PHILADELPHIA — Global law firm Goodwin has signed a 31,500-square-foot office lease at Schuylkill Yards, a mixed-use development in Philadelphia’s University City district. In early 2024, the firm will relocate from One Commerce Square to the entire eighth floor and part of the seventh floor of the 28-story building at 3025 JFK Blvd. Locally based REIT Brandywine Realty Trust (NYSE: BDN) owns Schuylkill Yards. Greg Soffian of Savills represented Goodwin in the lease negotiations.
By Ryan Kimura, senior vice president of strategic partnerships, Premier The changing landscape of work and the future of the office remains in flux, leading to a reduced demand for office space in major metropolitan areas throughout the country. This shift has rendered many office buildings underutilized and obsolete, prompting developers and investors to seek alternative uses for these structures. Simultaneously, urbanization continues to grow, fueling the demand for housing and a need for innovative multifamily solutions. Office-to-multifamily conversions provide an answer to both challenges, repurposing office spaces into much-needed residential units while allowing investors to capitalize on demand. This perfect storm of reduced office demand, increased housing needs and favorable regulatory conditions has driven the popularity of office-to-multifamily conversions, positioning them as a sustainable strategy for urban development. These conversions began to surge in popular metro areas during the height of the pandemic as uncertainty surrounded the return to the workplace. Fast forward three years later and office conversions are still booming — especially in the Dallas market. The region, which has witnessed some of the largest population increase in the country over the past five years, has also had a double-digit office vacancy rate in its downtown area …
ADDISON, TEXAS — National Bankruptcy Services has right-sized its office footprint at 14841 N. Dallas Parkway in Addison, located just north of Dallas. The tenant, which has leased space at the building since 2014, has moved from a 75,000-square-foot space to a 45,000-square-foot space. Sarah Catherine Alford of Vista Holdings represented the undisclosed landlord in the negotiations. Nick Lee, Tom Lynn, Kent Smith and Grant Frerichs of NAI Robert Lynn represented the tenant.
DALLAS — Civil engineering firm Criado & Associates has signed a 16,000-square-foot office headquarters lease in North Dallas. The tenant will relocate from 4100 Spring Valley Road in Farmers Branch to Element Towers, a two-building, 672,942-square-foot complex, in early 2024. Tristan Stalker and John Beach of Newmark represented the tenant in the lease negotiations. Russ Johnson and Kade Davis of JLL represented the landlord, Los Angeles-based Stanton Road Capital. The property is now 68 percent leased.
MAGNOLIA, TEXAS — Local brokerage firm SVN | J. Beard Real Estate — Greater Houston has negotiated the sale of a two-story, 5,000-square-foot office building in Magnolia, about 45 miles northwest of Houston. Diana Gaines of SVN | J. Beard represented the seller, Rangel Properties LLC, in the transaction. Jackson Cain, also with SVN | J. Beard, represented the buyer, an entity doing business as AKA 3 Real Estate Holdings LLC. The new ownership plans to use the building as an extension of an urgent care clinic.
NEW YORK CITY — Internet service provider Pilot Fiber NY LLC has signed an office lease expansion at One World Trade Center in Lower Manhattan. The tenant now occupies 12,456 square feet on the 46th floor of the 3.1 million-square-foot skyscraper. Michael Thomas and Taylor Bell of Colliers represented Pilot Fiber in the lease negotiations. David Falk, Peter Shimkin, Hal Stein, Jason Greenstein and Nathan Kropp of Newmark, along with internal agents Eric Engelhardt and Karen Rose represented the landlord, a partnership between The Durst Organization and The Port Authority of New York & New Jersey.
MILWAUKEE — CBRE has brokered the $28.7 million sale of 100 East, a 435,000-square-foot office building in Milwaukee. An entity doing business as 100 East PropCo LLC purchased the property from Michael Polsky, the court-appointed receiver for Hertz Milwaukee 100 East Wisconsin LLC. Patrick Gallagher, Matson Holbrook, Bill Bonifas and Matt Cariello of CBRE represented the seller. The new ownership intends to convert 100 East into a multifamily property. The 35-story building is located at 100 E. Wisconsin Ave. and was originally built in 1989. It was 46.5 percent occupied at the time it was marketed for sale.
— By John Wadsworth and Aaron Phillip, Colliers — The Orange County medical office building (MOB) market continues to show resilience post-pandemic despite headwinds of the new interest rate environment. The overall Orange County MOB market consists of 10 million square feet with a current vacancy of 8.5 percent, down 100 basis points from the end of 2022. The average rental rate is $3.48 per square foot, per month, full-service growth, with an increase of 9.3 percent from mid-year 2022. The lack of significant MOB construction completions, coupled with much of the existing vacancy found in older, functionally obsolete buildings, has kept supply largely in line with demand. The velocity of MOB leasing activity has softened compared to pre-pandemic transaction volume, with healthcare providers still digging out of the financial “COVID hole.” Among other market pressures, labor costs and retention across healthcare employment significantly contribute to continued narrow margins on provider balance sheets. From larger health systems to smaller independent practices, all have been impacted, slowing the pace of expansion projects and mandating shorter, more flexible transactions until more permanent real estate solutions can be implemented. Despite the market challenges posed by the pandemic, MOB absorption has remained positive countywide, …
LEANDER, TEXAS — Baltimore-based St. John Properties will develop a 120,000-square-foot office project in the northern Austin suburb of Leander. The four-story building will be situated within the 116-acre Northline mixed-use development and will include 15,500 square feet of retail and restaurant space. Beck Design is the project architect, and Kimley-Horn is the civil engineer. Delivery is slated for the first half of 2025.
MISSOURI CITY, TEXAS — Colliers has arranged the sale of a 12.5-acre office development site in Missouri City, a southwestern suburb of Houston. The site has over 1,000 feet of frontage on Knights Court Road and is across the street from Elkins High School. Chris Hutcheson, Harrison Kane and James Kadlick of Colliers represented the seller in the transaction. The size and construction schedule of the office condominium park that the undisclosed buyer intends to build on the site have not yet been determined.