Federal Lessor Advisory Group
1400 Wilson Blvd.
Arlington, VA
Challenge
- Knowing that the tenant relocation was not a risk to the Landlord given the infrastructure invested by the Government, CBRE needed to maximize the value of the lease so the Landlord could refinance the property at the best terms available
- Negotiating a 20-year lease with an approved prospectus was not as straight forward as it should have been. The initial offer was submitted to the Government in October 2020 with the impending lease expiration on March 31, 2021. The Government requested a revised offer the beginning of February and a final offer at the end of February. The financing required the new lease to be executed by the expiration of the old lease
Solution
- The State Department, Office of Diplomatic Security occupies the full building and secures and controls the full garage
- A new lease will be for the full building for a 20-year lease term commencing upon the old lease expiration
- The program rate is below market for this location, resulting in the need to negotiate lease terms to maximize lease value
Results
CBRE negotiated many new lease terms to maximize value while maximizing the face rate of the lease. The space was accepted in as-is condition with no TI Allowance, parking was negotiated with an annual escalation, and an electric base and a real estate tax base were negotiated to protect the Landlord’s NOI
Federal Lessor Advisory Group
We navigate every dimension of the federal leasing landscape to drive value for your real estate.