By Taylor Williams Office owners have spent the last two-plus years undertaking every creative measure they can fathom — and afford — to get tenants and their employees to legitimately want to come back to their buildings. From investing in upgrades to physical amenities to hiring hospitality-minded professionals for property activation to offering personalized incentives, nothing has been out of bounds when it comes to recouping occupancy. Enough time has now passed such that owners can judge the extent to which their ideas and initiatives have worked. Of course, the goalposts for what defines success in the office sector have shifted radically during that time. Profit margins and forecasts have shrunk as 60 to 70 percent occupancy three to four days a week now starts to look pretty good, all other factors being held equal. It’s simply a different world. “We are never going back to pre-pandemic ways,” says Ami Figg, senior leasing specialist at Houston-based Hartman. “What COVID-19 has done for the office market is equivalent to what September 11 did for the travel industry. There will always be a need for traditional office space, but it’s changed forever, so it’s upon us as landlord and tenant reps to …
Office
WASHINGTON, D.C. — International law firm Fried Frank has signed a 10-year lease extension to continue to occupy 103,000 square feet at Lafayette Tower, an 11-story office building located at 801 17th St. NW in Washington, D.C. The firm will continue to occupy floors five through eight through at least 2037. Fried Frank is an original tenant of the building, which was delivered in 2010 and is currently undergoing renovations that include updates to the fitness center and rooftop terrace, as well as the addition of an indoor lounge and event space. Kyle Luby, Matt Pacinelli and Andy Eichberg of Stream Realty Partners represented the landlord, an affiliate of Morgan Stanley Real Estate Advisor, in the lease negotiations. Chau Leung, Mark Minich Jr., Tim Dempsey, Ramneek Rickhy and Stephen Siegel of Stream Realty represented the tenant. Lafayette Tower is currently 90 percent leased, with several speculative suites available ranging from 3,900 square feet to 8,000 square feet, according to Stream Realty.
DECATUR, GA. — Colliers has signed two new tenants to join 101 W Ponce, a 109,000-square-foot office building in downtown Decatur. The RMR Group manages the six-story office building and recently finished renovations. The two new tenants are the National Association of Chronic Disease Directors (NACDD), which will lease 18,411 square feet, and gaming company Aristocrat Technologies, which will lease 6,404 square feet. Heather Lamb and Jessica Doyle of Colliers represented the landlord in both lease deals. Mitch Kahlert and Jimmy Sanders of ICON Commercial represented NACDD, and David Todd and Detra Reid of CBRE represented Aristocrat Technologies.
LEWISVILLE, TEXAS — Locally based developer Bright Realty has broken ground on Crown Centre II, a $50 million office project that will be located in the northern Dallas suburb of Lewisville. The four-story, 147,000-square-foot building will be situated within Bright Realty’s Crown Centre development, which will ultimately feature up to 2,000 multifamily units, 3 million square feet of office space, 500 hotel rooms and 140,000 square feet of retail, restaurant and open green space. Bright Realty delivered Crown Centre I in 2020, and the building is now 89 percent leased. Dallas-based Rudick Construction Group is the general contractor for the project, which is scheduled for a fall 2024 completion.
LOS ANGELES — A private investor has acquired a 20,576-square-foot office building in the Los Angeles submarket of Brentwood for $9.3 million. The building is located at 520 Sepulveda Blvd. The asset features two parking levels, three office levels, an open courtyard, plug-and-play cell tower platform and signage visible from I-405. T.C. Macker, Jennifer Moscoso and Christian Holland of WESTMAC Commercial Brokerage Co. represented the seller, another private investor. Mitch Stokes of Avison Young represented the buyer.
SAN ANTONIO — Houston-based brokerage firm Partners Real Estate has arranged the sale of a 6,866-square-foot office building in San Antonio. According to LoopNet Inc., the single-tenant property at 825 Jackson Keller Road was built on 1.4 acres in 1996. Joe Bright of Partners represented the seller, River City Federal Credit Union, in the transaction. Additional terms of sale were not disclosed.
KANSAS CITY, MO. — Owner Copaken Brooks has unveiled plans to renovate and reposition several downtown Kansas City office buildings, including Town Pavilion, 1201 Walnut, 1200 Grand and the Harzfeld’s Building. Town Pavilion, the 38-story, 802,000-square-foot building located at 1100 Main St. has been renamed 1111 Main. The Harzfeld’s Building, 1201 Walnut and 1111 Main are now known as the Skyline Collection. A new professionally staffed fitness center with locker rooms is scheduled to open in May at 1111 Main and will be available to all Skyline Collection tenants. RJ Trowbridge, Jeff Kembel, Patrick Meraz and Avery Comeau of JLL will serve as the office leasing team for the buildings, which total more than 1.4 million square feet. Copaken Brooks retains the ground-level retail leasing and the property management duties of the portfolio.
ISELIN, N.J. — Global pharmaceutical company Helsinn has opened a 25,000-square-foot office at 200 S. Wood Ave. in Iselin, about 30 miles south of Manhattan. The development and management arm of New York City-based SJP Properties, which owns the 200,000-square-foot building, executed a custom build-out of the space as part of Helsinn’s relocation from 170 S. Wood Ave. SJP Properties acquired the building in 2020 and implemented a capital improvement program.
NEW YORK CITY — The New York City School Construction Authority has signed a 15,330-square-foot office lease at 1070 Flatbush Ave. in Brooklyn. The academic design-build firm has committed to leasing the entire ground floor for 15 years. Geoff Bailey and Scott Rothstein of RIPCO Real Estate represented the undisclosed landlord in the lease negotiations. Bert Baradian of Cornerstone Group represented School Construction Authority.
AMDA College of the Performing Arts Completes Sale-Leaseback of Hollywood Office Building
by Jeff Shaw
LOS ANGELES — AMDA College of the Performing Arts has executed a sale-leaseback agreement at the close of escrow on its current space at 1777 Vine St. in Hollywood’s downtown core. The 39,248-square-foot, five-story building sold for $23 million. AMDA signed an 18-year lease at the property. Avison Young’s Chris Bonbright and Chase Gordon represented AMDA. Craig White of Sotheby’s International Realty represented the buyer, J&L Realty Partners.