HOUSTON — Avison Young has negotiated a 14,206-square-foot office lease in Uptown Houston for Goree Architects Inc. The tenant will relocate its headquarters from 4710 Bellaire Blvd. to Sage Plaza, located at 5151 San Felipe St. Anthony Squillante and Collin Roach of Avison Young represented the tenant in the lease negotiations. Nina Seyyedin and Jason Presley of CBRE represented the landlord, Granite Barnhart Sage Plaza LP.
On June 4, InterFace Net Lease and France Media hosted the first industry-wide webinar to discuss net lease/sale-leaseback market conditions related to the impact of coronavirus: “The State of the NNN Market as the Industry Emerges from COVID-19.” In this panel discussion, net lease experts explain the short- and long-term impacts of COVID-19 on the world of triple net lease, as well as the challenges and opportunities investors and developers may see as the country reopens after months of shutdown. What can we expect as from a bank liquidity point of view? Per Karl Francetic of Realty Investor Capital: “[When the crisis first happened], there were a bunch of tenants that weren’t sure how if and how they were going to be paying their rent. They all got PPP loans, and now everybody has paid their rent. July is going to be the first month where they’re not going to have that PPP funding. It’s going to be very telling what happens. Are tenants going to be paying their rent and are things going to be back on track without PPP, or is the government going to go and do another stimulus, which then can extend that kind of uncertainty in terms of how long it’s …
Outdoor amenity spaces will be central to enhancing the experiences of office users in a post-COVID-19 world in which requirements for fresh air, distancing and minimal contact of shared surfaces will all be elevated. A trio of real estate professionals addressed the shift in the functionality of common areas in office buildings as part of a webinar titled “Why Experience is the Next Big Office Amenity.” Urban Land Institute (ULI), a research and advocacy organization for the commercial real estate industry, hosted the event on Monday, June 8. Demand for various outdoor amenities in office properties — food courts, water features, hiking trails — was certainly strong before the pandemic began. With the nation’s economy experiencing 128 months of consecutive job growth through February and unemployment levels at historic lows, office-using firms were engaged in fierce battles for talent recruitment and retention. Being able to offer a range of amenities — both indoor and outdoor — that made the average workday more enjoyable was a key part of winning those battles. In the post-pandemic era, the presence of useful outdoor spaces can also deliver the added health benefits of access to fresh air and sunlight, which can improve respiratory function …
The outbreak of the COVID-19 virus has led to an economic crisis that is forcing office users across the region to make tough choices to continue their operations. While New York has been the epicenter of the virus, reporting nearly a third of the more than 1 million confirmed cases in the entire country, companies across the region have been forced to furlough employees and reassess their short-term needs for space. The nature of traditional office work was already changing before the virus, as mobile technology has allowed more flexible collaboration from home and co-working offices. Lessons learned from the virus, including the need for social distancing, will carry into whatever market conditions follow. Some companies may desire larger office spaces to allow wider distances between employees, while other may forgo physical space in favor of the mobile model. As a result of the health crisis, office brokers are working to help their landlord and tenant clients find common ground as they tentatively move forward with leasing agreements. Northeast Real Estate Business recently caught up with three veteran brokers to gain their insights into how the virus has impacted their office markets. Below are edited responses from Joshua Levering, senior …
