COPT buys $43M FBI office in Chantilly - Comstock bets big on 'flight to quality,' and it's paying off - County report says new home construction needs to double
Thank you for reading Fairfax Real Estate Insider
Welcome to Fairfax Real Estate Insider, providing can’t-miss insights about what’s being built, bought, and bulldozed in Fairfax County. We keep real estate professionals ahead of industry trends and the news that matters most to their clients. Send news tips to austin@fairfaxrealestateinsider.com
Commercial Real Estate
COPT Defense buys $43M FBI office in Chantilly
COPT Defense Properties is expanding its footprint in Chantilly with a $43 million deal for 17 acres and two office buildings currently leased by the FBI. The property is at 15020 Conference Center Drive, just south of the Udvar-Hazy Air and Space Museum–an area that’s become a major hub for defense contractors including Boeing, General Dynamics, SAIC, and Northrop Grumman. It was purchased from PFI Chantilly LLC.
COPT President and CEO Stephen Budorick discussed the sale in a call last week with investors, noting that the company owns another property half a mile away:
The ground lease has very attractive long-term economics, which are supported by 2 highly strategic 100% leased office buildings known as Mission Ridge. These buildings are occupied by the FBI’s Technology division, including their cyber group and 2 leading defense contractors who are among our top 20 Defense/IT tenants. This transaction provides us with essentially perpetual control of a strategic land parcel in one of our priority submarkets in which we currently have a dominant market share and importantly, the senior position in the capital structure, which should lead to an opportunity to acquire the leasehold interest at attractive terms sometime in the future. Recall last quarter, we acquired Stonegate I in the same Westfield submarket, which was a $40 million purchase of 140,000 square foot building that is fully leased to a top 20 U.S. defense contractor.
Comstock bets big on “flight to quality”— and it’s paying off
Comstock, one of the region’s largest commercial real estate developers, has long argued that companies would abandon aging suburban office parks for transit-connected, amenity-rich space–a thesis it calls “flight to quality.” The company’s newly released annual report shows that bet paying off: Revenue jumped 23% last year to $63 million, the company’s seventh straight year of growth, as a parade of corporate tenants have relocated to Comstock’s Reston Station development.
Defense contractor Booz Allen Hamilton announced last fall it’s moving its headquarters from Tysons to The Row at Reston Station, a move coinciding with several rounds of Booz Allen layoffs. Other companies that have chosen Reston Station for their global or regional headquarters include Google, Carfax, ICF, Rolls Royce Aerospace, and Amentum. Tysons’ overall office vacancy rate sits at 20%, according to the Tysons Community Alliance. Comstock’s stabilized portfolio is 93% leased, per the annual report.
-The developer said condo sales at its JW Marriott residences at The Row exceeded $12 million in Q1 2026, totalling $90 million since opening in September 2025. The penthouse on the 27th floor recently sold for $10.25 million–Virginia’s most expensive condo sale ever, according to Northern Virginia magazine. McWilliams Ballard is handling sales of the condos, which come furnished and include 24-hour concierge, valet service, and access to hotel amenities such as in-residence catering, housekeeping, a fitness studio, and more.
-Comstock also noted in its annual report it’s moving into mall operations–which followed a press release last week that it will replace Dallas-based Centennial as manager of the Dulles Town Center. Centennial had managed the 1.4 million-square-foot mall since 2020. Comstock will handle day-to-day operations such as leasing, tenant relations, on-site activities and vendors, and marketing. The company will also provide strategic direction to the mall’s owner, Virginia Investment Properties LLC, including “the evaluation of redevelopment options that could increase overall utilization of the land,” according to the release.
JBG Smith seeks to replace Tysons office building with mixed-use apartments and retail
Developer JBG Smith has filed a proposal with the county to demolish one of three office buildings it purchased last year at Tysons Dulles Plaza and replace it with a 375-unit apartment building and two retail buildings, reports Bisnow. The proposal seeks to create an “active, pedestrian-oriented environment” to align with the “mixed-use character” of Tysons.
-In its quarterly earnings report, JBG disclosed it has sold a 50% interest in Tysons Dulles Plaza, which JBG bought last year for the firesale price of $42.3 million. The buyer of the 50% stake is not named. “This strategic joint venture follows through on our plan to attract private capital partners to scale and diversify our distressed office investment strategy while also enhancing the efficiency of our platform with incremental fee revenue and potential carried interest income,” JBG CEO W. Matthew Kelly said in a letter to investors.
Other commercial transactions:
The Monument Three office building at the Worldgate complex in Herndon was sold for $30 million from PBE Companies LLC to Crown Monument LLC.
A complex in the Kingstowne Towne Center in Alexandria that includes a 16-screen Regal cinemas was sold for $19.7 million from BP Kingstowne Theater LLC to FR Kingstowne LLC. The Washington Business Journal has more.
An office building at 1577 Spring Hill Road in Tysons was sold for $20 million from BE Spring Hill LLC to the Lafayette Federal Credit Union.
Data Center Watch
One developer pulls out of Digital Gateway project while another presses on
Compass Datacenters, a key developer behind the “Digital Gateway” project in Prince William County, is pulling out of the project, while another developer, QTS, is appealing a recent court loss, Inside NOVA reports. Compass bowed out after an appeals court halted the 2,000-acre data center complex, which has faced community opposition in part because of its proximity to Manassas National Battlefield Park.
