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.
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.
Q3 2022 CommercialEdge Office Report: Demand for Coworking Continues to Drive Growth
CommercialEdge released its national office report for October, shining a spotlight once again on the reemergence of coworking spaces as a magnet for tenants, developers and investors alike. As a recent survey conducted by BOMA confirmed, office-using businesses are signaling their preference for shorter lease terms and more flexible workspace arrangements, which will allow them to quickly adjust their footprints according to their needs.
BOMA Releases New COVID-19 Tenant Impact Survey
The highlights presented in the final study relied on a series of fielded responses from more than 1,267 office decision-makers, including company owners, CEOs and other members of the C-Suite. The goal of the survey was to better understand the future financial and operational implications for commercial real estate owners and operators.
Related Secures Construction Loan for West Palm Office
Since 2020, Related has become dominant in the West Palm Beach office market, both as a developer and an owner. In terms of owned assets, the company’s portfolio includes Phillips Point, CityPlace Tower and Reflections office properties, as well as a 50% stake in Esperanté Corporate Center. Meanwhile, Related recently added a 20-story property located at 360 Rosemary to its name, in addition to announcing plans for another office construction project at 515 Fern. In fact, the company’s entire portfolio in West Palm Beach has earned it the moniker of the “Wall Street of the South” as a result of its ability to attract out-of-state financial firms.
O’Melveny & Myers Plans Move to 1301 Avenue of the Americas
Paramount Group — one of the largest real estate investment trusts in the U.S. — has announced the closing of a 15-year lease agreement with O’Melveny & Myers LLP (OMM) for 142,000 square feet of office space at 1301 Avenue of the Americas. The law firm will occupy the 17th through 20th floors in the 1.7-million-square-foot trophy tower located between 52nd and 53rd streets in Midtown Manhattan. The move is scheduled to occur in late 2024 or early 2025.
Has the New Age of Remote Work Made a Dent in the Average U.S. Commute Time?
Western U.S. cities reported the largest local drop in average commute time. While the number of remote workers in San Jose, Calif., grew from 4% in 2019 to nearly 30% of the workforce in 2021, the average commute time for non-remote workers dropped nearly 15 minutes for a round-trip commute.
Truist Joins Vista Equity & Meta at 50 Hudson Yards
Truist Financial will join a select list of tenants — comprised of the likes of Meta, Vista Equity Partners and ServiceNow — at the soon-to-be-completed 50 Hudson Yards in Midtown Manhattan. Even before construction began on 50 Hudson Yards, the building was already attracting the attention of major players. Social media giant Meta signed in 2019 and also has space at other Hudson Yards properties, while BlackRock had agreed to move its headquarters to the skyscraper as early as 2016.
