Office Lease Up (Feb. 22) Broadcasters Return to One World Trade Center at Empire State Building’s Expense
Weekly Wrap-Up of Largest Reported Office Leases Include: AGC Automotive, Akerman, AmeriGas Propane, Arcurve, Citade, Coyne College, GTA Americas, InterMoor, Invest Detroit, Opower, Silvercrest, USAC, and more
February 22, 2016
CBS, NBCUniversal-owned WNBC and WNJU, and PBS will relocate broadcasting operations to the 408-foot tall spire atop One World Trade Center in New York City, marking the return of network and radio broadcasting to the iconic tower following an absence of more than 14 years. All four had broadcast from the World Trade Center before Sept. 11, 2001.
Three of the four broadcast tenants, CBS Broadcasting Inc., NBC Universal Media LLC, a subsidiary of Comcast, and Thirteen (WNET) notified Empire State Realty Trust that they have committed to move to One World Trade Center and will vacate the Empire State Building at the end of their current lease terms in 2017 and 2018.
Due to the relatively small size of the broadcasting business within Empire State Realty Trust, neither the extension of nor non-renewal of broadcast leases is expected to have a material impact on the REIT’s financial results, ESRT said.
"We remain focused on the successful execution of our strategic plan to unlock embedded, de-risked growth within our portfolio as we consolidate, redevelop and re-lease space at industry leading spreads, and this dwarfs any impact of any outcome from our broadcasting business," said John B. Kessler, Empire State Realty Trust’s president and COO.
The 104-story, 3 million-square-foot One World Trade building's height at 1,776 feet and its communications and technology infrastructure provide a desirable broadcast facility for the New York / New Jersey market. Broadcast antennae will wrap portions of the spire, and ancillary equipment will be housed on the building’s communications rings. The tower’s 90th floor will house the broadcasters’ transmission equipment and serve the communications hub for the building.
Robert Becker and John Lyons handled leasing negotiations for Durst Broadcasting LLC.
Meanwhile, Empire State Realty Trust has renewed a lease with another broadcaster. Univision Television Group renewed and extended its leases to a new expiration in December 2025. By Justin Sumner
Hedge Fund Preleases 200,000 SF at 425 Park
Hedge fund sponsor Citadel has signed a lease to occupy roughly 200,000 square feet at the Plaza District office building currently rising at 425 Park Ave. in New York City.
The investment firm will relocate from its current offices at 600 Lexington when the new building is completed in the fourth quarter of 2018.
Pritzker Prize-winning architect Lord Norman Foster designed the 47-story, 670,000-square-foot office tower, which broke ground in September 2015 on a full-block site between E. 55th and 56th streets.
Manhattan-based L&L Holding Co. is developing the tower on behalf of its joint-venture and equity partners, Tokyu Land Corporation and GreenOak Real Estate, with Foster + Partners, architect.
CBRE represented both sides of the deal, with Mary Ann Tighe, Evan Haskell, Sarah Pontius and Zak Snider representing the landlord along with David C. Berkey, executive vice president at L&L. CBRE's Andrew Sussman, John Nugent and Chris Corrinet represented the tenant. By Justin Sumner
Akerman Moving Into Swire's Three Brickell City Centre
Florida's largest law firm, Akerman LLP, is moving into 110,508 square feet at Three Brickell City Centre in downtown Miami, taking the top seven floors of the 12-story glass building that will help anchor Swire Properties' $1.05 billion mixed-use project in the Brickell district.
As the 134,552-square-foot building's first tenant, Akerman began moving into the space Feb. 13 after formally signing a lease in January. The firm is slated to finish the move from its previous offices at SunTrust International Center this weekend. The firm said its new space can accommodate future growth of employees and space by as much as 10%.
Akerman, which has more than 600 lawyers and government affairs professionals across a network of 20 offices, intends to use the Miami office as a model for other office moves planned for other markets, including Chicago, where it is doubling its physical footprint.
The building, designed by Arquitectonica and pre-certified LEED Gold, is the only office building in the Brickell area to include a Metromover station within its structure, at the Eighth Street Station.
The building also features one of the largest private conference centers in Miami, with capacity to host meetings for up to 300 people.
Three Brickell City Centre is the first of two mid-rise office buildings that are part of the massive Brickell City Centre mixed-use project that will span up to five blocks in the greater downtown area. The 5.4 million-square-foot project will also include a five-story, 500,000-square-foot shopping, restaurant and entertainment mall anchored by Saks Fifth Avenue being developed jointly by Swire, Simon Property Group and Whitman Family Development. The mall is scheduled to open this fall. By Randyl Drummer
USAC Leases 102,000 SF at One Metro Center
Universal Service Administration Co. (USAC), a non-profit that promotes universal access to telecommunications services, signed a 13-year lease for 102,348 square feet across two floors of the One Metro Center building at 700 12th St. NW in downtown Washington, DC.
The 12-story Jamestown-owned building totals 456,936 square feet and sits atop the Metro Center station. USAC’s lease includes the entire ninth floor and a portion of the 10th floor. The organization plans to relocate from its current location at 2000 L St., NW, in September.
Randy Harrell and Joe Coleman of CBRE represented Jamestown in the deal. By Stephen Tarditi
Opower Signs HQ Lease at New Office Development in Arlington, VA
After considering moves to various locations including those in DC, Opower, a provider of cloud-based software, will relocate its headquarters from 1515 N. Courthouse Rd. in Arlington, VA, to a new Carr Properties building currently under construction at 2311 Wilson Blvd., also in Arlington.
