WASHINGTON, D.C. — The Society of Industrial and Office Realtors (SIOR) has appointed Tom McCormick as its new CEO. McCormick, an industrial specialist based out of Irvine, Calif., has been an SIOR member for 33 years and has served as SIOR global past president, SIOR foundation past president, his local chapter’s past president and most recently as SIOR’s operations director on the board of directors. He is the first SIOR designee to hold an executive position within the organization. McCormick joins SIOR from Rockefeller Group International, where he served as senior vice president of national accounts before retiring a little over a year ago. Prior to that role, he held positions at Coldwell Banker Commercial and Panattoni. “I am thrilled that Tom has agreed to take on the challenge as our new leader,” said Del Markward, SIOR 2018 global president, in a statement. “His commitment and service to SIOR has been demonstrated across the board. Tom’s management skills and depth of knowledge make him a solid mentor and role model for our members, staff and the industry as a whole.” Founded in October 1940, SIOR is a Washington, D.C.-based organization comprising nearly 3,100 industrial and office real estate specialists. The broker network …
As demand for e-commerce and corporate distribution space continues to drive supply chain expansion in the Southeast, many developers are designing facilities to accommodate the truck-dependent, labor-driven operations present today and for the near-term. While robotics and automated vehicles are exciting to dream about, the reality is that these innovations are not expected to impact industrial building design any time soon in the Southeast. Modern industrial buildings that can support heavier than average employee parking needs while also providing abundant trailer storage are the standard for new projects. At the same time, these buildings need to support advanced technology, automation and extensive stacking and sorting operations. By building with an eye toward long-term tenant needs, developers are working to differentiate themselves in this highly competitive environment. These trends are particularly apparent in the Charlotte market, where developers have added 4.5 million square feet of industrial space over the past year. With a 5.3 percent vacancy rate in the first quarter of 2018, the market is well positioned to absorb the additional 4.7 million square feet of projects in the pipeline. Of that total, 62 percent is either preleased or set to be owner-occupied. Modern Design Demands At the core of …
The industrial market is enjoying a moment in the sun throughout the West. Much of this is due to the retail sector’s continued technological advances, which have placed increasing demand on speedy delivery as manufacturing, distribution and warehousing needs are more important now than ever. “The market fundamentals for industrial properties are the best they have ever been,” says Bob O’Neill, senior vice president of acquisitions at CapRock Partners in Newport Beach, Calif. “Industrial absorption, lease rates and sales prices are at all-time highs, while market vacancies are at historic lows and construction in the Western United States remains in check.” Michael Collins, vice chairman of DAUM Commercial Real Estate Services in Los Angeles, has witnessed a similar trend in his market. He notes industrial assets in LA typically sell for $140 per square foot to $200 per square foot, with a vacancy rate of less than 2 percent in Southern California. “Developable land is becoming more scarce and the Los Angeles County industrial marketplace remains very vibrant,” he notes. “Lease rates throughout Southern California have reached an all-time high and sales values are at unprecedented highs, with actual prices based on building age, location, functionality and amenities.” Those looking …
BOSTON — TA Realty LLC has arranged the $418 million sale of 28 State Street, a 40-story office tower located at the intersection of Congress and State streets in Boston’s Financial District. A joint venture between Rockefeller Group U.S. Premier Office Fund LP and Mitsubishi Estate New York sold the asset to a domestic institutional investor. The building includes 572,000 square feet of office space, and was 95 percent leased at the time of sale to financial services and law firms. In addition, 28 State Street includes 7,000 square feet of retail space. TA Realty managed the building and provided advisory services on behalf of the joint venture, helping the ownership group enhance the property’s value through operational and capital improvements. “The asset quality and ideal location together with strong market fundamentals made 28 State Street a highly compelling acquisition opportunity,” says Jim Raisides, partner at TA Realty. “We believe the purchase price reflects the value we helped create over the ownership period.” Designed by Emery Roth & Sons and originally constructed in 1968, 28 State Street was completely renovated in the late 1990s. Enhancements were made to the building’s infrastructure and systems, lobby and outdoor spaces. The tower is one …
NEW YORK CITY — Rockefeller Group has signed Blank Rome to a 138,000-square-foot office lease at 1271 Avenue of the Americas. Blank Rome will occupy floors 15 through 17, as well as part of the 14th floor. The law firm plans to relocate from the Chrysler Building in 2019. Ken Rapp, David Kleinhandler, Tim Dempsey and Zachary Weil of CBRE represented Blank Rome in the transaction. Built in 1959, the 48-story skyscraper was originally designed by Harrison & Abramovitz & Harris, the architects for all of Rockefeller Center. 1271 Avenue of the Americas is currently undergoing extensive renovations designed by the architectural firm Pei Cobb Freed & Partners. The project began in 2016 and is slated to be complete by the end of 2019. Major League Baseball and Mizuho Americas have also recently signed leases at the building.
