Office

An Inflection Point for the Greater Los Angeles Office Market

by Jeff Shaw June 23, 2021

By Nico Vilgiate, Executive Vice President, Colliers Greater Los Angeles has one of the largest office development pipelines in the nation, which includes new construction and some sizeable adaptive reuse projects. There is currently more than 6 million square feet in this pipeline with nearly 2.7 million square feet scheduled to deliver this year. This will increase overall vacancy throughout 2021. The most significant developments are occurring in Downtown and West Los Angeles, which contain more than 55 percent of all new office construction. One of the most prominent projects is One Westside, a shopping mall conversion that will contain 584,000 square feet of creative office space in West Los Angeles. Google will be moving into the building upon completion. The greater Los Angeles overall vacancy rate of 18.3 percent is 50 basis points higher than the previous peak in 2013 when it reached 17.8 percent. Sublease availability has increased over the past four quarters due to the work-from-home mandate. However, there has been an increase in the overall average asking rate in the past few quarters. The rate has increased by 4.4 percent year-over-year to about $3.54 per square foot, per month. Asking rate rental growth during this period was strongest …

June 23, 2021

Leasing Activity Office Texas

Integrity Marketing Group Signs 100,000 SF Office Lease in Dallas Arts District

by Taylor Williams June 22, 2021

DALLAS — Integrity Marketing Group, a distributor of life and health insurance products, has signed a 100,000-square-foot office lease for its new headquarters at Fountain Place, a 58-story building in the Dallas Arts District. CBRE’s Josh White and Ryan Buchanan represented the tenant, which will occupy six floors at Fountain Place as part of its relocation from Coppell, in the lease negotiations. CBRE’s Fletcher Cordell, Dennis Barnes and Jackie Marshall represented the landlord, Goddard Investment Group, which recently completed a $75 million renovation at the property. That project included the addition of a 10-story parking garage, retail and restaurant space and a tenant lounge and conference center.

June 22, 2021

California Development Mixed-Use Multifamily Office Western

Rescore Property, Nadel Architecture Complete 561,600 SF The Rise Residential/Office Project in Hollywood

by Amy Works June 22, 2021

LOS ANGELES — Rescore Property, as developer, and Nadel Architecture + Planning, as architect, have completed construction of The Rise, a seven-story, mixed-use project located at 1331 N. Cahuegna Blvd. in Hollywood. The 561,600-square-foot property features 369 apartments, 13 live/work units and 2,570 square feet of creative office space. Consisting of five buildings linked by pedestrian bridges, The Rise offers 341,600 square feet of residential space on six levels and more than 220,000 square feet of parking space on two levels, with space for 567 cars and 410 bicycles. The project offers a mix of ADA-adaptable micro-units, studios and one- and two-bedroom layouts. Community amenities include a rooftop deck, inner open courtyard, outdoor gym, pool, barbecue grills, fire pits, dog runs with a dog wash unit and outdoor seating with TVs. Additional amenities include a clubhouse with fireplace and pool table, fitness center, lounges, conference rooms, electric-vehicle charging stations and a video screen in the main lobby that displays transit options and status. The Rise also offers a 2,000-square-foot penthouse unit on the seventh floor that can be leased for special events. The penthouse is adjacent to a party room and rooftop deck.

June 22, 2021

Acquisitions Arizona Office Western

Woodside Health Acquires Arrowhead Executive Center Office Complex in Glendale from Holualoa Cos. for $18.2M

by Amy Works June 22, 2021

GLENDALE, ARIZ. — Cleveland, Ohio-based Woodside Health has purchased Arrowhead Executive Center, a multi-tenant office complex located at 17235 N. 75th Ave. in Glendale. Holualoa Cos. sold the asset for $18.2 million. Steve Lindley of Cushman & Wakefield represented the seller, while Bill Cook and Perry Gabuzzi of Plaza Cos. provided market leasing advisory. Situated on 11.9 acres, Arrowhead Executive Center features eight single-story buildings offering a total of 99,062 square feet of office space. The campus was constructed in 2000.

June 22, 2021

Acquisitions Arizona Mixed-Use Office Retail Western

Nicola Wealth Real Estate Buys Mixed-Use Property in Tempe for $16.7M

by Amy Works June 22, 2021

TEMPE, ARIZ. — Vancouver, Canada-based Nicola Wealth Real Estate has acquired a mixed-use property located in downtown Tempe from Wexford Developments for $16.7 million. Located at 425 S. Mill Ave., the 22,209-square-foot building features three levels of office space above ground-floor retail space. At the time of sale, the property was 100 percent leased to multiple tenants. The property is near the Valley Metro Light Rail station and the new Tempe Streetcar, which is scheduled to open this year. Steve Lindley, Eric Wichterman and Mike Coover of Cushman & Wakefield handled the transaction.

