Downtown DC HQ Are Moving Across the River

Soon after Fannie Mae announced last month it would opt out of the lease for its 720K SF headquarters at the Midtown Center in Washington, DC-five years early-speculation intensified that the federally sponsored mortgage giant would move its downsized HQ across the Potomac River to Reston, VA.

Now, real estate data powerhouse CoStar is joining a trend that has seen a migration of DC-based firms to Virginia.

CoStar, the owner of LoopNet and Apartments.com, is finalizing a deal to acquire the Central Plaza office tower in Arlington from JBG Smith. Central Plaza is a part of a mixed-use development in proximity to the Rosslyn Metro station.

According to a report in the Washington Business Journal, the State Corporate Commission in Virginia accepted an application from CoStar to amend the name of an entity-signaling the establishment of a new HQ.

CoStar relocated its headquarters from Bethesda to DC in 2010, receiving a $6.1M, 10-year tax abatement from DC. In recent years, the company has expanded its footprint in Virginia, including in the Richmond area.

Monumental Sports stunned DC late last year when it announced that Washington’s NBA and NHL franchises, the Capitals and Wizards, would be moving out of Capital One Arena in downtown DC to new facilities across the river in Virginia.

Fannie Mae’s 15-year lease doesn’t expire until 2033, but last month it notified landlord Carr Properties it is invoking an early-out clause and is terminating the lease effective in 2029. Carr has listed the space at Midtown Center as available for lease in mid-2029, according to CoStar data.

A Fannie Mae spokesperson told GlobeSt.com that the mortgage giant is “embracing” flexible work but will continue to maintain a footprint in the Washington DC metro area.

“Like many other companies, we are continuing to embrace our flexible work environment by exploring office space options that support our workforce while being fiscally responsible,” the Fannie Mae spokesperson said. “Per our Charter, we will continue to maintain a presence in the Washington, DC metropolitan area.”

The Midtown Center was developed in 2016 on the site of the former Washington Post headquarters at 1100 15th Street NW. Two Midtown Center towers are connected by three elevated walkways above a public courtyard with 44K SF of retail and restaurants.

Fannie Mae inked a $770M deal for more than 300K SF in Midtown Center’s east tower and 414K SF in the west tower, one of the largest office deals of the decade.