Sterling Bay-led JV Signs Two New D.C. Office Tenants
By Nick Trombola July 1, 2024 6:14 pm
reprints
The state of Washington, D.C.’s office market is worrisome, to say the least, but some sizable new downtown lease deals are still getting to the finish line.
Such is the case with the U.S. Travel Association and the Coalition for Epidemic Preparedness Innovations (CEPI), which have signed for a combined 25,745 square feet at 1899 Pennsylvania Avenue, just a few blocks northwest of the White House.
Both leases are “long-term,” and the companies are expected to move into their new spaces in 2025, according to development firm Sterling Bay, which owns the building alongside MRP Realty and Declaration Partners. JLL (JLL) brokered the lease on behalf of the joint venture, while the U.S. Travel Association was represented by Tyler Bensten and Scott Hoffman of CBRE (CBRE).
Additional lease details were not disclosed.
The 11-story, 192,000-square-foot office building is also in the midst of renovations — including an overhauled lobby, shared conference rooms and a new fitness center, among other amenities — which are expected to be completed by the end of this year.
“The building’s renovation is creating a new, functional space that is ideal for performing our work and meeting our future needs,” DeLisa Selwitz, U.S. Travel Association executive vice president of operations, said in a statement.
The pair of leases comes when such deals are desperately needed in the District.
The office vacancy rate in D.C. rose yet again this past quarter to an all-time-high of 22.4 percent, up 80 basis points from the first quarter of this year, according to a new market report from CBRE. Over 537,000 square feet of negative absorption was recorded in D.C. in the quarter as well, per CBRE, the fifth consecutive year of quarterly negative rates.
Nick Trombola can be reached at ntrombola@commercialobserver.com.
