By Kim Hart
Washington Post Staff Writer
Thursday, December 28, 2006; VA12

On a stretch of highway leading to Fort Belvoir, where about 23,000 federal workers are expected to relocate over the next four years, government contracting has expanded its presence among the strip malls, restaurants and small businesses that dominate the landscape.

Phoenix Consulting Group Inc., which provides intelligence training, is one of the first contractors to expand its claim on Richmond Highway (Route 1), one of the main arteries leading to Belvoir. The influx of government personnel, along with the addition of about 7 million square feet of facilities, is expected to drive a new market for offices, most likely to be filled by contracting firms trying to sell services to the Army post and its new workers.

That is what the Southeast Fairfax Development Corp. hopes for. The nonprofit economic development agency, which helps businesses moving into the area, is charged with revitalizing the seven-mile stretch of Richmond Highway between the Capital Beltway and Fort Belvoir, in a private-public partnership with the county.

The post's expansion under the Pentagon's base realignment and closure program has sparked concerns about increased traffic along the corridor, but also a renewed interest in the road's economic potential, said Lara Fritts, executive director of the organization.

Fritts pointed out nearly 30 projects underway during a recent drive along Route 1.

Older motels and run-down businesses are being replaced by modern restaurants and chain stores. Some buildings are getting facelifts -- partly subsidized by county funds -- and new sidewalks are being poured.

High-end residential subdivisions are springing up around commercial clusters, and developers are revamping strip malls.

Fritts thinks the office market will take off over the next six months because of the relocation of defense employees.

"It's our opportunity to see this piece of Richmond Highway develop office space -- something we're missing at this point -- and our opportunity to tap into the government contracting market," she said.

Phoenix, which has been on Richmond Highway for three years, this month doubled its office space by moving into a larger building. Lee Anklin, director of federal services for the company, said its officials decided to stay in the area "because of the location, which affords easy access to our facilities for both our government and commercial clients."

Officials of the development corporation hope to recruit new companies with that line of thinking and to help them with the relocation process.

Have news about business in Fairfax County? Contact Kim Hart athartk@washpost.comor 703-383-5120.