Commercial real-estate news source Bisnow hosted a “Fairfax County State of the Market” event last week, at which representatives of several top area developers spoke about the boom in development in Reston and Tysons. According to Bisnow’s report, the areas are currently in a state where supply is outpacing demand.
“In Reston we’re a little sick, but Tysons is in hospice in terms of the glut of apartments,” said Greg Trimmer, JBG Smith executive vice president of development, according to the Bisnow report. Trimmer is reported to have said that apartment rents in Reston are flat — and in some cases slightly negative — due to the amount of new multifamily construction.
JBG Smith is involved in numerous residential projects around Reston, including the next phase of the RTC West project, which would include 700 dwelling units in two towers. It also has a stake in the 1831 Wiehle project, which would bring in about 1,500 new residents. In addition, Fairfax County has approved JBG Smith’s plans for about 500 more residential units and more at the Commerce Executive Park; however, the developer may be looking to unload that property.
Trimmer is reported to have said that Reston is positioned well to be a residential success, but that it is currently experiencing a “blip.”
“In the long term we’re set up well, but right now we do have a bit of a problem,” Trimmer is reported to have said.
Comstock CEO Chris Clemente is reported to have agreed, saying that the 450-apartment BLVD has not leased as quickly as expected. He says the hope is that will change once the full Reston Station development begins to take shape.
“I think a lot of that has to do with the lack of understanding of what this neighborhood here is going to be,” Clemente is reported to have said. “The new residential buildings will benefit from that lifestyle that only comes when you have a more complete environment.”
Comstock’s additional plans include 460 more residential units where the Sunset Hills Professional Center currently stands.
Mike Henehan, Bozzuto’s senior vice president, also spoke on the issue during the forum. He is reported to have given similar comments about the glut of new apartments and the supply surge in Reston.
Bozzuto is currently leasing apartments at its new 421-unit Aperture building.
“There is still some rent growth in this market,” Henehan is reported to have said. “It certainly doesn’t keep up with construction costs and some of the other costs, so I think there will be a little resistance there over time.”
File photo of Bozzuto’s Aperture apartments under construction, August 2016