NEW YORK CITY — Rockefeller Group has signed Latham & Watkins LLP to a 407,000-square-foot office lease at 1271 Avenue of the Americas. The law firm will occupy floors 25-34 in the 48-story building with an anticipated move-in during the second half of 2020. Built in 1959, the building was originally designed by Harrison & Abramovitz & Harris, the architects for all of Rockefeller Center. Scott Gamber and Craig Reicher of CBRE represented Latham & Watkins in the transaction. 1271 Avenue of the Americas is currently undergoing extensive renovations designed by the architectural firm Pei Cobb Freed & Partners. The project began in 2016 and is slated to be complete by the end of 2019. Major League Baseball and Mizuho Americas have also recently signed leases at the building.
NEW YORK CITY — Mizuho Americas has signed a lease with the Rockefeller Group to occupy 270,000 square feet of office space at 1271 Avenue of the Americas in Manhattan. The long-term lease, which follows the June announcement of Mizuho’s lease of 141,000 square feet in the building, brings the company’s total commitment for 1271 Avenue of Americas to 411,000 square feet. The new lease nearly triples the size of the company’s future U.S. headquarters in the building. Mizuho, a subsidiary of Mizuho Financial Group, will begin to take possession of its space in 2019. The company plans to relocate employees from multiple locations to the 2.1 million-square-foot tower. Mitchell Steir, Matthew Barlow, Steve Berliner and David Goldstein of Savills Studley represented Mizuho, while Mary Ann Tighe, Howard Fiddle, John Maher, Sarah Pontius, Evan Haskell and Dave Caperna of CBRE, in coordination with Ed Guiltinan, Jennifer Stein, Yoshinori Nakamura, Yoko Yamada and Eden Jeon of Rockefeller Group’s in-house leasing team, represented Rockefeller Group in the lease transaction.
TYSONS, VA. — Hogan Lovells, an international law firm, will relocate its Northern Virginia office to Boro Tower, a new 20-story office tower under construction at The Boro, a planned 15-acre mixed-use development in Tysons. The first phase of The Boro will deliver 700 residential units, 260,000 square feet of retail space and Boro Tower. The Meridian Group and Rockefeller group are codeveloping the project, with the first phase slated for completion in 2019. Rob Faktorow and Terry Reiley of CBRE represented The Meridian Group in the lease transaction, and Rick Rome and Alexandra deVilliers of Savills Studley represented Hogan Lovells. The law firm will relocate from Park Place II in McLean, Va., and will occupy 44,500 square feet of office space at the new building beginning in June 2019. TEGNA, a digital media company, will lease approximately 46,000 square feet at Boro Tower as well.
NEW YORK CITY — Eastern Consolidated has negotiated the $100 million sale of a residential development assemblage in the NoMad neighborhood of Manhattan to the Rockefeller Group. The assemblage includes 170,000 square feet across three contiguous buildings at 30-36 E. 29th St. and includes surrounding air rights. The existing buildings will be razed to make room for a ground-up condominium development with just under 100 feet of frontage on East 29th Street. Eastern Consolidated’s Brian Ezratty represented the three sellers: Extell Development, the owner of 30-32 E. 29th St.; W Brothers, the owner of 34 E. 29th St.; and 29th Street Partners LLC, the owner of 36 E. 29th St. Ezratty and Eastern Consolidated’s Ron Solarz procured the buyer, the Rockefeller Group.
With increasing rental rates, strong investor demand for core product and record levels of speculative construction, spirits are high in the Lehigh Valley with regard to industrial real estate opportunities. The record volume of product deliveries the past two years underscores the strong industrial demand in the Lehigh Valley. Vacancy has dropped from 15.9 percent in the first quarter of 2009 to a record-low 4.9 percent at the end of 2015, according to CoStar. The average net industrial rental rate jumped 11.1 percent during the past 18 months, an even more impressive figure when compared against the 10-year average of 1.65 percent rental rate growth in Lehigh Valley for modern distribution buildings. After many years of flat rental growth, year-end 2015 industrial leases were completed in the $4.75- to $4.95-per-square-foot range in the Allentown-Bethlehem-Easton, Pennsylvania MSA. In 2016, expect a modest increase in rental rates as the delivery of new construction across the northeastern Pennsylvania region will slow growth and push vacancy rates higher. Leasing activity has been broadly distributed along the regional I-78 and I-81/I-80 corridors. Within the valley, industrial growth has occurred primarily along the main interchanges of I-78, U.S. 22 and Route 33. In the past 12 …