Project
To assist Davis Wright Tremaine (DWT) evaluate the market to either expand and relocate within their current building or move to new office space. DWT is a Seattle, Washington based firm with 9 offices primarily on the west coast, New York, Washington, DC and China. Our relationship spans 20+ years assisting DWT in subleasing 18,000 square feet of space and relocating twice as the firm grew in Washington.

Challenges

•  Timing – DWT’s lease expired in mid-2010. With the decline in the economy and the commercial real estate market, they had to time their entry into the market to take advantage of lower rents and increased concessions.
• Cost – DWT is very proud of their low cost of real estate relative to their competition and knew Washington is an expensive market.
  
• Infrastructure – DWT occupied 35,000 square feet on multiple floors. Their goal was to find a building that allowed for contiguous space, in a prominent location and with the ability to expand over the term of their lease.   
  
• Location – Due to commuting patterns & Washington traffic, DWT’s strong desire was remain in the Central Business District (CBD).
  

Solutions
A team was assembled consisting of brokers, space planners and project managers. DWT toured multiple CBD and East End properties over a 6 month period.  They selected 2 buildings as finalists to compete – their current location and a CBD building 3 blocks away. In the end, DWT chose to remain in their current building, 1919 Pennsylvania Avenue, NW.

Results

•  Negotiated a 50,000 square foot, 10 year lease for the entire top 2 floors of 1919                 Pennsylvania Avenue, NW.
•  Reduced Landlord’s initial rent proposal by 13%.   
  
•  Reduced Landlord’s initial annual rent escalator from 2.75% to 2.5%
•  Increased Landlord’s Construction allowance by 47%. The allowance covered 100% of DWT’s construction and relocation costs.
•  Total concession package valued at $84.30 per square foot.