- Feb 01, 2009
Washington, D.C., has turned off its development spigot, but projects already in the pipeline continue to move forward. Trammell Crow Co. managing director Tom Finan estimated that 10 million square feet of office projects are under construction and that very little has thus been stopped, despite the fact that pre-leasing is down from the 60 to 70 percent of a few years ago to 33 percent today.Among the largest projects are Boston Properties Inc.’s 2200 Pennsylvania Ave. in the West End, a 430,000-square-foot office building going up on a 60-year ground lease from George Washington University Hospital, and Trammell Crow’s 90 K St. in NoMa, a 412,000-square-foot project with no pre-leasing. Outside the district, Monday Properties plans to break ground this year on 1812 N. Moore St. on top of the Metro station in Rosslyn, Va. The developer aims for LEED platinum certification for the 580,000-square-foot project.Build-to-suits include National Public Radio’s planned redevelopment at 1111 N. Capitol St., N.E., for its headquarters. The deal, negotiated by Studley Inc., includes a sale-leaseback of National Public Radio’s current headquarters at 635 Massachusetts Ave., N.W. Boston Properties, the buyer, will in turn serve as development manager for the new site, slated for occupancy in late 2012.Retail projects also continue to move forward in NoMa and The Yards along the Capital Riverfront, according to Grubb & Ellis Co., which reported that those projects will add 545,000 square feet once complete. The Washington, D.C., metropolitan area benefits from being greatly underserved in retail, and rents and median household income that tend to be far above the U.S. average.