The federal government is getting ready to become its own landlord in Falls Church.
A federal planning commission has signed off on a proposal for the U.S. government to buy the office complex at 7700 Arlington Boulevard, the long-time leased headquarters of the Defense Health Agency (DHA). It is a notable twist in federal real estate strategy: while some government buildings have been listed for sale in recent years, this campus is on track to shift from rented space to full government ownership.
As reported by CoStar, the approval clears the way for the General Services Administration to convert the multi-building campus into an owned asset that would continue to house military medical staff. CoStar notes that the move comes at the same time the government has been identifying other buildings for disposal.
Fairfax County property records list the site as DHHQ East Wing, at about 280,803 square feet, and DHHQ West Wing, at about 160,176 square feet, and name GBA Associates Limited Partnership as the parcel owner, according to Fairfax County. The Defense Health Agency identifies its headquarters address as 7700 Arlington Boulevard in Falls Church, confirming the tenant on the campus, per the Defense Health Agency.
Why Washington Is Buying While It Sells
On paper, owning a building the government already fills with workers can pencil out better than writing rent checks forever. It can also give agencies more control over security, internal layout and mission-critical infrastructure. The Government Accountability Office has documented federal efforts to shed underused real estate and to weigh ownership when it cuts long-term leasing costs, which helps explain how GSA can be preparing to buy one campus while shrinking footprints elsewhere, according to the GAO.
Falls Church Stakes And A Quiet Jobs Tug-Of-War
Keeping the DHA anchored at 7700 Arlington Boulevard is no small thing for Falls Church. The headquarters brings federal employees, supports local contractors and underpins part of the area's commercial tax base. Other cities have noticed the value of that work and are trying to lure it away.
San Antonio, for example, has put state money behind state money toward renovating Fort Sam Houston in a bid to attract Defense Health jobs. Closer to home, the Falls Church property's landlord has previously tangled with the federal government in court over payments, as reported by the Washington Business Journal.
The planning commission's approval is a key procedural step, but the public is still in the dark on the price tag and closing timeline. Those details were not available at the time of reporting, according to CoStar. Local officials, the landlord and GSA will be the next players to weigh in as the proposal moves into funding decisions and final approvals.
