about
one-tenth
of
our
total
office
inventory,
and
so
it
makes
a
neat
way
to
slide
up
and
down
the
scale.
B
For
example,
if
you
were
to
multiply
by
10,
then
you
know
that
that's
about
34
million
dollars
and
kind
of
called
that
out
on
the
next
slide.
A
vacant
building
actually
does
generate
some
revenue,
as
you'll
see
here
on
the
right-hand
part
of
the
slide.
The
the
improvements
in
the
land
are
worth
something,
but
it's
really
the
occupancy
that
drives
the
value.
B
Just
reiterating
the
importance
of
the
performance
of
the
office
market,
the
vacancy
rate
right
now
is
10
percentage
points
above
its
15-year
historical
average
and
higher
than
it's
been
in
most
any
year
in
our
history
in
any
given
year
over
the
last
20
years.
So
an
improvement
at
ten
percent
occupancy
would
represent
34
million
dollars
annually
in
local
tax
revenues,
so
that
would
be
a
great
natural
resource
to
mine
here
and
a
great
way
to
bolster
our
budget.
B
However,
the
the
challenge
is
that
to
get
that
ten
percent
back
and
give
us
drive
our
office
vacancy
rate
down
to
ten
percent
from
the
current
twenty
percent,
we
would
need
to
fill
4.4
million
square
feet
of
the
space
that's
currently
vacant.
Now,
how
hard
is
that?
Well,
the
entire
region
is
projected
to
add
3.6
million
square
feet
of
office
per
year
over
the
next
two
years.
B
Here's
a
scenario
and,
on
the
left,
hand,
side,
we've
Illustrated
our
4.4
million
square
foot
vacant
building
and
and
looking
across
some
illustrative
performance
levels.
So
our
average
capture
of
the
regional
demand
in
this.
In
this
example,
3.6
million
square
feet
of
net
absorption
is
five
percent.
So
if
we
get
five
percent
of
that
3.6
million,
we
get
180,000
square
feet
and
that's
how
much
we've
chipped
away
at
the
goal.
B
If
we
double
our
average
capture
to
ten
percent,
then
we
get
360
thousand
square
feet
and
you
can
see
again
how
much
we've
chipped
away
at
the
goal.
If
we
achieve
our
pre
brac,
which
is
base
realignment
and
closure
average
of
about
500,000
square
feet
of
office
absorption
per
year,
we
would
increase
office
occupancy
by
one
and
a
quarter
percentage
points,
and
we
would
get
about
four
and
a
quarter
million
dollars
in
local
tax
revenues
per
year.
B
Now,
let's
take
a
step
back
and
look
a
little
bit
more.
How
the
region
has
been
performing
and
what
some
of
the
history
looks
like
what
some
of
the
recent
history
looks
like
you
can
see
that
the
last
four
years
have
not
been
going
well
for
the
DC
area
and
the
blue,
barb
arlington
has
had
the
negative
off
the
office
absorption
to
the
tune
of
negative
3
million
square
feet
about.
Eighty
percent
of
that
is
as
federal
agency
loss
here
on
the
next
slide.
B
We
get
into
it's
kind
of
a
crazy
slide,
so
bear
with
me,
but
you
see
the
the
effects
of
brac
and
sequestration
in
the
past
four
years.
There's
the
three
million
square
feet,
eighty
percent
or
2.4
million
square
feet.
Of
that
three
million
is
federal
related
and
then
you
can
see
some
of
the
other
major
movement
in
the
market
in
the
pet.
B
In
the
past,
the
Navy
moving
out
in
the
2001
and
the
patent
and
trade
market
trademark
office
in
the
mid
2000s,
as
well
as
some
increase
in
net
absorption
about
the
time
that
Homeland,
Security
and
other
defense
related
activities
were
ramping
up.
You
also
see
on
this
slide
the
total
vacancy,
so
we've
obviously
been
on
it
on
an
upward
journey
there
again
from
that
quasi
historical
average
of
about
ten
percent
to
over
twenty
percent.
B
Today,
I
think
the
the
exact
figure
is
something
like
21
depends
on
on
the
quarter
and
and
where
we
are
and
then
some
of
the
averages
over
time.
Our
pre
brac
average
absorption
was
that
500,000
square
feet
of
absorption
and
our
total
average
over
the
20-year
period
is
two
hundred
and
seventy
thousand
square
feet
of
absorption.
