Wisconsin aVENUE CORRIDOr

T h e t r a nsfor m at ion of W h i t e Fl i n t w i l l
c on n ec t It to Bet h e sda / Ch e v y Ch a se ,
For m i ng a Mor e C on t iguous Su bm a r k et
W I S C O N S I N AV E N U E C O R R I D O R

Wisconsin
Avenue
Corridor:
 W I S C O N S I N AV E N U E C O R R I D O R

rans
orm
White Flint is anchored by the Metro
Red Line and surrounded by one of the
wealthiest demographics in the nation

The White Flint area of Montgomery County began

undergoing significant suburban development in the 1970s NNMC is in the midst of transition due to the Base
as the mall opened and office buildings emerged later in Realignment and Closure (BRAC) decision, which will be
response to the Metro station opening in 1984. In the 1970s completed by September 15, 2011. At this time the expanded
and 1980s White Flint emerged as a dynamic suburban node base will be called the Walter Reed National Military Medical
anchored by the Metro Red Line and surrounded by one of Center (WRNMMC). NIH will continue to grow, as it receives
the wealthiest demographics in the nation. robust Federal funding due to the current administration’s
focus on health care issues.
More significant second generation land use changes
are now emerging as the Montgomery County Council As the built environment changes and jobs are added to
approved growth guidelines in March 2010 that permit this area over the next 20 years, we believe tenants will seek
higher density development immediately surrounding the space in the White Flint area. As projects deliver to White
White Flint Metro station. During the next 20 years, the Flint in phases, tenants will have greater access to Class A
county is planning to add over 12,000 new residential units space within a mixed-use walkable center, which is located
and over 7.0 million square feet of non-residential space, of ¾ mile from a Metro station.
which approximately 60% could be office space, according
to preliminary plans. The county also plans to change the We believe the changes planned for White Flint will, over
current street pattern into a walkable environment catered time, make it an alternative to Bethesda/Chevy Chase. As
to pedestrians – changing the streetscape from suburban White Flint transforms and demand for space increases,
to urban. we believe market perception about the submarkets from
Bethesda/Chevy Chase to White Flint will transform as well,
By the year 2030, this transformation will bring 21,000 creating a corridor – the Wisconsin Avenue Corridor.
new jobs and at least as many new residents along Route
355 from Bethesda/Chevy Chase to White Flint, inclusive of We project the evolution of this corridor will be similar
the National Naval Medical Center (NNMC) and National to the evolution of the Rosslyn/Ballston Corridor in
Institutes of Health (NIH). NNMC and NIH, two government Arlington County. As the inventory and product quality
hubs located south of White Flint and north of Bethesda/ increased in Ballston during the late 1990s and 2000s, tenants
Chevy Chase, are projected to add a quarter of these new had a viable alternative to Rosslyn. As the Ballston landscape
jobs. transformed and demand increased, market perception
changed – evolving the submarkets between Rosslyn and
Ballston into the Rosslyn/Ballston Corridor.

3
W I S C O N S I N AV E N U E C O R R I D O R

In March 2010 the Montgomery County Council adopted a plan that will

transform White Flint from a car dominant suburb to a pedestrian friendly

mixed-use environment over the next 20 years.

Proposed Rockville Pike Boulevard and Promenade Cross Section

 W I S C O N S I N AV E N U E C O R R I D O R

White Flint Development

In March 2010 the Montgomery County Council adopted a plan In the late 1970s an urban mixed-use community was
that will transform White Flint from a car dominant suburb to planned for White Flint upon the opening of the Metro
a pedestrian friendly mixed-use environment over the next 20 station. At that time, the plan area focused on a 200 acre
years. parcel surrounding the Metro station. The plan called for
a 2.0 FAR, which was enough density at that time to spur
The plan area totals 430 acres, stretching from White Flint development.
Mall to the south, CSX railroad tracks to the east, Old
Georgetown Road to the west, and Montrose Parkway to the Over the past 30 years, despite the development of
north. The area is serviced by the White Flint Metro station. The the White Flint Mall during the late 1970s, low-rise uses
plan area is within a ¾-mile radius of the Metro station. dominated the area surrounding the Metro station,
consisting of strip malls with surface parking and low-rise
office structures, with limited residential development.
This type of built environment fostered auto dependence,
as there was little development for pedestrian uses.
White Flint Plan Area Boundary
White Flint Plan Area Boundary Currently there are just over 2,300 existing dwelling
units within high-rise structures in the plan area. Non-
residential space accounts for 5.5 million square feet,
which translates into 22,800 jobs within the plan area. With
a ratio of 9.8 jobs to 1 housing unit, most workers reside
outside the plan area due to limited residential options.

