The US Treasury has been a major anchor tenant in the building since 2011. As at Sept 30, it contributed to 5.3% of MUST’s total gross rental income.
CEO and CIO of the manager of MUST John Casasante said that the US Treasury had initially informed the trust that it might relocate, but was considering a short-term extension of its existing lease at Penn.
“The finalisation of this two-year lease renewal provides us with greater cashflow certainty amid ongoing challenges in the Washington, D.C. office market. That said, the federal government’s requirement for employees to return to office is expected to revitalise the city’s economy and may boost office demand over time,” he adds.
Casasante notes that the trust is working on several of these leasing opportunities and are optimistic of finalising them before th eyear ends.
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Penn is a 13-storey Class A office building located just a block from the White House in Washington, D.C., and within proximity to the International Monetary Fund, the World Bank and the Federal Reserve.
Units in MUST closed 0.1 cents higher or 1.389% up at 7.3 cents on Nov 19.
