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.
MIAMI — Lennar Homes LLC has signed a 16-year lease to occupy 156,000 square feet of office space for its new headquarters in Miami. Lennar Homes will move into Franklin Street Properties’ Blue Lagoon property, which is a nine-story, 213,000-square-foot building located seven miles west of downtown Miami.
CHICAGO — Industrious, a flexible workspace provider, has expanded its office space at Accenture Tower in Chicago. Industrious will now occupy more than 93,000 square feet, up from its original footprint of 46,500 square feet. The company says it signed the lease expansion due to overwhelming business demand. Industrious Ogilvie features shared workspaces, private offices and Canvas suites, its signature offering. Amenities include Wi-Fi, daily breakfast in a fully stocked café and networking events. The expanded space is expected to be open in the second quarter of 2020. KBS owns Accenture Tower, a 1.5 million-square-foot office tower. KBS spearheaded a multi-million-dollar renovation of the property in 2015. Wendy Katz and Matt Lerner of Cushman & Wakefield represented KBS in the lease transaction. Paul Reaumond, Mark Cassata and Ian Murphy of CBRE represented Industrious.
NEW YORK CITY — Equity firm General Atlantic Service Co. will expand its Manhattan headquarters lease to 93,500 square feet. The company currently occupies 62,340 square feet across the 32nd and 33rd floors of Park Avenue Plaza and will incorporate the entire 31,200-square-foot space of the 31st floor beginning in July 2020. Robert Martin of JLL represented General Atlantic in the lease negotiation. Marc Packman and Clark Briffel represented the landlord, Fisher Brothers, on an internal basis.
NEW YORK CITY — JLL has negotiated a 27,000-square-foot, 15-year office lease for public relations firm MWWPR in Manhattan. MWWPR will take occupy the entire third floor of the Nomad Tower, located at 1250 Broadway. Alexander Chudnoff, Benjamin Bass and Kristen Morgan of JLL represented MWWPR in the transaction. Paul Glickman, Mitchell Konsker, Diana Biasotti and Harley Dalton of JLL represented the landlord, Global Holdings Management Group, along with Craig Panzirer of Global Holdings.
RANCHO CORDOVA, CALIF. — CBRE has arranged the sale of an office building, located at 2882 Prospect Park Drive in Rancho Cordova, a suburb 15 miles east of Sacramento. Lafayette, Calif.-based Prospect Park LLC sold the asset to San Jose, Calif.-based Prospect Park Drive LLC for an undisclosed sum. Matt Post, Stuart Wright and Randy Getz of CBRE’s Sacramento office represented the seller in the deal. Built in 1999, the four-story, 112,511-square-foot property was 88 percent leased at the time of sale. The asset is located within the Highway 50 Corridor submarket, which has a total of 11.4 million square feet of office space.