KBS Signs Long-Term Lease Renewal at 186,922 SF NAIOP Award-Winning Office Building in Herndon, Virginia

Rhea-AI Summary

KBS has renewed a lease with its anchor tenant at Dulles Station East, a Class A office building in Herndon, Virginia. This 186,922 square-foot property showcases the persistent demand for high-quality office space post-COVID-19, according to KBS's President, Marc DeLuca. The renewal highlights the attractiveness of the building's amenities and its convenient location near the Washington metro area. KBS continues to demonstrate its capacity to attract and retain tenants, which reflects positively on its operational strength and market position.

Positive

• Lease renewal with anchor tenant at Dulles Station East demonstrates demand for premium office space post-COVID.
• Strengthened occupancy reflects KBS's operational capabilities and tenant satisfaction.
• Dulles Station East's amenities and location contribute to its appeal.

Negative

• None.

KBS, one of the largest investors in commercial real estate, has signed a lease renewal with the anchor tenant at Dulles Station East, a 186,922 square-foot, NAIOP award-winning Class A office building in the metro Washington D.C. suburb of Herndon, Virginia. Newmark, a global commercial real estate services firm, negotiated the lease on behalf of KBS.

KBS Signs Long-Term Lease Renewal at Dulles Station East in Herndon, Virginia (Photo: Business Wire)

This transaction demonstrates tenants’ ongoing desire for premier office space as we emerge from the COVID-19 pandemic, according to Marc DeLuca, Eastern regional president for KBS.

“Since inception, KBS has been closely attuned to trends among tenants in the office sector,” says DeLuca. “Demand for office space has remained strong at the properties in our portfolio and will likely be further bolstered by rising confidence as vaccinations become more widely available. This, coupled with workers’ increasing desire to return to the workplace after more than a year of remote work, positions the office market for greater strength in the coming months.”

The lease renewal agreement, which extends the tenant’s occupancy at Dulles Station East I, reinforces the strength of the building’s amenities and incredibly easy access to the Washington metro area, says Stephen Close, asset manager for Dulles Station East I and senior vice president, acquisitions for KBS.

“KBS goes the extra mile to accommodate our tenants regardless of the economic climate,” says Close. “Our ability to attract new tenants and support existing tenants is a testament to our strength as an operator and to the appeal of the buildings in our portfolio.”

Steve Hoffeditz, Wes Evans and Ed Clark of Newmark represented KBS in the 33,102 square-foot Strayer lease renewal.

“This transaction proves once again that tenants are consistently drawn to KBS for its operation of best-in-class office buildings,” says Hoffeditz, executive managing director. “Dulles Station East is one of the most desirable office properties for companies in the Herndon, Virginia market, offering tenants unmatched service and amenities.”

Located minutes from Dulles International Airport, Dulles Station East is a six-story, Class A office building. Tenant amenities at the site include a fitness center, food delivery service, coffee bar, an outdoor patio, EV car-charging stations, a car-care station, nearby day care center, shopping, dining, entertainment, walking trails and public transportation. The new Innovation Center Silver Line Station expected to open in early 2022 will be walkable from the building.

Dulles Station East I is located at 2303 Dulles Station Boulevard in Herndon, Virginia.

Please click here for photos of Dulles Station East.

About KBS

KBS is one of the largest investors of premier commercial real estate in the nation. As a private equity real estate company and an SEC-registered investment adviser, KBS and its affiliated companies have completed transactional activity of more than $43 billion on behalf of private and institutional investors globally. Founded in 1992 by Peter Bren and Chuck Schreiber, KBS acquires and operates prime commercial real estate in some of the most successful epicenters in the country. The firm is committed in its business ethics, its business relationships and its constant focus on exceeding the expectations of its investors, partners and tenants. SEC registration as an investment advisor does not imply any particular level of skill or training. For more information on KBS, please visit www.kbs.com.

About Newmark

Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries (“Newmark”), is a world leader in commercial real estate services, with a comprehensive suite of investor/owner and occupier services and products. Our integrated platform seamlessly powers every phase of owning or occupying a property. Our services are tailored to every type of client, from owners to occupiers, investors to founders, growing startups to leading companies. Harnessing the power of data, technology, and industry expertise, we bring ingenuity to every exchange, and imagination to every space. Together with London-based partner Knight Frank and independently owned offices, our 18,800 professionals operate from approximately 500 offices around the world, delivering a global perspective and a nimble approach. In 2020, Newmark generated revenues in excess of $1.9 billion. To learn more, visit nmrk.com or follow @newmark.

This release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements relating to KBS’ ability to invest in and manage a diverse portfolio, and the performance of Dulles Station East I and of the Herndon, Virginia real estate market. These statements are subject to known and unknown risks, uncertainties and other factors which may cause KBS’ and/or Dulles Station East I’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210601006088/en/

FAQ

What is the significance of the lease renewal at Dulles Station East for NMRK?

The lease renewal reinforces the demand for quality office spaces in the market and showcases NMRK's role in negotiating significant real estate transactions.

How does the lease renewal at Dulles Station East impact NMRK's business?

The lease renewal positively impacts NMRK by affirming its strength in the commercial real estate services sector, enhancing its reputation in managing high-demand properties.

What are the key features of Dulles Station East that attract tenants?

Dulles Station East offers various amenities, including a fitness center, coffee bar, outdoor patio, and proximity to transportation, making it a desirable location for tenants.

When is the expected opening of the Innovation Center Silver Line Station near Dulles Station East?

The Innovation Center Silver Line Station is expected to open in early 2022, enhancing accessibility to Dulles Station East.