WASHINGTON, DC-A House of Representatives subcommittee approved a number of federal lease prospectus that had been pending before the Congressional body. All together, these leases represent 2.3 million square feet of space—much, but not all of which are in the Washington DC area—and about $92.7 million in annual rental costs.
Each of the deals outlined is a mini story in itself, Jones Lang LaSalle broker Arthur Turowski tells GlobeSt.com—perhaps no more so than the prospectus for 400 7th St., SW, or Constitution Center, in which Congress directs the Administrator of General Services to develop a plan for the Federal Trade Commission to move into space originally leased by the Securities and Exchange Commission, which it later decided it couldn’t use. One alternative suggested is that the FTC consolidate its current space at 600 Pennsylvania Ave., NW, 601 New Jersey Ave., NW and 1800 M St., NW.
Another lease of great interest to the Washington DC commercial real estate community is the National Science Foundation, currently located at 4201 and 4121 Wilson Blvd. in Rosslyn, VA. It has been approved for a replacement lease of up to 667,759 square feet at a proposed total annual cost of $24.2 million for a lease term of up to 15 years. It calls for 128 square feet per person.
“The National Science Foundation lease will be closely watched in large part because of the nature of the user,” Turowski says. “It tends to generate a lot of hotel rooms for the city. People come to DC to make their grant pitches and they stay for several days.” There is going to be stiff competition for it, he predicts.
In general, he says, getting the lease prospectus approved has been a positive, if only to give some certainty to landlords. These prospectuses have been pending in the House since last year, after they were approved in the Senate.
The space is not as much as would have been even a few years ago—but at least they have been approved, Turowski notes. “The big takeaway is that if federal agency adjusts its real estate consumption to these times of restraint and reduction and then its needs will eventually get approval.”
For the full list of lease prospectuses, go here.
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