If
you
include
the
negative
activity
in
the
past
four
years,.
B
Another
challenge
that
the
positive
absorption,
so
the
level
of
tenants
moving
in
less
the
tenants
moving
out,
has
been
in
newer
buildings.
All
of
the
positive
absorption
in
the
past
four
years
has
been
is
attributable
to
newer
buildings
or
buildings
that
were
constructed
in
the
year
2000
or
later.
So
it's
a
challenge
for
us,
because
so
much
of
the
space
that
was
vacated
during
base
realignment
and
closure
that
was
formerly
occupied
by
federal
agencies
tends
to
be
older
than
that.
B
What's
driving
this
beyond
the
federal
repositioning
workplace,
design,
efficiency,
the
culture
of
the
firms
that
are
coming
into
arlington
prefer
a
more
open
workspace,
design,
efficiency
measures
that
can
result
in
fifteen
to
twenty
percent,
less
space
requirement
for
a
given
company.
So
that's
obviously
not
working
in
our
favor
either.
B
This
is
an
illustrative
view
of
what's
happening
in
the
past.
We
had
an
office
product
or
a
set
of
office
products
that
generally
matched
our
tenant
base
and
composition
and
the
workplace
preferences
of
those
tenants,
and
now
we're
in
this
transition
period,
began
with
these
compounding
factors
of
federal
repositioning,
a
new
collection
of
regional
Tod
submarkets,
an
evolving
tenant
base
and
the
changing
nature
of
the
way
that
people
do
work.
B
There
are
buildings
that
are
dark
and
waiting
for
a
tenant
that
could
spur
a
redevelopment
on
that
parcel.
Another
point
is
that
these
legacy
tenants,
the
government
and
contractors
still
really
matter
a
lot.
They
fill
up
fifty
percent
of
the
leased
office
space
that
we
have
the
private
leased
office
base
that
we
have
in
Arlington.
So,
while
we're
while
we're
moving
on
incremental
e
transitioning
into
a
more
diversified
tenant
base,
we
still
have
to
be
very
mindful
of
who's
here
and
how
much
space
they
drive.
B
Tenants
greater
than
150,000
square
feet
occupy
twenty-five
percent
of
the
office
space,
while
making
up
just
one
percent
of
the
company.
So
there's
some
really
large
users
out
there
that
are
in
the
space
and
as
we
go
as
we
recruit
the
newer
tenants
or
of
a
smaller
size.
Again,
we
have
to
run
a
lot
harder
to
fill
the
same
amounts
of
space
in
these
tech
oriented
companies
in
cyber
security,
education,
health
care
are
leading
this
flight
to
quality
in
the
terms
of
the
space
and
the
tenant
base
diversification.
B
The
next
slide
shows
a
sampling
of
sectors
and
companies
that
we've
worked
on
over
the
past
seven
or
eight
years,
and
these
these
represent
many
successes
in
our
market
and
things
to
celebrate
in
the
market
over
almost
2,500
jobs
in
four
hundred
and
sixty
thousand
square
feet.
They
just
wanted
to
give
you
an
idea
of
who's
in
this
education,
technology
sector,
health
care
technology,
cybersecurity
data,
analytics
energy
efficiency
and
where
they
are
in
the
county
competitive
setting.
B
Now
this
has
been
a
topic
of
interest
lately
and
we've
been
doing
some
analysis
in
our
office
on
this,
and
we
found
some
interesting
things
about
where
we
stand,
who
our
direct
competition
is
who's
cheaper
than
us
who's
more
expensive
and
who
is
right
near
bias
in
the
space
and
what
are
they
doing
to
try
to
gain
a
competitive
advantage?
So
we
plotted
this
on
the
basis
of
occupancy
costs,
which
is
the
rent
and
the
taxes,
including
income
taxes
and
the
distance
from
the
capital.
B
So
you
have
some
of
those
DC
area
office,
submarkets
that
are
closest
to
zero
there
on
the
left-hand
side
of
the
axes
and
the
sum
of
the
farther
out
markets
in
Northern,
Virginia,
tysons
corner
Reston
that
are
quite
a
bit
further
from
the
capital.
