WASHINGTON, DC-Maybe he'll lease 1100 16th St., or more likely, he will sell it. One thing of which Rock Creek Property Group principal Gary Schlager is very sure: he won't be turning to the office condo model for this building. "This building does not lend itself to office condos," he tells GlobeSt.com. The bathroom and core areas are wrong for that, he says, as is the position of the elevator.

In many cases, such as with 1100 16th St., it is a clear call whether an office building can be divvied up into condos. In others, it can go either way. Oftentimes, though, the deciding factor is the office condo market itself in the District, which can best be described as fledgling. It is an odd position for the District to be in though, with its large association and non-profit base—tenants, in other words, tailor made for the office condo model.

In Monument Realty's Doug Olson's view there is a reason for that. "Demand is definitely there," he tells GlobeSt.com – "the not-for-profit community continues to be interested in owning space as opposed to leasing." The problem is Washington has not offered many office condo products that meet their needs.

To be sure, there are examples of successful office condo projects in the District, including Monument's 2055 L St., which recently become fully committed when The Endocrine Society signed an agreement to purchase 33,500 square feet on the sixth floor.

2055 L St., though, can accommodate associations with large floor plate requirements, Olson notes—other potential office condos that price at association and not-for-profit's budgets, however, do not.

Those buildings might have floor plates of 10,000 square feet so an association with 65,000 square feet to fill will have to occupy six floors, which is not very efficient.

Instant Insights /

Why Not Office Condos for 1100 16th?

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