By Kirk Garza, Valarie Bradley and Caleb Snow of Popp Hutcheson PLLC With property taxes comprising a significant portion of the real estate operating budget at most companies, both tenants and landlords need to understand how trends sparked by COVID-19 can impact their property tax valuations. The pandemic has spurred governments to impose unprecedented restrictions on office capacity and fueled widespread uncertainty among companies that own or lease office space. Organizations are asking if, when and how they will use their offices in the months ahead and are scrutinizing expenses to reduce costs. Many businesses are reevaluating their space requirements after adopting work-from-home initiatives, while greater familiarity with Zoom and other applications that support remote training and online collaboration has firms reconsidering their ongoing need for conference or meeting space. It is essential for real estate decision makers to monitor the effects of such trends on taxable property values. Office Demand Evolves In the early 1990s, it was common for companies to occupy 350 square feet of office space per person. This requirement changed as some businesses sought to maximize density and encourage collaboration. In a COVID-19 world where social distancing precludes density, many companies are limiting the number of …
HOUSTON — JLL has negotiated a 34,510-square-foot office lease for shipping firm Yang Ming Marine Transport Corp. in West Houston. The company is relocating its regional headquarters to a building at 3250 Briarpark Drive, which was built in 1998 and rises four stories, according to LoopNet Inc. Don Foster of JLL represented the tenant in the lease negotiations. Kristen Baker, Jack Scharnberg and David Baker of Transwestern represented the undisclosed landlord.
DALLAS — Locally based architecture and design firm Huitt-Zollars Inc. has leased 32,519 square feet of office space at Three Lincoln Centre, a 1.6 million-square-foot campus located at 5420 LBJ Freeway in the Galleria area of Dallas. Landlord Nuveen Real Estate is currently renovating the property, a project that is expected to be complete in early 2021. Matthew Schendle and Clint Madison of Cushman & Wakefield represented Nuveen in the lease negotiations. J.R. Tomlinson of Newmark represented the tenant.
COLORADO SPRINGS, COLO. — Flywheel Capital, a Denver-based commercial real estate investment company, has started development of Peak Technology Campus, a speculative office project in Colorado Springs. The 210,000-square-foot campus will offer secure-ready site for the aerospace and defense industrial. Situated within the 900-acre Peak Innovation Park business park, Peak Technology Campus will feature four single-story office buildings with full-floor and multi-tenant configurations, secure-ready sites with dedicated entries, building signage, loading docks, 4.5 parking spaces per 1,000 square feet and secured satellite area. Plans for the new development include a 50,000-square-foot Building 1, a 40,000-square-foot Building 2, a 60,000-square-foot Building 3 and a 60,000-square-foot Building 4. Construction for Building 1 is slated to start in first-quarter 2021, with delivery set for third-quarter 2021. Kenton Mau, Brian Wagner and Mark O’Donnell of Newark will market the property for lease. According to Newmark Research, Peak Technology Campus represents the largest speculative office development in Colorado Springs since 2001.
PEACHTREE CORNERS, GA. — Consulting firm Merlinos & Associates Inc. has signed a full-floor, 25,347-square-foot office lease at Summit at Peachtree Parkway in Peachtree Corners. The landlord, OA Development, renovated the lobby, corridors and elevators, and added a fitness center and conference center in 2019. The six-story, 179,617-square-foot building is located at 5550 Peachtree Parkway, 22 miles northeast of downtown Atlanta. Howard Garrett of KW Commercial represented Merlinos & Associates in the transaction. Chip Roach and Stephen Clifton of Transwestern represented the landlord. Merlinos & Associates specializes in property, casualty, health, disability and life actuarial consulting.
DALLAS — Home goods discount retailer Tuesday Morning has entered into an agreement with Miami-based Rialto Capital to sell its Dallas headquarters building, located at 6250 LBJ Freeway, and three warehouses for $60 million. The deal comes several months after the Dallas-based retailer filed for Chapter 11 bankruptcy, citing major financial losses stemming from the COVID-19 pandemic. Tuesday Morning is also closing 230 stores, or roughly a third of its total inventory, across the country. The deal is expected to close by the end of the year.
AUSTIN, TEXAS — Weitzman has expanded its corporate services platform by launching a new branch in Austin that will focus on tenant solutions for office users in Austin and the surrounding Central Texas market. The new platform will offer services such as strategic planning and needs assessment, financial, market and labor analyses, lease restructuring, renewals, relocations, expansions, subleasing and disposition of excess space, acquisitions, dispositions and build-to-suits. Matt Epple, executive vice president and director of brokerage for Weitzman, will lead the new office. Weitzman’s office management portfolio in Texas currently spans more than 1 million square feet, including buildings in Austin such as downtown’s Scarbrough and Littlefield Buildings and the office tower at Capital Plaza.
BOSTON — Locally based biotechnology firm Ginkgo Bioworks has signed a 38,759-square-foot life sciences lease at 10 Wilson Road in the Cambridge area of Boston. The new space is located within The Quad, a four-building, 510,000-square-foot campus that is being developed in phases by The Davis Companies. McKenna Teague and Erick Smith of CBRE represented the developer in the lease negotiations. Anne Columbia and Patrick Downey of Columbia Group Realty Advisors Inc. represented the tenant.
LOWELL, MASS. — SVN | Parsons Commercial Group | Boston has brokered the sale of a 33,000-square-foot office building located at 81 Bridge St. in Lowell, which is located north of Boston. The sales price was approximately $2.5 million. According to LoopNet Inc., the two-story building was constructed in 1916. Marci Alvarado and Jake Parsons of SVN represented the seller, Bridge Street Business Center LLC, in the transaction. The duo also procured the buyer, Mill Bridge Residential LLC.
LITTLETON, COLO. — John Propp Commercial Group has arranged the sale of an office property located at 8089 S. Lincoln St. in Littleton. RMTN Properties sold the asset to MVP 8089 Lincoln Land for $3.8 million, or $148.97 per square foot. Situated near Littleton Adventist Hospital and Highlands Ranch, the property features 25,802 square feet of office space. The buyer plans to occupy the third floor of the building. Joshua Cohen of John Propp Commercial Group represented the seller in the deal.