This Morning in Arlington

Arlington County has been one of the region's development hotspots for decades. But with changes in both office demand and the way firms use space, the county remains in transition.

This morning, over 500 packed the Renaissance Arlington in Crystal City for our 4th annual Arlington County State of Market. County econ dev director Terry Holzheimer (right, with Monument Realty EVP Doug Olson) says the mass BRAC exodus that hit the county over the past few years is not over, as some leases are still in place and will create big vacancies in the next few years. Doug says he's interested to see how creative the county can get over the next five to seven years in dealing with vacancy and creating more jobs and smart development for the area.

LCOR SVP Harmar Thompson (with Lowe Enterprises' Mark Rivers) says that one way to deal with changing demand patterns is building conversions, but to work, there must be concessions from both the county and developers. Mark adds that one of his firm's strategies for adapting its portfolio is to make sure existing tenants are well taken care of.

Terry says the county views sequestration and BRAC move-outs as an opportunity for local firms to acquire other companies and help grow jobs. He also says a submarket like Crystal City is poised to help Arlington deal with the transition, due to its ambitious sector plan, as well as the transportation and density to support what he calls "the highest-end office space in the DC area." Stay tuned for more Arlington County coverage tomorrow.