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Raytheon is planning to make significant cuts to its global real estate footprint, but the firm is staying put in the Rosslyn tower that bears its name.
The defense contractor signed a 116K SF long-term lease renewal with Monday Properties at 1100 Wilson Blvd., the Washington Business Journal reports.
The renewal comes nearly three years before Raytheon's lease was set to expire. The parties didn't disclose the deal terms, but signing an early lease renewal during the coronavirus pandemic likely created favorable terms for the tenant, as concessions have continued to rise in the D.C. area.
The 1100 Wilson building serves as Raytheon's headquarters for its intelligence and space division. The company plans to make upgrades to the space following the lease renewal.
The Waltham, Massachusetts-based contractor occupies about 826K SF in the D.C. area, according to CoStar data reported by WBJ. Raytheon, which completed its merger with United Technologies Corp. in April, signaled last month it is looking to reduce its overall real estate footprint.
Raytheon CEO Greg Hayes said on the firm's Q3 earnings call that its original goal was to cut its global office footprint by 10%, or 3M SF, but he said it is now taking a more aggressive approach to space reduction.
"I now think we could see upwards of 20% to 25% reduction in square footage. That's going to be a huge savings," Hayes said on the Oct. 27 call, according to a Seeking Alpha transcript.
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