The Financial Industry Regulatory Authority (FINRA) has inked a 67,000-square-foot lease at 1700 K Street NW in Washington, D.C., and will move across the street from its current home.
The regulatory authority for the securities industry has occupied 80,000 square feet at 1735 K Street NW since it was created in 2007. FINRA conducted a $16.5 million sale-leaseback of this 60-year-old building last December with Beacon Capital Partners.
It will relocate to its new office in December, taking two floors in the 12-story, 386,000-square-foot building.
“The new space is smaller, more modern and more efficient,” Ray Pellecchia, senior director, corporate communications for FINRA, told Commercial Observer. “The change aligns with FINRA’s adoption of a hybrid, ‘Presence With Purpose’ approach to the workplace at all of FINRA’s 18 locations across the country, and enables FINRA to effectively accomplish its investor-protection mission in an open, more flexible and collaborative office environment, while controlling costs.”
Some of FINRA’s other locations are in Atlanta, Boston and Boca Raton, Fla.
FINRA’s “Presence With Purpose” approach to in-office and remote work is where employees work together in the office for in-person and group interactions and can work remotely for other, more “heads-down” work.
FINRA’s future home was built in 2005 and owned by a joint venture of private real estate families. JBG Smith is the management company and handles leasing on behalf of the owners.
“Adding a tenant like FINRA further validates 1700 K Street as one of the premier trophy office buildings in the CBD,” Scott Franklin, JBG Smith’s senior vice president, told CO. “Their decision to remain in the neighborhood reinforces K Street and Connecticut Avenue as a top destination for organizations seeking a downtown presence.”
Notable tenants in the building also include Wells Fargo and Korn Ferry.
Recent renovations include an upgraded fitness center, the addition of a secured tenant bike storage room, a 2,000-square-foot amenity lounge and a conference center on the rooftop, plus enhancements to the building’s lobby and common areas.
The building is two blocks from the White House and overlooks Farragut Park. It is less than a block from Farragut West and Farragut North Metro stations.
Rick Siegel, Wendy Feldman Block and David Cornbrooks of Savills represented the tenant in the lease. Ownership was represented by Franklin and Beau Pearce at JBG Smith, along with Bruce Pascal and Stephanie Heffernan at Cushman & Wakefield.
Keith Loria can be reached at Kloria@commercialobserver.com.