Sheppard Signs 107,224-SF Anchor Lease at In-Rel Properties' Trophy Redevelopment at 2033 K Street NW in Washington, D.C.

Sheppard, an Am Law 50 law firm with more than 1,200 lawyers across 16 offices, has signed a 107,224-square-foot lease at 2033 K Street NW in Washington, D.C., becoming the anchor tenant in a full-scale redevelopment by In-Rel Properties that will reposition the existing Class A building as a trophy office destination. CBRE and Savills brokered the transaction.

The lease, signed roughly three years before the project's anticipated July 2029 delivery, underscores continued demand for large-block, top-tier space in Washington's Central Business District.

A Comprehensive Redevelopment of an Established K Street Asset

Built in 1975 and spanning approximately 126,953 square feet across eight stories, 2033 K Street NW sits along the K Street corridor at the intersection of the District's Central Business District, West End, and Dupont Circle submarkets. In-Rel Properties acquired the property with a strategy of transforming it into next-generation trophy office space rather than pursuing a conventional renovation.

The redevelopment will retain the building's existing concrete structure while significantly expanding the property both vertically and horizontally, adding three new floors and an occupiable penthouse level. Upon completion, the reimagined building will feature a floor-to-ceiling glass curtain wall and state-of-the-art building systems. Hines is serving as construction manager, and Corgan is serving as base-building architect. Clear is serving as tenant construction manager, and Studio Alliance is serving as tenant interiors architect.

"2033 K Street represents an exciting next chapter for Sheppard as we look ahead to our centennial and the continued growth of our Washington, D.C. office," said Luca Salvi, Chair of Sheppard. "This new home will give us a modern, efficient workplace designed to support our clients, our people and our evolution as a firm. The new space offers even more opportunities for collaboration and connection, which have long been central to our culture and our success."

Jackson Siegal, Principal and CEO of In-Rel Properties, said the transaction validates the firm's early conviction about the shortage of large-block trophy product in Washington. "We all know D.C. has plenty of office space, but what it doesn't have is enough large-block, trophy-quality product that leading law firms like Sheppard demand," Siegal said. "At 2033 K Street, we were willing to invest ahead of that shift, and we are now reimagining a traditional Class A building at one of the city's most important corners for the next generation of tenants."

Brokers: Savills and CBRE

Sheppard was represented in the transaction by Gary Stein, David Lipson, Jonathan Glass, and Owen Jaccard of Savills. In-Rel Properties was represented by Dimitri Hajimihalis, Emily Eppolito, and Carroll Cavanagh of CBRE.

"This is a significant long-term commitment by Sheppard and an opportunity for the firm to build on its established Washington presence in a building that is being fundamentally reimagined for the years ahead," said Gary Stein, Vice Chairman at Savills. "A lease of this scale, well in advance of the project's completion, also speaks to the strength of 2033 K Street's location, vision, and, more broadly, to the confidence major occupiers continue to demonstrate in Washington through consequential, long-term real estate decisions."

Dimitri Hajimihalis, First Vice President at CBRE, said the deal illustrates how a well-capitalized developer with a clear thesis can create value by repositioning an existing asset. "In-Rel recognized early the shortage in Washington for truly differentiated, large-block trophy space," Hajimihalis said. "They had the conviction and capitalization to pursue an ambitious redevelopment well ahead of tenant commitments, and Sheppard's decision to anchor 2033 K Street is a powerful validation of that strategy."

Legal counsel for ownership included Shulman Rogers and McGuireWoods. Sheppard represented itself in the transaction.

Market Context: D.C.'s Two-Tier Office Landscape

The Sheppard lease arrives as Washington's overall office market continues to navigate elevated vacancy. The District's office vacancy rate stood at 22.6% in the first quarter of 2026, up from 14.1% at year-end 2019. Despite that broad pressure, the second quarter of 2026 marked the first quarterly occupancy gain in several periods, with net absorption of 65,101 square feet, driven in part by selective leasing activity in higher-quality assets.

The deal reflects a pattern that has become increasingly visible in the D.C. market: while commodity office space faces persistent headwinds, demand is concentrating in trophy and top-tier Class A product, particularly in core locations capable of accommodating large, contiguous blocks. Sheppard's commitment more than three years before anticipated delivery illustrates the limited availability of such opportunities and the willingness of major law firms to secure space early when the right product emerges.

"As tenants continue to prioritize best-in-class workplaces, redevelopment projects like this are helping shape the next generation of office space in the District," Hajimihalis said.

About In-Rel Properties

In-Rel Properties is a privately held real estate investment and development firm focused on acquiring and transforming well-located commercial properties through active ownership, redevelopment, and leasing. Founded in 1984, In-Rel has built a portfolio across multiple U.S. markets, pursuing investments where hands-on ownership and strategic capital can create long-term value.