Met Square Capital Improvements Paying Dividends
The largest transaction was finalized in late 2018 with WeWork, which expanded its operations at the property by another 109,000 square feet.
WASHINGTON, DC—A major renovation program by Boston Properties of its Met Square office complex here has helped spark nearly 152,000 square feet of lease deals.
Commercial brokerage firm Newmark Knight Frank reports that a total of 151,625 square feet of leases have been inked at the property at 655 15th Street, NW of late.
The largest transaction was finalized in late 2018 with WeWork, which expanded its operations at the property by another 109,000 square feet. WeWork now occupies approximately 226,000 square feet of space at the building, according to a report in the Washington Business Journal.
Other notable recent lease deals at the property include law firm Alvarez & Marsal, which leased approximately 26,000 square feet; Social Code, which will occupy approximately 15,000 square feet and the Levinson Group, which chose to stay in the building, relocating from a much smaller space to 2,469 square feet on the fifth floor, occupying one of the spec suites at the property.
NKF’s chairman, asset Services, Brendan Owen; executive managing director Edwin M. Clark III; director Suzanne White and associate Morgan Monroe represented ownership in the transactions. SocialCode was represented by JLL; Ganon Rich of West, Lane & Schlager represented The Levinson Group and JLL’s Ken Patton represented Alvarez & Marsal in the respective lease transactions.
With the lease signings, there remains 285,000 square feet of space available for lease at the 670,000-square-foot building, including 33,047 square feet of pre-built, trophy-quality suites ranging in size and price point.
Met Square was re-capitalized by a Boston Properties-led ownership group in October 2016. Since then ownership embarked on an extensive renovation plan reportedly valued at approximately $60 million. The capital improvement program includes a recently opened 6,100-square-foot fitness center which is providing tenants with classes offered among the center’s cardio, weight, yoga and spinning studios. Adjacent to the fitness center is a new bike storage facility complete with lockers, benches, bike pumps and dedicated shower facilities.
At present, 50,000 square feet of spec suites have been delivered to market at the property. The fifth floor of this space is designed and marketed as “The Social Suites,” offering tenants custom-selected suites within a community-oriented floorplan. The Social Suites share an amenity area including two conference rooms, a communal lounge and dining area, as well as a high-end kitchen.
“While committing to a 50,000-square foot spec suite program was ambitious, we discussed the demand for such space with the ownership team and it’s proven to be a success in two months’ time,” NKF’s Owen notes.
The next phase of renovations will include a 7,000-square-foot amenity zone with a conference center and collaboration space that is expected to be delivered in the first quarter of 2020. A WiFi-equipped, tenant-only rooftop terrace with views overlooking the National Mall and monuments will be completed this summer and will be available for private tenant events along with the upgraded lobby and atrium, according to Newmark Knight Frank.