So
you
see
that
we're
closest
in
the
space
to
places
like
capital
riverfront
near
the
baseball
stadium,
north
of
massachusetts,
avenue
north
of
union
station
area,
downtown
and
bethesda.
So
in
terms
of
who's,
our
collective
set-
that's
that's,
who
we're
closest
to.
B
Quick
look
at
the
Arlington
occupancy
costs
and
then
we'll
get
quickly
into
how
we
compare,
but
just
wanted
to
note
where
the
you
know
the
higher
rents
are
in
Arlington
tend
to
be
in
Rosslyn
and
ballston
and
then
but
followed
by
Crystal
City
and
clarendon
court
house
and
the
relatively
consistent
across
the
Arlington
submarkets,
and
obviously
we
as
economic
development.
We
don't
care
where
they
go
in
Arlington.
We
just
want
them
in
arlington.
B
Arlington,
even
even
Rosslyn,
which
is
our
most
expensive
when,
when
you
stack
everything
up,
is
typically
less
expensive
than
the
comparable
DC
submarkets
until
the
incentives
are
applied
and
what
they're
able
to
do
in
DC
with
things
like
income
tax
and
other
taxes
just
to
set
those
aside
either
for
a
period
of
time
or
on
some
scaling
basis,
so
that
in
essence,
just
for
example,
the
hatched
area
on
the
DC
submarkets
would
disappear
at
least
for
a
period
of
time.
And
then
our
stack
would
be
higher
than
theirs.
B
We
under
now
understand
some
of
the
deltas
between
you
know
the
the
Roslin's
boston's
and
the
Tyson's
and
Reston's,
and
then
Bethesda
is,
is
relatively
equivalent
to
our
markets
and
they're
thinking
a
little
bit
differently
now
about
how
they're
doing
economic
development
as
as
well
in
Montgomery
County
anyway,
with
that
I
am
going
to
bring
Victor
up
here
to
talk
about
the
way
forward,
we've
thrown
out
all
of
these
complications
and
challenges
and
Victor's
been
on
the
job
for
weeks.
So
obviously
he's
got
it
figured
out.
Oh.
C
Goodness,
what
a
challenge
so
my
slides,
a
little
different
from
theirs
I
frankly,
am
a
little
bit
more
optimistic
I
think
there
is
a
way
forward.
It
moved
there
you
go.
This
is
my
favorite
slide
by
the
way
I
watched
a
lot
of
National,
Geographic
and
discovery
channel.
This
bear
was
sitting
on
the
shore
line
before
he
moved
in.
To
do
this.
This
is
how
bears
fish
during
the
salmon
run
up
in
Northwest?
So,
if
you
can
imagine
this,
we
have
been
sitting
on
the
side
of
the
river
watching
these
fish
go
by.
C
That's
really
what's
been
happening.
We
didn't
even
know
that
there
was
a
problem.
Well,
this
guy
figured
it
out.
He
said
I
just
need
to
position
myself.
So
really,
this
is
all
about
positioning.
This
is
not
over
waiting
in
government.
This
is
understanding
that
your
salmon
are
running,
so
you
got
to
go
where
the
salmon
are
running.
You
have
to
go
to
the
places
where
the
salmon
are.
So.
Let's
talk
about
new
businesses,
diversification.
If
we
do
not
diversify
our
economy,
we're
done
that's
what
the
District
of
Columbia
did
starting
in
January
2011.
C
That's
when
I
joined
the
administration,
we
changed
our
focus.
We
change
the
businesses
that
we
went
after
we
change
the
places
that
we
hunted
for
businesses.
That's
what
we're
going
to
do
here,
cornet,
which
is
a
gathering
of
about
2,500
corporate
executives
twice
a
year,
they
gather
nationally
and
internationally.
This
is
where
all
the
big
tenants
are.
This
is
where
all
the
this
is,
where
you
troll
for
the
whales.
This
is
where
you
go
for
the
big
ones:
icsc
international
conference
of
shopping
centers.
C
This
is
where
over
35,000
individuals
come
to
talk
about
retail
deals,
either
recruiting
me
Taylor's
or
their
as
retailers.
It
is
where
the
District
of
Columbia
got
a
lot
of
its
retailers
that
are
now
in
city
center
and
actually
all
over
the
city.
We
filled
about
almost
two
million
square
feet
of
retail
space
during
the
time
that
I
was
with
the
either
signed
up
or
filled
during
the
time.
