Office Lease Up (March 21) Shell Latest Company Looking to Sublet Space in Houston
Weekly Wrap-Up of Largest Reported Office Leases Include: UBS, Federal Bureau of Prisons, Jet.com, Oracle, Gulf Oil and more
March 21, 2016
In the latest move by an energy company hit hard by the plunge in oil prices, Shell Oil Co., the U.S. division of Netherlands-based Royal Dutch Shell PLC, has placed 350,000 square feet of space at its headquarters at One Shell Plaza on the market for sublease.
The company, which occupies roughly 780,000 square feet at the 50-story, 1.2 million-square-foot high-rise at 910 Louisiana St., is willing to relinquish whichever floors interest a prospective tenant and consolidate within its remaining space in the building.
Shell's announcement comes as available sublet space in Houston continues to skyrocket. According to CoStar information, a market that for years had incredibly tight vacancies and few large spaces now sports approximately 9 million square feet of available sublet space, including more than 6.8 million square feet of sublet blocks of 20,000 square feet or more.
Shell follows in the footsteps of such companies as Phillips 66 Co., which is subletting 242,000 square feet at Three Westlake Park at 550 Westlake Park Dr.; Noble Energy, which has agreed to sublet approximately 200,000 square feet at Northborough Tower at 100 Glenborough Dr.; and Exxon Mobile, which has made the 198,257-square-foot 8 Greenspoint building at 222 Benmar Dr. available for sublease since this past June.
Joseph Peddie, Tim Relyea and Morgan Relyea of Cushman & Wakefield have been selected to handle the sublet listing for Shell. By Tyler Grote
UBS Extends Lease at Namesake Building
UBS, an international financial services firm, has extended its lease for 124,069 square feet in the UBS Building at 299 Park Ave. in Midtown Manhattan.
The 1.2 million-square-foot building was acquired by Fisher Brothers in 2011. UBS occupies several floors throughout the 42-story building.
Robert Alexander, Patrick Murphy and Douglas Lehman with CBRE represented the tenant. Marc Packman and Jessica Kanfer with Fisher Brothers Management Co. represented the landlord in-house. By Kelly Faulk
The Federal Bureau of Prisons Signs 115,000-SF HQ Lease at L'Enfant Plaza
The Federal Bureau of Prisons signed a 115,341-square-foot headquarters lease at 370 L’Enfant Plaza in Washington, D.C.
The 10-story, 407,248-square-foot, Class A office building was constructed in 1987 in the Southwest submarket. The Bureau will relocate its corporate offices from 500 First St. NW to its new location in summer 2017.
Jae Lee of JLL represented the Federal Bureau of Prisons. Eugene Smith and David Alperstein of FD Stonewater represented the landlord, CIM Group. By Javier Jennings
Jet.Com Doubles Hoboken HQ Space
Jet.com, an e-commerce venture, has doubled its headquarters space at the Waterfront Corporate Center III building in Hoboken, NJ. The company has leased an additional 40,000 square feet, bringing their total to 80,000 square feet there.
The 508,000-square-foot, class A office building located on the Northern New Jersey waterfront. In addition to Jet.com additional major tenants in the building are NICE Systems, Marsh & McLenan, Pearson Education, Thomas Reuters, RMS and Octapharma.
Scott Peck and Brian Wilson of Resource Realty represented the tenant. Peter Bronsnick with SJP Properties represented the landlord in-house. By David Weinberg
Oracle Renews Lease at Stonebridge Plaza II
Oracle USA, Inc. signed a one-year extension for the company's 44,712-square-foot office at 9600 N. MoPac Expy., also known as Stonebridge Plaza II.
The nine-story, 192,864-square-foot, Class A office building was constructed in 2001 in the Northwest submarket of Austin, TX.
Certified LEED Gold in 2011, the property also houses offices for Alamo Title Co. Prologic Technology Systems and anchor tenant Qualcomm, among others.
Edvin Beasley, Brad Philp and Connor Atchley of Stream Realty Partners represented the landlord, Heitman, in negotiations. By Christiana Jones
Gulf Oil Inks 36,000-SF HQ Lease in Wellesley
Gulf Oil, a leading motor oil distribution company, will relocate its corporate headquarters to the Wellesley Office Park in Wellesley, MA after agreeing to a lease with building owner John Hancock Real Estate for 36,000 square feet at 80 William St.
The company will shift its corporate offices this month from 100 Crossing Blvd. in Framingham, MA to the third and fourth floors of the four-story Wellesley building, which delivered in 1982 and totals 71,324 square feet.
The transition follows Gulf Oil's sale late last year to ArcLight Capital Partners, a Boston-based private equity firm that has invested roughly $15.3 billion in 97 transactions since its inception.
Tom Kent and Brendan Cohn of JLL represented Gulf Oil in negotiations. By Tammy Mathieu
LGS Renews in Florham Park
LGS Innovations renewed 34,000 square feet at 15 Vreeland Rd. in Florham Park, NJ.
LGS has been in the 133,090-square-foot building since 2008. It was built in 1985 within the Florham Park Business Center.
Daniel Casey and Geoffrey Schubert with CBRE represented the landlord. By Ronan McNulty
ZoomCare Leases 30,200 SF at Pearl West
ZoomCare, an urgent care provider, signed a lease for 30,193 square feet in the under-construction office building known as Pearl West in Portland, OR.
The nine-story tower is estimated to deliver this spring at 1455 NW Irving St. in Portland, OR. It will total about 155,661 square feet.
ZoomCare’s lease includes the entire sixth floor and roughly 12,535 square feet on the fifth floor. They plan on moving in January 2017. Other tenants will include Wacom and Howard S. Wright Construction.
Eric Haskins of JLL in Portland represented the tenant. Kevin Joshi of Kidder Mathews in Portland represented the landlord, Downtown Development Group. By Kate Retzinger
Booz Allen Hamilton Signs Lease at 1133 Sixth
Booz Allen Hamilton signed a seven-year lease for 23,000 square feet at 1133 Avenue of the Americas in New York, NY.
The 44-story office building totals 1.1 million square feet in the Times Square submarket. The Durst Organization developed the building in 1970 and continues to own the building.
Booz Allen Hamilton’s lease includes the entire 28th floor. The company will vacate its current office at 1095 Avenue of the Americas. Booz Allen Hamilton will join Bank of America, The National Basketball Players Association, and Patterson Belknap Webb & Tyler LLP as tenants at 1133 Avenue of the Americas.
Rocco Romeo, Tom Bow, Ashlea Aaron, and Ashley Gee represented the Durst Organization in-house. William Iacovelli at CBRE represented Booz Allen Hamilton in the deal. By Jordan Boyd