Project Profiles

Office Feasibility Study
Project: McMillan Sand Filtration Plant, Washington, DC
Client: Vision McMillan Partners, led by EYA and Jair Lynch Development Partners
 

Demand for office space on the McMillan parcel was assessed and it was determined that Medical Office Buildings (MOBs) should be developed over conventional office space. Making this distinction early-on in the development process is critical because the development of MOBs, with larger elevators, wider hallways, intensive MEP, and unique parking and circulation requirements, is most cost effective when done from the start and not as a conversion from conventional office.
 
While demand for office space from typical DC tenants and surrounding universities was considered, it was determined that the site did not hold significant appeal. Among other things, the site lacked direct metro access and it was not inside a recognized office submarket, making it less attractive to DC and federal government tenants, as well as nonprofit users, the three most likely groups to consider this location. The cluster of medical facilities across the street, one of which confirmed tremendous pent-up demand, further underscored the appeal of MOB.
 
Regional medical office data was examined to determine how the total amount of medical office square footage proposed at McMillan compared to other clusters in the region, how long it would take to be absorbed, and what rents the market would bear upon delivery. A strategy involving entitlements, speculative development, preleasing and land sales was recommended.

 

[Project Profiles]