Sodexo has closed on a deal that will allow it to move its headquarters to a North Bethesda, Md., mixed-use building that’s currently under development. Owned by Federal Realty Investment Trust and scheduled for completion by the end of next year, 915 Meeting St. will be a 276,000-square-foot trophy office property that will include 9,600 square feet of ground-level retail and 700 parking spaces.
Federal Realty was represented by JLL’s Bernie McCarthy and Danny Sheridan, while Colliers’ Adam Schindler and Mohr Partners’ James Kang conducted negotiations on behalf of the tenant. The terms of the deal were not disclosed.
Sodexo is expected to move in the spring of 2024, leaving its current location at 9801 Washingtonian Blvd., which has served as its headquarters since the 1980s, when the Paris-based company opened its American arm. According to the Washington Business Journal, Sodexo previously considered a relocation in 2012. However, that move was scraped after county and city officials offered $4 million in public incentives.
The new headquarters in North Bethesda also marks an important downsizing — from 117,000 square feet to 52,000 square feet — thereby adding Sodexo to the growing list of companies willing to reduce the footprint of their workplaces in exchange for top-notch finishes and amenities. The “flight to quality,” as it’s referred to, has created an increasing demand for class A office spaces at the expense of class B or class C assets.
Designed by Gensler, 915 Meeting St. will provide access to a rooftop conference center, private terraces and the latest air filtration technology. While the building itself is pursuing a LEED Gold certification, a unique selling point is that the entire Pike & Rose project that the property is part of has achieved a LEED for Neighborhood Development certification. The rating — which represents environmental friendliness of the whole surrounding area — is a token of heightened interest in a sustainable office landscape.
Federal Realty’s deal with the food services management giant is the second company headquarters at 915 Meeting St.: Choice Hotels previously committed to 105,000 square feet in the building.
“The announcement of Sodexo continues to solidify Pike & Rose as the office destination in Montgomery County,” said Stuart Biel, senior vice president at Federal. “For executive leaders throughout the D.C. metro seeking a dynamic environment to relocate or grow their own headquarters, the neighborhood’s best-in-class offerings should be on the short list for consideration.”
Looking for great office deals? CommercialCafe.com provides you with a reliable and up-to-date database of listings from all major U.S. markets. Explore our interactive map and filter results by size, location, and asking price to find the space that fits your business and investment needs:
