There are more than three times as many AI companies (825) in the Bay Area as the next most concentrated market, New York City, with 237.

Even more so, Cushman & Wakefield anticipates a 200 percent growth for GenAI companies over the next two years in the Bay Area. In its latest report, AI Genesis | The Role of Generative AI in Transforming Bay Area CRE, Cushman & Wakefield broadly defines AI and includes semiconductor companies and other tech companies deploying AI.

Last year, 82 percent of global Gen AI venture capital landed in San Francisco.

Robert Sammons, Cushman & Wakefield senior research director and co-author of the report, told Commercial Property Executive that what had primarily started in San Francisco proper has spread more recently across the Bay Area region.

“Silicon Valley is certainly in the spotlight, largely because of AI divisions at the Big Tech players that are headquartered there, but also increasingly because of standalone AI companies popping up in the area,” Sammons said.

Given the depth of tech talent in the Bay Area, the focus will likely remain within the region, he anticipates. “However, like most tech sectors in the past, the GenAI phenomenon will likely spread to other markets as well—we already see that in major global cities such as New York and London. Thus far, it’s the search for talent leading that charge, but in the future, it could be about cost savings.”

READ ALSO: Why AI Firms Are Taking a Measured Approach to Office Leasing

Sammons said what surprised him most about the report was the sheer number of GenAI companies based in the Bay Area region—from the very early seed stage to the later stage to divisions of Big Tech.

“It’s still overwhelmingly a Bay Area phenomenon,” he said. “Also surprising was that there was more GenAI leasing activity in Silicon Valley than in San Francisco in 2024 as well as more unique job postings in Silicon Valley than in San Francisco in 2024.”

An office market rebound

The concentration of artificial intelligence companies in the San Francisco Bay Area is helping drive a market rebound, being a catalyst to lift the region of its real estate downturn, according to Avison Young VP Tyler Paratte, based in the San Francisco office.

“The correlation between companies receiving funding and leasing office space has drastically improved, leading to increased office attendance, revitalizing downtown cores and creating expanded opportunities for adjacent industries as these companies grow.”

Paratte said San Francisco has historically been a boom or bust market, heavily dependent on the technology industry.

“Not only does the data show the market is recovering, but there’s also a shared sentiment of being on the precipice of a boom, with AI being the engine that renewed momentum in the Bay Area,” he said.

AI firms’ leasing activity

JLL also sees a heavy influx of AI-based companies. Its data focuses on firms dedicated to the AI vertical. According to Chris Pham, JLL senior analyst, the Bay Area’s dominance in AI is echoed in JLL’s research in leasing activity and job posting trends.

He told CPE that new AI deals in the Bay Area comprise nearly 40 percent of the AI deal count this year, primarily from new startups. San Francisco alone saw 30 percent of the deal count last year from AI startups. Monthly AI job postings have nearly doubled year-over-year as companies emphasize AI positions.

He said AI companies occupy different property types beyond just office space, which accounts for 49 percent of leasing activity. Lab space accounts for 23 percent, flex space for 10 percent and industrial for 18 percent.

“AI is centered mainly in the Bay Area, eclipsing all U.S. and global markets for several reasons, including that it has the highest location quotient for AI in the U.S. at 9.5 (meaning AI talent is 9.5x more concentrated compared to the national average).

The Bay Area has 20.2 percent of U.S. AI talent, far ahead of Seattle (9 percent) and New York City (7 percent). The Bay Area is also near major AI research institutions, innovation companies and venture capital.

“[The Bay Area] has a strong talent pipeline from local universities, including UC-Berkeley and Stanford which are among the top 5 institutions for AI graduates,” Pham said.

The Bay Area has been a proving ground for tech startups for more than 30 years, so we’re excited to see the growing demand for AI, Katy Redmond, JLL senior managing & tech sector lead of leasing advisory, told CPE.

“This growth is a leading indicator for optimism for other AI hub markets for startups and innovation, such as New York City, Seattle and Washington, D.C.,” she said.

