Dulles World Center Market & Fiscal Impact Analysis
Loudon County, VA
The Dulles World Center is a proposed development of 1,265 multi-family units, 3.5 million square feet of Class A office, 605,900 square feet of retail, and 350,000 square feet of lodging space in suburban Loudon County, Virginia. Located at the intersection of Route 28 and the Dulles Toll Road near the Loudon/Fairfax County border, the eastern portion of the site lies within a quarter mile of the proposed Route 28/CIT MetroRail station. The completion of the Silver Line extension to Dulles Airport is currently scheduled for 2018. In 2017 the County was evaluating whether to allow the developer to build a multi-family housing component as part of Phase 1, rather than later in the project process, a shift that would alter the proffer agreement. The original proffer agreement called for office and retail development in the Phase 1.
RKG Associates’ assessment of local real estate market characteristics confirmed that while the market for non-residential uses was soft, the residential market would support development of new apartment inventory at this time. Analysis showed that allowing the first phase to continue with residential units would trigger community and transportation investments, positioning the property to be more competitive in attracting non-residential tenants. A fiscal revenues analysis calculated projected tax revenues from real estate, personal property, a transportation improvement district special assessment, and a rail service district special assessment. The analysis concluded that the county would realize $3 million in annually recurring tax revenues at full build-out of Phase 1.
RKG's analysis helped the developer to win approvals necessary to develop 468 residential units in the project’s first phase, as well as 150,000 square feet of office and 30,000 square feet of commercial space. The firm's continued involvement with the Dulles World Center development has included impact studies centered on the potential Amazon HQ2 facility for which Loudon County was a final 20 candidate.