Carr Properties Puts 720K SF Up for Lease in D.C.’s Downtown

Five years ahead of a major departure, a Washington, D.C. landlord is already looking to fill space at its downtown development.

Carr Properties put 720,000 square feet up for lease at Midtown Center, Bisnow reported. The space is split between two buildings at 1100 15th Street NW, which are connected by elevated walkways.

The space is occupied by Fannie Mae, which initially signed a 15-year, 752,000-square-foot lease to anchor the $650 million property. The lease was one of the largest in the history of the nation’s capital.

Slightly more than halfway through the lease, however, Fannie Mae appears to be preparing for an exit. Most of its space is becoming available in June 2029. A company spokesperson confirmed the upcoming availability, saying it is embracing flexible work, but “exploring office space options that support our workforce while being fiscally responsible.” Fannie Mae’s charter requires it to maintain a presence in Washington, D.C.

Carr’s space considerations at Midtown Center are magnified by its only other office tenant: WeWork. The bankrupt co-working company leased the remaining 110,000 square feet from Carr in April 2019. That space still appears to be active for WeWork, but its future is uncertain as WeWork navigates Chapter 11 bankruptcy.

In 2021, a South Korean investor syndicate picked up a minority stake in the property, which valued it at $980 million. The district’s government, however, most recently registered the property’s tax assessment at $739 million.

Washington, D.C.’s office vacancy rate for trophy properties — such as Midtown Center — fell to 11.5 percent at the end of last year, according to CBRE, the lowest level recorded in a decade. The city’s general office vacancy rate, however, sat at a record 21.2 percent at year’s end.
— Holden Walter-Warner