In 2024, AI companies leased 420,000 square feet in New York City, including new secondary offices opened by San Francisco-based startups.

The post How Generative AI Is Reshaping Bay Area CRE appeared first on Commercial Property Executive.

The association with CRES strengthens Savills’ network in the Americas and enhances its ability to better advise clients with a presence in Puerto Rico or those looking to expand there, Savills North America President Janet Woods told Commercial Property Executive.

“Puerto Rico shares strong synergies with many of the markets we serve, including New York and South Florida, which have deep-rooted connections to the island,” Woods said.

Hector Aponte, managing director at CRES, told CPE that his firm provides a complete suite of commercial and industrial real estate services, including market research, tenant representation and dispositions.

READ ALSO: Where’s the Coworking Sector Headed?

He said CRES also assists companies with exporting goods and services locally and then supports those same companies in penetrating markets in the Americas and around the world.

Puerto Rico’s CRE market expansion

The commercial real estate market in Puerto Rico is projected to reach more than $80.5 billion by 2025 before declining slightly over the next four years.

Statista showed Puerto Rico’s annual growth rate (CAGR 2025-2029) of -0.45 percent, resulting in a market volume of $79.14 billion by 2029.

The Puerto Rican commercial real estate market is experiencing growth and development, as well as two notable trends.

Because Puerto Rico is a popular tourist destination, there has been increased investment in tourism-related properties. Investors focus on developing resorts, hotels and entertainment venues. This growth is fueled by the expanding tourism industry and government efforts to attract more visitors.

Secondly, with a growing number of startups and entrepreneurs on the island, there has been increasing demand for affordable and collaborative workspaces. This trend aligns with the evolving work culture, which embraces remote work and freelancing opportunities.

Puerto Rico extends favorable tax incentives. Its status as a U.S. territory offers unique advantages, including tax breaks for businesses and individuals, which have attracted significant investment. These include:

• Act 20 (Export Services Act) is a 4 percent tax rate on income from eligible services provided to clients outside Puerto Rico, benefiting sectors like consulting, engineering and R&D.

• Act 22 (Individual Investors Act) eliminates taxes on capital gains, interest and dividends for new residents who meet specific requirements.

• Act 73 (Economic Incentives for Development) provides tax credits for activities such as job creation, research and development, as well as renewable energy investments.

Puerto Rico also offers reduced rates or exemptions for certain types of real estate projects.

The post Savills Expands in Puerto Rico With New Partnership appeared first on Commercial Property Executive.

Retail merchants are by and large paying higher occupancy costs, which have grown to levels not seen in more than six years.

Even as some retail categories, such as grocery, fast food, beauty and sporting goods are “thriving on robust demand,” Datex reports that nearly as many categories, including drug stores, dollar stores, specialty food and pet supplies face rising occupancy costs, inflationary pressures and shifting consumer preferences.

Among secondary retail trends, ongoing progress in “return to office” could reshape some shopping habits, for the better or the worse, depending on the retailer.

Datex reports that cities reliant on weekday office traffic often struggled when workers went remote, while residential areas benefited from increased local spending. “As on-site work rebounds, both markets must adapt again to shifting foot traffic and consumer habits,” the report noted.

READ ALSO: 3 Adaptive Reuse Projects That Pop

Rent collections have been stable overall, but so far this year have shown signs of weakening, versus both three- and six-month averages. Meanwhile, although leasing rates are rising, leasing deals are slower to get done, “prompted by nervousness as inflation, changing logistics and labor costs pressure margins,” Datex stated.

The retail real estate sector is constantly evolving, shaped by local economic pressures, shifting consumer preferences and fast-paced technological advancements. “Toward that end, the 2025 retail real estate environment remains both resilient and fragile,” according to the report.

Datex based this research on its Datex Tenant Track, which analyzes tens of thousands of shopping centers and retailers across the U.S., in the context of six years of historical data.

