Reinventing Arlington's Offices: Adaptive Reuse Simplified

Arlington County, Virginia, is taking strides to address the challenges posed by high office vacancy rates through its Commercial Market Resiliency Initiative (CMRI). This initiative aims to transform obsolete and vacant commercial office buildings into vibrant, functional spaces that contribute to the community's economic and social well-being. (See Holland & Knight's previous blog, "Arlington County Unveils Bold Zoning Overhaul," Aug. 8, 2024.) On Nov. 16, the Arlington County Board voted to establish "A new special exception site plan amendment category, with specific criteria and methods to create an alternative process for the conversion of obsolete and vacant office buildings and encourage economic development in order to facilitate the creation of a convenient, attractive, and harmonious community in order to promote the health, safety and general welfare of the public."

The Need for Transformation, Adaptive Reuse Amendment

The CMRI seeks to mitigate the downstream impacts of its rising office vacancies by adopting a comprehensive policy on the transformation of commercial office buildings. Adaptive reuse can be cost-effective because it's possible to repurpose major elements of an existing building such as the structural frame, foundations and envelope. It can also help preserve the historical and cultural fabric of communities. This policy includes:

1. Adoption of County Board Policy: The County Board has adapted a new zoning amendment that aims to create a more streamlined and economically viable approach for adaptive reuse, reducing the supply of obsolete office buildings and reactivating sleepy street fronts. The new streamlined process is anticipated to take between 120-150 days.
2. Administrative Regulations: New regulations are under development and expected next year. The Department of Community Planning, Housing and Development (CPHD) will consider amending development-related fees to support adaptive reuse projects.
3. Zoning Ordinance Amendment: The zoning ordinance has been amended to establish a new special exception site plan category for adaptive reuse. The adaptive reuse amendment creates an alternative process for converting obsolete office buildings, making it easier, faster and more cost-effective for developers to repurpose these building. For the specific text amendment, please see the board report on page 25.

A building can qualify to participate in the new adaptive reuse process if:

• an adaptive reuse amendment has not been previously approved for the building
• the building has been occupied for at least 5 years
• the principal use of the building is at least 50 percent office
• more than 50 percent of the office use would be converted
• more than 50 percent of the office gross floor area within the building would change to an alternative use allowed in the underlying zoning
• any increased density complies with new standards in §15.5.9.D
• all previously approved site plan conditions have been satisfied

A building does not qualify to participate in the program if:

• there is a vacation or amendment to existing public easement
• changes to any affordable housing, community facilities, sustainable design or other public priorities are provided for in the approved site plan
• there is a reduction of commitments as required by previous County Board approvals

Modification to Building Density

The Zoning Ordinance Amendment also allows the County Board to approve additional height and/or density if doing so is consistent with the change of use, overall reinvestment in the building and enhancement of the public realm. Considerations include:

• density above the underlying zoning district can be achieved without modifications to building height or form, except as specified in §15.5.9.D.2(a) and §15.5.9.D.1(e)
• rooftop uses not included in the approved site plan or previously excluded from gross floor area
• previously excluded density within the building's interior
• changes to the building façade that affect exterior wall widths
• additions or enlargements of the building not exceeding two stories above grade
• addition of mezzanine spaces
• addition of gross floor area through the enclosure of balconies or terraces
• conversion of gross parking area to gross square footage if deemed unnecessary by the County Board based on existing minimum parking requirements
• other increases in density that the County Board finds similar in purpose and impact to those listed above

Looking Ahead

While the CMRI represents a significant step towards addressing Arlington's commercial vacancy challenges, it is not a comprehensive solution. The CMRI will continue to advance this initiative and knows there is work ahead to advance flexibility and adaption. The county will continue to explore bold and creative strategies to reduce commercial vacancies and support the community's economic health and goals. This includes considering additional measures such as partial redevelopment, total rebuilds, financial incentives, evaluating parking standards and public-private partnerships.

Please contact Holland & Knight's D.C. and Northern Virginia Land Use Team for further information.