SINGAPORE (EDGEPROP) - Manulife US Real Estate Investment Trust (MUST) has secured a two-year lease renewal with its fifth-largest tenant, the US Treasury, at 1750 Pennsylvania Avenue (Penn) in Washington, D.C. The lease, covering approximately 120,000 sq ft of space, maintains existing rental rates and does not include tenant improvement allowances. This renewal, which starts from August, extends the property's weighted average lease expiry from 1.4 years to 2.3 years.

John Casasante, CEO and CIO of MUST's manager, commented, “The finalisation of this two-year lease renewal provides us with greater cashflow certainty amid ongoing challenges in the Washington, D.C. office market.”

The US Treasury has been an anchor tenant at Penn since 2011 and currently contributes 5.3% of MUST's total gross rental income as of Sept 30. Penn is a 13-storey Class A office building located near major institutions and has achieved several sustainability certifications, including LEED Gold, WiredScore Silver, and Fitwel.

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MUST continues to focus on strategic, accretive leases and is optimistic about finalising more deals before year-end, as the federal government's push for employees to return to office is expected to boost demand in the city.