Woodmark--an affiliate of the J Street Cos.--CB Richard Ellis and Century Pacific LP represented Davis Wright Tremaine in the deal. The building is owned by SITQ and Tishman Speyer, which represented itself. The deal will keep the building at approximately 95% occupancy. They plan to move to the new space in July 2010, when the ten-year lease begins.
Woodmark SVP Tom McHugh tells GlobeSt.com that the landlord was receptive to the law firm during the negotiations as it wanted to keep it in the building. Other than that, he declined to discuss specifics of the lease.
In general, though, it is safe to say that concessions are rising--and will rise even further. According to the most recent Studley Effective Rent Index, the value of concession packages spiked in 2008 with the largest increase in a decade. In addition, there are several class A offices delivering now, including Akridge's 700 6th Street, and 300 New Jersey Ave., developed by Ralph Dweck.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
