Pembroke Lands 25K SF Worth of Leases in Downtown Washington, D.C.
By Nick Trombola July 30, 2024 12:25 pm
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Real estate services firm Pembroke has defied the trend of the office market in Downtown Washington, D.C., with a pair of new tenants at its 13-story building on New York Avenue.
Trade group International Franchise Association (IFA) and public relations firm Firehouse Strategies have signed for a combined 25,000 square feet at 1201 New York Avenue NW.
The IFA signed its lease in May, while Firehouse signed in June, according to a Pembroke spokesperson. The leases bring the 444,000-square-foot building, less than a mile northeast of the White House, to 87 percent leased.
Other terms of the leases, such as lengths and asking rents, were not disclosed.
An office building with just 13 percent vacancy is a rarer and rarer sight in D.C. these days. The average vacancy rate in the District rose to an all-time high of 22.4 percent this past quarter as landlords struggle to find tenants amid spiraling demand for office space, according to a recent market report from CBRE (CBRE).
The sheer amount of office distress in D.C. lately is a direct result of that lack of demand and five straight quarters of negative absorption rates. The amount of office foreclosures in the District has already surged past the total for 2023, per CBRE.
Nick Trombola can be reached at ntrombola@commercialobserver.com.
