Oxford Property Group and Norges Bank Close 120K SF in D.C. Lease Renewals
By Nick Trombola August 6, 2024 3:06 pm
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Office vacancy in Washington, D.C., is at a record high at the moment, but at least some trophy assets are managing to retain tenants.
Oxford Property Group and Norges Bank have inked lease renewals totaling 120,000 square feet for three of its tenants at 1101 New York Avenue NW in D.C.’s East End neighborhood. Law firm A&O Shearman, the National Retail Federation, and Bloomberg are the tenants that resigned, though it’s unclear exactly how much space each tenant currently occupies in the 388,000-square-foot building.
A&O Shearman, formerly known as Allen & Overy before merging with Shearman & Sterling in 2023, did sign a renewal and expansion deal at the building totaling approximately 42,000 square feet in late 2022, according to reporting by Commercial Observer at the time.
Elizabeth Cooper and Ken Patton of JLL represented the National Retail Federation; Tom Fulcher and Adam Brecher of Savills represented A&O Shearman; and Richard McBride of Colliers represented Bloomberg in the lease negotiations.
Kyle Luby, Matt Pacinelli, John Klinke and Tim McCarty of real estate services firm Stream Realty Partners represented the landlords.
“1101 New York Avenue is one of the finest office buildings ever constructed in Washington, D.C.,” Luby said in a statement. “Its unique design, featuring a floor-to-ceiling glass facade and absence of perimeter columns, offers natural light, air and 180-degree panoramic views of the D.C. skyline.”
The building currently has 85,000 square feet of office space available, according to Stream, meaning that it’s about 78 percent leased. Oxford and Norges acquired the property in 2017 as part of a two-building deal for $389 million.
The District’s office vacancy rate reached 22.4 percent this past quarter, up 80 basis points from the first quarter of this year, according to last month’s market analysis by CBRE. Quarterly absorption rates in D.C. have also been negative for five consecutive years, made evident by the sheer amount of foreclosures and defaults this year.
Nick Trombola can be reached at ntrombola@commercialobserver.com.