Winners and losers

James Bohnaker, senior economist at Cushman & Wakefield, told Commercial Property Executive he finds the report consistent with what his company is seeing in the data, for example, with retailers facing a challenging consumer environment alongside rising occupancy and labor costs.

“Policy uncertainty and fragile consumer confidence are topics that every retailer is weighing, creating less conviction in real estate decision making, leading to longer transaction timelines and more careful planning,” he explained. “We are seeing more store closures and bankruptcy announcements as a result of these challenges.”

Bohnaker added that tenant demand at the macro level remains fairly resilient, and coupled with the fact that high-quality retail space is in short supply, this is keeping occupancy levels high and pushing rents higher.

With respect to both tenant leasing demand and rents, the Datex report aligns with what he has been seeing, Garrick Brown told CPE. Brown is the head of research for Gallelli Real Estate and the publisher of The Brown Book, which tracks the plans and real estate decision-makers of more than 13,000 retail space–using tenants in North America.

“While there has been a marked uptick in retail bankruptcies and closures from some select retail categories (drug stores, furniture/furnishings, craft and seasonal stores leading the way), we continue to track outsized growth from grocery (driven largely by ethnic, organic and small format concepts), beauty (everything from cosmetics to salons to Medispas), [and] gyms/health clubs,” he said.

Other strong growth categories have been medical/dental, cannabis, veterinarian and car wash concepts.

“In other words, the future of retail real estate is not necessarily about traditional retailers,” Brown remarked. He continued, “heading into 2025, we see retail at a crossroads.”

Although the economy that the new administration inherited was strong by most measures, the ongoing return of inflation—as well as tariffs and deportations (especially at the scale Trump promised on the campaign trail)—“threaten to send inflation out of control, with retailers bearing the brunt of the impact,” Brown warned. “If the latter is the case, 2025 will likely see greater levels of retail store closures than recorded last year and strong headwinds for even retail’s strongest growth categories.”

The post Retail’s 2025 Outlook: A Tale of Diverging Trends appeared first on Commercial Property Executive.

Two tenants have signed leases at 55 Broadway in Lower Manhattan, totaling more than 21,500 square feet. CBRE represented landlord Harbor Group International in both transactions.

Inclusiv, a network of community development credit unions, has signed a 10,986-square-foot lease and will occupy the entire 29th floor. The tenant currently has office space at 39 Broadway, Commercial Observer reported. Avison Young Principal Tom Kaufman worked on behalf of Inclusiv in the transaction.

CSA Group NY Architects and Engineers also renewed its 10,557-square-foot office space on the property’s 14th floor for an additional 10 years. This deal was brokered directly.

READ ALSO: What’s Defining Office in 2025?

The property’s tenant roster includes RAL Cos., Syscom Global Solutions Inc. and Bond Collective, among others, CommercialEdge shows. The high-rise is currently 93 percent leased.

In 2024, renewals made up 68 percent of leases, marking a 10 percent increase from the previous year, a new CBRE report shows. Over half of the renewing tenants kept their existing space, while nearly a third expanded. Manhattan dominated the market, securing the largest share of the 100 top leases of last year.

A renovated tower in the Financial District

Located between Exchange Alley and Morris Street in the Financial District, the Class A 55 Broadway is near Interstate 478 and is less than one mile from World Trade Center. JFK International Airport is some 14 miles away.

The 358,000-square-foot building has been under the Harbor Group International ownership since 2014, when the company acquired the asset for $157.3 million from Broad Street Development, according to CommercialEdge. Later in 2017, Savanna and Paramount Group acquired a 45 percent ownership stake in the property. Last year, the office tower became subject to a $71.6 million loan, originated by AIG, the same source shows.

Completed in 1982, the 32-story high-rise underwent renovations in 2013. The building features floorplates ranging between 11,000 and 17,000 square feet, eight passenger elevators and 15,000 square feet of retail space.

The CBRE team representing the landlord included Executive Vice President Brad Gerla, Senior Vice President Jonathan Cope and Vice President Hayden Pascal.

