The booming Dulles Corridor, two strips of land running next to the Dulles Toll Road is showing signs of slowing. The technology corridor was a hot spot in 90s and earls 2000s as DotCom companies exploded in the area. Then came 9/11, with the technology downturn. But then government security contracting exploded, filling vacant office space.
Then the Democrats took control of Congress, and start trying to balance the budget, which is a good thing, but for the area is temporarily bad. Here’s what the WaPo had to say:
With federal contracting slowing from its recent boom, and as the national and regional economies soften, the current wave of construction projects is likely to leave empty buildings. Few new office projects are expected to get started in the near future, as developers focus on finding tenants. The process is likely to take at least two years, given historical trends, according to developers and brokers.
“There is going to be a lot of competition for tenants out there, and I am not going to paint a pretty picture,” George F. McKenzie, chief executive of the Rockville-based Washington Real Estate Investment Trust, told analysts during a conference call last month. “Activity has not been as good as one would have expected over the last 12 months.”
Despite an overall negative tone the technology corridor is still vibrant. Buildings are still being constructed, and Reston Heights project has already leased 90% of it’s office space. The metro will also increase the amount of jobs, and bring in new condos and apartments.
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