Salesforce Signs Long-Term Lease at Carr Properties' 1401 New York Avenue NW in Washington, D.C.

Salesforce has signed a long-term lease at 1401 New York Avenue NW in downtown Washington, D.C., Carr Properties announced Oct. 29. The transaction brings the 211,446-square-foot Class A office building to 95% leased as Carr continues its investment in the property and advances its repositioning into a "Premium Plus" workplace destination.

Salesforce Lease at 1401 New York Avenue NW

Carr Properties, an owner, operator and developer of premium office and residential properties, announced the Salesforce lease at the downtown Washington building. The 12-story property, also marketed as 1401 New York, was completed in 1983 and renovated in 2016. Floor plates average approximately 19,700 square feet.

Salesforce plans to use the space for a new Washington innovation center focused on government and public-sector engagement, including policy summits, briefing sessions and collaboration on public-sector technology solutions. The company said construction on its new space will begin in late 2026, with an official opening planned for early 2028.

"Salesforce's decision to make 1401 New York Avenue its new D.C. home speaks to the quality of the building and its location," said Ryan Lopez, vice president, leasing at Carr Properties. "We've experienced strong leasing momentum here, and our upcoming renovations will build on that success as we continue to invest in the property for our customers."

Wendy R. Anderson, SVP of government and global public affairs at Salesforce, said the new space strengthens the company's presence in the capital. "Washington is where policy, public service, and innovation intersect, especially as rapid technological change transforms how government and business operate," Anderson said. "This new space strengthens our presence in the capital, giving us a dedicated place to convene leaders across government and industry to deepen and forge new relationships, advance shared priorities, and invest in the D.C. community."

Carr Properties' Premium Plus Repositioning

The leasing activity comes as Carr advances a series of upgrades designed to reposition 1401 New York Avenue NW into its Premium Plus asset class. According to Carr, the category focuses on well-located office properties with strong underlying fundamentals that are elevated through high-quality amenities, design and the firm's hospitality-driven customer experience.

Planned improvements include a redesigned rooftop and penthouse, enhancements to the lobby, and upgrades to the fitness center and conference facilities. The building, located at 1401 New York Avenue NW in the District's 20005 ZIP code, also holds LEED Gold certification and a 2025 ENERGY STAR certification.

CBRE Represents Both Sides

CBRE brokers represented both the tenant and the landlord. Greg Scheipers and Ben Plaisted of CBRE represented Salesforce. Amy Bowser, Brooks Brown and Will Donohue of CBRE, along with Lopez of Carr Properties, represented the landlord.

Washington Office Market Context

The lease arrives in a Washington office market where indicators vary by provider but point to uneven demand. CBRE reported 360,154 square feet of positive absorption in the third quarter of 2026, driven by private-sector activity including technology and legal transactions, which helped reduce overall vacancy by 40 basis points. CBRE put prime or trophy vacancy at 8.3% and said limited high-quality options in the downtown core were beginning to put upward pressure on top-tier rents.

Cushman & Wakefield recorded just over 1.7 million square feet of gross leasing activity in the third quarter, including 980,000 square feet of new leases and 773,000 square feet of renewals. The firm put overall vacancy at 23.5% and Class A vacancy at 19.4%, with average full-service asking rent of $55.15 per square foot and Class A asking rent of $61.56 per square foot.

Cresa's market survey recorded 518,672 square feet of negative absorption and vacancy of 22.5%. The firm reported average Class A asking rent of $62.25 per square foot and trophy rents of $94.55 per square foot, with trophy vacancy declining by more than 100 basis points quarter over quarter.

The data indicate that demand is concentrated in well-located, amenity-rich buildings, while tenants continue to consolidate or shed less efficient space. At 95% leased, 1401 New York Avenue NW stands well ahead of broad downtown vacancy measures.

Sources

Carr Properties: Salesforce Signs Long-Term Lease at Carr Properties' 1401 New York Avenue NW