Office

Tech, Finance Firms Dominate U.S. Office Leasing, Says Cushman & Wakefield

by John Nelson July 17, 2018

CHICAGO — Tech and financial services firms are the most aggressively expanding office users through the first half of the year, according to a report from Cushman & Wakefield. Of the 144.6 million square feet of absorption closed in the first six months of 2018, the tech industry was responsible for approximately 23 percent. Tech and software firms are investing heavily in their own operations, including expanding in markets they deem necessary to house their staffers. Back in May, Facebook signed a full-building office lease for a 43-story tower under construction in San Francisco. The 764,700-square-foot space will be a much more convenient location for the company’s San Francisco-based employees, who now are shuttling to Facebook headquarters in Menlo Park. Like the Facebook lease, a good portion of the office transactions closed in the first half of the year by tech firms have been larger in scope. Amazon leased 430,000 square feet of office space within W.S. Development’s Seaport project in Boston, and Nokia signed a 350,000-square-foot lease in Dallas within Billingsley Co.’s Cypress Waters mixed-use project. The No. 2 most active office-using industry was the financial services sector, which accounted for roughly 17 percent of all office leasing in …

July 17, 2018

Denver’s Dynamic Office Market Changes Face of Downtown

by Taylor Williams July 17, 2018

Denver’s office market has been riding a wave of expansion, entering its ninth straight year of growth, with net absorption totaling 186,826 square feet in the first quarter of 2018. While vacancy ticked up — ending at 15.9 percent, up from 15.1 percent in the prior quarter and from 14.6 percent one year ago — it is expected to fall over the next several quarters as tenants continue to absorb space in both new and existing buildings. The Denver office market’s impressive expansion has lasted 33 consecutive quarters, resulting in a total of 9.7 million square feet of absorption, 7.4 million square feet of new deliveries and a 409-basis-point plunge in vacancy. The majority of the 9.7 million square feet absorbed between the first quarter of 2010 and the first quarter of 2018 occurred in three key submarkets. This included the Southeast Suburban (SES), Downtown and Northwest (NW) markets, which recorded 3.3 million, 2.9 million and 1.3 million square feet of absorption, respectively. The Downtown market ended the quarter with absorption of 214,317 square feet, and Class A median asking rates were up 39.5 percent from year-end 2009 to $39.76 per square foot. Asking rates in some of the newest …

July 17, 2018

Acquisitions Northeast Office Pennsylvania

Hinerfeld Negotiates $6.4M Sale of Office Building in Scranton

by David Cohen July 16, 2018

SCRANTON, PA. — Hinerfeld Commercial Real Estate has negotiated the sale of the Mount Pleasant Medical and Professional Center in Scranton for $6.4 million. The two-story, 30,750-square-foot office building sits on a three-acre parcel and is located at 521 Mt. Pleasant Drive. Geisinger-Community Medical Center purchased the property. The seller was undisclosed. The building was fully occupied at the time of sale to a tenant roster that includes Valley Oral & Maxillofacial Surgery, Physicians Health Alliance and LabCorp.

July 16, 2018

Illinois Leasing Activity Midwest Office

Snap36 Expands, Relocates Headquarters in Chicago’s Fulton Market

by Kristin Harlow July 16, 2018

CHICAGO — Snap36 has expanded and relocated its headquarters to more than 42,000 square feet at 219 N. Paulina St. in Chicago’s Fulton Market district. Snap36 specializes in product photography. The company’s new space is six times the size of its previous office in a different corner of Fulton Market. Adam McCostlin and Jordan Decker of Cushman & Wakefield represented Snap36 in the lease transaction. Mitch Adams of CBRE represented the undisclosed landlord.

July 16, 2018

Acquisitions California Mixed-Use Office Retail Western

LPC West Buys 57,253 SF Mixed-Use Property Near San Diego for $27.5M

by Amy Works July 16, 2018

DEL MAR, CALIF. — LPC West has acquired Polo Plaza, a mixed-use property located at 3702 and 3790 Via De La Valle in Del Mar, approximately 20 miles north of San Diego. An undisclosed local seller sold the property for $27.5 million. At the time of sale, the two-building 57,253-square-foot property was 92 percent occupied. Ben Tashakorian and Bradley Peters of Marcus & Millichap represented the seller, while LPC West represented itself in the transaction. LPC West plans to renovate the Mediterranean-style office and retail property to include a new paint scheme, monument sign, exterior lighting, furniture and landscaping, as well as complete parking lot upgrades. The renovated property will feature small ExecuOffices and on-site amenities, including a café offering coffee, breakfast and lunch.

