National Defense Industrial Association is an Arlington, VA-based trade association, and America’s leading Defense Industry association promoting National Security. Their membership includes the most prominent organizations in the National Security industry including BAE Systems, Booz Allen Hamilton, Deloitte, Raytheon and Lockheed Martin. Their main goals were to facilitate an “organizational refresh” through architectural redesign, remain in close proximity to the metro and other amenities their employees had grown accustomed to, and take advantage of the soft real estate market in Northern Virginia.
The challenge was to successfully negotiate an aggressive real estate transaction well in advance of the lease expiration that would reduce their annual occupancy costs and achieve a large enough concession package to completely cover the renovation costs of their 22,000 SF foot print. Their current space was office intensive, in need of more conference rooms, and didn’t facilitate the type of collaboration NDIA was looking for from its staff.
After completing a strategic plan, it was determined by NDIA that remaining within Colonial Places' three building complex, but moving to the building next door, was the option that best achieved their goals. However, since they had just under three years left on their lease, outside alternatives to leverage against the existing landlord were limited as most buildings with vacancy were looking for tenants that required less of a concession package.
Using their market knowledge, WLS was able to negotiate for multiple options outside of Colonial Place where the landlord agreed to completely cover the build out costs while also taking over the existing lease liability. As a result, we were able to:
NDIA was able to design and construct space that increased efficiency and collaboration while remaining in a location that their employees valued and in a building that promoted their image. In addition, by negotiating a new lease well in advance of their existing expiration, NDIA was able to lock into a below market rental rate due to the current vacancies within Colonial Place and soft market conditions in Northern Virginia.