WASHINGTON, DC-Tenant concessions have become a fact of life for landlords in the DC area, the only question being how much will the tenant push for. Right now, the Ezra Co. President Glenn Meltzer tells GlobeSt.com "everything is negotiable." By 'everything', he means, aside from the obvious such as rental rate, rent abatements and construction build out, expansion options, renewal options, rights of first offering, termination options, even roof rights for communication equipment. "We are seeing build out allowances that are sizeable on ten-year lease terms that are anywhere from $65 per square foot to $100 per square foot."

One deal Meltzer recently secured for a client was space at 805 Fifteenth St. NW, for the Joint Center for Political and Economic Studies. Meltzer, along with SVP Anthony King and VP Ezra Weinblatt represented the organization in a deal to take 18,543 square feet at the building, owned by Washington-based SJG Properties. The broker negotiated a lower rental rate, a more efficient design and a "favorable" concession package with a significant construction allowance, rent abatement and expansion rights for future growth. Meltzer declined to discuss specifics.

The deal is telling about the tenant's market right now given the relatively small size of the lease. It is also reflective of the DC area market's leasing fundamentals. According to Jones Lang LaSalle, Q3 posted 1.35 million square feet of negative net absorption. Year to date, that number is 2.89 million.