National Academies of Science, Engineering, and Medicine HQ
Project Type: HQ Master Strategy, Asset Value Maximization
Space Use: Office, Meeting, Event
Location: Washington, D.C.
Project Size: ~375,000 SF
Services Provided: Real Estate Occupancy Strategy, Asset Value Maximization Strategy
National Academies of Sciences, Engineering, and Medicine (“NAS”) is a Congressionally chartered nonprofit organization providing independent advice informing policy with evidence to spark progress and innovation and confront challenging issues for the benefit of society with membership offered to scientists, engineers, and health professionals.
Headquartered at its 375,000 SF owned office building located at 500 5th Street, NW (“The Keck Center”), NAS engaged JM Zell to identify and evaluate scenarios to maximize the value of The Keck Center following the implementation of its hybrid workplace strategy which resulted in a more efficient footprint and created multiple floors of excess space.
To best accomplish NAS’ goals, JM Zell identified various space use scenarios for the building, evaluating each scenario for alignment with NAS’ long-term occupancy/operational needs and potential for maximizing the value of the building overall. For the excess space in each scenario, JM Zell determined its highest and best use based on market dynamics and subsequent legal, construction, and financial viability.
To best assist NAS leadership in building consensus around the chosen course of action, JM Zell educated NAS leadership on market conditions for all potential uses including office, retail, residential, and hospitality and the associated constraints and opportunities for each use at The Keck Center.
Based on initial research and key constraint analysis, JM Zell then worked with the appropriate 3rd party experts including an architect and zoning counsel to assist in defining alternative programmatic and space needs at the property under various use scenarios. The collective team then assessed a re-stacking of the building to maximize physical efficiency and projected income for the excess space.
In addition to change of use, JM Zell also evaluated alternate strategies to unlock asset value, ranging from subleasing excess space, creating a condominium regime for partial sale, sale-leaseback, and outright sale and relocation.
At the analysis's conclusion, JM Zell presented its findings to NAS leadership and other key stakeholders and was retained to implement the next phase of the project pending Board approvals to proceed.
JM Zell’s deep experience representing owner/users with their headquarters operations combined with our development and entitlements expertise across commercial real estate uses , NAS was able to successfully analyze and consider a broad range of value creation scenarios to determine the best course of action.
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