Development and Jobs Housing Ratio

White Flint Sector Plan
As of June 2010

Total

Residential Units 2,321

Non-residential square feet (SF) 5,490,000

Estimated number of jobs (based on SF) 22,800

Jobs/Housing Unit Ratio 9.8/1

Source: Montgomery County Planning Department; August 2010.
Source: Montgomery County Planning Department; August 2010.
Montgomery County Planning Department; August 2010.

P
lanners and developers hope to transform White Flint into a pedestrian friendly, mixed-use center over the next
20 years by providing a walkable grid pattern, similar to Bethesda/Chevy Chase, and reducing car dependence.
The grid pattern planned for White Flint will allow access to the new development from all points within the plan
area and surrounding residential community. Rockville Pike (Route 355), the main thoroughfare, currently dominated
by the car, will be transformed into a walkable grand boulevard, with trees and pedestrian oriented sidewalks.

5
rise in
W I S C O N S I N AV E N U E C O R R I D O R
n
W I S C O N S I N AV E N U E C O R R I D O R

residential units
During the next 20 years, over 12,000 new housing units Bethesda/Chevy Chase Compared to
and over 7.0 million square feet of non-residential space White Flint
will deliver in three phases. Within the non-residential
component, approximately 60% could be office space, During the 1970s, Bethesda/Chevy Chase held a higher
according to preliminary development plans. The notable share in residential and non-residential, which includes office
rise in residential units will allow for more people to live and retail inventory. This analysis is based on a ¾ mile radius
where they work, as the jobs to housing ratio will be 3.4 of a Metro station to remain comparable to the White Flint
jobs to 1 housing unit, compared to the current 9.8 jobs plan area, which is within the same distance.
to 1 housing unit. By 2030, the jobs to housing ratio in
White Flint will be on par with the 3.5 jobs to 1 housing unit The share of inventory has shifted slightly, as Bethesda/
projected for Bethesda/Chevy Chase. Chevy Chase currently holds 68% of the non-residential
inventory and 82% of the residential inventory.
This transformation in White Flint, coupled with a walkable
grid pattern with bike paths and trails, will help reduce Given the development planned for White Flint, the
auto dependence, as pedestrians will have easy access to share of both residential and non-residential inventory
everyday needs. will become more balanced with Bethesda/Chevy Chase
by 2030 – when many of the mixed-use projects at White
Development and Jobs Housing Ratio Flint are fully built out. By 2030, White Flint will hold 48% of
White Flint Sector Plan residential and 45% of non-residential inventory, compared
As of 2030 to currently holding just 18% and 32%, respectively.
Total
Share of Residential Units and Non-Residential SF
Residential Units 14,341
Bethesda/Chevy Chase vs. White Flint
Non-residential square feet (SF) 12,980,00

Estimated number of jobs (based on SF) 48,600

Jobs/Housing Unit Ratio 3.5/1

Note: Development is either approved or planned.

Source: Montgomery County Planning Department; August 2010.

To encourage such development, Montgomery County

has increased the maximum building height in the plan
area. Developers are allowed a 300 foot building height
within a ¼ mile radius of the White Flint Metro station.
Within a ¼ to ¾ mile radius, building heights will range
from 50 to 250 feet. The plan area FAR will range from 1.5
to 4.0, to encourage property owners to redevelop.
Bethesda/Chevy Chase currently holds 71% of the office
rise in residential units inventory and 62% of the retail inventory. By 2030,
White Flint could hold 46% of office and 56% of the retail
will allow for more people inventory, compared to currently holding just 29% and 38%,
to live where they work respectively.

7
W I S C O N S I N AV E N U E C O R R I D O R

the
imbalance
of inventory and quality of product that has
historically favored Bethesda/Chevy Chase
is a result of its walkable/pedestrian friendly
environment and proximity to the District.
 W I S C O N S I N AV E N U E C O R R I D O R

Share of OFFICE SF AND RETAIL SF - ALL CLASSES

Bethesda/Chevy Chase vs. White Flint

Historically Bethesda/Chevy Chase held a greater share

of Class A office space. Notably in 2000, Bethesda/Chevy
Chase held a 79% share of Class A office space. White
Flint at this time held only 21% of such space. Given the
Class A office development planned for White Flint, the
share of inventory will become relatively balanced by 2030
– when many of the mixed-use projects at White Flint are
fully built out.

Share of CLASS A OFFICE SPACE

Bethesda/Chevy Chase vs. White Flint

We believe the imbalance of inventory and quality of

product that has historically favored Bethesda/Chevy
Chase is a result of its walkable/pedestrian friendly
environment and proximity to the District. One of these
advantages will be removed with the White Flint master
plan.

Bethesda/Chevy Chase residential and non-residential

space will always be in demand. However, with space
filling up in Bethesda/Chevy Chase, and the White Flint
master plan in place, White Flint will be competing on a
more level playing field.

