undisclosed government agency ,
Savills & Tishman Speyer
The 2020 Washington, DC Lease Transaction of the Year is ...
The Tenant has several separate leases at International Square, totaling 390,000 SF with varying expiration dates. The Tenant desired to extend the terms of the leases for a portion of the leased space totaling approximately 320,000 SF for various terms, which would give them the needed flexibility to complete renovations of, and move in to, their existing owned portfolio.
Unique features of this transaction include:
· Varying Lease Expirations: The Tenant has several separate leases at I-Square with various lease expirations over a 6-year span throughout the three-building complex.
· Unknown Renovation Schedule: The Tenant is currently undertaking renovation and expansion of their owned properties, which requires locating personnel in leased swing space. We created a flexible structure that allowed them the flexibility to: a) extend different portions of their leases for different term lengths: and b) terminate all or a portion of the separate tranches at various future dates to accommodate future renovation schedules.
· I-Square Renovations: Tishman Speyer was in process of planning extensive interior renovations of the large I-Square interior shared open lobby and lower level to create a modern food hall and conferencing concept that would be an amenity for the Tenant and other tenants. The Tenant occupies space in the complex which includes interior balconies that overlook the future construction site. Tishman and the Tenant each engaged acoustical consultants to assist in negotiating appropriate safeguards to ensure that the Tenant’s employees would not be disturbed during construction.
· COVID: The COVID shutdown hit as the letter of intent was being negotiated, with neither the Landlord nor Tenant being sure of the future impacts of the shutdown.