A significant lease agreement in the industrial sector has been concluded in Northern Virginia. J.E. Richards, a specialised manufacturer of components for data centres and based in the greater Washington, D.C. area, has leased the entire 935,000 square feet of the 211 Centreport Parkway property from Flint Development in Stafford, Virginia. According to the landlord's broker JLL, this represents the largest industrial lease ever executed in the corridor between Metro D.C. and D.C.-Richmond. The lease has a term of ten years.
The property, also known as Capitol 95 Logistics, will enable J.E. Richards to employ up to 500 staff for the production of data centre components and other hardware. This expansion underscores the growing demand for industrial space in the region, particularly from companies supporting the thriving data centre industry.
Market Dynamics and Rental Prices
The exact rent was not immediately disclosed by JLL. However, a report by CBRE indicates that the average asking rent for industrial space in Northern Virginia in the second quarter of 2026 was $17.41 per square foot. These figures reflect the market's high attractiveness and stable price development.
John Dettleff of JLL negotiated on behalf of Flint Development, while Michael DiMeglio and Michael Isen of NAI Michael represented J.E. Richards in this transaction. Mr Dettleff commented on the current developments: "Over the past year, we have seen a significant increase in large-scale industrial leasing activity in the Metro D.C. and D.C.-Richmond Corridor markets, particularly for spaces of 250,000 square feet or more. This demand is increasingly coming from companies supporting the data centre industry, including manufacturers and other specialised users."
Significance of the Transaction
J.E. Richards' lease almost exceeds the total industrial space leased in the market during the second quarter. Volume in the D.C.-Richmond market reached 1 million square feet by the end of June, representing a 55 percent increase year-on-year, according to CBRE. Other notable leases in Northern Virginia were smaller by comparison; the largest deal of the second quarter was the renewal of a 61,000 square foot lease by office supply company Guernsey at 45070 Old Ox Road in Dulles, Virginia.
Centreport Parkway has long been a prime location for regional distribution due to its combination of size and proximity to Washington, D.C. Today, it has evolved into a primary industrial zone within one of the region's newest data centre markets, as Mr Dettleff added.