9
W I S C O N S I N AV E N U E C O R R I D O R

– the
Route 355 between Bethesda/
Wisconsin
Chevy Chase and White Flint will
Avenue
become known as a corridor
Corridor.

The Evolution of a Corridor

As the share of inventory and Class A product begins to balance

between Bethesda/Chevy Chase and White Flint, we believe
tenants will seek space in White Flint. As the built environment
transforms and demand increases in White Flint, we believe
market perception will change as well – and Route 355 between
Bethesda/Chevy Chase and White Flint will become known as a
corridor – the “Wisconsin Avenue Corridor”.

Over the next 20 years, notable population and job growth is

projected for the submarkets along Route 355 in Montgomery
County – from Bethesda/Chevy Chase to White Flint. Companies
are projected to add 21,111 new jobs to this area, a 24%
increase, according to the Metropolitan Washington Council
of Governments. With approximately 76% of these jobs office-
using, this translates into a demand of 3.2 million square feet
– based on the metro average of 200 square feet per employee.
Given the projected population growth of 27,679 – the number
of households in need of housing will rise by 11,849.
 W I S C O N S I N AV E N U E C O R R I D O R

A portion of the employment growth is due to the Federal Given the focus on health care and attendant Federal funding,
Government, as the new headquarters for the Nuclear Regulatory the Metropolitan Washington Council of Governments
Commission (NRC), the National Naval Medical Center (NNMC) expects NIH to add over 3,000 new jobs by 2030, a 16%
and National Institutes of Health (NIH) are located within the growth.
corridor. NNMC and NIH are located just south of the White Flint
plan area and are serviced by the Medical Center Metro station. Employees transferring to WRNMMC due to the BRAC
decision will take newly constructed space on the base.
NNMC is currently in transition due to decisions made under However, newly created jobs added at NIH will be looking
the Base Realignment and Closure (BRAC) plan. Under this for space either on the NIH campus, which is limited, or lease
plan, the Walter Reed Army Medical Center in the District of private sector space in the surrounding submarkets.
Columbia will close and relocate 1,750 employees to NNMC. An
additional 450 new employees will be added to the expanded Currently, there is limited available office space within a ¾
base for maintenance and support. The transition is to be mile radius of the Bethesda/Chevy Chase and White Flint
complete by September 15, 2011. At this time the expanded Metro rail stations. There is a total of 988,000 available square
base will be called the Walter Reed National Military Medical feet of office space in Bethesda/Chevy Chase. Montgomery
Center (WRNMMC). County has just over 1.0 million square feet of office space
either approved or planned for Bethesda/Chevy Chase.
However, with a potential office demand of 3.2 million square
Map of Wisconsin Avenue Corridor feet through 2030 for the Wisconsin Avenue Corridor, tenants
will find it difficult to find available office space in Bethesda/
Chevy Chase, unless more office product is built. It will be
270
355 more challenging to find available Class A space in Bethesda/
Chevy Chase, as there is currently only 575,000 square feet
currently available.
White Flint
Demographic Growth
Wisconsin Avenue Corridor1
2010 to 2030
NIH/
Walter Reed- Total
Bethesda Naval
Population 27,679

Employment 21,111

Bethesda/ Households 11,849

Chevy Chase
1
Route 355 – Bethesda/Chevy Chase to White Flint.
Source: MWCOG; August 2010.

Source: Map Point Delta Associates; August 2010.

We believe as new office product delivers over the next 20
years, tenants seeking quality space in a mixed-use center will
seek space in White Flint. With 7.4 million square feet of new
The Metropolitan Washington Council of Governments predicts non-residential space approved or planned for White Flint,
the WRNMMC will add 2,500 new jobs over the next 20 years, tenants will have numerous options.
largely through BRAC, a 31% rise. This compares to the 24% rise
in employees in the entire corridor. As demand intensifies and development
NIH will receive a $1 billion increase in Federal budget funding balances between the two submarkets,
for fiscal year 2011, a 3.2% increase from the year prior. The level perception of a unified corridor, connecting
of funding is expected to remain robust over the long-run, given Bethesda/Chevy Chase and White Flint,
the passage of the health care reform bill in 2010.
will develop.

11
W I S C O N S I N AV E N U E C O R R I D O R

Rosslyn,
Clarendon/Courthouse,

and
Ballston
. . . the share of both residential and non-residential inventory is
relatively balanced between the three submarkets.
 W I S C O N S I N AV E N U E C O R R I D O R

Share of Residential Units and Non-Residential SF Case Study: RCB Corridor

Rosslyn vs. Clarendon/Courthouse vs. Ballston
We believe a corridor is created as the share of
development and quality of product is more evenly
dispersed among closely located submarkets. The
same transformation linked Rosslyn, Clarendon/
Courthouse, and Ballston – creating what is known
today as the Rosslyn/Ballston Corridor.

