Understanding Reston’s market is key to deciding if Reston is the best location for your business and determining the best time to move.
Reston offers many great amenities that appeal to business owners such as location, the metro, mixed-use developments, and a growing and diverse residential market, all of which attracts a variety of customers and quality employees.
Before you establish or relocate your business to Reston, consider the following:
Growing community – With about 40 development projects in the approved, in-process, or pre-application stage, Reston is one of the fastest growing communities in Fairfax County.
Variety of options – Reston offers businesses a wide variety of options in building classes and locations. Those are:
Office – Our research shows Reston’s average office asking rent is $29 gross/sf. Although, Reston Town Center and office space around the Wiehle-Reston East Metro Station have a much higher average asking rent of $48 and $31, respectively.
Office vacancy rate has dropped significantly in the last five years. From its highest point in 2012 of 17% to its current rate of 11%. As vacancy rate decreases, it increases asking rent price and vice versa. There is nearly 20 million-sf of existing office space in Reston, of which only one office building is under construction at Reston Station totaling 368,000-sf. Currently there is a high demand for office space in Reston and not enough space to fill the demand. However, proposed, planned, or under construction developments such as Reston Station will offer more office space and drive vacancy rate up.
Multi-family – Our research shows Reston’s has about 8,000 existing units and the average multi-family asking rent is around $1,600. Asking rent has steadily increased since 2012 and is currently at the highest point in five years at around $1.90/sf. Reston Town Center and multi-family units around the Wiehle-Reston East Metro Station have a much higher average asking rent per sf of about $2.80 and $2.90, respectively.
Asking rent will likely increase as vacancy rate drops. Although, about 19% of the total units are under construction and will be added to the market along with proposed or planned residential developments that are in the works. These two factors will increase vacancy rate.
The Future – With the amount of amenities Reston offers and proposed, planned, or under construction developments such as Reston Station, Reston Heights, Midline, and Metrorail Silver Line Phase 2, Reston will continue to become a desired community for businesses and residents which will continue to drive asking rent prices.
Retail – Stay tuned…The retail market in Reston is changing fast. Be sure to read Verity’s next Reston blog which will focus on retail.
Before you make your move into Reston, use Verity’s Reston knowledge and expertise to help you determine your options and the best time to move and negotiate asking rent price.