Anchor Lease Sparks Start of $216M Trophy Tower in DC

Skanska is making plans to commence construction of 17xM, a $216 million trophy office tower in Washington, D.C.’s central business district, now that the developer has secured an anchor tenant for the 330,000-square-foot project.

Global law firm Gibson, Dunn & Crutcher LLP just committed to approximately 163,800 square feet at the building, paving the way for Skanska to break ground in the fourth quarter of 2021.

“There’s demand for the top market office space. Securing an internationally renowned law firm further solidifies our belief that Skanska’s new development at 17th and M streets will be a best-in class building,” Mark Carroll, an executive vice president with Skanska USA Commercial Development, told Commercial Property Executive.

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Gibson Dunn inked a 16-year lease agreement with Skanska, relying on JLL for representation in the transaction, while Skanska utilized in-house representation.

17xM. Image courtesy of Skanska

17xM will sprout up at 1700 M St. NW, on a parcel that Skanska took possession of via a long-term ground lease with JBG Smith in 2019. In addition to state-of-the-art office space, the 11-story building will feature approximately 13,000 square feet of ground level retail offerings. Skanska is wearing multiple hats on the project, as its building division is overseeing construction activity under a contract valued at $105 million.

Breaking new ground

Skanska chose architecture firm Kohn Pedersen Fox to spearhead the visual concept for 17xM, which Skanska describes as a “future-forward design” integrating elegant architecture with sustainable and technological features.

“We have designed 17xM differently than other projects. Visitors will notice, and appreciate, the emphasis placed on the base of the building is just as special as the top,” Carroll said. “Designed with a tenant-first mindset, we have spent a considerable amount of attention on the entry experience, that will include a distinguished layby, electric car charging stations, and an expansive bicycle room complementing the commuting experience of 17th St.”

Skanska also sought the assistance of consultants from Arup and Siemens to engineer the property’s digitally connected environment and amenities package.

17xM. Image courtesy of Skanska

The one feature that will render 17xM different from any other building is its unique certification. While the project is designed to qualify for LEED Gold and Fitwel certifications, it will also hold the distinction of being the first WiredScore SmartScore-certified office building in North America.

“When developing the office of the future, our core principles center on making wellness, design flexibility, integrated technology, along with privacy and security fit the mold of multiple-user experiences as the building evolves over time,” Carroll noted. “When LEED first started, we were one of the first developers to embrace sustainability in that way, and we feel technology has drawn equal enthusiasm in its trajectory.”

Skanska is on schedule to deliver 17xM in 2024. The company has tapped CBRE to lead office leasing activity and has selected Dochter & Alexander to handle retail leasing responsibilities. Skanska is also constructing the $129 million office and retail tower known as 3901 N. Fairfax Drive, a 200,000-square-foot health and wellness-centric project that just got underway in nearby Arlington, Va.