EnCompass LLC signs on for 20,588-square-foot lease at 1100 Wayne Avenue as in-person work rates rise
Bridge Investment Group announced today it executed a new office lease with EnCompass LLC at Station Square, a 510,200-square-foot Class-A office complex located in Silver Spring, Maryland. Directly adjacent to a D.C. Metrorail station and featuring premier access to the Capital Beltway (Interstate 495) and downtown Washington, D.C., the three-building complex includes on-site parking and boasts one of the metro area’s best transit-oriented, live-work-play locations.
Totaling 20,588 square feet, the 11+-year deal reflects a broader national shift of companies that are gravitating to new or recently repositioned office product that incorporate high-end amenities, flexible workspace, and connectivity to residential areas, shops and restaurants as the ongoing war for talent forces employers to evolve and invest. EnCompass, a woman-owned consulting firm that partners with government, multilateral and nonprofit organizations, is moving from nearby Rockville, Maryland to the 1100 Wayne Avenue building at Station Square, located a half-mile from Washington, D.C. The ease of access to major city hubs and wide array of amenity upgrades are expected to increase employee satisfaction with returning to hybrid in-person work and contribute to new talent acquisition.
Ben Powell of Cushman and Wakefield represented the landlord in the transaction. EnCompass was represented by Mike Alcamo from The Tenant Agency.
“Station Square is Exhibit A for how office owners are allocating capital to better compete and stay relevant in this new era of in-person work, with the pandemic serving as a clear dividing line between the past and future,” said Brian Tretinik, managing director at Bridge Investment Group. “Our significant investment in the property has created a cohesive mixed-use development that reflects EnCompass LLC’s drive to adapt and provide an amenity-rich environment for its employees and clients. The people-first culture of EnCompass is perfectly aligned with the collaborative and flexible focus at Station Square, and we look forward to partnering with them on their next chapter of growth.”
Bridge has invested nearly $5.5 million in renovations and quality improvements at Station Square, including external façade enhancements, an upgraded and centralized patio, a modernized conference room and boardroom, as well as renovated building lobbies. The patio has been filled with soft and hard seating, a turf game lawn and music. A new full-service restaurant, Java Nation, is in build-out and expected to open in early 2023 with tables on the patio. Adamo Pastry and Coffee Bar, located off the 1010 Wayne Avenue lobby, is also in build-out and pushing for an opening in early 2023. Tenants can also enjoy a Planet Fitness center and expanded parking availability.
Originally positioned as three separate buildings, Bridge’s 2018 acquisition of Station Square enabled the property to be consolidated as a cohesive three-building campus featuring modern amenities, structured parking and walkability to transportation hubs. The external and internal aesthetic improvements have positioned Station Square as a top choice for office users in Silver Spring.
EnCompass LLC CEO Tessie Catsambas noted, “We are excited to move our growing company to Silver Spring, a community that combines urban energy and a hip vibe and feels like a welcoming neighborhood at the same time. We are delighted with the fruits of Bridge’s investment and look forward to making Station Square the new home of EnCompass.”
In a recent CBRE study on more than 2,700 lease transactions across 12 major U.S. markets including Washington, D.C, analysts found that average effective rents for top-tier properties increased by 3.8% since 2021 and by 6.7% in year-to-date 2022. Average effective rents for lower-tier properties fell by 3.4% in 2021 and by 1.1% so far this year. This data demonstrates the ongoing flight to quality as tenants work to bring employees back to in-person offices. Companies of all sizes continue to invest in their offices to encourage employee retention and satisfaction.
About Bridge Investment Group (“Bridge”)
Bridge is a leading, vertically integrated real estate investment manager, diversified across specialized asset classes, with approximately $42.0 billion of assets under management as of June 30, 2022. Bridge combines its nationwide operating platform with dedicated teams of investment professionals focused on select U.S. real estate verticals: residential rental, office, development, logistics properties, net lease and real estate-backed credit.
About Bridge Commercial Real Estate (“BCRE”)
BCRE is an established player in the U.S. commercial office market that specializes in creating desirable, next-generation work spaces. BCRE provides world-class commercial office brokerage services, property management, accounting and commercial construction services for Bridge Office assets. With a proven blueprint that delivers long-term value for tenants and investors, our portfolio includes office properties uniquely positioned in dynamic, high-growth markets across the U.S. and continues to grow. We are laser focused on how companies work today – and will work tomorrow. Headquartered in Atlanta, Georgia and Salt Lake City, Utah, BCRE is a subsidiary of Bridge Investment Group, LLC.