WASHINGTON, DC-Maybehe'll lease 1100 16th St., or more likely, he will sellit. One thing of which Rock Creek PropertyGroup principal Gary Schlager is verysure: he won't be turning to the office condo model for thisbuilding. "This building does not lend itself to office condos," hetells GlobeSt.com. The bathroom and core areas are wrong for that,he says, as is the position of the elevator.

In many cases, such as with 1100 16th St., it is a clear callwhether an office building can be divvied up into condos. Inothers, it can go either way. Oftentimes, though, the decidingfactor is the office condo market itself in the District, which canbest be described as fledgling. It is an odd position for theDistrict to be in though, with its large association and non-profitbase—tenants, in other words, tailor made for the office condomodel.

In Monument Realty's Doug Olson's view there isa reason for that. "Demand is definitely there," he tellsGlobeSt.com – "the not-for-profit community continues to beinterested in owning space as opposed to leasing." The problem isWashington has not offered many office condo products that meettheir needs.

Continue Reading for Free

Register and gain access to:

  • Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Erika Morphy

Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.