Office

— By Travis Marc, vice president, and Landes Magliarditi, first vice president, CBRE — The post-pandemic world has reshaped office space needs, and Southern Nevada is no exception. Economic uncertainty and evolving return-to-work policies are driving a market transformation that will define 2024 activity. Fueled by flexible work schedules, the digital age has fundamentally transformed how office tenants work and remain efficient.  This shift in work styles is impacting the office market, and we are closely monitoring these trends to determine if pandemic-era changes will remain the future of office, or if new shifts arise to further define the future of office space.  Nevada’s Enduring Strengths, Challenges Nevada’s strong economy continues to attract businesses, with sports and entertainment options fueling the growth. Live-work-play office concepts attract high-quality tenants as they, in turn, look to recruit high-quality talent. This development philosophy in Southern Nevada aims to create vibrant communities with seamless transitions between work, life and leisure activities, resulting in record rental rates.  At the same time, rising interest rates and construction costs are slowing the overall development of new office. As a result, tenants have limited options to secure quality office space in newly constructed buildings.  Well-located, second-generation suburban office space …

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HOUSTON — Boston Consulting Group has signed a 4,925-square-foot office lease in downtown Houston. The management consulting firm is taking space at 1550 on the Green, a 28-story, 375,000-square-foot building owned by Skanska. The lease term is 12 years, and the building is now 48 percent leased. Boston Consulting Group plans to take occupancy of its space in the fourth quarter of 2025.

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NEW YORK CITY — Quest Partners has signed a 13,284-square-foot office lease at 110 E. 59th St. in Midtown Manhattan. The alternative asset management firm will relocate from 126 E. 56th St. to the entire 36th floor of the 37-story building next spring. Hugh McDonald and Munish Viralam of CBRE represented Quest Partners in the lease negotiations. Brett Greenberg and Fran Delgorio internally represented the landlord, Jack Resnick & Sons.

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CHICAGO — Lessen, a company for outsourcing real estate property services, has signed a lease to relocate its Chicago office to a 77,000-square-foot space at 203 North LaSalle Street in the city’s Central Loop tech district. Last year, Lessen acquired SMS Assist, a facilities maintenance technology company headquartered in Chicago, marking Lessen’s corporate entry into the market. The company’s Chicago office is currently located at 130 E. Randolph St. Lessen expects to move into its new office in the first quarter of 2025. The new office is located adjacent to Google’s forthcoming Chicago office in the Thompson Center. Sumitomo Corp. owns 203 North LaSalle Street, which rises 17 stories.

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Fair-Oaks-Plaza_Fairfax-Va

FAIRFAX, VA. — Marcus & Millichap’s Institutional Property Advisors (IPA) has brokered the sale of Fair Oaks Plaza, a 180,000-square-foot office building located in the Northern Virginia city of Fairfax. A private investor acquired the property, which was 90 percent leased at the time of sale, for an undisclosed price. The building was renovated in 2022. Robert Filley, Chandler Pace and Stacey Milam of Marcus & Millichap represented the seller, Novel Office, in the transaction. 

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655-S-Dobson-Rd-Chandler-AZ

CHANDLER, ARIZ. — NAI Horizon has arranged the sale of Chandler Medical Center, a multi-tenant medical office building at 655 S. Dobson Road in Chandler. New York City-based Chandler Medical Property Company LLC (Tolis Advisors) sold the asset to Cleveland-based Provider Real Estate Partners Fund I LP for $7.3 million, or $323.14 per square foot. Lane Neville, Cole Neville, Brandon Hall, Whitney Heritage and Matt Westra of NAI Horizon represented the seller, while the buyer was self-represented in the transaction. The 22,591-square-foot Chandler Medical Center is located adjacent to Dignity Health’s 429-bed Chandler Regional Medical Center.

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HOUSTON — The Mind Spot, a provider of mental health services, has signed a 3,148-square-foot office lease in West Houston. According to LoopNet Inc., the building at 3000 Weslayan St. was built in 1979 and totals 81,505 square feet. Ray Lopez of Colliers represented the tenant in the lease negotiations. William Stone of Cushman & Wakefield represented the undisclosed landlord.

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NEW YORK CITY — Dubin & Co. LP has signed a 10,777-square-foot office sublease at 450 Park Avenue in Midtown Manhattan. The private investment firm is relocating its headquarters from 55 Hudson Yards to the entire 25th floor of the building. Ben Friedland and Taylor Scheinman of CBRE represented Dubin & Co. LP in the sublease negotiations. The sublandlord was an undisclosed financial services firm. SL Green owns 450 Park Avenue.

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4025-Camino-del-Rio-S-San-Diego-CA

SAN DIEGO — CES Remington has acquired Aerofund Financial Plaza, a multi-tenant office building situated on 1.3 acres in San Diego’s Mission Valley neighborhood, for $9.8 million. The seller was not disclosed. Located at 4025 Camino del Rio S., the three-story, u-shaped building offers 48,571 square feet of space. At the time of sale, the property was fully leased to nine tenants across a diversified mix of industries and sizes. Jeffrey Cole, Nico Napolitano, Mark Avilla and Brooks Campbell of Cushman & Wakefield’s capital markets and private capital groups in Southern California collaborated to represent the seller, while Brandon Keith of Voit Real Estate Services represented the buyer in the deal.

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Bayberry Road office building

JACKSONVILLE, FLA. — NAI Hallmark has brokered the $4.1 million sale of 8014 Bayberry Road, an office property in Jacksonville. Built in 1978 and renovated in 2007, the building totals 32,781 square feet. Petticoat Schmitt Civil Contractors acquired the property, which features web-based HVAC controls, access-point badge reading technology, interior and exterior camera systems and an uninterruptible power supply (UPS) system with a 175-Kilowatt back-up diesel generator. Daniel Burkhardt of NAI Hallmark represented the seller, Bayberry Wells Leasing, in the transaction. 

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