WeWork Inks 111K SF Lease At Capitol Crossing
Property Group Partners has just secured a big lease to help fill the nearly 1M SF of office space it is delivering in the first two buildings at Capitol Crossing.
The developer Thursday signed a 111K SF lease with WeWork at 200 Massachusetts Ave. NW, the latest deal in the coworking giant's rapid expansion across the District.
WeWork will take the seventh, eighth and ninth floors of the 414K SF building, which delivered last year. The coworking provider expects to open its space later this year.
JLL's Evan Behr, Doug Mueller and Nathan Beach represented PGP in the deal, and JLL's Zach Boroson, Andy O'Brien and Greg Lubar represented WeWork.
The JLL team took over the leasing at Capitol Crossing from Cushman & Wakefield in July 2018. PGP President Jeffrey Sussman told Bisnow he wanted to bring in a new team after the initial leasing was slower than he had expected.
WeWork is the second office tenant to sign on at Capitol Crossing after the American Petroleum Institute inked a 75K SF deal in October 2017. On the retail front, Capitol Crossing had reached an agreement with restaurateur Danny Meyer to open a location of his popular New York City restaurant, Union Square Cafe, but Meyer pulled out of the deal last month.
The 250 Massachusetts Ave. NW building, expected to deliver this year, will add 559K SF of new office space to the Capitol Crossing. The five-building development is ultimately planned to include 1.9M SF of office space, 62K SF of retail and a 180K SF hotel, which had previously been planned as residential.
"The addition of WeWork to Capitol Crossing is a testament to the exceptional environment we are creating here," PGP Senior Vice President David Happ said in a release.
The deal continues a string of major D.C. leases for WeWork as the coworking giant quickly expands its footprint in the region. Last month, WeWork signed on for 25K SF at 660 North Capitol St. NW, just three blocks from Capitol Crossing. It also signed a 110K SF lease last month at Midtown Center. In February, WeWork leased over 100K SF at 1701 Rhode Island Ave. NW, and it signed two deals in December for spaces in Mount Vernon Triangle and Dupont Circle.
"200 Massachusetts Avenue is a prime location to add to our growing portfolio in D.C.," WeWork Mid-Atlantic General Manager Lex Miller said. "As our second-largest building and with such close proximity to Capitol Hill, we have a strong vision for how we will continue to build our unique amenities and product offerings that are attracting members in government affairs, trade associations and lobbying to WeWork."
