Escalating costs of leasing new and existing office space have created a new specialized form of subleasing.
Essentially, this subleasing market for new space originated on the premise that today's price for space will be higher tomorrow. The large tenant, projecting that space needs will increase even more in the future, leases more space than is needed in a new building at a favorable gross rate, then sublease what isn't needed immediately at what often is a higher rate.
In a newly minted perspective report on area office leasing, the Braedon Companies estimates that approximately 130,000 square feet of Class A office space is available for subleasing in buildings scheduled for completion through 1982.
President James L. Eichberg of Braedon said that subleasing of new space by overleasers is becoming more common, thus becoming somewhat competitive with all new leasing efforts. In fact, some owner-developers of new buildings now attempt to prevent substantial overleasing by tenants who want to become major subleasers of new space.
Other items of interest:
Alla-Ohio Valley Coals Inc. will take 22,600 square feet at 1110 Vermont Ave. NW on a long-term, $4-million-plus lease to establish a headquarters here. The firm mines, sells and ships coal to more than 22 foreign countries.
Ground has been broken for the first new building in the High Ridge Corporate Office Park at 1-66 and Route 50 at Waples Mill Road in Fairfax County. Five buildings are planned on 22 acres, and rates are quoted at $14 a square foot per year plus an escalator clause.
Bolt, Baranek & Newman, a national management consulting firm based in Cambridge, Mass., has leased 20,000 square feet in 1300 N. 17th St., Rosslyn. The D.C. law firm of Zuckerman, Spaeder, Taylor & Kolker has gone into 14,840 square feet at 1201 Connecticut Ave. NW.
Snider Bros. Inc., a fast-growing realty firm, has purchased the three-story building at 7000 Wisconsin Ave., Bethesda, for $1 million, according to Robert Snider, president. The building will house the firm's headquarters and its Bethesda sales operation.
Pubco Corp., a minority-owned janitorial service firm, recently sold a warehouse at 2640 9th St. NW to Unified Services for more than $300,000.
The law firm of Cooter, Gell & Cooter has moved to new space at 1110 Vermont Ave. NW.
The law firm of Harris, Berg & Creskoff, which specializes in international trade regulations, will expand into 9,000 square feet at 1100 15th St. NW. The building is scheduled to be completed next spring.
The Council of American Building Officials has expanded and moved to new space at 3 Skyline Place on Leesburg Pike in Falls Church. CABO is a federation of three major model building code organizations.
Greenhoot Inc. has completed the leasing of 1029 Vermont ave. NW., which has been renovated. Full floors have been taken by the Futures Group; National Society for Medical Research; the law firms of Kator & Scott; Eric Mierhoff and Harmon, Wilmot & Spaulding.
A four-story town-house-like office building at 1420 16th St. NW is being renovated, with occupancy scheduled next month. Each floor has 2,500 square feet. The building has eight fireplaces and a grand stairway under a skylight.
Virginia Electric Power Co. has moved into a 10,500 square feet in Mark Center, Alexandria.