Also This Week: AMEC Inks Full Building HQ Lease Renewal; and Expansions and Relocations from Bionovo, Comverse, Northern Trust, T-Systems, Vera Wang, Vitro, W. R. Berkley, West Marine Products and others
Salesforce.com decided to lease 55,977 square feet and fill four more full floors at the 322,942-square-foot, 28-story, Class A high-rise at 123 Mission St. in San Francisco.
The CRM software solutions and enterprise cloud computing company already occupies 70,687 square feet on floors 19-23, and will expand to floors 12, 14 and 15. It will also occupy the 24th floor for one year while building out the space.
In addition to the Salesforce.com expansion, Tioga Energy leased 13,882 square feet on the ninth floor. It moved in last month.
This brings the vacancy rate in the building down to around 42%, after the leases by Salesforce.com, Tioga Energy and Marin Software (28,711 square feet).
Cornish & Carey Commercial Newmark Knight Frank's Karl Baldauf, Jim Luca, and Nick Slonek represented the landlord, 123 Mission LLC; while Dan Harvey of Cushman & Wakefield represented Salesforce.com and Michael Pitre of Studley represented Tioga Energy. (By: Dan Bates)
AMEC Inks Full Building HQ Lease Renewal with Behringer Harvard
In a late-year lease deal, London-based AMEC plc signed a long-term lease renewal for the entire 227,486-square-foot building at 10777 Clay Road in Houston's Westway Park business park for its Americas Oil & Gas headquarters.
The company restructured and extended its lease with landlord Behringer Harvard three years prior to its expiration date. AMEC moved into the building in 1999 as two-phase build-to-suit for AMEC's predecessor, Paragon Engineering Services.
"With tenant-favorable market conditions, we were able structure a long-term lease that provides AMEC with a cost basis from which to aggressively compete within the engineering market, as well as provides the landlord, Behringer Harvard, with a stable long-term tenant to maintain a profitable asset," said Mark O’Donnell, executive vice president and co-branch manager of Studley’s Houston office.
O'Donnell said maintaining a profitable asset has become increasingly more important to landlords as a result of changes in financing and the capital markets.
Behringer Harvard was represented in-house by asset manager Kmeal Winters. AMEC was represented by O’Donnell and Studley CSG partner Peter Capuciati.
Additional Expansions & Relocations
signed a new lease at BioMed Realty Trust's Bridgeview Technology Park in Hayward, CA. Bionovo, a pharmaceutical company focused on drug treatments for women's health and cancer, agreed to a 10-year lease for 51,500 square feet.
Communications Partners Group
LLC (formerly known as Impact Group), a developer of promotional medical communication and educational programs for medical professionals and patients, leased 21,891 square feet in the office building at 360 Madison Ave. in New York. The company signed an eight-year sublease and is relocating from 330 Madison Ave. Michael Liss of CB Richard Ellis represented the sub-landlord. John Mambrino and Nicholas Farmakis of Studley represented the tenant. (By: Esther Prince)
. signed a renewal for 86,000 square feet of first class office/R&D space in Digital Realty Trust's 100 and 200 Quannapowitt Parkway buildings in Wakefield, MA. The space serves as Comverse's US headquarters. Most of the space is in Building 200, a 2-story 210,000-square-foot office and flex space facility currently being redeveloped to include 60,000 square feet of raised floor state-of-the-art data center space. Jones Lang LaSalle managing director Tamie Thompson and senior vice president Dan Cordeau negotiated the lease representing owner/developer Digital Realty Trust. Richards Barry Joyce & Partners represented Comverse.
Northern Trust Corp.
, an investment management firm, signed a sublease to occupy 207,000 square feet in the Bank of America building at 231 S. LaSalle St. in Chicago. The Bank of America building is currently 86% leased. Executives from Jones Lang LaSalle represented Northern Trust Corp and Bank of America. (By: Bryce Meyers)
will move its local offices to a new 22,000-square-foot space in the Esplanade IV office tower at 1901 Butterfield Road in Downers Grove, IL. The firm currently leases 35,000 square feet at 701 Warrenville Road in Lisle and will be moving to the new space this spring. Andrea VanGelder and Diana Riekse of Jones Lang LaSalle completed the transaction on behalf of the global IT and telecommunications firm. Philip Sheridan and David Andrews of Hamilton Partners represented building ownership.
University of Maryland Medical System
(UMMS) committed to 57,601 square feet in 250 W. Pratt St. in Baltimore. UMMS, a private, not-for-profit multi-hospital system, will consolidate its administrative offices from several locations into this space. The property, originally constructed in 1985, is owned and managed by Behringer Harvard. Tim Jackson, Courtenay Jenkins, and Whitney Nye with Cushman & Wakefield, Inc. represented the landlord, Behringer Harvard. Kevin Wille with CB Richard Ellis represented UMMS.
, an international fashion design firm, signed a 39,000-square-foot lease at 15-19 E. 26th St. in New York City. Occupancy is scheduled for June of this year. Harve Schuster of Walter & Samuels, Inc. and Glenn Isaacson of CB Richard Ellis represented Vera Wang. Jim Gladstone of Walter & Samuels represented the deal for the new landlords, a joint venture between Angelo, Gordon & Co., Metropolitan Realty Associates, and Belvedere Capital, which acquired the building late last year for $32.6 million according to CoStar data. (By: Lauren Hale)
advertising agency, based in San Diego, subleased a 22,304-square-foot office space at 2305 Historic Decatur Rd. in San Diego's Liberty Station. This location will be Vitro's new headquarters. The sublessor is defense contractor BAE Systems, which still has approximately 14,404 square feet for sublease at this location. Todd Holley of Voit Real Estate Services represented the tenant; while Glen Friedrich and Jon Oliver at CresaPartners represented the sublessor. (By: J. Brant)
W. R. Berkley Corp.
, an insurance holding company, agreed to lease 46,500 square feet for some of its member companies at Three Stamford Plaza in downtown Stamford, CT. W. R. Berkley's operating units will complete a build out of the space before relocating this summer. Margaret Carlson, RFR Realty's Stamford portfolio director, represented RFR, the property owner. Belinda W. Scanlon of Bernard Realty represented W.R. Berkley.
signed a lease with Horizon Properties for 17,367 square feet in the new Embassy Park building in Southpointe II in Cecil Township in Washington County, PA. It will be moving from Summit Corporate Center at Southpointe I. The university plans to take occupancy in November 2011. The new building is currently under construction with space specifically designed for use by the University. Jessica Jarosz, William Leone and Patrick J. Sentner, SIOR, represented the tenant. Michael Swisher represented Horizon Properties Group LLC in-house. (By: Michael Freitag)
West Marine Products Inc.
entered into a new lease agreement and addendum with PanCal West Marine 287 LLC for its distribution center at 2395 Bert Drive in Hollister, CA. The previous lease was to expire next February. The distribution center consists of approximately 240,000 square feet of usable building space. The term of the new lease is for 10 years and eight months. Base rent is fixed at $888,000 per year, however the rent is abated for the period commencing Feb. 4, 2011, through Sept. 30, 2011. The new lease also provides West Marine Products with one 5-year option.
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