WHEATON, ILL. — SVN Chicago Commercial has arranged the sale of a 35,400-square-foot office building located at 330 S. Naperville Road in downtown Wheaton for $1.9 million. The transaction closed at 97.5 percent of the asking price. The property features 23 executive suites, and was 72 percent occupied at the time of sale. Karen Kulczycki of SVN represented the seller. Buyer information was not provided.
— Dave Carder, Senior Vice President, Kidder Mathews — The state of Phoenix’s office market is not easily summed up with a catchy headline or a few brief bullet points. Along with most large metropolitan areas across the country, Phoenix has struggled with lower demand, rising vacancies and a shift toward hybrid workweeks. However, several emerging trends are creating positive shifts in the market that should be noted as we look to 2025 and beyond. The average vacancy rate of the Phoenix office market over the past decade was 18.5 percent. That includes a low of 13.9 percent in 2019 and a high of 24.8 percent in 2024. Gross leasing absorption averaged nearly 7 million square feet annually, with a high of nearly 7.9 million square feet in 2019 and a low of 5.5 million square feet last year. Net leasing absorption showed a similar pattern, peaking at 3.1 million square feet in 2019 and declining to negative 2.2 million square feet in 2024. These trends point to 2019 being the market’s best-performing pre-pandemic year across all three metrics. Despite 2024’s gross leasing absorption (5.5 million square feet) being close to the 10-year average, the significant rise in vacancy and …
HOUSTON — JLL has brokered the sale of 1255 Enclave, a 171,091-square-foot office building in the Energy Corridor area of West Houston. Completed on 6.7-acres in 1999, the six-story building is situated within a 120-acre, 3 million-square-foot development known as The Enclave and offers amenities such as a fitness center and outdoor dining and gathering spaces. The sale also included a 676-space parking garage. Kevin McConn and Marty Hogan of JLL represented the undisclosed seller in the transaction. The buyer, Harmony Public Schools, plans to house back-office functions within the building.
SAN DIEGO — Pacific Coast Commercial has arranged the sale of a multi-tenant office property located at 9466 Black Mt. Road in San Diego’s Miramar neighborhood. Hindu Mandir Society of San Diego acquired the asset from 9466 BMR LLC for $6.6 million. The two-story, 31,575-square-foot building was constructed in 1977 as a racquetball facility and converted to a multi-tenant office property in 1983. Bo Gibbons, Brian Crepeau and Daniel Goodman of Pacific Coast Commercial represented the seller, while Paul Britvar of Lee & Associates represented the buyer in the deal.
ATLANTA — Swinerton has obtained a $23 million contract for construction at Hartsfield-Jackson Atlanta International Airport on behalf of a partnership between the City of Atlanta and WEBMyers Construction. Swinerton will complete three projects at the airport. The first project — which is expected to be completed by the end of the year — will include the $21 million renovation of six pairs of restroom facilities located in the North Terminal and Concourses T, C and F, as well as several family restrooms. The second project, designed by Atlanta-based Brink Design, will include a $1 million renovation of the airport’s Security Badging Office, which is slated for completion in early spring. The space will nearly double in size and feature 15 desk-style, seated stations with data ports, card printers and fingerprinting machines. The final project, a $1.2 million expansion of all TSA breakrooms, will total 42,000 square feet of space and comprise 13 breakrooms upon completion in July. These projects follow the recently completed $600,000 renovation of the Department of Aviation Finance Office at Hartsfield-Jackson by Swinerton and WEBMyers.