July 16, 2018

Acquisitions Arizona Healthcare Office Western

Inland Real Estate Acquires Two Medical Office Buildings in Metro Phoenix

by Amy Works July 16, 2018

MESA AND CHANDLER, ARIZ. — Inland Real Estate Acquisitions has negotiated and closed on the purchase of two Swagel Wootton Hiatt Eye Centers in Mesa and Chandler, approximately 20 miles east of Phoenix. Matthew Tice of Inland Real Estate Acquisition and David Neboyskey of The Inland Real Estate Group Law Department completed the deal on behalf of an Inland affiliate. Located at 220 S. 63rd St. in Mesa and 3940 S. Alma School Road in Chandler, the properties provide a combined total of 25,340 square feet of medical office space and seven board-certificated physicians. Specializing in eye care procedures, Swagel Wootton Hiatt Eye Centers offer patients laser cataract, corneal and retinal surgeries, corneal transplants, procedures for Descement’s Membrane Endothelial Keratoplaty and glaucoma and treatment of diabetic eye disease, macular degeneration and primary open-angle glaucoma. To date, Inland Real Estate Acquisitions has facilitated more than $45 billion of purchases including retail centers, apartments, single-tenant properties and a total of more than $323 million in medical office buildings.

July 16, 2018

Acquisitions California Office Western

NKF Capital Markets Negotiates Sale of 124,529 SF Office Building in Inland Empire for $29.9M

by Amy Works July 13, 2018

ONTARIO, CALIF. — NKF Capital Markets has brokered the sale of Empire Towers V, a five-story office building located at 3990 Concours St. in Ontario. TA Associates sold the property to MGR Realty for $29.9 million. Kevin Shannon, Ken White and Michael Moore of NKF Capital Markets represented the seller, while the buyer was self-represented in the transaction. Built in 2007, the 124,529-square-foot property is situated on 4.4 acres and within walking distance to various amenities, including restaurants, hotels, Ontario Mills Mall, Citizens Business Bank Arena and the Ontario Convention Center. At the time of sale, the property was 100 percent occupied by 11 tenants, including United Health Care Services, Chapman University and CEMEX.

July 13, 2018

Acquisitions New York Northeast Office Top Stories

Alexandria Acquires Pfizer-Occupied Office Building in Manhattan for $203M

by Kristin Harlow July 13, 2018

NEW YORK, N.Y. — Alexandria Real Estate Equities Inc. (NYSE: ARE) has acquired 219 E. 42nd St. in Manhattan for $203 million from Pfizer Inc. The pharmaceutical giant will lease back the 350,000-square-foot office building on a triple-net basis from an affiliated purchasing entity of Alexandria known as 219/235 East LLC. Pfizer announced plans earlier this year to relocate its global headquarters to Manhattan’s Hudson Yards neighborhood in 2022. Tishman Speyer is currently building the 2.85 million-square-foot, 65-story tower known as The Spiral. Located in the heart of Manhattan’s East Side Medical Corridor, 219 E. 42nd St. rises 10 stories. Upon expiration of Pfizer’s lease, Alexandria plans to redevelop the property into office and laboratory space. Pasadena, Calif.-based Alexandria was instrumental in creating the New York City life science cluster through the development of its Alexandria Center for Life Science, which opened in 2010. Alexandria is an urban office REIT focused on collaborative life science and technology campuses with a total market capitalization of $17.9 billion and a North American asset base of 30.2 million square feet as of March 31. Alexandria’s stock price closed at $127.96 per share on Thursday, July 12, up from $118.73 per share one year ago. …

July 13, 2018

Leasing Activity Office Texas

Nokia Signs 350,000 SF Office Lease in Dallas for New North American HQ

by Taylor Williams July 12, 2018

DALLAS — Nokia has signed a 350,000-square-foot office lease at Cypress Waters, a mixed-use development by Billingsley Co. in northwest Dallas. The move will allow the Finnish telecommunications giant to consolidate its operations in the metroplex and move its North American headquarters to Cypress Waters. Nokia is aiming for the consolidation, which is expected to bring about 2,300 jobs to the area, to be complete by the third quarter of 2019. Randy Cooper, Craig Wilson, Chad Tsitovich, Scott Goldman and Chris Wood of Cushman & Wakefield represented Nokia in the lease negotiations. Marijke Lantz internally represented Billingsley Co.

July 12, 2018

Development Office Texas

Crescent to Redevelop 200,000 SF Office Property in Uptown Dallas

by Taylor Williams July 12, 2018

DALLAS — Crescent Real Estate LLC will redevelop 2401 Cedar Springs, an office property in Uptown Dallas that was built in 1989. The property will offer 200,000 square feet of Class A office space upon completion of the project, which will upgrade the lobby, amenity spaces and individual office spaces. Following the redevelopment, 2401 Cedar Springs will feature a fitness center with locker rooms and a social lounge, a multipurpose conference room and a golf simulator. Crescent acquired the property earlier this year in a joint venture with Goldman Sachs Asset Management Private Real Estate.

July 12, 2018

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