Two Democracy Plaza, Bethesda, MD

Challenge

• The National Institutes of Health (NIH) were occupying 83% of a 225,000 SF building with 2 years left before the end of their original 10-year lease term
• The lease was large enough to require a congressional lease prospectus, but the original prospectus from 2010 still had 10 years of unused authority

Solution

• A GSA lease for approximately 83% of the building was renewed on a non-competitive basis
• Unused prospectus authority from the original 10-year-old prospectus was utilized as the authority for the leasing action
• The new 10-year GSA lease was completed with no base building or tenant improvements required and commenced immediately following the expiration of the existing lease

Results

• Working with the Government, CBRE FLAG argued that GSA did not need a new Congressional Lease Prospectus for the renewal as the original 20-year prospectus provided GSA the authority to complete the additional 10-year renewal utilizing the remaining unused leasing authority
• Through a proactive approach, CBRE FLAG convinced the Government to write justification to complete the 10-year non-competitive lease renewal without a new prospectus
• A new 10-year GSA lease, with no change in square footage and no additional improvements, was signed two weeks before the original lease expired