SUGAR LAND, TEXAS — Rosenberger Construction has broken ground on a 56,000-square-foot office building for software developer HCSS in Sugar Land, located southwest of Houston. The property will be the third office building on the company’s 12-acre corporate campus. HCSS expects to add about 200 new employees to the new building, which will include a full kitchen, multiple lounge areas, a fitness center and an indoor racquetball court. A timeline for completion was not released.
NEW YORK CITY — Marketing and design firm Harper + Scott has signed a 17,456-square-foot office lease at 3 World Trade Center in Manhattan. The company currently operates out of 915 Broadway in the Flatiron District and will occupy a portion of the 40th floor of the building beginning in spring 2020. Jeff Fischer and Joe D’Apice of CBRE represented Harper + Scott in the lease negotiations. Jeremy Moss and Camille McGratty of Silverstein Properties represented the landlord, the Port Authority of New York and New Jersey. Mary Ann Tighe, Ken Meyerson, Adam Foster, Evan Haskell, Steve Eynon, David Caperna and Rob Hill of CBRE assisted the Silverstein Properties team.
SANTA FE SPRINGS, CALIF. — Valore Ventures has purchased a flex industrial facility, located at 15511 Carmenita Road in Santa Fe Springs, from a private seller for an undisclosed sum. Built in 1998, the 28,542-square-foot property features 11,437 square feet of office space spanning two floors in the front of the building, and 17,105 square feet of one-story industrial warehouse space with 22-foot clear heights in the rear of the building. The facility features a gated parking lot, two drive-in docks and two-grade level doors.
The outlook for San Diego’s office market is sunny and bright. Often considered a less costly option for office users as compared to other Southern California markets, San Diego holds consistent appeal for tenants seeking a coastal address where the weather is mild and the vibe is entrepreneurial and business friendly. The market is following the national trend of stronger occupancy rates and robust absorption, buoyed by a healthy economy. At 10.2 percent in the second quarter — the lowest level in nearly 14 years — San Diego’s office vacancy rate beats the national office vacancy rate of 12 percent — the lowest level in 18 years, despite construction. These fundamentals are demonstrating increased tenant demand. We’re continuing to see growth and expansion of office in submarkets throughout San Diego County. Sorrento Valley is one of the stronger office submarkets due to its centralized location and accessibility to major freeways. Other submarkets with heightened demand are Del Mar Heights, which is close to the ocean and suburban areas that house corporate executives, and Kearny Mesa, another major business center for the county. Carlsbad and Oceanside in North County and Chula Vista in South County are also popular choices. Oceanside and …
NEW YORK CITY — American Friends of Hebrew University (AFHU) has signed an 11,000-square-foot office lease in Manhattan. AFHU will move into a portion of the 11th floor of 199 Water Street in June 2020. Lauren Davidson, Lindsay Ornstein and Samantha Schrenker of Transwestern represented AFHU in the lease negotiations. Brett Greenberg and Adam Rappaport represented the landlord, Jack Resnick & Sons, on an internal basis.
SOUTHFIELD, MICH. — Secure 24 has signed a 100,000-square-foot office lease for its new headquarters in Southfield. The cloud services provider will occupy space at 4000 Town Center. Robert Badgero and Steve Badgero of Colliers International represented the tenant in the lease transaction. The landlord was not disclosed. Secure 24, which currently operates at 26955 Northwestern Highway in Southfield, expects to occupy its new space in the first quarter of 2020.
SAN JOSE, CALIF. — San Francisco-based Drawbridge Realty has completed the disposition of an office campus, located at 5300-5350 Hellyer Ave. in San Jose. An affiliate of the Empire Square Group acquired asset for $55.5 million. Cobham Advanced Electronic Solutions occupies utilizes the 160,000-square-foot campus as its corporate headquarters. Scott Prosser, Joe Moriarty and Jack DePuy of CBRE represented Drawbridge in the transaction.
DENVER — Griffin Capital Essential Asset REIT has completed the sale of a Class A office building located at 7601 Technology Way in Denver. An undisclosed real estate investment trust acquired the property for $48.8 million. The seven-story, 191,368-square-foot property was 95 percent occupied at the time of sale. Jackson National Life Insurance Co. renewed a long-term lease and Zoom Video Communications executed a long-term lease for approximately 58,000 square feet of space at the asset. Mike Winn and Tim Richey of CBRE Capital Markets represented the seller in the deal.
The office market in St. Louis has remained very active over the past year. With very little speculative development, the St. Louis County vacancy rate for Class A office space has experienced little change but remains at a historic low of 11.1 percent. Demand remains for large blocks of space in the more desirable submarkets such as Clayton and West County, as there are limited options for existing space. This has created an opportunity for new, proposed office developments gaining securing commitments from large occupiers. Most, if not all, proposed multi-tenant office developments around St. Louis County are contingent upon significant leasing commitments before construction can commence. A few key trends have played a major role in why developers now have the ability to attract large tenants to new developments. Tenants searching for office space in excess of 25,000 square feet have been struggling to find contiguous and efficient options. Rental rates are at all-time highs, with some of the top-tier buildings achieving rents well over $30 per square foot. Lastly, tenants are using office space differently than before and new office developments are providing more efficient floor plates with multiple on-site amenities that tenants highly value today. Project examples …
NEW ORLEANS — Wampold Cos. and The Lemoine Co. have acquired the Whitney Bank Building Complex, a 500,000-square-foot office campus comprising seven buildings in New Orleans. The Whitney Bank Building, built in 1911, anchors the four-block development. Wampold and Lemoine plan to turn the former headquarters of Hancock Whitney Bank into a mixed-use development comprising hotel rooms, apartments, stores and restaurants. Construction is expected to begin in mid-2020. Hancock Whitney Corp. sold the complex to the joint venture for an undisclosed price.