Fannie Mae Northern Virginia Workplace Relocation
Q. Why is Fannie Mae moving its Northern Virginia workplace?
A. Fannie Mae currently occupies three owned buildings (Herndon OB1, Herndon OB2 and Reston Technology Center) and one leased building (Reston Crescent) in Northern Virginia. Fannie Mae decided to undertake an extensive review of its facilities needs given that the Reston Crescent lease expires at the end of 2022, and its owned buildings will require maintenance and renovations over the coming years. After extensive review and analysis, Fannie Mae determined that it would be in the best interest of the taxpayer and the company to move to a single leased facility to reduce costs and increase productivity by providing a more efficient work environment that consolidates its workforce into one location and reduces the services required to operate the facilities. Fannie Mae has sold the three owned buildings and is leasing back the buildings until our move into the new location.
Q. Where is Fannie Mae moving?
A. Fannie Mae executed a 15-year lease for office space within a project to be known as Reston Gateway in Reston, VA (adjacent to the Reston Town Center Metro). The new location is being developed by Boston Properties and will house all of Fannie Mae’s staff currently located in Herndon and Reston. The building will include two towers – Fannie Mae expects to occupy one full tower and part of the second tower – which will be linked across the lower levels by community space exclusive to Fannie Mae. Fannie Mae chose this location for a number of reasons, including close proximity to the new Silver Line Reston Metro station, competitive pricing terms offered by the landlord, space efficiency, local amenities including restaurants, shopping and a hotel, parking, and flexible lease terms in case our needs change.
Q. What are the terms of the lease?
A. Fannie Mae negotiated extraordinarily favorable and flexible lease terms with the property’s landlord. The company entered into a 15-year lease to avoid the higher upfront costs associated with shorter leases. At the same time, the company successfully negotiated extensive subleasing and assignment rights for the entire lease term.
Q. Is this move appropriate for a company in conservatorship?
A. Yes. Fannie Mae’s decision to consolidate its Northern Virginia operations furthers the interest of conservatorship. Moving to a single leased facility will enable the company to reduce occupied space, work more efficiently, and have a greater ability to sublease should the company be significantly restructured in the future. Fannie Mae expects to save taxpayers approximately $250M by consolidating into a new leased office building versus staying and renovating its existing buildings.
Q. What are the company’s plans for other offices across the country?
A. Fannie Mae has already announced its moves to consolidated, leased spaces in Washington, DC and Plano, TX. We also are significantly reducing the square footage of regional offices in Los Angeles, CA, Philadelphia, PA, and Chicago, IL and have entered new lease agreements in those cities.