Office
Read the latest real estate industry news with a focus on traditional office space leases, office property sale transactions, new office project construction and adaptive reuse repositioning programs, and more.
Empire Capital Lands $215 Million Acquisition Loan for Midtown Office
Located between West 53rd and West 54th streets, the tower totals 525,825 square feet. Built in 1965 and renovated in 2007, the Emery Roth & Sons-designed building has had a tumultuous couple of decades. Purchased at the height of the commercial real estate market in 2006 by Harry Macklowe, it commanded a whopping $498 million. Three years later, in the midst of the financial crisis, Macklowe had to auction it off. In 2010, RXR bought the tower off Otera for about $400 million. Five years later, Blackstone became the majority stake owner after it scooped up the property as part of a six-asset portfolio deal.
Business Group to Move into WeWork Offices in Downtown St. Louis
The deal will allow Greater St. Louis Inc. — which already occupies space on the 13th floor of the building — to lease out the entire 22nd floor, which had previously hosted coworking space provider WeWork. The move is expected to be completed by spring 2023.
Prologis Unveils Plans for Alameda Crossings Studio Complex
Located at 1716 E. Seventh St. on a nine-acre site that previously hosted a Greyhound bus terminal, the campus will feature 10 soundstages and 291,000 square feet of Los Angeles office and support space. The proposed project will also have a parking garage with capacity for 941 vehicles and 136 bicycles.
Haystack Oncology Leases New Facility in Baltimore
Originally built in 1965 as a bus depot, City Garage was redeveloped into a manufacturing hub with the backing of Sagamore Ventures in 2016. The property is part of the Baltimore Peninsula, a mixed-use project undertaken by a team that includes the likes of MAG Partners, MacFarlane Partners, Sagamore Ventures and the Urban Investment Group within Goldman Sachs. Currently undergoing construction, the 235-acre development is estimated to deliver more than 14 million square feet of commercial office, retail and residential space to the local market.
Marx Realty Signs Trio of Fintech Tenants at 10 Grand Central
Designed by Ely Jacques-Kahn, 10 Grand Central has undergone major renovations since 2019. The effort — lead by David Burns, principal of Studios Architecture — was part of Marx Realty’s repositioning strategy for the 359,000-square-foot tower. Notably, the new façade features soaring marquee brass fins and oversized walnut doors. The lobby has also been refurbished, boasting a 7,500-square-foot indoor/outdoor lounge and club floor. The property also has a 40-seat conference space and a 1930s-inspired garden party outdoor space, dubbed The Ivy Terrace.
Sodexo Inks Deal for New Bethesda Headquarters
Sodexo is expected to move in the spring of 2024, leaving its current location at 9801 Washingtonian Blvd., which has served as its headquarters since the 1980s, when the Paris-based company opened its American arm. According to the Washington Business Journal, Sodexo previously considered a relocation in 2012. However, that move was scraped after county and city officials offered $4 million in public incentives.
Rubenstein Partners Signs New Tenant at 25 Kent
Altana, an artificial intelligence platform for supply chain management, has signed a 10-year lease for roughly 21,000 square feet of office space at 25 Kent Ave. in the Williamsburg neighborhood in Brooklyn, N.Y. Whitten Morris and Peter Riguardi of JLL represented the landlord (Rubenstein Partners), while Sam Seiler and Joe Sipala, also of JLL, negotiated on behalf of Altana.
The deal allows the company to shift its workforce from its current location at 134 N. Fourth St. to the eight-story building owned by Rubenstein Partners. Altana’s expansion into its new headquarters comes on the heels of a recent $100 million Series B investment.
ULI Report on Emerging Trends in Real Estate 2023
One of the first aspects that caught the attention of industry professionals was the decline of older office stock – buildings labeled as Class B or Class C assets, in accordance with the quality and diversity of their amenities – in favor of newer developments. In fact, a study by JLL highlighted that, between 2020 and the second quarter of 2022, properties completed in 2015 or later had a net absorption of 86.8 million square feet, whereas buildings older than that had negative net absorption of 246.5 million square feet. Notably, most negative net absorption (195.5 million square feet) was in buildings completed in the 1980s and earlier.
Santander to Occupy 95,000 Square Feet at New Miami Office
Located in the heart of Brickell and equipped with the latest in office amenities, the building has attracted a lot of attention. At the time of this deal, 830 Brickell was nearly fully leased, sporting an impressive roster of high-profile tenants that have driven up asking rents past $120 per square foot — a record for the Miami market.
Slate Office REIT to Buy Pfizer-Leased Property in Lake Shore
At the time of the negotiations, 275 North Field Drive was occupied and owned by Pfizer. The pharmaceutical giant had moved into the premises following its $17 billion merger with Hospira in 2015. As part of the current deal, Pfizer agreed to a long-term lease for most of the Lake Shore property, which also includes another 65,000 square feet of space available for a potential tenant.
