In the News
From the Director:
The Intangibles Count
L-R: Dave Millard, Custman & Wakefield; Brendan Owen, Vornado/Charles E. Smith; Brian Coulter, JBG; Tim Helmig, Monday Properties.
Photo courtesy of Marc Bisnow, Bisnow on Business
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Arlington Economic Development recently hosted a panel discussion sponsored by the Arlington Real Estate Group (local brokers and developers) that featured five prominent and well informed members of the real estate community discussing current market conditions, with some hints of what it will take to see construction cranes on the skyline once again. They talked about the competition from the east – Washington, D.C. – which has never before really been a competitor with Arlington. The over-building in general in the District and the newness of the emerging markets in NOMA and South Capitol has significantly narrowed the previous rent differential enjoyed by Arlington. However, when overall costs are considered Arlington still represents a significant cost advantage.
Even with increased price competition, the panel uniformly recognized a single element as Arlington’s primary advantage over the competition – the intangibles represented by a truly superior urban environment with transportation options, abundant retail and business services, hotels and other amenities that create desirable places. Development that makes a place more interesting, a cultural center for instance, also adds a quality of life interest to the urban villages from a business perspective. While firms will seldom quantify these factors like they do true cost elements, the intangibles can play a role in business growth and satisfaction.
The economic development literature considers these quality of life factors right up there with taxes and workforce when it comes to site selection. If you happen across a video produced by any of the 3,000 economic development agencies in the U.S. you will see the required “walking the dog by the lake (ocean, park, etc)” shots along with the classic “live, work, play” here content. In Arlington, these factors do play a larger role because we already enjoy competitive advantages in terms of costs and we have the most educated workforce in the country. With nearly all of our office space located in transit-oriented urban villages, the hotels, restaurants, business services and transportation options are the intangibles that truly set Arlington apart.
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