Tech-Focused VC Giant Andreessen Horowitz Coming To Downtown D.C.

One of the world’s largest venture capital firms is expanding its activity in D.C. with a new office downtown. 

Andreessen Horowitz, a Menlo Park, California-based firm that invests in tech companies, is preparing to plant a new office two blocks from the White House, the Washington Business Journal reported, citing sources familiar with the deal. 

The company, also known as a16z, is set to sublease 12K SF from FedEx Corp. at 800 17th St. NW, known as the PNC Bank Building, according to the WBJ. The sublease would last through FedEx's 2029 expiration.

Andreessen Horowitz has $42B in assets under management and has invested in some of the largest tech companies in the world, like Airbnb, Facebook and Instacart. It also has offices in Miami, New York, San Francisco and London. 

While the move itself acts to fill some of the historically high availability downtown, it could also present an opportunity for D.C.-area tech companies looking for cash.

Unlike government agencies and law firms, the tech sector hasn't historically been one of the largest occupiers of D.C. office space.

Tech firms accounted for 4% of leasing activity last quarter, according to CBRE’s Q1 office report. Meanwhile, it had the highest net square footage loss of any sector, with over 150K SF emptied out during the first three months of the year. 

But the section of downtown where Andreessen Horowitz is planting its footprint is being eyed by the city as a new science, policy and tech-focused hub. The Downtown Action Plan, released in February, envisions “a robust network of startups and technology companies,” among other goals, for the Penn West neighborhood northwest of the White House.

Andreessen Horowitz has been increasingly focused on tech firms that serve the federal government and Department of Defense, according to WBJ, and last month it raised $600M for its American Dynamism practice that invests in firms serving the nation's interests.