Washington Business Journal receives a lot of transactions involving real estate. Some deserve to be in the public record, even if we can't cover them all. Welcome to Deal Dash.
The city's nonprofits are moving closer to the center
The Environmental Defense Fund will soon be moving into one of the most expensive and largest buildings in Washington, D.C.
The environmental nonprofit signed a lease on the fourth-floor of the District Center Building, located at 555 12th St. NW in the East End neighborhood. The group currently occupies a similar-sized space at the Universal North Building near Dupont Circle, but it will be among several tenants displaced when its new owner begins converting that building into apartments.
EDF will begin its new lease in October. This gives it the chance to rethink how they use their space. In a press release, the nonprofit stated that it was looking for a new Class A space, with "easy accessibility to robust building amenities and neighborhood amenities, which will elevate staff interaction and enjoyment."
The 12-story building, which is 857,324 square feet, was built by a joint venture between MetLife Investment Management, Norges Bank Investment Management, and offers a social rooftop venue called "Sky Lounge", as well as a fitness centre with personal training.
Washington Business Journal research shows that the organization will be joining the American Center for Physics, FTI Consulting, and the law firm Mintz, Levin, Cohn, Ferris, Glovsky, and Popeo PC, in this building. According to Washington Business Journal, the full-service rent per square foot is about $72.
Matt Pacinelli of Stream Realty Partners, Andy Eichberg, and John Klinke were the representatives for the landlord. Michael Goldman and Claire Poole of Transwestern represented EDF.
The concept of coworking is being tested in Washington D.C.
Hines expands its coworking concept The Square to D.C.
The company has announced that a new 225-seat restaurant will open this fall in the Bowen Building, located at 875 15th St. NW.
Hines has tested this concept in Houston and Salt Lake City. D.C. is its fifth location. It said that The Square was already 20% preleased. It added that the company is aiming to offer high-end options with "enterprise suits" with their own kitchenettes, gathering areas, rooftop lounges, and private offices with access to larger shared spaces with other tenants.
JPMorgan Chase owns this 231,000-square foot building which is used as its regional headquarters. Both companies are looking to capitalize on the new age of work.
D'Juan O'Donald said that the hybrid workplace creates a variable demand for office spaces and requires creative solutions. "We partnered up with Hines to bring The Square into the Bowen Building in response to changing workplace needs.
A law firm takes on a smaller sublease
Schulte Roth & Zabel LLP, another law firm that has downsized, now occupies a smaller space.
Cushman & Wakefield data shows that the law firm has subleased 15,475 sq. ft. at 555 13th St. NW. Its lawyers are experts in antitrust, bank regulation, blockchain, business reorganization, and commercial litigation. Schulte Roth takes over the space that Hogan Lovells sublet.
Schulte Roth will reduce its footprint from the 22,000 sq. ft. it occupied at 901 15th St. NW. According to Washington Business Journal, this move is also a sign of a downsizing at Hogan Lovells. The second largest law firm in Greater Washington has 476 attorneys. In recent years, law firms have been shrinking.
Subleasing vacant office space in D.C. has become a major challenge for landlords who are trying to fill their buildings. Cushman & Wakefield's data shows that D.C. currently has over 1 million square foot of available sublease space. 66% of this space is Class A. This represents a 15% increase from the fourth quarter in 2022.