Opower commited to take the top three floors covering 69,000 square feet. The firm is the first tenant to sign a lease at the project, which is scheduled to deliver in summer 2017. Spencer Stouffer, Krysta Herring and Phillip Thomas of Cushman & Wakefield represented Carr Properties in negotiations. By Walt Brown
Coyne College Books 47,038 SF in Chicago’s Loop
Coyne College signed a 47,038-square-foot lease at One North State, a 680,000-square-foot office tower in Chicago’s Loop. The college will occupy the entire fourth floor of the tower beginning in June 2016.
Coyne College, which provides career training in allied health and construction trades, will move to One North State from its current campus at 330 N. Green St. in the West Loop.
Transwestern brokered both sides of the deal. The firm's Tenant Advisory Services team of John Marquardt, Cece Conway, Phil Utigard and William Briggs represented Coyne College, while Michael Lirtzman, Jeff Dowdell and Katie Steele represented the building’s owner, Arlington, Virginia-based FD Stonewater LLC. By Mark Heschmeyer
Carlisle Cos. Shifting HQ from N.C. to Arizona
Carlisle Cos. signed a 46,503-square-foot lease to relocate its corporate headquarters from North Carolina to Kierland One at 16430 N. Scottsdale Road in Northeast Phoenix. The manufacturing firm signed a lease with building owners Hines and PCCP LLC. Currently based in Charlotte, N.C., Carlisle manufactures a wide range of products for commercial roofing, energy, agriculture, mining, construction, aerospace and defense electronics. The firm generated $3.5 billion in net sales in 2015.
Carlisle will occupy the fourth floor of Kierland One. Jeff Hartland and Scott Boardman with Cushman and Wakefield represented the ownership. Tom Adelson with CBRE represented Carlisle. By Mark Heschmeyer
SEI Investments Leases Space from Brandywine in Malvern
SEI Investments Co., a financial services company, has signed a lease for 45,532 square feet in an office building at 52 E. Swedesford Road in Malvern, PA, owned by Brandywine Realty Trust. The three-story Swedesford Square office building totals 131,017 square feet. SEI will occupy the entire third floor, joining MERIT Service Solutions and Verizon in the building.
Larry Maister and Bethann Coradino of Brandywine Realty Trust represented the landlord in-house. Matthew Sall and Greg Soffian of Savills Studley represented the tenant. By Danielle Sigamoni
Silvercrest Renews 42,000-SF Lease at RXR's Pearson Bldg
Silvercrest Asset Management Group renewed its 41,600-square foot lease in the Pearson Building at 1330 Avenue of the Americas in New York, NY. The 40-story office building totals 534,000 square feet in the Plaza District submarket of Manhattan. RXR Realty acquired the building in 2010, according to CoStar data.
Silvercrest will continue to occupy floors 37 through 40. Other tenants in the building include the Robert Wood Johnson Foundation, Nokota Capital Management and CAM Capital. Eric Reimer of Cushman & Wakefield represented Silvercrest in lease negotiations. William Elder and Lauren Ferrentino with RXR Property Management represented the landlord in-house. By Jordan Boyd
AmeriGas Propane Signs 34,135-SF Lease in King of Prussia
AmeriGas Propane LLP has signed a 34,135-square-foot lease with Keystone Property Group at Parkview, an office tower at 1150 First Ave. in King of Prussia, PA. Scott Gabrielsen of Binswanger represented AmeriGas. James Dugan of NGKF represented Keystone Property Group. By Mark Heschmeyer
GTA Americas Renews 28,641 SF at 5 Penn Plaza
GTA Americas renewed a 28,641-square-foot office lease with 5 Penn Plaza LLC at 5 Penn Plaza in New York. The firm, which provides ground travel products and services, is part of the Kuoni Group. CBRE’s Peter Turchin, Steve Eynon, Jason Pollen and Dave Caperna represented the landlord in the renewal on the entire fifth floor. Savills Studley brokers David Goldstein and Gabe Marans represented GTA. By Mark Heschmeyer
AGC Automotive Leases 27,596 SF in Farmington Hills
AGC Automotive Americas signed a lease for 27,596 square feet at 34505 W. 12 Mile Rd. in Farmington Hills, MI. The three-story office building was constructed in 1986 in the Farmington/Farm Hills submarket. David Friedman and Amit Hingorani with Friedman Integrated Real Estate Solutions represented the landlord. By Kenneth Broadnax Jr.
Plante & Moran Leases 27,000 SF in Downtown Columbus.
Accounting firm Plante & Moran leased 27,954 square feet of office space on the first and second floors of 250 S. High St. in downtown Columbus. It plans to move 120 of its employees to the new location this July.
A co-development of The Daimler Group and Kaufman Development, the $50 million 250 S. High St. complex delivered last October in Columbus' Arena District and includes, office, retail and residential space. Other office tenants in the building include Coyote Logistics and NBBJ. John Derzon, Greg Weber and Robert White of The Daimler Group represented ownership in-house. By Griffin Dulany
InterMoor Renews at Ashford 7 in Houston
InterMoor Inc., an offshore engineering firm, renewed its 20,923-square-foot lease in the office building at 900 Threadneedle St. in Houston. Known as Ashford 7, the eight-story building totals 188,496 square feet in the Ashford Office Park. It was constructed in 1979 in the Katy Freeway West submarket.
Kevin Saxe and Connor Tamlyn of CBRE represented InterMoor, while Bob Cromwell of Moody Rambin represented the landlord. By Bryan McCaslin
In addition to InterMoor's renewal, other recent office leasing activity in Houston includes accounting firm HRSS taking a full floor at the Southwest Center at 6671 Southwest Freeway, and a lease renewal signed by Jones, Granger, Tramuto, Christy & Halstead for its eighth floor space at the Park Laureate building at 10000 Memorial Dr.