Matt Kelly and Moina Banerjee

Then, just this May, JBG Smith closed on the sale of the 12-acre PenPlace site in Arlington, Va., to Amazon for $198 million where the firm will now develop the balance of the e-commerce giant’s second headquarters.

“In addition, we are advancing the construction, design and entitlement of our National Landing development pipeline, comprising more than 1,500 residential units,” Banerjee said of the surrounding Northern Virginia megaproject.

JBG Smith is “working diligently to create a truly 18-hour neighborhood,” in National Landing, Banerjee said, by adding those new residential communities, plus a host of dining destinations, outdoor gathering places, and three times the amount of street-level retail in the next three years. Its placemaking goes far beyond what the physical eye can see: “We are investing heavily in next-generation digital infrastructure that will bring to life the world’s first 5G Smart City at scale,” Banerjee said. She added that the firm continues to see an upsurge in tech-driven demand, while global unrest is simultaneously driving a resurgence of defense-related activity in and around the nation’s capital.

While the pandemic brought myriad challenges for real estate, 2022 has itself already brought plenty of new market tests. That said, JBG Smith continues to progress with its pipeline.

The firm has set a target to sell $1 billion of noncore office and land assets in 2022, and is well on its way to achieving its goal — having already closed on $845 million year-to-date, excluding PenPlace.

“These dispositions as well as the sale, ground lease, and joint ventures of noncore land holdings serve as an important source of [net asset value]-priced capital to fund our strategy, and provide capacity for accretive investments, including share repurchases,” Banerjee said.  “With a strong balance sheet and ample liquidity, we continue to be well-positioned to fund our future growth opportunities and our strategic pursuits.”