Thank you for sharing!

Your article was successfully shared with the contacts you provided.

WASHINGTON, DC-The International Bank for Reconstruction and Development–one of the two institutions that make up the World Bank–has renewed 150,000 square feet at 1776 G St., NW, a 266,000-square-foot building owned by Washington Real Estate Investment Trust. IBRD, in fact, occupies the entire building in two separate leases, WRIT’s CEO Scott McKinsey tells GlobeSt.com.

The lease for 150,000 square feet has been renewed for a five-year term, starting January 1, 2011. The 61,000-square-foot parcel of space expires in February 28, 2014. McKinsey declined to say what the building’s rental rate was. He did note that WRIT’s overall occupancy by quarter end was 92.3%–a figure that includes this deal.

Indeed, WRIT has appeared to weather the recession fairly well, at least based on its occupancy levels and lease activity. According to its recent earnings report, its occupancy rate was 93% a year ago, and 92.6% in the Q4 2008. During the first quarter of the year, WRIT signed commercial leases for 235,000 square feet with an average rental rate increase of 11.1% over expiring lease rates, an average lease term of 3.6 years, tenant improvement costs of $4.81 per square foot and leasing costs of $4.07 per square foot.

Rental rates for new and renewed office leases specifically–as opposed to the average of its medical, office and retail holdings–increased 13.4% to $31.84 per square foot, with $16.03 per square foot in tenant improvement costs and $12.36 per square foot in leasing costs.

The World Bank’s lease is also illustrative of the hard floor international or pan-national institutions also provide under DC’s real estate market–much like the US federal government.

Earlier this year, in fact, the World Bank signed a 10-year lease for Brookfield Properties’ newly redeveloped 1225 Connecticut Ave.–a 227,000-square-foot building. Brookfield had spent the last two years renovating 1225 Connecticut Ave.–a $32-million investment, which has been designed to meet Gold LEED standards. The deal, among other benefits, frees up Brookfield to focus on its other newly delivered buildings in the District.

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
  • 1 free article* every 30 days across the ALM subscription network
  • 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 © 2021 ALM Media Properties, LLC. All Rights Reserved.