I
was
in
the
District
of
Columbia.
That
was
40
months.
C
That's
a
tremendous
amount
of
retail
space
and
when
you
look
at
the
number
of
sales
that
we
recaptured
for
the
city,
it
was
a
huge
deal
because
they
were
shopping
where
crystal
city,
they
were
shopping.
In
Bethesda
we
had
to
change
those
shopping
patterns,
they
didn't
even
have
a
costco.
They
got
a
costco
now
costco
with
gas,
which
is
even
better
and
we
recruited
them
from
icsc
select.
Usa
selects
USA
is
a
gathering
over
2,000
investors
from
around
the
world.
The
US
Department
of
Commerce
sponsors.
This
event
brings
them
all
to
one
place.
C
The
great
thing
this
year
right
over
a
national
harbor.
We
could
take
the
bus
there.
We
could.
We
can't
take
the
metro,
but
we
could
destined
to
definitely
drive
there,
but
it's
where
we're
going
to
go
after
some
international
investors
and
companies
to
bring
them
to
the
to
Arlington
South
by
Southwest
South
by
Southwest.
That's
that
sx
SW
sep
for
those
of
you
who
aren't
a
millennial,
I
didn't
know
what
it
was.
Ok
back
in
january
of
2012
would
have
been
on
a
job
a
year.
C
Somebody
said:
hey:
you
got
to
go
to
this
thing
South
by
Southwest.
This
is
one
of
my
London
eels
and
I'm
going
like
well.
What
is
that,
and
he
just
laughed-
he
spent
maybe
five
minutes
on
the
floor
laughing
at
me.
He
goes
man,
you
are
so
out
of
it
and
you
know
what
I
didn't
realize
until
I
got
there,
but
I
was
really
out
of
it.
50,000
people
over
three
weeks:
music,
digital
media,
social
media,
ed
tech,
med
tech,
you
name
it
cyber
this
is.
C
This
is
one
of
the
more
interesting
things
to
do
in
a
year,
it's
a
great
place
to
recruit
companies,
and
we
recruited
about
a
dozen
companies
the
first
year
we
went
about
20
companies
the
second
year
and
there
the
district
is
going
in
third
year.
We're
going
to
go
this
year
and
actually
Arlington
has
never
been
by
the
way
Arlington
hasn't
been.
C
The
icsc
in
10
years
has
never
been
a
cornet
in
a
major
way
and
has
never
been
to
select
USA
or
South
by
Southwest,
so
we're
going
into
new
markets,
we're
getting
off
the
shore,
we're
positioning
ourselves
to
get
in
front
of
these
folks
and
then
we're
going
to
do
individual
marketing
missions
to
markets
that
we
want
to
target
like
market
said.
We
want
to
target
alike
Boston
their
companies
in
Boston
that
we
want
here,
Silicon
Valley,
some
parts
of
Los
Angeles
and
then
we're
going
to
do
region
of
work.
C
Meeting
meetups
you
got
anybody
here,
familiar
with
meetups,
raise
your
hand
wow.
This
is
a
hip
crowd.
I
got
to
tell
you
that
I
had
never
heard
of
a
meet-up
three
years
ago,
and
the
first
one
I
went
to
was
was
absolutely
mind-blowing
for
me,
but
it
made
me
understand
better
the
the
new
millennial
entrepreneurial
spirit
and
it
is
not
just
profit
focus.
It's
also
social
focus,
which
is
which
is
very
interesting.
10
MNS
I.
C
That's
going
to
be
continued
to
be
very
important
for
us,
because
the
Nationals,
because
it
deals
with
the
national
security
cluster
and
then
we're
going
to
continue
to
work
with
the
economic,
actually
we're
going
to
start
working
with
the
economic
development
organizations
in
Northern
Virginia
and
in
Maryland.
We
actually
have
an
event
next
week,
while
I'm
going
to
sit
down
with
lunch
with
all
the
ed
economic
development
directors
from
northern
virginia,
and
then
we
are
actually
going
to
work
in
cooperation
with
the
District
of
Columbia
Prince
George's
County
on
the
select
USA
event.
C
This
is
very
different.
