Google Leases Major Union Station Office to Consolidate D.C. Operations at 500 N. Capitol St. NW

Google Leases Office Building by Union Station, Plans to Consolidate DC Locations
CRE Market Beat Take
A long-term tech tenant consolidating multiple D.C. locations into a single Union Station-adjacent asset should provide durable cash flow and support valuations for well-located office in the submarket.

Google has signed a lease for a large portion of a 231,000-square-foot office building located near Union Station in Washington, D.C., positioning the property at 500 N. Capitol St. NW as the company's consolidated hub in the District. According to reporting from the Washington Business Journal, the move will bring together staff currently spread across multiple D.C. offices into a single location over the next several years.

Google plans to execute the consolidation in phases as the interior of the new office is built out. The staged move-in will allow the tech company to continue its existing operations while tenant improvements progress at 500 N. Capitol St. NW. The article indicates that the transition period will extend over the next few years, reflecting the scope of the build-out and the logistical complexity of relocating staff from several locations into one property.

The company has maintained a presence in the District since 2005 and currently occupies two significant office spaces nearby. In 2022, Google subleased 130,000 square feet at 655 New York Ave. NW, adding to its established footprint in the market. It also maintains roughly 100,000 square feet of office space at 25 Massachusetts Ave. NW. These locations will remain in operation while the new space at 500 N. Capitol St. NW is prepared for occupancy, providing continuity for employees and business functions.

The building at 500 N. Capitol St. NW is located a few blocks from the U.S. Capitol, placing it in a key federal and business corridor that is closely linked to government agencies, policymakers, and related institutions. The property was originally constructed in 1966, reflecting a mid-20th-century vintage, and it was acquired by BXP Inc. in 2010. The asset's ownership is structured with BXP holding a 30% stake, while the majority interest is owned by Masaveu International, which is based in Miami.

The lease by a major technology company at a centrally located, institutionally owned office building highlights ongoing tenant demand for well-positioned assets that offer proximity to major transportation hubs and federal government nodes. As Google gradually relocates its staff into 500 N. Capitol St. NW, the transaction will reshape its local office footprint, consolidating its D.C. presence into a single, larger campus while the current leased and subleased locations remain active during the transition period.

Source:

Connect CRE
Share the Post:

Related Posts