GSA has negotiated a five-year deal extension, according to an announcement by Public Buildings Service Regional Commissioner Bart Bush. The government was represented internally by James Phelan and Seyi Gbadegesin, and Jones Lang LaSalle.
It is a fitting year-end deal for the District's real estate community, which can thank the federal government's space needs for smoothing out the sharp edges of the recession. Over the last several weeks the government has inked or renewed large, 100,000-plus square feet blocks of space in such emerging markets as NoMA, keeping vacancy rates to a manageable level.
The US Department of Agriculture, for example, took 330,000 square feet at a newly delivered 380,087-square-foot Patriots Plaza III in SW. The IRS leased 167,000 square feet/b> at 77 K St., NE. In Northern Virginia, the Defense Department recently renewed close to 300,000 square feet.
2010 promises to deliver similar large scale leases, brokers say.Estimates for federal activity range from one-million square feet to as much as two-million square feet.
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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.