This
hasn't
been
done
before
one
of
the
things
that
I
did
when
I
was
at
the
District
of
Columbia
I
helped
get
an
air
china
route
to
land
at
at
Dulles
Airport
and
is
a
route
they
had
been
working
on
for
15
years
and
the
way
that
I
did
it
is.
I
got
my
mayor
to
call
your
governor,
which
is
now
my
governor
and
have
him
contact
your
new
secretary
of
economic
development,
and
it
was
one
of
the
first
deals
that
they
did.
C
He
said,
oh,
my
god,
there's
a
bear
coming
and
the
other
little
boy
started
putting
on
one
of
his
tennis
shoes
and
the
boy
that
was
standing
up
looked
down
and
said.
Why
are
you
putting
on
your
tennis
shoes?
They
had
a
man
alive,
could
outrun
a
buyer
and
he
finished
putting
on
his
second
ten
issues
and
said:
look
I
don't
have
to
outrun
the
bear
I
just
have
to
outrun
you
Missy,
that's
understanding!
C
Your
competition
you
really
have
to
under,
if
you're
going
to
beat
them,
you
have
to
understand
them
so
I'm
very
much
in
the
competition,
and
this
is
our
competition
right
now.
This
is
the
landscape.
You
see
that
line
of
checks
under
DC.
That
is
really
that's
really
tough.
To
overcome
we're
going
to
overcome
it,
but
it's
tough
to
overcome.
They
have
grants,
they
have
tax
credits,
they
have
partial
tax
exemptions,
they
have
land
writedowns.
They
have
international
offices
by
the
way
a
lot
of
the
stuff
they
didn't
have
before
I
got
there.
C
But
that's
why
people
hire
me,
because
you
want
to
change
your
position
arlington.
As
you
can
see,
we
got
three
checks.
That's
a
good
place
to
start
we're
going
to
reposition
ourselves,
but
the
thing
that
we
have
that
DC
doesn't
have
is
an
extremely
powerful
partner
in
the
state
of
Virginia
in
a
state
of
Virginia
and
actually
the
other
economic
development
agencies
are
our
partners
and
we
need
to
figure
out
how
to
work
together
because
we
don't
need
to
pursue
the
same
fish.
C
These
are
the
low
costs,
no
cost
approaches.
Regulatory
reforms.
Speeding
up
your
permit
process.
Do
you
know
they
have
a
one-stop
Center
of
Prince
George's
County?
Do
you
know
they
have
a
one-stop
Center
in
the
District
of
Columbia?
Did
you
know
you
can
submit
your
permits
online
in
the
District
of
Columbia?
You
never
have
to
see
a
person.
They
will
mark
up
your
drawings,
send
them
to
you.
You
can
remark
them
up
and
send
them
back
to
them
and
never
leave
your
desk.
C
It
is
a
different
world
out
there
right
now
they
have
the
same
thing
in
montgomery
county.
We
got
to
catch
up
with
our
competitors
and
how
fast
we
move
in
the
expedited
permit
process
for
the
kind
of
uses
that
we
want
in
DC.
Well,
actually,
Chicago.
They
have
this
green
thing.
They
called
the
green
lighting
where,
if
you're
going
to
do
a
green
project,
it
zips
past
everything
else
in
DC,
they
give
special
priority
to
green
projects.
That's
the
LEED
certified
crowd
sourcing
for
finding
out
what
your
community
wants.
C
This
is
something
that's
being
used
a
lot
in
retail
there
there's.
I
love
this.
I
saw
this
one
day
was
a
big
sign
on
the
front
of
retail
bay,
its
it.
What
do
you
want
here,
hashtag
tell
me
and
every
they
got
over,
I
think
they
got
like
the
first
day.
They
got
2,500
suggestions
and
I
think
after
a
week
it
was
almost.
C
I
think
it
was
like
8,000
suggestions
anyway
from
that
they
decided
what
would
go
there
guess
what
it
happened
to
be
successful,
so
so
their
ways
you
can
go
about
actually
low-cost,
no
cost
and
actually
making
better
decisions
on
where
retailers
ago
and
then
creative
placemaking,
you've
done
a
lot
of
that
in
arlington,
and
we
need
to
do
more
of
that
to
attract
the
Millennials.
Here's
the
issue
in
the
marketplace
right
now.
There's
this
marketing
process
you
got
to
go
through.
People
have
to
be
aware
of
what
you
have.