The Wharf Nabs 65K SF Lease; In Talks for Another 500,000 SF

WASHINGTON, DC—Interest has been strong for office space at The Wharf, a $2 billion mixed-use project on the Southwest Waterfront. Phase I of the project just bottomed out and the developer took the opportunity to announced it has secured its first office tenant, the American Psychiatric Association, for 65,000 square feet.

And more is coming, Monty Hoffman of Hoffman-Madison Waterfront, tells GlobeSt.com.

"We are engaged in discussions with several other prospective tenants. Some are in high-tech, others are trade associations." A telecom firm is interested as is a large institutional company, he says. "We have interest from a wide variety of sectors."

The company is also in talks with a "larger group" that, if they come to fruition, could lead to the start of Phase II of the project, Hoffman says. The lease would be for 500,000 square feet.

"We don't need to build [on spec]," he says. "So we are not going forward with at least one commitment for the next phase."

Meanwhile, with the APA lease, a nice-sized chunk of the office space in phase 1 is spoken for. The APA is taking 65,000 square feet and has an option for another floor, which would total 84,000 square feet. The first-floor retail in that building, located at 800 Maine Ave., is also committed. That leaves about 84,000 square feet or so available plus another 250,000 square feet in phase I's second office building.

Asking rates for this building range from $39 per square foot to $42 triple net, according to Hoffman.

The APA is currently at 1000 Wilson Blvd. in Arlington, VA. The association signed a 10-year lease at The Wharf and is expected to take occupancy between November 1, 2017 and January 1, 2018. The APA was originally headquartered in DC, prior to its move to Virginia.

The APA was represented by Sherry Cushman of Cushman Wakefield, in conjunction with Mark Teitelbaum of CBRE. The Wharf was represented by Brian Dawson of Cushman & Wakefield.