ARLINGTON, VA — A Boston-based investment firm is planning to reduce the size of its office space in Arlington by almost half, according to a report.
The disclosure comes as Arlington is working to address its commercial office vacancy rate, which currently stands as one of the highest among the jurisdictions in Northern Virginia.
Cambridge Associates LLC is expected to move in early 2025 from its 91,000-square-foot office on N. Fairfax Drive in the Ballston area about six blocks west to a 48,000-square-foot space in The Regent building on N. Glebe Road, near the corner with N. Fairfax Drive, the Washington Business Journal reported Tuesday.
Cambridge Associates’ planned move to a smaller office space accommodates “the evolving needs of staff in the more hybrid post-COVID environment,” a person familiar with the move told Washington Business Journal.
The investment firm has been located at the N. Fairfax Drive address since 2018.
Arlington County’s commercial office vacancy rate in the fourth quarter of 2023 stood at 23.9 percent, higher than the 20 percent vacancy rate in Northern Virginia as a whole, according to the Washington Business Journal.
County officials have been trying to tackle the high commercial office vacancy rate, given the impact that the vacancy rate will have on the county’s budget and the tax burden on Arlington’s residential sector.
Arlington Economic Development Director Ryan Touhill told ARLnow last October that he believes the vacancy rate will continue climbing. Touhill’s office predicts about one-quarter of office buildings in Arlington are at risk of sustained vacancies, ARLnow reported.