Oliver Carr

D.C. office leasing and sales were down in the first half of 2026. Is it going to stay this way?

No, I don’t think so. We have actually seen a pickup in both office sales and leasing activity as we head into the second half of the year. 

However, it is important to note that from a leasing perspective, we are continuing to see a flight to quality with A-plus and trophy-quality assets gaining market share. The fundamentals that make Washington an important office market haven’t changed, but customers are more selective about where they locate. We are experiencing demand for high-quality downtown space firsthand with significant demand for space at our Midtown Center project at 15th and L streets, as well as at 1401 New York Avenue, which we recently acquired. 

1401 New York Avenue is a perfect example of our strategy to invest into what we are calling the “premium plus” segment of the market. It’s a great Class A building that we are improving to near trophy quality through targeted investments into the amenity package, common areas and the service offering. The early returns at 1401 New York Avenue are strong, as we have seen a significant uptick in leasing activity as we roll out our planned upgrades.  

What makes for a good office property in D.C.?

Location and quality are the starting points, but we believe the best office properties offer something beyond a place to work. They become destinations in their own right, where people want to spend time and connect with others. 

These buildings typically offer a unique design, market-leading amenities, and great on-site food and beverage options. Midtown Center is a good example of what that looks like in practice. Midtown Center offers a grand public plaza that has become a popular place for people to stroll, sit and gather, while restaurants like Isla, Grazie Nonna and Shoto bring people to the property for lunch, dinner and drinks well into the evening. The activity extends into weekends and after hours and creates a more active and engaging environment. 

We also see that same dynamic at the Wilson, our project in Bethesda, Md., where our ground floor is activated with a bustling café (Tatte) which connects directly into our building lobby. The building is busy every day of the week given its location in the heart of Bethesda and adjacent to the Metro. 

Both Midtown Center and the Wilson reflect our belief that successful office buildings should add to the vitality of their surrounding neighborhoods.  

What have been some of Carr Properties’ biggest deals over the last 12 months? 

Residential development in Northern Virginia has been a major focus for us this year.

In October, we acquired 300 Montgomery Street in Alexandria and 4040 North Fairfax Drive in Arlington. Our plan is to redevelop these two high-quality sites into Class A multifamily projects that will offer almost 800 units on a combined basis. 

This is in addition to the three residential projects we have under construction today in Northern Virginia and D.C. that include the Margot (Alexandria), 3033 Wilson Boulevard (Arlington) and 2121 Virginia Avenue Northwest (Washington). We are excited to expand the Carr brand from Class A office into Class A residential, and we expect to continue our growth in this segment as we build a more diversified company.  

On the office side, the Wilson in Bethesda reached 100 percent leased following Geico’s expansion, and we acquired 1401 New York Avenue earlier this year, where we’re investing in elevating the building through our Premium Plus strategy. We’re making similar investments at Midtown Center, where we recently delivered a brand-new conference space and our new HQ office, as well as new penthouse amenities underway.

Carr Properties has multifamily development in D.C. and Massachusetts. Which market is doing better for you? 

At present, our residential development activity is in the D.C. region with a specific focus on Northern Virginia. We would like to expand our residential development activity into the Greater Boston market, but we have not found the right opportunity just yet. 

However, Boston remains a very important market for us on the office side with One Congress and 200 State Street. Specifically, One Congress is one of the most coveted office towers in the city and is 100 percent leased. 200 State Street reached 92 percent leased this year with more than 40,000 square feet of new and renewal lease activity.  

What are the most in-demand amenities among tenants today?

I don’t know that the types of amenities that our customers expect to see in our office buildings have changed that much over the last few years. They expect to have access to first-class fitness facilities, shared conference facilities, rooftop and entertainment space, and great ground-floor retail. 

However, how those amenities are delivered to our customers from a service offering perspective is just as important, if not more important, than the quality of the physical spaces. Our team is laser focused on providing first-class hospitality to our customers each and every day, and that helps us to build an enduring brand known for quality and service.market clearing prices, as we go into 2027. We will see.

Is there a market ripe for multifamily development that Carr is itching to get into?

Our focus at the moment is to continue with a very targeted residential expansion within the D.C. region and to expand our residential development activity into the Boston market. That should keep us busy for the foreseeable future. 

Over time, we may consider expansion into a new market so long as the market fundamentals support the kind of scale that we will want to achieve.

Lightning Round:

Your AI platform of choice? Claude.

“Oppenheimer” or “Odyssey”? “Odyssey.”

Where’s your secret escape compound? (Think Peter Thiel’s New Zealand Plan B.)  Nantucket, Mass.