Thank you for sharing!

Your article was successfully shared with the contacts you provided.

WASHINGTON, DC-Investment sales in the District for Q4 were markedly lower than Q3 and certainly Q2, according to Tonya Ginter, director of research and marketing for GVA Advantis. In the process of finalizing year-end numbers, she says that one constant has already emerged: volume of sales is significantly down, while price per sf of those buildings that have traded remains constant. Noticeably missing, though, are the extraordinarily high price per sf trades that characterized 2006 and the beginning of 2007–that is, anything more than $600 per sf.

One recently completed transaction, though, has been the exception for this quarter, she noted. Located at 777 6th St. NW, an 11-story 191,000-sf building sold for $123 million or $644 per sf. “I haven’t seen prices at that level since before the credit crunch,” Ginter tells GlobeSt.com. The seller and developer was Trammell Crow Co.; the buyer is the American Association for Justice. Trammell Crow did not return calls for comment. The building did have the advantage of being partially preleased, according to Ginter. Cooley Godward Kronish LLP signed on to occupy 54,000 sf about a year ago when the building was still under development. The new owner will be occupying a good portion of the space in its new acquisition as well. Ginter says asking rates for class A space in the East End is about $48 per sf.

This building’s sale is the exception, though. In general average price per sf have remained constant in Q4–a byproduct of sellers refusing to believe the current upheaval is anything but temporary, Ginter says. Class A buildings are ranging from $475 per sf to $480 per sf, she says, while class B buildings are trading around $401 per sf in the city.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.