“Recent legal actions and compounding regulatory hurdles have effectively closed a viable path forward,” Compass President AJ Byers said in a statement. Meanwhile, QTS denounced the court decision as “unprecedented” in its appeal to the Virginia Supreme Court.
Openings & Closings
Mama Lucia, a pizza favorite in the Fair City Mall off Main Street just inside the City of Fairfax, closed on Sunday after 39 years. “This decision was not easy, but our owner, Rosa, will be stepping away for health reasons,” the beloved restaurant announced on Facebook. Mama Lucia brought decent foot traffic into a less-utilized, covered portion of the mall that also includes Cinema Arts Theater.
The county is considering a zoning special exception to allow a Sheetz in Lincolnia, reports Annandale Today. The convenience store and gas station would replace two underutilized office buildings at 5505 and 5515 Cherokee Ave.
Residential Real Estate
County-commissioned report says home construction needs to double
The pace of home construction in Fairfax County would have to more than double to keep pace with projected job creation over the next decade, says a new report from the county’s Department of Housing and Community Development. The report, prepared by HR&A Advisors, points to a massive and growing housing shortage–both for renters and owners–but offers no policy prescriptions for what to do about it. It says the county has spent decades adding employers faster than it has added housing, and the gap has now compounded to the point where the workers those employers depend on–teachers, nurses, drivers, office staff–can no longer afford to live here. The commuter flows tell the story plainly: 148,000 more people drive into Fairfax every day to work than drive out, with 55,000 of them coming from Prince William County and 43,000 coming from Loudoun.
Per the report:
By 2035, the County is projected to add 62,000 workers and between 45,000 and 184,000 new residents, growth that will increase demand across income levels,” the report says. “To accommodate this expansion and restore a healthy vacancy rate, the County will need an estimated 41,000 to 95,000 new homes by 2035. Meeting this need will require roughly doubling the pace of housing production compared to the past decade.
Without a sustained political and policy effort, it seems clear the future is ever-rising prices for both owners and renters that drive a larger share of the county’s workforce to live (and pay taxes) elsewhere.
“Fast track” residential permits to become faster
The county is looking to speed up the approval timeline for certain home renovation permits. The Department of Land Development Services announced that projects qualifying for “fast track” status will be processed in one business day instead of the current five. Qualifying permits include “construction-ready,” “non-complex” projects such as one-story additions of 500 square feet or less, decks, finished basements, small garages and sheds, swimming pools, and solar panels.
The county is conducting a review to determine if it can also speed up the “fast track” process for commercial properties.
Board of Zoning Appeals halts home addition over setback requirements
A homeowner in the Greenbriar neighborhood west of the Fair Oaks Mall was denied a zoning appeal to complete a partially constructed three-story addition, WJLA reports. The extension is about seven feet from the property line, but the county’s setback rules require eight. “People that do not like the look and how big it is, I just want them to understand, I did it for my family,” said the homeowner, Mike Nguyen. His next door neighbor, Courtney Leonard, was unmoved: “Setback requirements exist for situations exactly like this,” she said.
With the Board of Zoning Appeals ruling against him, Nguyen now has three options: bring the addition into compliance, which he says will cost over $100,000; appeal to the Fairfax County Circuit Court; or request a special permit.
Leaderboards
Covers 4/27-5/3 | Data from Redfin
Top Sales by Price
6167 Cobbs Rd, Alexandria
Price: $5,575,000
Listed by Chris J DiNapoli of Samson Properties
Bought with Deborah Gorham
1322 Darnall Dr, McLean
Price: $5,001,970
Listed by Marilyn Charity of Washington Fine Properties
Bought with Piper Yerks of Washington Fine Properties
7011 Elizabeth Dr, Mc Lean
Price: $4,000,000
Listed by Scott Murray of Focal Point Real Estate
Bought with Michelle Pappas and Mary Gillespie of EXP Realty
1029 Founders Ridge Ln, McLean
Price: $3,900,000
Listed by Dianne Van Volkenburg of Compass
Bought with Dianne Van Volkenburg of Compass
11121 Elmview Pl, Great Falls
Price: $3,548,410
Listed by Dana Jones of Pearson Smith Realty
Bought with Beth Anspach of Pearson Smith Realty
Top Sales by Price Per Square Foot
6167 Cobbs Rd, Alexandria
Price: $5,575,000
Sf: 2,956
Listed by Chris J DiNapoli of Samson Properties
Bought with Deborah Gorham
6718 Lowell Ave #702, McLean
Price: $1,789,900
Sf: 1,859
Listed by Jennie Mann of McWilliams/Ballard
Buyer unrepresented
6718 Lowell Ave #607, McLean
Price: $1,334,900
Sf: 1,455
Listed by Jennie Mann and Miriam Fernandez of McWilliams/Ballard
Bought with Sami Lauri of Giant Realty
6429 Divine St, McLean
Price: $1,700,000
Sf: 2,329
Listed by Mike Burns of RE/MAX Allegiance
Bought with Carmen Bere of Samson Properties
2851 Fairmont St, Falls Church
Price: $650,000
Sf: 952
Listed by Alice Park of Pearson Smith Realty
Bought with Kenya Thompson and Dinh Pham of Fairfax Realty Select