Raytheon Technologies Corp. (NYSE: RTX) has reached a deal to extend its stay in a Rosslyn office building nearly three years before its current lease was slated to expire.
The Waltham, Massachusetts, defense contractor has signed a long-term lease renewal with Monday Properties for its roughly 116,000 square feet at 1100 Wilson Blvd. in Arlington, where its red-lettered logo can be seen along Rosslyn's skyline along with those of Deloitte and Grant Thornton, among others. The company's current lease was not due to expire until August 2023, but it is one of many tenants that have moved to take advantage of uncertainty caused by the ongoing coronavirus crisis and other factors to secure more generous lease terms and concessions.
"While the pandemic has affected the commercial real estate market overall, this multi-year lease renewal is a great sign that major companies are thinking well beyond the next 12 months in their real estate decisions," John Wharton, senior vice president of leasing at Monday Properties, said in a statement. "Raytheon's extension demonstrates the company's commitment to both Rosslyn and its customers."
Concessions and free rent have been on the rise over the past few years, particularly in the District in the face of record-high vacancy rates. Raytheon's landlord declined to disclose lease terms, but Tim Helmig, managing partner at Monday Properties, said he viewed retaining a tenant like Raytheon as an important retention win for the two-building complex known as The Towers. Between them, 1000 and 1100 Wilson Blvd. combine for about 524,984 square feet and host other tenants including Sands Capital, SRI International Inc. and Sinclair Broadcast Group's WJLA television stations.
"With a tenant of that size, they're out there early looking, particularly if they're looking at a build-to-suit option, they really have to be out there 24 to 36 months in advance," Helmig said. "It was vitally important for us and the state of play for Arlington, and specifically Rosslyn."