Columbia Property Trust Inc. has brought Market Square, its trophy office asset in Washington, D.C., to 90 percent leased. JLL’s Doug Mueller and Evan Behr handle leasing for the property.
Owned through a joint venture with Blackstone Property Partners, the 696,000-square-foot property has gone through significant changes over the past four years. The twin buildings that curve around the U.S. Navy Memorial underwent renovations to the entrances on Pennsylvania Avenue, the addition of a 10,000-square-foot conference center and tenant lounge, as well as upgrades to the main lobbies. The owners will unveil a new rooftop deck this spring, which will feature panoramic views of Pennsylvania Avenue and more than 8,000 square feet of private event space.
“By completing strategic enhancements and targeting the legislative arms of major corporations, we’ve driven a steady acceleration of the leasing pace at the property and created an exceptional corporate community—today, half of Market Square’s 65 tenants are Fortune 500 companies and 10 are Fortune 100 companies, putting it in a category all its own for D.C. office space,” Mark Witschorik, vice president of Columbia’s Eastern Region, told Commercial Property Executive.
Columbia has managed to lease 350,000 square feet since 2015, increasing rental rates by an average of 20 percent, with 65 tenants currently at the revitalized asset. In 2015, before the renovations took place, half of the leased space at Market Square was expiring and occupancy dropped to 73 percent by mid-2016. Since its acquisition of the property, Columbia has leased or renewed more than 50 percent of the total space.
“We’ve taken a number of proactive steps to further differentiate Market Square amid the new supply in D.C. and to reaffirm its place among the city’s most prestigious addresses for leading companies,” Witschorik added.
Last year, Columbia Property Trust renovated another Washington, D.C., asset. The $3 million revamp of the office building at 80 M St. transformed the 285,000-square-foot asset into a Class A, LEED-certified property.
Image courtesy of David Madison Photography