Office

Lee & Associates Second Quarter Report: Industrial, Office Market See Continued Challenges While Retail, Multifamily Trends Follow Region-Specific Patterns

by Sarah Daniels July 26, 2024

In the first half of 2024, high interest rates led to decreased demand, higher vacancy rates, reduced construction starts and lower property sales in industrial and office, according to Lee & Associates’ 2024 Q2 North America Market Report. Meanwhile, retail saw minimal development and continued low vacancies. Retail rent growth was particularly strong in the South and Southwest. Finally, high demand for multifamily, coupled with a sudden influx of supply in the second quarter of the year, has created a market where outcomes are highly tied to region. Midwest and Northeast multifamily markets have remained stronger than their counterparts in the South and Southwest, while Western markets saw mixed growth. Lee & Associates has made their full market report available here (with complete breakdowns of cap rates by city, market rents, vacancy rates, square footage information and more). The summaries for the industrial, office, retail and multifamily sectors below provide detailed insight into the trends and trajectories likely through the end of 2024. Industrial Overview: Activity, Growth Checked by High Interest Rates Industrial market performance across North America continued to downshift in the first half of this year. Although net absorption remains positive, demand for industrial space has fallen to the lowest levels …

July 26, 2024

Development Florida Loans Office Southeast

OKO Group, Cain International Obtain $565M Loan for 830 Brickell Office Tower in Miami

by John Nelson July 25, 2024

MIAMI — Co-developers OKO Group and Cain International have obtained $565 million in financing for 830 Brickell, a 57-story office tower underway in Miami’s Brickell district. TYKO Capital, a joint venture between Adi Chugh and a Florida-based hedge fund that was established last year, provided the loan that pays off an existing construction loan that MSD Partners provided in 2019. Beatriz Azcuy of Sidley Austin LLP assisted the developers in the loan arrangement. Set to open this fall, 830 Brickell is fully leased to several high-profile tenants, including Microsoft, Citadel, Kirkland & Ellis, Marsh Insurance, Sidley Austin, CI Financial (Corient), Thoma Bravo, Santander Bank and A-CAP. OKO Group and Cain International are receiving temporary certificates of occupancy (TCOs) in phases for tenants, many of which are already building out their interior spaces within 830 Brickell ahead of its completion. Designed by Adrian Smith + Gordon Gill with interiors by Iosa Ghini Associati, the office tower will feature a restaurant and bar/private club on the top floor, upscale health and wellness center, conference facilities, outdoor terrace, cafés and street-level retail space.

July 25, 2024

Leasing Activity Office Texas

Law Firm Signs 15,458 SF Office Lease Renewal in Downtown Austin

by Taylor Williams July 25, 2024

AUSTIN, TEXAS — International law firm Foley & Lardner LLP has signed a 15,458-square-foot office lease renewal at 600 Congress Ave. in downtown Austin. The building rises 32 stories and totals approximately 544,000 rentable square feet. Amenities include an outdoor terrace with a bar and lounge, as well as a fitness center and multiple food-and-beverage options. Robert Copito, Nate Stricklen and Jay Austin of CBRE represented the tenant in the lease negotiations. JLL represented the landlord, Beacon Capital Partners.

July 25, 2024

Development Office Texas

JT Magen Completes Renovation of 8,079 SF Office Space in Austin for Video Game Developer

by Taylor Williams July 25, 2024

AUSTIN, TEXAS — National general contractor JT Magen has completed the renovation of the 8,079-square-foot office space of video game developer Owlchemy Labs in Austin. Revel Architecture designed the project, which involved the creation of several areas for larger group gatherings, as well as smaller connection spaces and a space for recreational gaming. The project team also maintained private meeting rooms and added larger ground-floor windows to increase the flow of natural light.

July 25, 2024

Leasing Activity New York Northeast Office

Charles Schwab Signs 23,000 SF Office Lease Renewal in Midtown Manhattan

by Taylor Williams July 25, 2024

NEW YORK CITY — Charles Schwab & Co. (NYSE: SCHW) has signed a 23,000-square-foot office lease renewal in Midtown Manhattan. The financial services and advisory giant has been a tenant at the 45-story, 1.1 million-square-foot building at 1133 Avenue of the Americas since 2014, and this deal keeps the company on the 37th floor for another 11 years. Schwab was self-represented in the lease negotiations. Tom Bow, Rocco Romeo and Nora Caliban represented the landlord, The Durst Organization, on an internal basis.

