Saturday, November 23, 2024
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LouisianaMarket ReportsOfficeSoutheastSoutheast Market Reports

Challenges Unfortunately Outweigh Opportunities for New Orleans Office Market

by John Nelson

A combination of short sales, declining occupancy rates, loan concerns and migration to suburban offices contribute to uncertainty in the New Orleans office market. As we approach the fourth quarter of this year and begin to reflect back on the market in 2024, the challenges unfortunately outweigh the opportunities. Two notable cases include The DXC Technology Center and The Energy Centre.  The DXC Technology Center, located at 1615 Poydras St. in the Central Business District (CBD), a once-prized office tower anchored by Freeport McMoRan, sold for less than $37 per square foot. The building, over 500,000 square feet, traded for $18.5 million, significantly below the remaining debt on the property. The New Orleans Police Department recently signed a lease to occupy approximately 45,000 square feet in the building, which lessens the steep decline in the building’s value. The Energy Centre, located at 1100 Poydras St., is one of the most desirable and best-performing Class A towers in the CBD. It entered receivership, but the building is back on track and is rumored to be nearing a sale. The building owner, The Hertz Group, controls four additional Class A office towers on Poydras St. (400, 650, 701 & 909 Poydras St.), …

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Affordable HousingBuild-to-RentCivicData CentersFeaturesHealthcareHospitalityIndustrialLife SciencesMixed-UseMultifamilyNet LeaseNevadaOfficeRestaurantRetailSelf-StorageSeniors HousingSingle-Family RentalStudent HousingWesternWestern Feature Archive

Emerging Trends Report Predicts Rebound in Transaction Volume in 2025 as Capital Markets Are ‘Poised for Recovery’

by John Nelson

LAS VEGAS — At the September meeting of the Federal Open Market Committee (FOMC), the Federal Reserve lowered the federal funds rate by 50 basis points, which is the first easing of monetary policy in four years. This move lowered the short-term interest rate to a target range of 4.75 to 5 percent. Elevated borrowing costs have stifled commercial real estate transaction volumes the past couple years as buyers and sellers found that values were a moving target. Now with a reduction in interest rates, many real estate professionals expect transaction volume to rebound at least moderately. “In 2025, we expect lower interest rates will reduce borrowing costs, aid in price discovery and ultimately encourage an uptick in [commercial real estate] transactions,” said Angela Cain, global CEO of the Urban Land Institute (ULI). Cain’s comments came in a prepared statement to summarize the findings of Emerging Trends in Real Estate 2025, an annual report jointly produced by PwC US and ULI. The report was published in conjunction with ULI’s Fall Meeting, which is taking place this week at Resort World Las Vegas. Cain said that the real estate professionals surveyed for the report relayed that sentiment is improving, though many remain cautious. …

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DevelopmentIndustrialOfficeTexas

Foundry Commercial to Undertake 323,000 SF Industrial Conversion Project in Plano

by Taylor Williams

PLANO, TEXAS — Orlando-based Foundry Commercial will undertake a 323,000-square-foot industrial conversion project in Plano. The 22-acre site at 2700 W. Plano Parkway houses a 250,000-square-foot office building that will soon be demolished to construct two industrial buildings. These buildings will total 226,900 and 96,100 square feet and have 32-foot clear heights. JLL arranged construction financing for the redevelopment, which will be known as Plano Midpoint and is slated for an early 2026 completion.

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Leasing ActivityOfficeTexas

Cytracom Signs 30,000 SF Office Lease at District 121 in McKinney, Texas

by Taylor Williams

MCKINNEY, TEXAS — Cytracom has signed a 30,000-square-foot office lease in the northern Dallas suburb of McKinney. The provider of cloud-based communication and networking services will occupy the entire top floor of the building at 7300 State Highway 121 for its new headquarters. The building is part of District 121, a $250 million mixed-use development by Craig International. Kent Smith of NAI Robert Lynn represented Cytracom, which plans to move into its new space in January, in the lease negotiations.

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IndustrialLeasing ActivityOfficeTexas

Bradford Negotiates 26,828 SF Lease at Industrial Flex Building in Plano

by Taylor Williams

PLANO, TEXAS — Bradford Commercial Real Estate Services has negotiated a seven-year, 26,828-square-foot lease at Plano Office Commons, an industrial flex property located northeast of Dallas. The tenant, Aither Systems LLC, a provider of renewable energy solutions, is relocating from nearby Allen to an endcap space at 605 Shiloh Road. Brian Pafford and Richmond Collinsworth of Bradford represented the landlord, an entity doing business as GH Plano Tech Center Inc., in the lease negotiations.

