ARLINGTON, VA–GlobeSt.com caught up with CBRE's Malcolm Schweiker to find out more about Metropolitan Washington Airports Authority's 74,248-square foot lease at Two Potomac Yard.
Why it's a full-term lease: This is a permanent move for the authority. The airport is building a passenger concourse that will replace the current outdoor aircraft gates.
USAA Real Estate's lucky timing: The Environmental Protection Agency had been occupying all of One Potomac Yard and half of Two Potomac Yard. It scaled back its space and moved out of Two Potomac Yard to occupy One Potomac Yard in a new five-year lease. That space was available for MWAA when they began their search.
MWAA's fast process: Unlike a lot of tenants in this current market, MWAA was not reluctant to commit and, in fact, went through the lease process in a matter of four months. There was some urgency as it needed to move by early 2017.
MWAA's unique requirements: Most tenants like a nice view. Few tenants like that nice view to be of the airport. More to the point, MWAA needed a building with sufficient IT hardware and infrastructure that could integrate into the Reagan National's IT backbone. The deal didn't go through until IT was satisfied its component could work.
Concessions: Yes, there were some, including additional TI dollars. Other than that CBRE cannot discuss it.
ARLINGTON, VA–GlobeSt.com caught up with CBRE's Malcolm Schweiker to find out more about Metropolitan Washington Airports Authority's 74,248-square foot lease at Two Potomac Yard.
Why it's a full-term lease: This is a permanent move for the authority. The airport is building a passenger concourse that will replace the current outdoor aircraft gates.
USAA Real Estate's lucky timing: The Environmental Protection Agency had been occupying all of One Potomac Yard and half of Two Potomac Yard. It scaled back its space and moved out of Two Potomac Yard to occupy One Potomac Yard in a new five-year lease. That space was available for MWAA when they began their search.
MWAA's fast process: Unlike a lot of tenants in this current market, MWAA was not reluctant to commit and, in fact, went through the lease process in a matter of four months. There was some urgency as it needed to move by early 2017.
MWAA's unique requirements: Most tenants like a nice view. Few tenants like that nice view to be of the airport. More to the point, MWAA needed a building with sufficient IT hardware and infrastructure that could integrate into the Reagan National's IT backbone. The deal didn't go through until IT was satisfied its component could work.
Concessions: Yes, there were some, including additional TI dollars. Other than that CBRE cannot discuss it.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
