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Success Story

Transportation Security Administration (TSA) | Arlington, VA


The Transportation Security Administration (TSA) was created on November 19, 2001 when the Aviation and Transportation Security Act was signed into law. The Aviation and Transportation Security Act provided TSA with the tools to procure its headquarters lease without GSA. To enter into a long-term lease contract of any appreciable size, agencies need two things: 1) Leasing Authority and 2) Budget Appropriations. As relates to the Leasing Authority, TSA is granted statutory rights stemming from the Aviation and Transportation Security Act which provided TSA with statutory authority to acquire real estate and to bind the government to a multi-year lease while funding such obligation on a year-to-year basis. TSA awarded the 545,000 SF lease for its headquarters to MCI WorldCom Network Services, Inc., owner of 601 and 701 South 12th Street, on December 17, 2002. The buildings had since been sold twice and were ultimately acquired by Brookfield Property Partners.


With the lease set to expire in early 2014, Brookfield retained our team in 2011 to proactively engage TSA. Brookfield set forth three specific goals: (1) retain TSA as the lessee, (2) avoid holdover by renewing the existing lease early and (3) maximize Brookfield’s ability to plan for the redevelopment of the property. One year prior to the expiration, our team completed the 5-year sole-source renewal of the TSA head- quarters lease via an SLA to the existing TSA lease. The renewal SLA contains a holdover provision ensuring that the government is motivated to complete any future procurement on time. 


This heavily negotiated holdover provision allows Brookfield to plan for the redevelopment/repositioning of the site in 2018. In addition to achieving the three specific goals outlined by our client, we increased NOI by approximately $3,000,000 per year, including the last year of the existing lease. This lease renewal was the largest government lease in Arlington County and the largest lease in Brookfield’s Washington, DC portfolio.  


601 & 701 South 12th Street

Arlington, VA


Charles Dilks

Kurt Stout

Keith Lavey

Jarrett Morrell

Powei Pan


545,000 SF


> Landlord Representation  

> Lease Negotiation 

Washington DC
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