During 1970 the share of residential and non-

residential development was greater in Rosslyn. In
1990, the share shifted slightly – as projects were
developed in Clarendon/ Courthouse and Ballston.

Currently, the share of both residential and non-

residential inventory is relatively balanced between
the three submarkets. The Clarendon/Courthouse
submarket has a slightly larger share of residential
and a slightly smaller share of non-residential
inventory. As residential and non-residential
development occurred in Ballston, the share of
inventory began to balance with Rosslyn. Currently,
Ballston has 3.5 jobs to 1 housing unit.
Share of CLASS A OFFICE SPACE
Rosslyn vs. Clarendon/Courthouse vs. Ballston

3.5 jobs
to 1
housing unit

Rosslyn held a greater share of Class A office

space in 1980, at 52% of the inventory. In 1990,
the share of Class A space was evenly distributed
among the submarkets, as development progressed
in Clarendon/ Courthouse and Ballston. By 2000,
Rosslyn held the least amount of Class A space,
compared to Ballston.

13
W I S C O N S I N AV E N U E C O R R I D O R

D
uring the late
1990s and early
2000s several
tenants vacated
older product in Rosslyn
and leased Class A space in
Ballston – as a greater share of
newer space became available
nearby. For example:

greater share
of newer space
 W I S C O N S I N AV E N U E C O R R I D O R

• The Nature Conservancy vacated 84,000 square feet at • American Association of School Administrators
1815 N. Lynn Street in Rosslyn during 1998, a Class B 1966 vacated 24,000 square feet at 1801 N. Moore Street
building that has now been demolished. The company in Rosslyn, a Class C 1935 building, during 2003. The
relocated to 107,000 square feet of Class A space at 4245 association relocated to 16,000 square feet at 801 N.
Quincy Street in Ballston, a 2004 building.
N. Fairfax Drive in Ballston – a 1998 building.

• AES Corporation vacated 48,000 square feet at 1001 • Associated Builders and Contractors vacated
N. 19th Street in Rosslyn during 2004, a Class A 1989 20,000 square feet at 1300 N. 17th Street in Rosslyn
building. The company relocated to 94,000 square feet during 2003, a Class A 1980 building. The company
of Class A space at 4300 Wilson Boulevard in Ballston, a relocated to 25,000 square feet at 4250 N. Fairfax
Drive in Ballston, a 1998 building.
2003 building.

• Airlines Reporting Corporation vacated 84,000 square

feet at 1530 Wilson Boulevard in Rosslyn during 2002, a
Class A 1990 building. The company relocated to 79,000
square feet 4100 N. Fairfax Drive in Ballston, a 2002
building.

company relocations

top row: 4245 N Fairfax Drive, 4300 Wilson Boulevard,

bottom row: 4100 N Fairfax Drive, 801 N Quincy Street, 4250 N Fairfax Drive

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W I S C O N S I N AV E N U E C O R R I D O R

Map of Rosslyn/Clarendon/Ballston Corridor

Map of Rosslyn/Ballston Corridor

Rosslyn

Clarendon

Ballston

Source: Map Point Delta Associates; August 2010.

Source: MapPoint Delta Associates; August 2010.

Although tenants vacated older product in Rosslyn, the We believe this same trend will occur in White Flint, forming
vacancy rate recovered quickly as tenants seeking space close what will become the Wisconsin Avenue Corridor. As demand
to the District core, backfilled this space. ramps up, tenants looking for newer space will find it difficult
to lease space in the historically tight submarket of Bethesda/
We believe as the inventory and product quality balanced Chevy Chase. We believe the changes planned for White Flint
between the submarkets and demand picked up for newer will put this area on the same playing field as Bethesda/Chevy
space in Ballston, market perception changed as well – Chase. As White Flint transforms, market perception about the
evolving these submarkets into the Rosslyn/Ballston Corridor. submarkets from Bethesda/Chevy Chase to White Flint will
transform as well, creating the Wisconsin Avenue Corridor.

Corridor Comparison
Washington Metro Area
At 2030
Rosslyn/ Wisconsin

tenants seeking Ballston Corridor Avenue Corridor

Residential Units 35,300 29,700

space close to Non-residential SF 30,300,000 30,500,000

the District Jobs to housing ratio 3.8 2.6

Note: Within ¾ mile of the metro.

Source: Montgomery County, Arlington County, MWCOG; August 2010.
Delta Associates
Delta Associates, the research affiliate of Transwestern, is a firm of
experienced professionals offering consulting, valuation, and data
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The firm’s practice is organized in four related areas:

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