CHESAPEAKE, VA-Much of the spotlight has been on First Potomac’s DC area activities lately--from its acquisition of core office assets in the District and the suburbs to its early lease renewal in its NoMa holding.
The REIT just inked two industrial leases here that bring the attention back to its more southern located holdings. Carrier Enterprises LLC signed a 63,012-square-foot lease at Crossways Commerce Center for a seven-year term, bringing the property to 88% occupancy. Serco signed a five-year lease for 52,054 square feet at Diamond Hill Distribution Center, bringing the property to 90% occupancy. First Potomac was unable to return a request for comment in time for publication.
In general, the company’s executives said during the REIT’s most recent earnings call in July, leasing activity is showing signs of strength both with new leases and renewals. Still, the REIT did take a hit, CEO Doug Donatelli said during the call. “Our occupancy fell 180 basis points during the quarter to 83% due to two move outs,” he said.
“Overall in our markets, leasing velocity has slowed, impacted by the uncertainty surrounding the federal government,” he continued. “However, while the absorption numbers are generally flat, we see a significant amount of underlying activity.” According to Donatelli, the REIT signed 240,000 square feet of new leases in the second quarter.
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