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ridium Communications, a satellite‑network operator with more than 1,000 employees worldwide, announced in May 2025 that it would relocate its headquarters from 1750 Tysons Blvd. to 1676 International Dr. in Tysons. The new 13‑story building will house 55,000 square feet of space, an increase of roughly 20,000 square feet from the current 35,000‑square‑foot footprint, and will accommodate an additional 100 positions. CEO Matt Desch said the move was driven by space constraints, outdated office layouts, and the desire to create a “destination” that showcases the company’s technology and culture to partners and clients. The relocation, scheduled for March 2026, represents a $13 million investment and reflects a broader trend of companies seeking modern, high‑quality Class A office environments in Fairfax County.
Fairfax County, the most populous county in Virginia, hosts more than 10,000 technology firms, 11 Fortune 500 headquarters, and 120 Inc. 5000 companies. Its 120 million square feet of office space make it the largest market in the Washington, D.C. region. The county’s office vacancy rate rose from 17.2 % in 2023 to 18.4 % by the end of 2024, according to the Board of Supervisors. Despite the uptick, leasing activity grew, with 30 % of the market—about 7 million square feet—being signed or renewed in 2024, up from 6.2 % in 2023. This indicates sustained demand for premium space, especially Class A and trophy offices, as tenants trade up from aging facilities in a “flight‑to‑quality” movement.
The market has been shaped by several factors. Federal workforce reductions under the Trump administration, including 8,700 federal jobs cut in Virginia between August 2024 and August 2025, have impacted demand for office space in government‑contracting hubs like Fairfax. Tariffs on building materials and higher interest rates have also weighed on new construction. Yet return‑to‑office mandates have helped stabilize the market, and many companies remain cautious but engaged, recognizing that long‑term office needs persist.
New construction in Fairfax has largely stalled. The only major delivery in 2025 was the second trophy tower of Reston Row, a $1.2 billion, 1.6 million‑square‑foot mixed‑use project completed by Comstock. No other groundbreakings are expected this year. In 2025, Booz Allen Hamilton announced a move from Tysons to Reston Row in 2027, downsizing from 428,000 to 310,000 square feet. Carfax plans to relocate from Centreville to 87,000 square feet in Reston Station, while Noblis will occupy 75,000 square feet at Reston Next, a fraction of its current 160,000‑square‑foot headquarters. Workday is expanding its Tysons footprint from 15,000 to 51,000 square feet across two floors in Reston Town Center, aligning with the launch of Workday Government and a doubling of its Northern Virginia headcount.
While some tenants are moving into upgraded spaces, Fairfax is also grappling with “non‑performing” buildings—empty properties that landlords and banks can no longer sustain. Vacancy rates drive down lease values; Fairfax’s office property values fell $1.35 billion from fiscal 2024 to 2025, a 7.2 % decline from an assessed value of $18.03 billion to $16.74 billion. This contrasts with a 9.09 % drop the previous year, indicating a modest recovery.
The county’s economic development authority is pursuing a “transformation mode.” Victor Hoskins, CEO, predicts that 4–5 million square feet of office space will be repurposed or demolished over the next five to seven years, replaced by mixed‑use developments. Fairfax has encouraged adaptive reuse since 2018, offering incentives and streamlined zoning. Since 2014, the county has approved seven conversions of former office buildings into residential uses, and up to 8 million square feet of office space has been earmarked for demolition. This shift is expected to increase demand for existing office space as new tenants, including out‑of‑market companies, seek smaller footprints.
Among the 20 largest real‑estate deals in Fairfax in 2025, the average lease size was about 53,000 square feet—roughly two floors—matching Workday Government’s footprint. Lease terms averaged nine years, a positive sign that longer‑term commitments are returning to the market after a period of shorter leases.
Key employers in Fairfax include Inova Health System, Amazon, Booz Allen Hamilton, Capital One, Freddie Mac, General Dynamics, Navy Federal Credit Union, SAIC, Mitre, and Peraton. The county also hosts major convention venues such as Westfields Marriott Washington Dulles, Hyatt Regency Reston, and The Ritz‑Carlton Tysons Corner, and attractions like Tysons Corner Center, the Smithsonian Air and Space Museum’s Udvar‑Hazy Center, and Great Falls Park.
Tysons remains a prime location for companies like Iridium because of its proximity to the Dulles corridor, easy access to federal and technology clients, and the vibrant mixed‑use environment of The Boro, a six‑year‑old development that offers retail, dining, and entertainment within walking distance. The new Iridium headquarters, located less than a mile from the current site, will provide a modern, collaborative space that aligns with the company’s culture and strategic goals.
In summary, Fairfax County’s office market is experiencing a modest rise in vacancy but sustained leasing activity, driven by a strong demand for high‑quality Class A space. New construction remains limited, while adaptive reuse and transformation of older buildings are reshaping the landscape. Companies like Iridium, Booz Allen, Carfax, Noblis, and Workday illustrate the ongoing shift toward modern, collaborative environments that support both employee engagement and client interaction.
