The Vision: Reimagining a DC Landmark into the Ultimate Business Destination (Part 1 of 4)

 

By Robert Kroon

The James V. Forrestal Building

At 1000 Independence Avenue SW, the James V. Forrestal Building makes an undeniable statement. Constructed in the late 1960s, it stands as a monument of the Brutalist style—and of an entire era. Named for James V. Forrestal, the nation’s first Secretary of Defense, the building was originally known as Federal Office Building 5 and served as a "Little Pentagon" to house military personnel. Since 1977, it has been the headquarters for the U.S. Department of Energy, a critical hub for national policy. Spanning an incredible 1.78 million square feet, its sprawling floorplates are a testament to its ambitious origins.

The interior, a maze of obsolete office panel systems furniture.

But legacy and location do not guarantee modern functionality.

The General Services Administration (GSA) is now moving to sell the property. This is not the standard, years-long federal disposal process, which prioritizes other government agencies and public benefit groups. Instead, the Forrestal Building’s sale is being fast-tracked by the powerful Public Buildings Reform Board (PBRB), a body created specifically to bring valuable-but-underperforming properties directly to a competitive public sale.

This imminent, market-driven sale has ignited a sharp controversy over the building's future and created two competing visions for this prime piece of Washington, D.C. real estate.

 

Vision 1: Demolish and Rebuild for a Public Mission

One prominent argument, championed by policy experts like Dr. Victoria Coates of the Heritage Foundation, is that the building is fundamentally the wrong asset in the wrong place. Their position is a strategic one, based on several key points:

  • Functional and Security Obsolescence: They argue that the building is an "unfixable barrier" to the Department of Energy's critical national security mission. Its "labyrinthine footprint," 1960s-era systems, and physical layout are incompatible with modern secure government work, actively hindering the agency's potential.

  • Fiscal Irresponsibility: Proponents of this view label the building a "money pit." With hundreds of millions needed for mandatory repairs and an operating cost per occupant that dwarfs that of modern commercial office space, they argue that spending another dollar on a retrofit is a waste of taxpayer money.

  • A "Highest and Best Use" Opportunity: This viewpoint holds that the location's ultimate value is for a public-facing cultural mission. They see a once-in-a-generation opportunity to use this prime spot on the National Mall to build the new, congressionally-authorized Smithsonian museums for American Latino and Women's History—fulfilling an existing government mandate. This vision prioritizes the value of the land over the value of the flawed structure that currently sits on it.

 

Vision 2: Retrofit and Revitalize for a New Economy

This series champions a different, more sustainable path. We argue that the most innovative and profitable way forward is a strategic retrofit that honors the building's history while repurposing it for the new economy. This vision prioritizes the immense value of the existing structure and its potential for profitable, sustainable reuse.

This brings us to the crucial fork in the road: Demolition or Retrofit?

While the idea of a clean slate is tempting, a teardown would be a colossal mistake—financially, environmentally, and logistically. The case for a strategic retrofit is overwhelmingly strong for several key reasons:

  • Financial Speed to Market: A retrofit project can be completed significantly faster than demolishing and constructing a new building from the ground up. This accelerated timeline means the property can be leased and generating revenue much sooner, dramatically improving the project's overall return on investment.

  • Environmental Responsibility & Embodied Carbon: The concrete and steel within the Forrestal Building represent a massive amount of "embodied carbon"—the greenhouse gas emissions released to create and assemble them. Demolition throws this entire carbon investment away and generates millions of tons of landfill waste, incurring huge disposal fees. A retrofit honors the building’s “good bones,” is vastly better for the environment, and is a powerful ESG story for future tenants.

  • Economic Incentives: Federal and state governments actively encourage reusing older buildings. A project of this nature would be a prime candidate for Historic Tax Credits and other green building incentives, directly reducing the capital cost and improving the financial outlook.

  • Reduced Community Disruption: A multi-year demolition and new construction project at this critical DC location would create a nightmare of noise, dust, and traffic congestion. A retrofit, while still a major undertaking, is far more contained and significantly less disruptive to the surrounding federal offices, museums, and city life.

Remediation of materials common in its era of construction is a cost that must be incurred in either scenario. When all factors are weighed, a forward-looking renovation is not just the most sustainable option, but the most logical and profitable one.

Our vision is a complete transformation of the Forrestal Building from a dated government facility into the most desirable business address in the D.C. area. Our goal is to create a vibrant, 8,000-seat hub for innovation and commerce, designed for a new era of work. This density is easily accommodated by the enormous floors and allows for the integration of supporting businesses directly onto the floorplate—think of a high-end coffee shop, a convenient ghost kitchen for food delivery, a state-of-the-art gym, and other "business-in-a-business" occupants that create a self-sustaining ecosystem.

The core of this vision is a two-pronged approach to co-working:

  1. Dedicated Team Spaces: Secure, private, and customizable environments for companies seeking a permanent, branded footprint without the headache of a traditional lease.

  2. Shared Resources: Premium, flexible workspaces for freelancers, startups, and remote workers who thrive in a dynamic community setting.

This isn't just about creating office space; it's about engineering a destination. In our next post, we will delve into the engine room of this transformation, exploring the structural and technological upgrades necessary to ensure low operating costs and ultimate flexibility. We'll discuss how to turn this concrete giant into a model of efficiency and adaptability.

 

August Berres provides battery-powered solutions for office workplaces that simplify the retrofit process. Contact us for more information.

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The Owner’s Perspective: A Strategy for Profitable Transformation to Create Value (Part 2 of 4)

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The Future-Ready Office: A Productivity Assessment for the AI-Enabled Workplace