Sheppard Mullin Scores 107K SF in D.C. Redevelopment Ahead of 2029 Delivery

Sheppard Mullin Scores 107K SF in D.C. Redevelopment Ahead of 2029 Delivery

A major U.S. law firm has committed to a significant footprint at a reimagined Washington, D.C., office tower, signaling continued demand for premium space in the nation’s capital. CBRE announced Tuesday that In-Rel Properties secured an anchor tenant for 2033 K Street NW, with Sheppard leasing 107,224 square feet.

The agreement marks a pre-leasing victory for the development, which is not expected to reach completion until July 2029. Sheppard, a top-50 law firm by revenue with over 1,200 attorneys across 16 offices, will utilize the space to modernize its Washington operations as it nears its centennial. Financial terms of the lease were not disclosed.

In-Rel Properties is undertaking a substantial overhaul of the existing asset, strategically located near the intersection of the Central Business District, West End, and Dupont Circle. The developer plans to retain the building’s concrete core while expanding both vertically and horizontally. The redesign includes the addition of three new floors and a penthouse level.

The move highlights the divergence in the Washington office market. While the broader sector faces headwinds from remote work trends and rising vacancies, demand remains robust for high-quality, large-block trophy space required by elite professional service firms.

This transaction illustrates brokerage activity in the high-end office sector. CBRE Group, Inc., currently trading with a market capitalization of roughly $44.04 billion, represented In-Rel in the deal. The CBRE team included Dimitri Hajimihalis, Emily Eppolito, and Carroll Cavanagh. Savills, represented by Gary Stein, David Lipson, Jon Glass, and Owen Jaccard, advised the tenant.

What to watch

• Construction Timeline: Monitor the development progress of 2033 K Street NW leading up to the July 2029 delivery date.
• Market Split: Watch for further leasing activity at other trophy assets in D.C. as the market continues to bifurcate between Class A and lower-tier office stock.

Source: original release