JLL's Trophy Office Market Update
While DC trophy office leasing remains slower than many would like, JLLs Amy Bowser (snapped this morning)says the market isnt discouraged, noting that theres still a good collection of law firms swirling around trying to keep up with their peers. But those firms might want to move quickly, as large blocks of space are diminishing: Of the 40 existing trophy buildings in the District, only five have 50k SF blocks of unencumbered space available, she says. The findings are part of JLLs annual trophy office report, released last week.
According to the report, space under construction is already 80% leased (like Sullivan & Cromwell s deal at 1700 New York Ave, above, and Covington & Burling's spot at CityCenter, below).
Amy adds that tightening in the trophy market could cause landlords to begin pullingback on the huge concession packages tenants have been enjoying the past two years;free rent may be first to go. She says attractive concessions are still out there, though, causing net effective rents to drop10% below 2008 peak levels.
