CommonGrounds Signs 30 KSF Lease in Downtown DC
The coworking company will occupy an entire floor at the Class A office building, marking its first flexible workspace in the market, set to open in early 2020.
CommonGrounds Workplace has signed an 11-year lease with Grosvenor Americas for 29,509 square feet at 1500 K Street, a Class A office building in Washington, D.C. The deal marks the first flexible workspace in the market, slated to open in the first quarter of 2020.
Situated at 1500 K St. NW in the capital’s central business district, the 243,066-square-foot property is one block north of the White House, overlooking McPherson Square. The central location provides easy access to both red and orange rapid transit lines. The surrounding area, especially the neighboring 14th Street, hosts a mix of high-end dining, retail, museums and music venues.
The 1500 K Street space, encompassing the entire second floor and part of the ground-floor retail section, represents the fourth CommonGrounds lease in 2019, part of their $100 million Series A funding expansion program. The third one is a 45,978-square-foot long-term lease in Los Angeles, while the other two are in Atlanta and Seattle. The four locations total almost 130,000 square feet.
Historical building with modern amenities
The 11-story building, dating from 1929, features 24,000-square-foot floorplates and a 19,000-square-foot retail component. Amenities include a rooftop terrace and an on-site fitness center. According to Yardi Matrix data, the building is currently 92.6 percent leased, with Wells Fargo and Georgia Brown’s also on the tenant roster.
In 2017, Grosvenor Americas implemented a $20 million renovation at the heritage property. The improvements involved upgrading the lobby, common areas and mechanical systems, restoring historic exterior fixtures, enhancing the rooftop terrace and adding the new fitness center. The building is Energy Star-rated and received LEED and Wired GOLD certification in 2018.
CBRE’s Kevin Howard, Mark Klug, Lara Nealon and Dimitri Hajimihalis represented Grosvenor Group. Jim Suber with Strategic Real Estate Advisory and Laurent Myers with Savills USA negotiated the lease on behalf of CommonGrounds. Grosvenor’s in-house team will be in charge of designing the CommonGrounds space.