SAN FRANCISCO AND OAKLAND, CALIF. — PG&E Corp. (NYSE: PCG), parent company of West Coast utilities company Pacific Gas and Electric Co., has entered into a long-term lease at 300 Lakeside, a 824,469-square-foot office building situated along Lake Merritt in Oakland. Starting in 2022, the publicly traded firm will move away from its longtime downtown San Francisco headquarters at 77 Beale St. and 245 Market St. The company plans to sell the buildings, pending approval of the bankruptcy court. PG&E entered into bankruptcy protection in January 2019 that included a $13.5 billion settlement for approximately 70,000 victims of the Northern California wildfires in 2017 and 2018, according to the San Francisco Business Times. The company’s power lines were reported to have sparked the fires. PG&E plans to request approval from the California Public Utilities Commission to return the net gain realized upon the future sale of its San Francisco headquarters to its customers. The company currently owns and occupies roughly 1 million square feet of office space in San Francisco, according to the San Francisco Business Times. PG&E’s lease in Oakland includes a purchase option from landlord TMG Partners taking effect in 2023, the same year that PG&E plans to …
WASHINGTON, D.C. — Grosvenor Americas has acquired two office buildings spanning 241,000 square feet in Washington, D.C.’s historic Georgetown district. The first property is the Georgetown-Green Building, a four-story, 112,000-square-foot building located at 2001 Wisconsin Ave. The British International School of Washington occupies the building, which was constructed in 1967 and renovated in 1987 and again in 2007. The other property in the transaction is the Harris Building, a five-story, 129,000-square-foot building located at 3300 Whitehaven St. Georgetown University occupies the building, which was built in 1975 and renovated in both 1987 and in 2005. The buildings are located less than one mile from each other and three miles northwest of downtown Washington, D.C. Grosvenor plans to implement smart technology designed to lessen utility loads and minimize the properties’ carbon footprint. The seller(s) and sales price were not disclosed.
CHARLESTON, W.VA. — West Virginia Gov. Jim Justice on Friday allowed movie theaters and casinos in the state to reopen. Theaters are required to operate with social distancing guidelines in place, including limiting the theater occupancy that will allow for proper distancing, adjusting common area layouts to allow for a six-foot distance between patrons who do not live together, encouraging all patrons and employees to wear personal protective equipment (PPE) and encouraging patrons to purchase tickets in advance to limit cash transactions. For casinos, occupancy must be limited to 50 percent capacity based on the fire code. Furthermore, operators must adjust the layout of the casino to implement social distancing of at least six feet between individuals who do not live together, limit the number of players at tables to allow for social distancing and close common areas where employees or players may congregate. Justice also approved the state’s plans for reopening adult sports facilities, including indoor tennis courts, racquetball courts, outdoor basketball courts and similar venues beginning today. Youth sports practices may also resume today. Private campgrounds and state park campgrounds, cabins and lodges will open to out of state guests beginning Wednesday, June 10.
TUCKER, GA. — Branch Properties will develop Hugh Howell, an 83,000-square-foot, Publix-anchored shopping center in Tucker. Publix will occupy 48,000 square feet, and Branch Properties will develop an additional 35,000 square feet of space across three buildings and two outparcels. The $19 million project will span 14 acres at the northeast corner of Hugh Howell Road and Mountain Industrial Boulevard, 15 miles northeast of downtown Atlanta. Publix will relocate from an existing site less than one mile away. Phillips Partnership is the architect of the project, and Contineo Group is the civil engineer. Branch Properties has not yet determined a general contractor. Construction is expected to be complete in fall 2021.
BALTIMORE — Byrnes & Associates Inc. has arranged the sale of The Munsey Apartment Building, an 18-story, 149-unit apartment building in downtown Baltimore. The property offers studio, one- and two-bedroom floor plans ranging from 668 to 1,705 square feet. Communal amenities include a fitness center, business center and a community clubroom. The building was originally constructed in 1911 and is named after Frank Munsey, the publisher and owner of the Baltimore-Sun. The asset was converted to multifamily space in 2002. Brad Byrnes of Byrnes & Associates represented both the buyer, PMC Property Group, and the seller, LC3 Investors Baltimore LLC, in the transaction.
PLANTATION, FLA. — Chetu, a provider of custom software solutions, has opened its new office headquarters in Plantation. Chetu will occupy the top floor of a three-story building located at 1248 N. University Drive, nine miles west of downtown Fort Lauderdale. As the anchor tenant, the company will occupy 21,000 of the building’s 63,600 square feet. The office building features a reception area, multiple conference rooms, a community dining area and break lounges.