NEW YORK CITY — Accounting and advisory firm BDO USA has signed a 15-year, 145,000-square-foot office lease at 200 Park Avenue, a 58-story tower in Midtown Manhattan. In January 2024, the tenant will consolidate its three Manhattan offices to three entire floors, as well as a dedicated portion of the lobby of the 3.1 million-square-foot building. Mitti Liebersohn, Mark Robbins, Keith Caggiano, Jeff Lindenmeyer and Jeff Burger of Avison Young represented BDO USA in the lease negotiations. Gus Field and Megan Sheehan represented the landlord, Tishman Speyer, which owns the building in partnership with Irvine Co. Office Properties, on an internal basis.
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By Steve Solomon, Senior Executive Vice President, and Kristen Bowman, First Vice President, Colliers International Greater Los Angeles leasing activity surged, reaching nearly 3 million square feet in the second quarter. Although higher than the past few quarters, it was significantly lower than the 2019 pre-pandemic quarterly average of 4.6 million square feet. Much of the activity occurred in West Los Angeles, where large expansions and renewals were signed by tech, media and entertainment tenants. While leasing did ramp up, overall vacancy continued to rise, eventually reaching a historic high of 19.4 percent. This rate, which includes direct and sublease space, is 160 basis points higher than the previous peak in 2013 when it hit 17.8 percent. Nearly 25 percent of office space, whether vacant or currently occupied, is available for lease. There is currently 4.9 million square feet of speculative new office construction underway delivering by 2023 in Greater Los Angeles. These major developments, which do not include renovations, are currently 30.7 percent pre-leased. Over half of this new construction is in West Los Angeles, which has a higher pre-leased rate of 36.6 percent. The rate is highest in Central Los Angeles, where Netflix has snatched up 44.6 percent …
OAK BROOK, ILL. — Clear Height Properties and its joint venture partner Buligo Capital Partners have sold 814 Commerce, a 173,017-square-foot office building in the Chicago suburb of Oak Brook. The sales price was undisclosed. The three-story property sold to Chicago-based real estate investor Helios Properties. Since acquiring the asset in 2019, Clear Height invested $1.5 million to upgrade the building’s exterior, common areas, parking deck and HVAC systems. The building is 56 percent leased to Innovista Health Solutions, IRC Retail Centers and CPS. Dan Deuter, Michael Simpson and Paul Lundstedt of Cushman & Wakefield represented the sellers.
NASHVILLE, TENN. — Bass, Berry & Sims PLC, a law firm with offices in Tennessee and Washington, D.C., has signed a lease for a 180,000-square-foot space within Nashville Yards, an 18-acre mixed-use project in downtown Nashville. The office space will serve as the law firm’s new corporate headquarters. Bass, Berry & Sims will occupy space in the top eight floors in the Nashville Yards’ first multi-tenant office building, a 35-story tower with 650,000 square feet of office space and an additional 28,000 square feet of retail space. The tower’s building amenities will include a dog-friendly campus, dog park, ample parking, office valet, executive car services and an enhanced HVAC system. The tower will also serve as the new headquarters for Pinnacle Financial Partners, a financial services company. Located at 201 Platform South, the tower will be situated adjacent to the 591-room Grand Hyatt Nashville and Amazon’s two office towers at Nashville Yards. The developer, Southwest Value Partners, broke ground on the office tower in September. Bert Mathews and Shane Douglas of Colliers International represented Bass, Berry & Sims in the lease transaction.
DESOTO, TEXAS — Diab Americas LP, a Swedish manufacturer of core products for the marine and aerospace industries, has signed a 265,248-square-foot headquarters lease at I-20 Corporate Center in the southern Dallas suburb of DeSoto. The headquarters location consists of 242,248 square feet of warehouse space and 23,000 square feet of office space. Kevin Santaularia, Michael Spain and Michael Grant of Bradford Commercial Real Estate Partners represented the locally based landlord, 220 E. Danieldale Partners, in the lease negotiations. The tenant plans to take occupancy of the space in November.
NEW YORK CITY — Real estate services firm Orchard Technologies Inc. has signed a 107,443-square-foot office lease at 195 Broadway, a 29-story building in Manhattan’s Financial District. Orchard will occupy part of the 24th floor, as well as the entire 25th and 26th floors of the 1.1 million-square-foot tower, which formerly housed the world headquarters of AT&T and is thus known locally as The Telegraph Building. Peter Trivelas and Gary Ceder of Cushman & Wakefield represented the tenant, which plans to take occupancy of the space early next year, in the lease negotiations. Andrew Wiener represented the landlord, L&L Holding Co., on an internal basis.
In September, President Joe Biden issued a federal edict for large employers (100 employees or more) to require vaccines against COVID-19, or requiring weekly COVID-19 testing. The latest reporting out of Washington, D.C., is that the mandate carried out by the Occupational Safety and Health Administration (OSHA) will be enforced with hefty fines for noncompliance. Several blue-chip companies such as Anthem, Delta Air Lines, Google, Microsoft, Salesforce, Twitter, Tyson Foods, ViacomCBS, The Walt Disney Co. and Walmart have already announced plans to get their workforce fully or close to fully vaccinated. Clinton McKellar, executive director of Cushman & Wakefield’s Atlanta office, says that in addition to protecting their employees’ health, a large-scale vaccine mandate could potentially facilitate a return to pre-pandemic norms for corporate America, thus more employees in the office. “Giving vaccinated employees the opportunity to safely return to the office allows for impromptu meetings and collaboration that is difficult to replicate in a remote environment,” says McKellar. “In Atlanta, what is proven out is that people, if given the choice, would rather work from home than come to the office and wear a mask.” Clients are telling brokers that their workers who are regularly in their office are …
CHICAGO — Global flooring manufacturer Tarkett has signed a lease to move its showroom and offices from Merchandise Mart to the 10th floor of Fulton East, a 12-story, 90,000-square-foot office building in Chicago’s Fulton Market District. Parkside Realty Inc. owns the building, which is located at 215 N. Peoria St. Tarkett will occupy nearly 11,000 square feet. The firm opened its 9,000-square-foot showroom at Merchandise Mart in 2017. Chicago-based Clayco constructed Fulton East and Lamar Johnson Collaborative served as architect. The newly built property includes several health and wellness features. Andy Gooliak of Colliers International and Nate Walczuk of Allegro Real Estate Brokers and Advisors represented Tarkett in the lease transaction. Katie Scott and Camille Julmy of Parkside Realty represented ownership on an internal basis.
DALLAS — A partnership between Dallas- and California-based Fenway Capital Advisors and New York-based Waterfall Asset Management will redevelop Campbell Centre, an 878,564-square-foot office complex in Dallas. The two-building property, which will be renamed The Gild, was originally built in the 1970s and is located in the North Central Expressway submarket. The project will add new tenant lounges, a boutique café and new coffee bars and dining areas, as well as a new conference center. In addition, the development team will update restrooms and corridors, expand tenant suites and develop a connecting park between the two buildings. Gensler is designing the project, and Stream Realty Partners is the leasing agent. Renovations are scheduled to begin immediately, and full completion of the project is slated for the first quarter of 2023.
PHILADELPHIA — Iovance Biotherapeutics Inc. (NASDAQ: IOVA) has opened a 136,000-square-foot life sciences facility at the Philadelphia Navy Yard, where the biomanufacturing firm will produce T cell-based immunotherapies for cancer patients. Gattuso Development Partners developed the facility, which is located within an opportunity zone, and CRB provided design and construction services.