WASHINGTON--(BUSINESS WIRE)--Columbia Property Trust, Inc. (NYSE: CXP) announced today that it has brought Market Square, its 696,000-square-foot trophy office property in Washington, D.C., to 90 percent leased. Columbia has leased more than 350,000 square feet at the property since the start of 2015 through a combination of strategic property enhancements and targeted marketing to the legislative arms of major corporations. As a result of this strategy, Columbia has also increased rental rates by an average of approximately 20 percent during that period and transformed the tenancy, with FORTUNE 500 companies now comprising a full half of the 65 tenants on the rent roll.
At the start of 2015, just before renovation plans were announced, nearly half of the space at Market Square was expiring in the three years ahead, and occupancy dropped to a low of 73 percent in mid-2016. Over the past four years, Columbia has now leased or renewed more than 50 percent of the total space at the property to return it to 90 percent leased.
During that timeframe, Columbia has also significantly enhanced the property, which it owns through a joint venture with Blackstone Property Partners. Renovations at the twin buildings, which curve around the U.S. Navy Memorial, include two reimagined entrances on Pennsylvania Avenue, elegant updates of the main lobbies, and a dynamic new 10,000-square-foot conference center and tenant lounge. This spring, Columbia will also unveil a new roof deck atop 801 Pennsylvania Avenue that will become a signature feature of the property. Exclusively for tenants of Market Square, the deck will offer unparalleled panoramic views up and down Pennsylvania Avenue, from the Capitol Building to the White House, and more than 8,000 square feet of high-end private event space.
“We have been very purposeful in creating a vibrant community at Market Square of business and industry leaders who maintain offices in D.C. in order to participate in the conversation taking place in our nation’s capital,” said Nelson Mills, Columbia’s chief executive officer. “Our efforts have been rewarded, with the property now well leased at very attractive rates.”
Mark Witschorik, who oversees Columbia’s D.C.-area portfolio as Vice President – Eastern Region, added, “We have worked diligently to establish Market Square as the epicenter of the legislative offices of Fortune 500 and leading midsize companies in Washington D.C. In addition to maintaining the timeless grandeur of the architecture and interior design of these iconic office buildings, we’ve developed an unrivaled package of amenities to serve the specific needs of lobbyist groups, who rely on having access to exclusive entertainment and meeting spaces. We plan to continue by adding more luxury retail and dining options onsite in the year ahead.”
With ten Fortune 100 companies among its tenants, Market Square is now in a category of its own: no other D.C. office building has more than four, according to JLL. The firm serves as leasing broker for the property, with leasing efforts headed by Doug Mueller and Evan Behr.
About Columbia Property Trust
Columbia Property Trust (NYSE: CXP) creates value through owning, operating and developing Class-A office buildings in high-barrier U.S. office markets, primarily New York, San Francisco, and Washington D.C. Columbia is deeply experienced in transactions, asset management and repositioning, leasing, and property management. It employs these competencies to grow value across its high-quality, well-leased portfolio of 19 properties that contain nine million rentable square feet, as well as one property under development. Columbia has investment-grade ratings from both Moody’s and Standard & Poor’s. For more information, please visit www.columbia.reit.
Forward-Looking Statements:
Certain statements contained in this press release other than historical facts may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. We intend for all such forward-looking statements to be covered by the applicable safe harbor provisions for forward-looking statements contained in those acts. Such statements include, in particular, statements about our capital investment projects, marketing efforts, and leasing transactions and prospects, and are subject to certain risks and uncertainties, including known and unknown risks, which could cause actual results to differ materially from those projected or anticipated. Therefore, such statements are not intended to be a guarantee of our performance in future periods. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as "may," "will," "expect," "intend," "anticipate," "estimate," "believe," "continue," or other similar words. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. We make no representations or warranties (express or implied) about the accuracy of any such forward-looking statements contained in this press release, and we do not intend to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
Any such forward-looking statements are based on a number of assumptions involving judgments with respect to, among other things, future economic, competitive, and market conditions, all of which are difficult or impossible to predict accurately. To the extent that our assumptions differ from actual conditions, our ability to accurately anticipate results expressed in such forward-looking statements, including our ability to generate positive cash flow from operations, make distributions to stockholders, and maintain the value of our real estate properties, may be significantly hindered. See Item 1A in the Company's most recently filed Annual Report on Form 10-K for the year ended December 31, 2017, for a discussion of some of the risks and uncertainties that could cause actual results to differ materially from those presented in our forward-looking statements. The risk factors described in our Annual Report are not the only ones we face, but do represent those risks and uncertainties that we believe are material to us. Additional risks and uncertainties not currently known to us or that we currently deem immaterial may also harm our business.