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AcquisitionsNew JerseyNortheastOffice

JLL Negotiates Sale of 154,777 SF Office Building in Hanover Township, New Jersey

by Taylor Williams

HANOVER TOWNSHIP, N.J. — JLL has negotiated the sale of a 154,777-square-foot office building in Hanover Township, located in the northwestern corner of the Garden State. The three-story building at 10 Park Ave. was constructed on 8.7 acres in 2001 and formerly housed the operations of MetLife Investment Management. Dan Loughlin, Jeremy Neuer, Jose Cruz, Charlie Dillon, Bob Ryan, Ryan Robertson and Pranav Patel of JLL represented the seller, Ravine Development Co., in the transaction. The buyer and sales price were not disclosed.

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IllinoisLeasing ActivityMidwestOffice

Transwestern Negotiates Two Office Lease Renewals Totaling 52,300 SF in Chicago

by Kristin Harlow

CHICAGO — Transwestern Real Estate Services has negotiated two long-term office lease renewals at 203 N. LaSalle St. in Chicago’s Central Loop. Kathleen Bertrand, Eric Myers and John Nelson of Transwestern represented ownership, Sumitomo Corp. of Americas. Transwestern also manages the 27-story, 624,724-square-foot tower. The Office of the State Appellate Defender renewed its lease for the entire 24th floor totaling 36,000 square feet. Masuda Funai, a law firm that represents foreign companies entering and operating in the U.S. market, signed a lease for 16,300 square feet and is relocating to the 17th floor. John Ziesmer of Transwestern Commerial Services represented Masuda Funai. Leasing activity year-to-date at the property is roughly 134,000 square feet.

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DevelopmentMixed-UseMultifamilyNew YorkNortheastOfficeTop Stories

Rabina Tops Out 88-Story 520 Fifth Avenue Mixed-Use Tower in Manhattan

by John Nelson

NEW YORK CITY — Rabina, along with general contractor Suffolk Construction, has topped out 520 Fifth Avenue, an approximately 1,000-foot-tall high-rise development situated at the intersection of Fifth Avenue and West 43rd Street in the Midtown neighborhood of Manhattan. Once completed in 2025, the tower will rise 88 stories and feature 100 condominiums and 25 floors of office space, as well as a social club called Moss. In March 2022, Rabina secured $540 million in construction financing for 520 Fifth Avenue that comprised a $410 million senior loan from Bank OZK and $130 million in mezzanine financing from Carlyle. The residential component of the project is called Five Twenty Fifth Residences. Condos will come in one- through four-bedroom layouts. Residents will have access to amenities such as a library, game room with billiards, private dining rooms and a solarium. Seventy percent of the condos have already been sold since sales launched in April. The mixed-use tower will also offer office space from floors 10 to 34. Office spaces will range from 500 to 12,000 square feet and feature 12-foot tall ceilings, private terraces and open-air covered corridors. The office component has been dubbed 520 Offices. Corcoran Sunshine Marketing Group is …

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Leasing ActivityOfficeTexas

Willow Bridge Apartment Management Signs 26,025 SF Office Lease Renewal in North Dallas

by Taylor Williams

DALLAS — Willow Bridge Apartment Management has signed a 26,025-square-foot office lease renewal in North Dallas. Located at 10210 N. Central Expressway and known as Ten 2 Ten, the building was originally constructed in 1981 and totals 75,775 square feet, according to LoopNet Inc. Tim Terrell and Marissa Parkin of Stream Realty Partners represented the undisclosed landlord in the lease negotiations.

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DevelopmentIndustrialNew JerseyNortheastOffice

Link Logistics to Undertake 123,000 SF Industrial Redevelopment in Parsippany, New Jersey

by Taylor Williams

PARSIPPANY, N.J. — Link Logistics will undertake a 123,000-square-foot industrial redevelopment project in the Northern New Jersey community of Parsippany. According to Parsippany Focus, the 10.4-acre site at 2 Hilton Court was previously home to Japanese pharmaceutical company Daiichi Sankyo, which vacated the premises in 2016 but continued paying the lease through 2022. Marc Duval, Jose Cruz, Jordan Avanzato, Nicholas Stefans and Jason Lundy of JLL brokered the land sale. The seller was not disclosed, but the local publication also reports that Onyx Equities purchased the property in 2020.

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