National Geographic Society
Project Type: Main HQ Strategy
Space Use: Office, Exhibition, Meeting, Event
Location: Washington, D.C.
Project Size: 635,000 SF
Services Provided: Operations & Space Planning, Asset Value Maximization Strategy
JM Zell served as real estate advisor to National Geographic (“NGS”) since the early 2000s, formulating and implementing alternative strategies for managing short- and long-term facility needs. JM Zell has provided space utilization studies; market value assessments; highest and best use and redevelopment studies; evaluation of relocation alternatives; tax-exempt financing analyses; campus renovation strategies; and the disposition of underutilized owned assets.
In 2010 and 2014, JM Zell explored renovation strategies for NGS to meet both the financial and qualitative needs of the organization. These included (i) utilizing excess development rights of over 325,000 gross square feet for an on-campus expansion in the courtyard and adding floors to an existing building, (ii) relocating certain back-of-house functions to a suburban site freeing up mission-critical space in the campus buildings, (iii) selling the entire campus and relocating operations to another state or to a higher profile location in DC, (iv) purchasing a nearby office building, and (v) leasing space in proximity to the campus.
A highest and best-use study evaluated alternative uses for the 635,000 gross square foot campus. These included converting office space to residential and hotel uses, converting special use space to retail on the ground floor, and adding new areas to existing buildings. JM Zell explored alternative transaction structures including the sale, joint venture, sale-leaseback or lease-leaseback of all or portions of the campus to unlock value for NGS to re-invest in its mission. NGS decided it preferred to stay and renovate its existing campus.
JM Zell led the master planning for campus renovation, managing the selection of the lead architect and a team of specialty sub-consultants.
JM Zell guided all efforts, which included a comprehensive analysis of the additional development rights, historic preservation constraints, physical condition of the buildings and systems, space program development, analysis of alternative design concepts, sustainability planning, detailed pricing exercises, budget development, funding strategies, and development of alternative phasing and swing space approaches to ensure ongoing operations.
Additionally, JM Zell undertook a comprehensive evaluation of priorities focused on maintaining a feasible budget while addressing the most urgent needs. At the same time, it was essential to understand the impact of potential historic designation of one or more of its campus buildings. While the goal was to create more connection among the buildings, any renovation had to be undertaken in a manner that allowed the buildings to operate independently should NGS ultimately require less space and decide to sell a given building.
JM Zell’s knowledge of the real estate market, experience in all phases and aspects of redevelopment and renovation projects for end users, expertise in financing and construction, and a deep understanding of the organization and its goals allowed JM Zell to deliver a feasible, practical master plan and strategy for campus renovation.
If you are interested in learning more about how JM Zell can assist you in achieving your business and operations goals through real estate, please contact us here.