Leasing Ramps Up in DC

WASHINGTON, DC-Leasing appears to be ramping up in the District, based on a handful of deals that have closed. Some of the deals are typically DC--including one by the World Bank. One new tenant, though, could be characterized as atypical, but based on the direction the city is headed, that description could one day be outdated.

That tenant was secured by Douglas Development, which has inked two leases with the New York-based entrepreneurial hub, WeWork. WeWork will occupy 32,903 square feet in the Wonder Bread Factory, located at 641 South Street, NW; and 21,350 square feet at 718 7th Street, NW in Chinatown. Jones Lang LaSalle's Jay Farmer, Steve Burman, Greg McCavera and Sean Black represented WeWork. Evan Behr and Doug Mueller of Jones Lang LaSalle represented Douglas Development.

WeWork offers custom-designed workspaces in which startups, small businesses and creative professionals can interact and collaborate. It is, in other words, the type of tenant DC hopes to see expand as it pushes to develop its tech base.

Given its mission, WeWork was looking for a specific type of building--unique, nontraditional--in an emerging part of the city, Farmer tells GlobeSt.com. The type of people that use WeWork space want to be part of the community, he explains. They also tend to want buildings with a lot of light. Such buildings are in short supply in the District, Farmer adds. "In DC the real estate supply is mostly traditional. What attracted WeWork to the Wonder Bread building was its unique architectural industrial style."

Originally built in 1913, Douglas Development's newly redeveloped Wonder Bread Factory is a four-story 82,000 square foot building with private terraces, high ceilings, large glass windows, exposed brick and a wood beam ceiling.

Another, more traditional lease was secured by Cassidy Turley on behalf of Prudential Real Estate Investors. Berkeley Research Group is taking 58,602 square feet at 1800 M St., NW. The 11-year lease term will begin July 2014 when Berkeley Research Group moves from its current location at 1919 M Street, NW.

Bobby Schwartz, Eli Barnes and James Collins represented Prudential Real Estate Investors, which owns the building on behalf of institutional investors. Berkeley Research Group was represented by David Houck and Sam Swan of Jones Lang LaSalle.

In a separate transaction, Blake Real Estate announced that the World Bank has renewed and extended its 86,000-square-foot lease for the top two floors of 1800 G Street, NW. The 617,000-square-foot, fully-occupied office building is owned by Northwestern Development Co., an affiliate of Blake. Cassidy Turley's Zeke Dodson, Laurie McMahon, and Stephanie Heffernan brokered this transaction. The World Bank has been in the building since 1994.

According to Stephen Lustgarten, Blake Executive Vice President, the company plans to upgrade parts of the building and improve some systems.