The post Harbor Group Inks 2 Leases in Lower Manhattan appeared first on Commercial Property Executive.

Lincoln Equities Group has signed a 109,450-square-foot long-term lease at its Lincoln Logistics Rockland, an industrial facility in Valley Cottage, N.Y.

The tenant is National Ramp, a residential and commercial modular ramping provider, that increased its footprint in Rockland County and will use the space to form a new corporate headquarters. JLL’s Executive Managing Director James Panczykowski represented the ownership and facilitated this transaction.

Lincoln Logistics Rockland is a recently completed, Class A distribution center that includes 220,000 square feet. The property is close to White Plains, N.Y., a suburban hub north of New York City that ended last year among the top emerging industrial markets in the U.S. for its development activity and high property values.

Located at 625 Corporate Way, the facility is close to Interstate 287, as well as to Palisades Interstate Parkway. Additionally, the Port of Newark-Elizabeth and major airports such as John F. Kennedy International Airport and Newark Liberty International Airport are within a 45-mile radius of the property.

Lincoln Logistics Rockland features 36-foot clear heights, 34 dock doors, two drive-in doors, a built-to-suit office component, 123 vehicle parking spots and 41 trailer parking spots. The property can also include expansion options of up to 55 dock doors and 53 trailer parking spots. The remaining 110,550 square feet are available for lease.

Deals and projects of two longtime partners

Lincoln Equities Group delivered the building with capital partner PCCP LLC and with construction funds totaling $37.7 million, secured in the form of a bridge loan originated by Principal Financial Group, according to CommercialEdge.

Meanwhile, the duo has a 204,407-square-foot industrial project currently underway in the area. Situated 30 miles from Lincoln Logistics Rockland and known as Belleville Logistics, the two-building industrial project is rising at 681 Main St. in Belleville, N.J. The partnership landed a $53.5 million senior construction loan for the development in April last year.

Lincoln Equities Group and PCCP LLC partnered for the first time in 2021, when they purchased a three-building industrial portfolio in the same area. Just last month, the partners sold off the 261,950-square-foot asset in a $62.8 million deal.

The post Lincoln Equities Inks New York Industrial Lease appeared first on Commercial Property Executive.

Nuveen has signed a 168,741-square-foot lease at its industrial facility in Monee, Ill., within Chicago’s Southern Will County submarket. NewAge Products joined the roster, bringing the property to full occupancy.

Seefried Industrial Properties developed the 621,246-square-foot asset. Cushman & Wakefield brokered the deal on behalf of both parties.

Reynolds Consumer Products is the other tenant at 25100-25340 S. Ridgeland Ave., occupying 452,505 square feet.

READ ALSO: Industrial Real Estate’s Future Depends on Adaptability

The building has 40-foot clear heights, 26 exterior docks, two drive-in doors, ESFR sprinkler systems, LED lighting with motion sensors and cross-dock configuration. Additional features include a 2,555-square-foot office component, 139 vehicle parking spots and 46 trailer parking spots, which can be expanded to 96.

The asset provides access to major transportation corridors that connect to the wider Chicago metro area and the Midwest, such as interstates 57, 80 and 294. Union Pacific Global IV Intermodal Terminal, BNSF Intermodal Yard and the Canadian National Intermodal Terminal are within 20 miles.

Cushman & Wakefield’s Executive Vice Chairman Jason West worked on behalf of NewAge Products, while the company’s Vice Chairman Sean Henrick and Managing Director Ryan Klink represented the landlord.

Chicago’s industrial vacancy lagged other Midwest metros

Industrial vacancies increased in nearly every market over the past two years due to a large amount of new supply. As of January 2025, the national industrial vacancy rate clocked in at 8 percent, unchanged from the previous month, a recent CommercialEdge report shows.

Chicago’s vacancy clocked in at 10 percent in January—one of the highest in the nation and the only Midwestern market that fared worse than the national average. The metro’s rate had increased 530 basis points year-over-year, the same source shows.

