Booz Allen expands DC-area office space in wake of government shutdown

20 February 2019 Consulting.us

Government-focused tech and management consultancy Booz Allen Hamilton has renewed and expanded its office presence in Arlington, Virginia. From September, the consulting firm will occupy 84,000-square-foot location. Less than two weeks earlier, Booz Allen reported that it had taken a $20 million hit to its revenue in the latest quarter because of the federal government shutdown.

With 97% of its work coming from government contracts – and much of that from federal institutions and agencies – it is little surprise that Booz Allen has a massive presence in the Washington metropolitan area. The tech consultancy has three DC offices, eight Maryland offices, and 12 Virginia locations, in addition to its McLean, Viriginia headquarters. Booz Allen’s global footprint includes nearly 25,000 employees across 80 locations, bringing in $6.2 billion in annual revenues.

The new location is one of two Booz Allen offices in Arlington. Deriving its name from its proximity to Ronald Reagan Washington National Airport, the National Landing neighborhood will also be the future location of half of the Amazon HQ2 headquarters project.

The office, located on Crystal Drive, is leased and managed by JBG Smith Properties. “It’s an honor to continue to provide this marquis organization a significant office presence on Crystal Drive,” David Ritchey, executive vice president at JBG Smith, said. “Booz Allen Hamilton has benefitted from this stellar location for many years.”

Booz Allen expands DC-area office space footprint in wake of government shutdown

According to Ritchey, real estate consultancy CBRE supported the leasing transaction. The Los Angeles-based consultancy - which has 30,000 US employees - provides services in facility and project management, transactions, leasing, property sales, development services, and strategic consulting.

The 109,000-square-foot retail complex will soon welcome an Alamo Drafthouse movie theater, a specialty grocer, and numerous restaurants, bars, and retailers. The Crystal Drive location is currently having its lobby and common areas renovated, with a new "tenants-only" terrace being added.

“Booz Allen is excited to continue our long-standing partnership with JBG Smith in Crystal City (National Landing),” Deane Edelman, vice president of real estate, Booz Allen Hamilton, said. “It reflects our commitment to maintaining our presence in this established yet vibrant and growing market.”

Shutdown

Earlier this month, the consulting firm reported that the 35-day government shutdown has cost it $20 million in revenue. The shutdown also created a $100-million reduction in operating cash flow for Booz Allen due to stalled receivables, although the firm is confident it will collect its due.

Basically functioning as a near-exclusive government contractor, any problems in the public sector are bound to cause ripple effects for Booz Allen. The bulk of the firm’s engagements are for defense, civil, and intelligence organizations. As such, 69% of its workforce holds a security clearance.

Booz Allen’s most (in)famous former employee is Edward Snowden, who worked with the NSA before becoming the world’s most well-known whistleblower. In the wake of the NSA spying document leaks in 2013, Bloomberg released a piece entitled “Booz Allen, the World's Most Profitable Spy Organization.” More than 23% of the firm’s consulting revenue comes from intelligence sector engagements, in which they serve clients such as the aforementioned National Security Agency and the National Geospational-Intelligence Agency.