WASHINGTON, DC- Some two months ago the Office of Justice programs renewed its lease at 810 7th St., NW. The deal was just announced this week by the broker Colliers International, but in many ways, the 251,795-square foot renewal is becoming an ageless story for the District.
In short, a source that is active in government leases tells GlobeSt.com, agencies are deciding they don't want to spend the upfront capital to move when budgets are so tight. Hence, if the landlord puts a good deal on the table—as they invariably do—the default decision is almost always to renew.
"Right now agencies want to avoid moving to a new building if they can," this source says. "As a practical matter, the cost of relocation and rebuilding their space comes out of the budget as a lump sum."
"So if they can strike a good deal to remain in place they will."
The General Services Administration signed a ten-year renewal for the space. The building is owned by KanAm Grund Kapitalanlagegesellschaft. Kurt Stout of Colliers and F. Joseph Moravec, an independent consultant, represented KanAm Grund. GSA was represented by Henry Chapman and Sara Dunstan of CBRE.
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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.