Earlier last month, Seefried Industrial Properties was involved in another deal in the area. The company signed a 152,014-square-foot lease with nonprofit David C. Cook at its 1700 Madeline Lane Facility in Elgin, Ill.

Also in February, CenterPoint Properties landed an approximately 1 million-square-foot deal with 3PL firm RJW Logistics in Joliet, Ill. The tenant signed a full-building agreement at 2903 Schweitzer Road, within CenterPoint’s 6,400-acre Intermodal Center.

The post Nuveen Inks 169 KSF Chicago-Area Industrial Lease appeared first on Commercial Property Executive.

The children’s apparel company, owned by Berkshire Hathaway, was already leasing the entire seventh floor at the 26-story tower. With this deal, it will also fully occupy the 31,663-square-foot sixth floor, bringing its total footprint at the property to 63,417 square feet, Commercial Observer reported.

The property is now 77 percent leased. Its anchor tenant Metropolitan Commercial Bank signed a renewal and expansion agreement back in December, bringing its total footprint to 81,979 square feet. Other notable tenants include The Ayers Group, Riveria Investment Group, New York Bankers Association, Windsor Properties, Flushing Bank and Keller Williams, CommercialEdge shows.

Global Holdings acquired the building in 1991 for $104.5 million from The Equitable Life Assurance Society of The United States, according to CommercialEdge data. The tower is currently subject to a $250 million loan held by Landesbank Baden-Wurttemberg Bank, the same source shows.

The JLL team included Vice Chairman Paul Glickman, Senior Vice President Diana Biasotti, Associate Vice President Kristen Morgan and Associate Harrison Potter.

An upcoming revamped high-rise

Originally designed by Emery Roth & Sons, the office tower dates to 1953 and underwent cosmetic renovations in 2005. The property features 12,000 square feet of first-floor retail space, a fitness center and 100 vehicle parking spots.

The owner is currently implementing a $30 million capital improvement program within the building, with renovations led by VOCON. Plans include an updated lobby, amenity center, the addition of a conference center, lounge, barber shop and salon, as well as golf simulator and bowling valley. Renovations are expected to reach completion during summer next year.

Situated within the borough’s Murray Hill neighborhood, 99 Park Ave. is close to Grand Central Terminal and to Bryant Park, while John F. Kennedy International Airport is 15 miles away.

Manhattan’s vacancy lowest among the Northeast

The national office vacancy rate reached 19.7 percent in January, up 180 basis points year-over-year, according to the latest CommercialEdge report. Every office market experienced jumps in vacancies, with five of the top 25 U.S. metros recording surges of more than 500 basis points.

Despite this, in the first month of 2025, the Northeastern markets kept their rates below the national average. Manhattan’s office real estate trends show that the metro registered the lowest vacancy rate in this region, with 16.6 percent as of January, marking only a 10-basis-point increase.

Notable leases in the borough signed since the start of the year include Newmark’s recent 15-year renewal and expansion at 125 Park Ave. The company increased its footprint to 184,239 square feet at the designated New York City landmark, owned by SL Green.

In January, that same landlord inked a 92,663-square-foot deal at another property. IBM expanded and renewed its presence at One Madison Ave., in a deal brokered by JLL.

The post Global Holdings Inks 63 KSF Extension at Manhattan Tower appeared first on Commercial Property Executive.

Newmark has signed a 15-year renewal and lease expansion at 125 Park Ave. in Manhattan, growing its footprint at the building to 184,239 square feet. The tenant was represented in-house by Newmark’s Jason Perla, Brian Waterman, David Waterman and Matthew Schreiner. 

Newmark has been a constant presence at 125 Park since the mid-1990s, when it committed to 47,000 square feet, according to Crain’s New York. Over the years, the firm has expanded its footprint; in 2014, Newmark occupied more than 133,000 square feet at the 654,800-square-foot property, Bisnow reported.

The office tower is now more than 99 percent leased, according to landlord SL Green. The company is currently finalizing the design of a new lobby and restoration of the building’s entrance to its original design.

