WASHINGTON, DC-The Federal Reserve has inked a lease to take 150,000 square feet at Tishman Speyer’s International Square, according to a New York Times report.
Tishman Speyer declined to discuss the transaction, citing client confidentiality, and the GSA did not return a call to GlobeSt.com. One separate source, however, did confirm to GlobeSt.com that the deal has transpired. International Square consists of 1850 K St., NW; 1875 Eye St., NW; and 1825 Eye St., NW. A Studley spokesperson confirmed that the broker worked on the transaction but declined to discuss any details.
The deal, if the current political winds are any indication, may be among the last large blocks of space taken up by the federal government, at least for regulatory purposes. The Republican majority in the House of Representatives and the Obama Administration are focusing on cutbacks in government services and have pledged to freeze budgets. Chief among these are regulatory agencies including the Securities and Exchange Commission, which once was on track to hire an additional 800 workers.
Not that these trends will manifest any time soon for the District, according to an earlier interview with Joe Brennan, senior vice president at Jones Lang LaSalle. Demand for space by the federal government will remain constant for the next 12 to 24 months, he said. After that, the pace will definitely slow down.
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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.
