Metro Ponders Sale of 430,000-SF HQ

As per the mayor's plan, WMATA's new headquarters on a five-acre parcel along the Anacostia Waterfront would serve as an anchor for a the mayor's proposed mixed-use development there, which would include a residential element, retail offerings and approximately 200,000 sf of office space targeted for government use. Williams has already suggested that the Anacostia Waterfront Corp. establish its headquarters at the development. The idea is to use WMATA, which houses 1,100 employees at its current locale, as a magnet to attract new businesses and commercial development to the neglected Anacostia area, while freeing up coveted development space Downtown.

Covering one city block just across from the MCI Center on one side and the National Building Museum on the other side, the eight-story concrete building at 600 5th St. was developed specifically for WMATA's use back in 1974. A new office development on that property would likely prove a lucrative investment for a developer, as the Washington, DC market, according to Marcus & Millichap's 2005 National Office Report Office Index, is one of the hottest markets in the country, ranking second behind Ft. Lauderdale, FL. Cushman & Wakefield's Mid-Year 2005 DC Metro Office market report puts the asking rate for class A space in the East End at an average $48.56 per sf, which makes the area the second most expensive of the District's six submarkets.

As for the future of the mayor's proposal, WMATA is giving it its attention. "We plan to evaluate the full proposal from the city and get people together here to analyze all aspects of the proposal, and provide information to the board of directors for its meeting next week," a WMATA spokesperson tells GlobeSt.com. "We have to bring it to the board for direction and guidance; it will be an agenda item for them to discuss. So the proposal is preliminary in terms of where it is going to go."