July 25, 2024

Acquisitions Colorado Industrial Office Western

Mile High Labs Sells 436,534 SF Manufacturing Campus in Broomfield, Colorado

by Amy Works July 25, 2024

BROOMFIELD, COLO. — Mile High Labs has completed the disposition of 2555 W. Midway Boulevard, a R&D and manufacturing property within Atlas Industrial Park in Broomfield, a suburb north of Denver. ScanlanKemperBard acquired the asset for an undisclosed price. Situated on 20 acres, the 436,534-square-foot asset features a 411,034-square-foot building and a 25,500-square-foot building. The buildings offer office, manufacturing, processing, packaging, laboratory and climate-controlled warehouse areas, as well as general engineering areas and an employee cafeteria. Additionally, the buildings collectively feature nearly 12,000 amps of power. Rick Egitto of Avison Young, along with Justin Rayburn of Fountainhead Commercial, represented the seller, while the buyer was self-represented in the deal.

July 25, 2024

Acquisitions California Mixed-Use Office Retail Top Stories Western

Tinder Founder Justin Mateen Leads $211M Acquisition of Wilshire Rodeo Plaza Office/Retail Property in Beverly Hills

by Katie Sloan July 25, 2024

BEVERLY HILLS, CALIF. — Tinder founder Justin Mateen, his brother Tyler Mateen and their brother-in-law Pouya Abdi have acquired Wilshire Rodeo Plaza, a Class A office and retail complex located at the corner of Rodeo Drive and Wilshire Boulevard in the posh Los Angeles suburb of Beverly Hills. Nuveen sold the asset for $211 million. The 300,000-square-foot property includes three six-story office and retail buildings along Wilshire Boulevard and a three-story office building along Rodeo Drive. The buyers plan to rebrand the property as One Rodeo, as well as upgrade and re-program the buildings to cater to luxury retail and office tenants. Current tenants include Merrill Lynch/Bank of America, USB, William Morris Endeavor and Encore Recordings. The Mateen brothers and Abdi view the acquisition as a generational property, and hope to take advantage of the “flight to quality” in a struggling office sector with limited new Class A supply. “Iconic buildings such as One Rodeo will continue to benefit from increased demand as the trend toward high-quality assets continues to unfold in a post-COVID world,” says Tyler Mateen, who is CEO of Cannon TTM, a Los Angeles-based real estate investment firm. “We are grateful to be acquiring these buildings at …

July 25, 2024

Acquisitions Georgia Office Southeast

Shorenstein Acquires 324,000 SF 14th & Spring Office Tower in Midtown Atlanta

by John Nelson July 24, 2024

ATLANTA — Shorenstein Investment Advisers, a privately owned office and multifamily owner and operator based in San Francisco, has purchased 14th & Spring, a 12-story office tower in Midtown Atlanta. The 324,000-square-foot building was delivered in late 2022 and has been without a tenant since its delivery, according to the Atlanta Business Chronicle. The seller and sales price were not disclosed, but the publication reported that locally based Greenstone Properties and an affiliate of Goldman Sachs put the tower up for sale earlier this year and the price would likely fall in the $200s per square foot, giving the sales price a range of $65 million to $97 million. Shorenstein has tapped ASD|SKY to help redesign and reposition 14th & Spring’s common areas, amenities and façade. The company has also hired Murphy Meyers to design a full floor of speculative office suites in various sizes. Additionally, Shorenstein has selected Jeff Keppen, Nicole Goldsmith, Kyle Kenyon and Maddie Nagley of CBRE to lease the office tower.

July 24, 2024

Loans Michigan Midwest Office

Bernard Financial Group Arranges $7.9M Loan for Refinancing of Office Property in Ann Arbor

by Kristin Harlow July 24, 2024

ANN ARBOR, MICH. — Bernard Financial Group (BFG) has arranged a $7.9 million loan for the refinancing of a 100,007-square-foot flex office property in Ann Arbor. Dennis Bernard and Adam Ferguson of BFG arranged the loan on behalf of the borrower, an entity doing business as 2725/2805 Associates LLC. Genworth Life Insurance Co. provided the loan.

July 24, 2024

Development Industrial Mixed-Use Montana Office Retail Western

Venture West Development Underway on 196-Acre Jackrabbit Crossing Mixed-Use Project Near Bozeman, Montana

by Amy Works July 24, 2024

BELGRADE, MONT. — Venture West Development is underway on Jackrabbit Crossing, a 196-acre mixed-use project in Belgrade, roughly 10 miles northwest of Bozeman. Rosauers Supermarkets, which recently signed a long-term lease, will anchor the property. Plans for the development, which is located three miles from the Bozeman Yellowstone International Airport, also include a proposed 53,000-square-foot Amazon distribution center.

July 24, 2024

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