WASHINGTON, DC-A handful of smallish commercial office leases have been inked in recent days in the Washington DC area. As with most leases these days they point to the continued, albeit slow, recovery of the area coupled with the tendency of companies to keep space usage limited. Their size, though, makes them easy to overlook, which is a shame because they offer up one more data point about the region's health and activity.
They also illustrate that DC is a city made up of some very small, and exclusive, submarkets. Even in the best of times, Georgetown, for example, will not be boasting of a tenant taking down huge 100,000 square foot blocks of space.
More likely such a lease will be on par with the expansion inked by the American Institutes for Research for 8,111 square feet. The association, in fact, already occupies 42,474 square feet at 1025 Thomas Jefferson St., one of the largest office buildings in Georgetown. The expansion, brokered by The J Street Cos., increases the association's presence 50,585 square feet.
JBG Vice President Quinn Rounsaville notes that the lease means the 3rd and 4th floors of the building are completely leased and only a few remaining suites are available, including one for 3,379 square feet, another for 8,281 square feet. There is also one full floor of 53,455 square feet available. Aaron Pomerantz of DTZ represented AIR in this deal.
On Capitol Hill the Dow Chemical Co. leased 9,637-square feet at 500 North Capitol St., NW in a 11-year term. Phillip Thomas and Kerri Mulligan Salih of Cassidy Turley represented the co-owners, Boston Properties and Clark Enterprises. The Dow Chemical Co., which is taking part of the second floor of the building, was represented by Brian Murphy of CBRE.
A third lease was inked in a submarket—the Rossyln-Ballston Corridor--that is not especially geographically small but might as well be, given the very limited supply of available product.
Alcalde & Fay renegotiated its 22,500-square-foot headquarters on the eighth floor at 2111 Wilson Blvd., with the assistance of The Ezra Co.'s Kenneth King and Erica King represented Alcalde & Fay. In this case, though, location appeared to have been trumped with favorable terms. King said the company received "significant upfront savings as part of the deal" and locked in "aggressive and cost- effective terms for their new lease."
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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.