June 22, 2021

Features Heartland Feature Archive Office

Office Buildings Get Wellness Makeovers

by Kristin Harlow June 22, 2021

The work-from-home model that became the “new normal” for most office workers in 2020 as a result of the COVID-19 pandemic has stymied leasing activity and altered tenant strategies. Many space users have opted for short-term leases in response to the uncertainty triggered by the virus. According to JLL, U.S. office leasing volume in 2020 totaled 125.6 million square feet, down 47 percent from the prior year. Of the lease renewals inked in the fourth quarter, 43 percent were for five years or less. As a result, the average deal term dropped to 6.7 years for leases larger than 20,000 square feet, well below the pre-COVID average of 8.5 years. While office owners remain bullish on the idea that the workforce will return to physical buildings, many questions remain regarding timelines and capacities. In the meantime, landlords are steadfast in their attempt to keep the lines of communication open with tenants and ensure their properties are as safe and welcoming as possible. REBusinessOnline spoke with owners across the Midwest to gauge their pandemic responses and outlook on what’s to come. Health, safety protocols Daniel Cooper, partner with real estate investment manager 90 North Real Estate Partners LLP in Chicago, says …

June 22, 2021

Acquisitions Colorado Industrial Office Western

Kenai Capital, CWCapital Acquire Four-Property Flex Portfolio in Westminster, Colorado

by Amy Works June 21, 2021

WESTMINSTER, COLO. — Kenai Capital Advisors has partnered with CWCapital Investment Management to purchase a portfolio of properties — three office/flex buildings and one development parcel on Church Ranch Boulevard in Westminster. Etkin Johnson sold the assets for an undisclosed price in an off-market transaction. Totaling 151,746 square feet, the portfolio includes 7237, 7401 and 7403 Church Ranch Blvd. and an adjacent, 6.19-acre, vacant development site, which has received preliminary approval for an 80,000-square-foot flex industrial building. The existing flex buildings are situated on a 12.6-acre campus and are currently 82 percent leased to eight tenants, with 27,96 square feet of space available for lease. Tenants include Motorola, Cummins, Concentra Health Services and UCHealth. Built in 2000, the buildings feature 16- to 18-foot clear heights, 4.24:1,000 parking ratio, individual suite entrances, roll-up doors, 800-amp power, LED lighting, expansive window lines, manicured landscaping with multiple fountains and mountain views.

June 21, 2021

Acquisitions Florida Healthcare Office Southeast

Marcus & Millichap Negotiates $4.4M Sale of Towne Plaza Medical Office in Tamarac, Florida

by Julia Sanders June 21, 2021

TAMARAC, FLA. — Marcus & Millichap has negotiated the $4.4 million sale of Towne Plaza, a 28,600-square-foot medical office property located at 7443-7495 N University Drive in Tamarac. Quinn Sousa and Ryan Shaw of Marcus & Millichap represented the seller, John Loeffler Trustee of Lillian Loeffler Trust, in the transaction. The buyer, a private doctor doing business in the sale as Evergreen 3 LLC, plans to occupy 10,000 square feet of the property and lease out the remaining space. Built in 1988, Towne Plaza has frontage on North University Drive and is accessible from the Florida Turnpike and Sawgrass Expressway. The multi-tenant medical office property is located next to the University Hospital and Medical Center. The property was 43 percent leased at the time of sale.

June 21, 2021

Acquisitions Midwest Office Ohio

JLL Arranges $65.5M Acquisition Loan for Bon Secours Mercy Health Headquarters Building in Cincinnati

by Kristin Harlow June 21, 2021

CINCINNATI — JLL Capital Markets has arranged a $65.5 million loan for the acquisition of the Bon Secours Mercy Health headquarters building located at 1701 Mercy Place in Cincinnati’s Bond Hill neighborhood. The Class A office building spans 368,500 square feet. Completed in 2016, the property is fully leased to Mercy Health with 14 years remaining on the lease term. The facility serves as the administrative and executive headquarters for Mercy Health, which is Ohio’s largest healthcare delivery system and fourth-largest employer. Amenities at the building include a fitness center, outdoor dining area, food market, walking trail, ergonomic workstations and treadmill desks. The five-story property also features parking for more than 1,400 vehicles. Keith Largay and Lucas Borges of JLL represented the borrowers, 90 North Real Estate Partners and Kuwait-based Rasameel Investment Co. PNC Bank provided the five-year loan, which features a fixed interest rate below 2.5 percent.

June 21, 2021

Market Reports Maryland Office Southeast Southeast Market Reports

Maryland Governor Hogan’s Good News for Baltimore’s CBD, Demand Rises for Mental Health Space

by John Nelson June 21, 2021

Among Maryland’s hardest hit submarkets the past 12 months is the Baltimore Central Business District (CBD), where the vacancy rate has risen to 16 percent, according to CoStar Group. Notable departures from companies such as T. Rowe Price and Legg Mason have accelerated during the pandemic due to aging infrastructure and rising crime, coupled with the expansion of sexy nearby submarkets, Inner Harbor East and Harbor Point. Combined these factors have stressed property owners and businesses trying to survive. Downtown restaurants in particular have suffered even more from the double whammy of the area’s rising pre-pandemic vacancies followed by the crushing hit from the spread of COVID-19 and government shutdowns. State government swoops in But Baltimoreans just received some good news from Maryland Gov. Larry Hogan that is sure to spur economic and social revitalization of its CBD. Over time the State of Maryland will be relocating 12 agencies and approximately 3,300 employees to available properties throughout the CBD from an aging Midtown office complex known as State Center. The first agency on the move will be the Department of Human Services (DHS), which has an RFP out for approximately 105,000 square feet of office space. The Department of Health …

June 21, 2021

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