Fannie Mae Signs 340 KSF Lease in Downtown DC
Fannie Mae will downsize its headquarters space in Washington, D.C. It signed a new long-term lease for 340,000 square feet at Carr Properties and IGIS Asset Management’s Midtown Center, where it currently occupies 713,500 square feet. The GSE exercised its early out clause to vacate that space by May 2029, Commercial Observer reported.
Fannie Mae signed what was the largest private sector office lease in the metro nearly a decade ago—when the building was still under construction—and moved in the space in 2019. The GSE was supposed to lease the space until 2034, according to the same source.
Cushman & Wakefield and Venable LLP represented Fannie Mae in the new lease transaction. The landlord was represented by an in-house leasing member and Fried Frank.
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Fannie Mae declared in prepared remarks that the reduced office footprint will enable the company to effectively meet the needs of its employees and business operations while maintaining fiscal responsibility.
A LEED Gold-certified property
Carr Properties completed the LEED Gold-certified property in 2017, using funds from a $525 million construction loan originated by Wells Fargo Bank a year earlier, according to CommercialEdge information. In 2021, the firm sold a 49 percent stake in the building to IGIS Asset Management, a deal which valued the asset at $980 million, Bisnow reported.
Midtown Center has two 14-story buildings connected by three pedestrian bridges and is on the former site of The Washington Post’s flagship office. Designed by SHoP Architects, it features floorplates averaging 75,500 square feet, a 45,000-square-foot retail plaza, fitness center, EV charging stations, yoga room, penthouse conference center and a rooftop terrace.
The property is at 1100 15th St. NW in downtown Washington, D.C., and close to several retail and dining destinations. The Ronald Reagan Washington National Airport is within 4 miles.
Cushman & Wakefield Vice Chair Art Santry and Executive Managing Director Ned Goodwin, as well as Venable Partner Philip M. Horowitz and Counsel Jean Yin Crews, brokered the deal on behalf of Fannie Mae. Carr Properties Senior Vice President Kaitlyn Rausse and Fried Frank Partner Valerie Kelly represented the owner.
Washington, D.C.’s office vacancy grew year-over-year
Washington, D.C.’s office vacancy rate stood at 16.2 percent as of June, up 160 basis points year-over-year, but below the 18.1 percent national figure, the latest CommercialEdge office report shows. Additionally, the metro’s average full-service equivalent listing rate during the same month was $39.78, a 1.9 percent decrease since last year.
In one of the largest deals in the metro so far this year, The Washington Post extended its lease at One Franklin Square. The tenant will continue to occupy the 300,000 square feet at Hines’ building, less than 1 mile from its former flagship office.
Earlier this year, BGR Group renewed and expanded its lease at the Homer Building. The company will occupy more than 40,000 square feet at Mitsui Fudosan America Inc.’s 460,000-square-foot property.
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