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Fairfax County may soon take a more direct role in turning aging commercial properties into redevelopment opportunities as officials confront stubborn vacancy rates in lower-tier office buildings.
Board of Supervisors Chairman Jeff McKay called for the county to identify 10 to 15 promising properties and approach their owners about redevelopment or conversion.
“We know where they are. We have this information. Let’s identify the top 10, 15 opportunities and let’s go to them,” McKay said during an Economic Initiatives Committee meeting Tuesday, Feb. 10.
More than 1 million square feet of outdated office space left Fairfax County’s inventory in 2025, according to Fairfax County Economic Development Authority staff. Owners either demolished buildings to make way for new projects or converted them to other uses.
McKay said that progress was encouraging but argued that the county needs a more aggressive strategy. The initiative is expected to be introduced at the board’s regular meeting Tuesday, Feb. 17, with attention likely directed toward office categories experiencing the highest vacancies.
Class B and C buildings had a combined vacancy rate of 26.8%, while Class A space stood at 20.6%. Trophy-class offices, the market’s highest-quality segment, recorded a much lower rate of 12.3%.
Strong performance among trophy properties helped bring the countywide office vacancy rate down to 17.4% at the end of 2025. It was Fairfax County’s first annual decline since the pandemic began in 2020.
Developers appear unlikely to return to constructing office buildings on speculation without a primary tenant already lined up. Still, demand for premier space has remained relatively steady.
“We’re starting to see signals for these larger deals,” said Anna Nissinen, a senior vice president at FCEDA.
Nissinen cautioned that prospective tenants are taking more time to commit and that competition for major leases remains intense.
County economy presents a mixed picture
The office discussion was part of a broader review of economic conditions in Fairfax County and the surrounding region.
FCEDA Director of Market Intelligence Stephen Tarditi described the outlook as mixed but said Fairfax possesses important advantages for attracting and expanding companies in computer infrastructure, scientific research and development, and satellite communications.
Although employment declined amid cuts by the Trump administration, federal procurement spending received by Fairfax County businesses increased slightly to $41.4 billion in 2025, even as the regional total fell.
Capital investment in the county dropped early in 2025 but subsequently recovered, FCEDA officials said.
Mount Vernon District Supervisor Dan Storck, chair of the Economic Initiatives Committee, said Fairfax is positioned to form partnerships that could help fill vacant offices.
“We’re going to be able to capitalize on the opportunities,” Storck said, adding that the county continues to show resilience despite economic pressures.
McKay said Fairfax should remain a constructive regional partner while keeping its attention on local needs.
“Our first priority is the county,” he said, expressing hope that Fairfax will recover faster than the rest of the region.
Revitalization incentives could expand
County staff also presented plans to establish parcel-specific economic revitalization zones whose projects could qualify for tax abatements. The proposal would expand an incentive program approved in 2020.
Elizabeth Hagg, director of the Department of Planning and Development’s Community Revitalization Section, said staff had been consulting with the building industry and other groups.
The revised program would continue supporting existing revitalization districts in Bailey’s Crossroads, Seven Corners, McLean, Richmond Highway, Springfield, Annandale and Lincolnia.
Adjacent communities could also be added. Culmore, for example, could become an extension of either Bailey’s Crossroads or Seven Corners. New districts could be established in Huntington and around Lake Anne in Reston, an idea previously raised in 2024.
Current eligibility standards would remain in place. Developers generally must combine at least two parcels encompassing a total of 2 acres or more. Existing properties could then be redeveloped or converted through the program.
“Redevelopment tends to be more housing,” Hagg said. “These areas are good places to see this happen.”
Sully District Supervisor Kathy Smith questioned the proposed duration of the expanded program, which could extend into the 2040s, as well as the process used to select participating areas.
“Is there the bang for the buck?” Smith asked. “Have we stepped back and looked to see the impact? I really want to understand the impact. There’s a lot of questions.”
Storck said officials must carefully evaluate the complexities before adopting any changes.
“Flexibility is the key to this,” he said. “Every situation doesn’t fit into the same bucket.”