Arlington Adopts Adaptive Reuse Policy to Transform Office Vacancy

ARLINGTON, Va. — In an effort to address rising office vacancy rates and falling office values while reshaping the future of commercial real estate, the Arlington County Board on Nov. 16, 2024, adopted a policy on transforming outdated office buildings into vibrant, multi-use spaces. This adaptive reuse initiative positions Arlington as a leader in tackling urban challenges with forward-thinking solutions, fostering economic growth and community vibrancy.

“This initiative reflects Arlington’s commitment to meeting the moment,” said Libby Garvey, Arlington County Board Chair. “By rethinking how we use our spaces, we’re strengthening our economy and improving the vibrancy of our community for residents and businesses alike.”

In additional to adopting the policy on the Transformation of Commercial Office Buildings in Arlington, the County Board also approved an amendment to the Arlington County Zoning Ordinance (ACZO) to introduce a new site plan amendment category – Adaptive Reuse Amendment, and a request to authorize advertisement of new fees associated with this new adaptive reuse amendment.

The policy is a cornerstone of the Commercial Market Resiliency Initiative (CMRI), Arlington’s comprehensive strategy to address record-high office vacancies and maintain the County’s economic strength. This approach prioritizes speed to market by dramatically reducing the time to review and approve adaptive reuse projects. By reducing regulatory barriers, Arlington anticipates new investment that will redevelop and reinvigorate the local commercial real estate market while ensuring that the County remains an attractive hub for businesses, residents and visitors.

"This is more than a response to high vacancy rates — this is about positioning Arlington for long-term economic resilience," said Ryan Touhill, Director of Arlington Economic Development. "By embracing adaptive reuse, we’re turning a challenge into an opportunity, creating spaces that work for today’s workforce and future generations. Arlington is setting the standard for what innovative, community-centered development can look like."

Arlington faces significant challenges in its commercial office market, with more than 10.7 million square feet of vacant space and an oversupply of outdated office inventory. While these trends mirror challenges faced by other major urban areas across the country, Arlington’s approach is uniquely intentional, focused on creating new opportunities that support the local economy and improve quality of life.

The policy and amendment to the Zoning Ordinance includes key measures to:

• Establish a new special exception site plan amendment process for adaptive reuse projects, streamlining entitlements for developers.
• Incentivize the repurposing of obsolete office spaces into dynamic, mixed-use hubs through regulatory reforms that make the project review process faster and therefore less expensive.
• Strengthen Arlington’s economic competitiveness and enhance the community experience.

Arlington’s bold action comes as hybrid work, shifts in tenant demand and rising competition have led to significant decreases in commercial property values nationwide. By proactively addressing these challenges, CMRI demonstrates Arlington’s commitment to retaining its position as an economic leader and top destination to live, work and visit.

For more information about Arlington County’s adaptive reuse policy and its implementation, visit Commercial Market Resiliency Initiative (CMRI).

Media Contact

County Manager's Office
Ryan Hudson

 

Arlington Economic Development
Destiny Esper

 

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