Logo, Dulles Technology Corridor, Real Estate Services in Vienna, VA

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Contact Us:

(888) 985-6033
(571) 382-2061
 
8027 Leesburg Pike, Suite 300,
Vienna, VA 22182-2701 

FAQ (Frequently Asked Questions)

Real Estate as an Investment

Should I consider buying my building rather than leasing?

That really depends on a number of factors. First and foremost is how you economically treat the "physical plant." Are your tenant improvements so costly, that only your company can reap the benefits (value)? Thereby making the facility a long term investment as well as a cost. Secondly, management. This is a tough one. Managing a facility can mean more employees and for the small to midsize company it simply isn't worth it, therefore, hire a management company. Thirdly, future. Can you adequately predict the future of your company? Is the facility too small, too large? The labor force adequate? Investment. The real estate industry is on the verge of a revolutionary transformation as profound as that which it experienced 100 years ago. It will be faced with contending changes created by the digital revolution, the information revolution, the aging revolution, the globalization revolution, the materials handling revolution, and the environmental revolution. Ownership of real estate is not right for everyone but can dramatically change a portfolio in a few years if invested wisely.


Dulles Area

Is the Washington- Dulles Area really the internet capital of the world?

57% of all internet traffic passes through the Dulles area. This is no surprise to anyone traveling down the Dulles Toll Road. With the super fiber conduits built around this region, it is obvious that companies such as Gestalt, SAIC, Mindbank, Cable and Wireless, TRW, Oracle, Road Runner, Windstar, BTG, Landmark, Vistronix, Teleglobe, MCI/UUnet, EDS, PSI Net, AOL, Net2000, NASC, Best!, Bellatlantic, VISTA, Comdial, Exec, roku, Signal Corp, techspan, ...continue to locate here. The list goes on and on, and it seems to have no slow down in site. This area will continue to be the world leader in Telcom and Internet companies for a long time.


Type of Space

Flex Park or Office Park? What's the difference?

The flex park offers basically lower costs and more flexibility for today's companies. Lower costs in the basic rental rate, and lower costs due to negligible "common areas". For a company with mixed components of facility needs, ergo, warehouse and office or R&D and office, the flex park is probably where you need to locate. The Office park on the other hand has a more urban lifestyle ; more tenant services readily available, parking garages, greater window line, and usually better control of your HVAC environment. All this comes with a cost, usually a cost of 25% or greater over the standard flex park. 


Space Needs?

How can I roughly figure my space needs?

Typically this question only arises regarding office space because usually you know what your lab, or R&D area, or warehouse area will need. So here goes, the method of measurement for a typical class A professional office environment is 200 square feet per person. This includes common areas, conference rooms, and circulation factors. The US government in its calculation of GSA areas use a number of 125 SF per person. In the tech arena, we are seeing a shrinking of the areas necessary for each desk, resulting in a desire to get closer to that 125.


Lease Rates

What is Triple Net? Or Full Service?

"Triple net" means net of all expenses, usually, taxes, insurance, and CAM (common area expenses). This results in the quoted rate as the "base rate" ; add the triple net expenses to the base. Full service on the other hand is usually all inclusive, it includes all the expenses for that "base year". As an example, quoted as, "$21.00 full service", base year 2003. Next year (2004) any expenses above last years amount will be added to the rent as additional rent.


Ground Leases

What are the benefits? Drawbacks?

I think they are the best! With a ground lease you purchase a parcel of ground, put a tenant in place, and lease him the ground. The development costs are all on the Tenant, and when he leaves (in a long time, 20-40 years); you retain whatever is left of the asset (building). The real benefit is that you can "extract" the real value of the asset without a taxable event, even while the ground continues to go up in value over a long period.  downside is the rate of return on the value is usually low (today less than a 4% annual return); and don't  subordinate the land to a loan the tenant wants for the improvements.