Sublease space in DC impairs market conditions and depress rents,Jones Lang LaSalle Research Director Scott Homa tells GlobeSt.com. Notsurprisingly, with many companies focusing on capital preservationand efficiency over the past 18 months, excess space has flooded themarket. "Leasing activity in this segment of the market saw minimal tractionin 2009, with the overwhelming amount of available inventorycontinuing to sit vacant. Overall, with 1.9 million square feet ofsublease space on the market in DC, the total vacancy rate ended Q42009 at 13.3%--a record high," according to Homa.
Only the most desirable blocks of space--like trophy building 300New Jersey--have experienced noteworthy leasing velocity, Homa adds.Studley's Mark O'Donnell and Lois Zambo represented the law firm inthe transaction. Kurt Richter of Cassidy & Pinkard Colliersrepresented the sub-landlord, law firm Jones Day.
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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.
