U.S. Government Pays $285M for Defense Health Agency HQ in Northern Virginia
The 686,000-square-foot Falls Church campus has housed the agency since 2011
By Greg Cornfield September 25, 2026 5:50 pm
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The federal government has acquired the Defense Health Agency’s Northern Virginia headquarters for $285 million, adding another large leased office campus to the nation’s real estate portfolio.
The Naval Facilities Engineering Systems Command acquired the 44-acre property at 7700 Arlington Boulevard in Falls Church from longtime owner GBA Associates, according to property records and a General Services Administration (GSA) official cited by the Business Journals.
The campus includes three Class B office buildings constructed between 1954 and 1984 with about 686,000 square feet, and a separate parcel with 2,000 parking spaces. Plans filed in 2018 called for another 179,200-square-foot office building and more parking, but that never moved forward.
The Defense Health Agency, which manages health care for military and uniformed services, has occupied the campus since 2011. The agency signed a 15-year, $370 million lease in 2010.
Buying the property instead of leasing is expected to save the federal government “several million dollars per year,” while supporting a broader effort to reduce federal lease obligations.
The transaction follows several other large federal acquisitions of previously leased properties in the Washington region. The CIA paid $247 million in 2025 for an office it occupied in Chantilly, Va. In 2023, the federal government acquired Liberty Crossing I and II in McLean, Va., for $531 million, while the GSA paid $760 million for the Department of Transportation headquarters near the Washington Navy Yard shortly before the pandemic.
Gregory Cornfield can be reached at gcornfield@commercialobserver.com.