The national office market continues to face headwinds in the wake of the COVID-19 pandemic, and Baltimore is no exception. Shifting tenant preferences and the city’s evolving economic landscape have created challenges, with rising vacancy rates in some submarkets. However, recent trends suggest that Baltimore’s office sector is stabilizing, with positive momentum in key areas. Changing office landscape For decades, Baltimore’s office market was defined by two primary submarkets: the traditional central business district (CBD) that is centered around Charles, Saint Paul/Light and Baltimore streets, and the Inner Harbor. The CBD was home to corporate giants such as Alex. Brown & Sons (now part of Deutsche Bank), USF&G (now part of St Paul Insurance), T. Rowe Price and Maryland National Bank (now part of Bank of America). In the 1980s, the Inner Harbor emerged as a national model for waterfront redevelopment, attracting major tenants and commanding some of the city’s highest occupancy rates. The early 2000s saw another shift with the rise of Harbor East and later Harbor Point, both of which drew high-end office tenants and further pulled demand toward the waterfront. More recently, Baltimore Peninsula has emerged as the next major office and mixed-use submarket. Historically, vacancies created …
HOUSTON — Newmark has arranged a $450 million loan for the refinancing of Texas Tower, a 47-story office building in downtown Houston. Located at 845 Texas Ave. on the former site of the Houston Chronicle newspaper, the tower comprises 1.2 million square feet. A partnership between locally based real estate giant Hines and Ivanhoé Cambridge delivered the property in 2021. Jordan Roeschlaub, Jonathan Firestone, Clint Frease, Blake Thompson, Travis Bailey, Peter Mavredakis and Tim Polglase of Newmark arranged the loan on behalf of Hines and Ivanhoé Cambridge. Wells Fargo and Morgan Stanley provided the CMBS single-asset single-borrower (SASB) loan. “The refinancing for this property was particularly notable as it marked the first time in two years that a multi-tenant office tower outside of New York City was financed in the CMBS single-asset, single-borrower market,” said Firestone. Texas Tower was 95 percent leased at the time of refinancing. Newmark stated that more than 500,000 square feet of leasing has taken place over the past year. Tenants at the property currently include McGuireWoods, Vinson & Elkins, Morgan Stanley, Cheniere Energy Inc. and Clifford Chance. Texas Tower also serves as Hines’ global headquarters. The skyscraper offers amenities such as a lobby, green spaces, …
FRISCO, TEXAS — Toyota Financial Services has signed a 242,000-square-foot office lease in Frisco. The automotive finance company will be the sole occupant of The Offices at Southstone Yards, a seven-story, mass timber building that is part of the 45-acre Southstone Yards development. Designed by Duda|Paine Architects in partnership with Gensler, The Offices at Southstone Yards offers amenities such as a fitness and wellness center, meeting spaces, private terraces on every floor and access to three acres of surrounding park space. CBRE represented the developer, Crow Holdings, in the lease negotiations. JLL represented Toyota Financial Services.
SANDY SPRINGS, GA. — Atlanta-based Third & Urban has purchased Northridge Commons, a seven-building industrial flex campus in Sandy Springs, a northern suburb of Atlanta. The 470,000-square-foot property is located at 8601 Dunwoody Place near Ga. Highway 400. Dilweg sold the campus for an undisclosed price. Will Yowell of CBRE’s National Office Partners team in Atlanta represented the seller in the transaction. Mike Ryan, Brian Linnihan and J.P. Cordeiro of CBRE Capital Markets’ Debt & Structured Finance team arranged $48.5 million in acquisition financing for Third & Urban. Northridge Commons was 83 percent leased at the time of sale to a variety of office, flex and warehouse occupiers, including Inspire Brands and Invitation Homes, a subsidiary of Blackstone. Third & Urban says it will reposition some of the office spaces to attract more flex industrial users.
STAMFORD, CONN. — McCarter & English LLP has signed a 10,993-square-foot office lease in the southern coastal Connecticut city of Stamford. The law firm is relocating from 201 Broad Street to a portion of the 11th floor at 2 Stamford Plaza, a 259,000-square-foot building that is part of a larger, four-building campus. Benjamin Goldstein and Harrison Russell of Newmark represented McCarter & English in the lease negotiations. CBRE represented the undisclosed landlord.
