A low rental rate of $36 per square foot, more than 25% below projected market rents, as well as two years of free rent helped secure the relocation.
Those pleased with the deal include, of course, the building’s owner Eisenhower Real Estate Holdings, LLC, which has been trying to lease the building for several years after the last government tenant departed in 2004 and the building was renovated in 2009.
The City of Alexandria is certainly thrilled. It plans to Eisenhower West Victory Center Redevelopment District because of the bid.
Two Years of Free Rent
The government is thrilled: it is saving a lot of money with the deal — some $95 million over the lease term.
The rental rate is $36 per square foot, according to GSA, which notes is more than 25% below projected market rents. The agreement also provides the government with over $50 million for tenant fit-out costs and other transition-related expenses.
Some back-of-the-envelop math along with another data point the government did not provide in its press release announcing the deal, but did publish in FedBizOpps.gov two days later, suggests that the property owner also threw in about two years of free rent.
Read more at this link.