Robert Khodadadian – Commercial Observer

While office leasing in Washington, D.C., slowed in 2022, there were some notable deals signed over the course of the year, with tenants taking advantage of lower rents and attractive amenities.

The top 10 lease deals this year, based on data provided by Savills, JLL and CBRE and corroborated by news reports, reflected the year in leasing. 

First, there was only one deal above 100,000 square feet — a far cry from the 1.2 million-square-foot Securities and Exchange Committee lease that topped last year’s list. In fact, one of the most telling aspects of this year’s office market was the absence of the federal government, which barely made the list of top 10 lease deals at all, except for a 62,000-square-foot deal from The National Fish & Wildlife Foundation. By comparison, the federal government made up seven of the largest 10 deals in 2021. 

Instead, it was D.C.’s other two favorite sectors — law firms and lobbyists — that made up the majority of the year’s biggest leases, along with several financial firms.

Without further ado, here’s your top 10. 

Bank of America, 118K 

Bank of America inked a 118,000-square-foot lease, a renewal and expansion, at 1800 K Street NW in the Central Business District. Signed in the second quarter of 2022, this was one of the few instances of companies expanding their presence in the District. CBRE represented the tenant in the deal. 

The 217,000-square-foot building is owned by Deutsche Asset Management, which acquired the property in 2006 for $98 million. It renovated the building in 2014, installing a new glass façade, improving the lobby and adding a fitness center and rooftop deck. Bank of America signed its initial lease for 64,000 square feet in 2017.

Foley & Lardner, 95K

Law firm Foley & Lardner signed a 95,000-square-foot renewal at 3000 K Street NW in January of 2022, committing to another 15 years at a building it’s called home since 1992. Cushman & Wakefield represented the tenant. JLL represented the building owner, Global Holdings Management Group, in the deal. 

Located in Georgetown’s Washington Harbour neighborhood, Global Holdings acquired the six-story building in 2018 as part of a $415 million portfolio. Throughout its ownership, the company has made significant improvements and even added a seasonal ice-skating rink. Retailers at the property include Nick’s Riverside Grill, restaurant Sequoia and Farmers Fishers Bakers

Orrick, 77K

In November, law firm Orrick inked 77,000 square feet at 2100 Pennsylvania Avenue NW, committing to the building for 15 years. CBRE represented the tenant in the deal. The 11-story building, developed by Boston Properties, was delivered late this year and includes a three-story, a glass-enclosed lobby, a rooftop terrace, a fitness center, street-level retail and restaurants, and three levels of below-grade parking.

Investment Company Institute, 63K

ICI, an association representing regulated investment funds, signed for 62,580 square feet at 1401 H Street NW in the first quarter of 2022. Cresa represented the tenant in the deal. Known as City Center, the 480,132-square-foot building was built in 1992 and includes a renovated conference room, collaboration areas and a 7,000 square-foot handicap-accessible rooftop entertainment space. 

TIAA owns the McPherson Square building, which it acquired in 2006 for $205 million, though it was reported earlier this year that the company is looking to sell. Cushman and Wakefield represented the owner in the lease and is marketing the property, as well. 

The National Fish & Wildlife Foundation, 62K

The government agency locked up 62,039 square feet at 1625 Eye Street NW, a deal signed in the third quarter. CBRE represented the tenant in the lease.

The 404,814-square-foot building is owned by American Real Estate Partners, having acquired it in 2019 from Brookfield Properties.The building boasts a nine-story light-filled atrium and a world-class roof deck with direct views of the White House, Washington Monument and Jefferson Memorial. 

Finsbury Glover Hering, 61K

The strategic communications firm inked a 10-year lease for 61,000 square feet at 1299 Pennsylvania Avenue NW. CBRE represented both sides in the deal. Known as the Warner Building, the 613,000-square-foot downtown property was acquired by CBRE Investment Management in 2018 for $376.5 million. 

FHI 360, 59K

The family-planning nonprofit signed for 59,514 square feet at 2101 L Street NW, relocating this fall from 1825 Connecticut Avenue NW. Cushman & Wakefield represented the tenant in the lease. JBG Smith is the owner and operator of the 378,869-square-foot building. The 10-story property was built in 1975 and renovated in 2007.

Milbank, 53K

The international law firm signed for 53,860 square feet at 1850 K Street NW. Cushman & Wakefield represented the tenant in the lease. Part of the three-building, 1.2-million International Square complex, the property was developed by owner Tishman Speyer in 1982. Overall, the property encompasses nearly the full block bounded by K Street NW, 18th Street, I Street and 19th Street, and sits atop the entrance to the Farragut West Metro station.

GMMB, 46K

The political communications firm opened a D.C. office at 3050 K Street NW, signing for 46,340 square feet. Cushman & Wakefield represented the tenant in the deal. Known as the Washington Harbour West building, the 228,437-square-foot property was built in 1987 and most recently renovated in 2013. Global Holdings acquired the four-story building in 2018 as part of a $415 million portfolio. 

Van Ness Feldman, 44K

The law and government relations firm signed for 44,649 square feet at 2000 Pennsylvania Avenue NW in the second quarter. JLL represented the tenant in the lease.

A joint venture between Westbrook Partners and MRP Realty owns the 11-story building, which is on George Washington University’s campus in the Foggy Bottom neighborhood. The building features a tenant-only penthouse terrace, a lounge, conference space and a fitness center. The property also consists of new experiential retail space anchored by Western Market, the Foggy Bottom area’s first food hall.

Keith Loria can be reached at Kloria@commercialobserver.com.

While office leasing in Washington, D.C., slowed in 2022, there were some notable deals signed over the course of the year, with tenants taking advantage of lower rents and attractive amenities. The top 10 lease deals this year, based on data provided by Savills, JLL and CBRE and corroborated by news reports, reflected the yearRead MoreChannel, Leases, Office, CBRE, JLL, Savills  Commercial Observer Read More 

Robert Khodadadian has long had a simple philosophy about selling real estate. The way he sees it, there are approximately a million buildings in the city, and the broker that gets to sell any one among the multitude that will hit the auctioning block at a given moment is, sometimes, simply the person who happens to pitch their services to the right seller at the right time.

Robert Khodadadian, properties, ground leases, ground lease, off market, investment sales, khodadadian, Commercial Real Estate Sales, Commercial Observer, Retail For Lease, Commercial Observer,

Commercial Office Lease

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