READ ALSO: Net Effective Office Costs Edge Up

SL Green has owned the property since 2010, when the company acquired it for $330 million from Shorenstein, which had bought it in 2004 for $225 million. Completed as the Pershing Square Building in 1923, the office tower is a designated New York City landmark for its “significant contribution to the variety and richness of Midtown East.”

Located across from Grand Central Terminal, the 26-story building features floorplates ranging from 9,556 to 26,256 square feet, as well as 17,000 square feet of retail. Tenants at the LEED Gold-certified property also include TD Bank, Pandora Music and Canon U.S.A., according to CommercialEdge information.

SL Green, Manhattan’s largest office landlord, held interests in 54 buildings totaling 30.6 million square feet at the end of 2024. So far in 2025, the REIT has signed office leases totaling 455,008 square feet, with a current pipeline of about 975,000 square feet. In one of this year’s deals, IBM expanded its footprint at One Madison Avenue.

Manhattan office market sees some strength

Office leasing has picked up recently in Manhattan, a market that had been hit fairly hard by pandemic and post-pandemic realities. In 2024, according to Newmark data, 38.1 million square feet were absorbed in the borough, up from 30 million square feet in 2023, and the most since before 2020.

New office space deliveries, which had spiked to 5.7 million square feet in 2023—the most since 2019’s total of 7.7 million square feet—shrank to practically nothing in 2024, Newmark noted. Only about 100,000 square feet came online last year in Manhattan.

The post Newmark Expands Manhattan HQ appeared first on Commercial Property Executive.

Golub & Co. has signed a 12,277-square-foot lease at RSM Plaza, a 415,824-square-foot office complex in Minneapolis’ central business district.

Transwestern Real Estate Services worked on behalf of the landlord, while IAG Commercial Real Estate represented the tenant, Meyer Borgman Johnson.

The structural design practice will relocate its corporate headquarters to the 20-story property, with a move-in scheduled for June this year.

Located at 801 Nicollet Mall, RSM Plaza was developed in phases between 1968 and 1971. The property consists of two office buildings known as the West and East Towers.

Close to multiple bus stops as well as to interstates 394 and 94, RMS Plaza is 12 miles from Saint Paul, Minn., and within 14 miles of Minneapolis-Saint Paul International Airport.

READ ALSO: What’s Defining Office in 2025?

Meyer Borgman Johnson will move from the nearby 510 Marquette Ave. S. to the property’s West Tower, fully occupying the 20th floor. Golub & Co. owns the duo since 2015, when it picked up the asset for $78.4 million, according to CommercialEdge. The ownership completed a $10 million improvement program in 2018 that added multiple upgrades at the property, such as a renovated lobby and the addition of conference rooms and meeting spaces.

RSM Plaza includes floorplates between 12,300 and 29,000 square feet, an on-site fitness center, bike storage and on-site parking, as well as 25,000 square feet of first and second-floor retail space. Other tenants include R.S. Peterson Sales Inc., Groundswell, Community Reinvestment Fund USA and Bioworld Merchandising, CommercialEdge shows.

Transwestern’s team of Vice President Trinette Wacker and Principal Broker Reed Christianson brokered the deal on behalf of the landlord. President Jeffrey LaFavre and Advisor Zach Synstegaard with IAG Commercial Real Estate represented the tenant.

Twin Cities ends 2024 with affordable rents and low vacancy

According to a recent CommercialEdge report, office markets in the Midwest had the most affordable rates in 2024. Twin Cities posted the second-lowest average asking rent at $26.25 per square foot, below the national average of $33.11 per square foot. Detroit was the least expensive among the top 25 U.S. office markets, with rents averaging $21.46 per square foot.

With a rate of 16.2 percent as of December, the Twin Cities recorded the third-lowest office vacancy rate in the nation, representing a 160-basis-point year-over-year decline.

The post Golub & Co. Inks HQ Lease in Minneapolis appeared first on Commercial Property Executive.

A spokesperson for Tyler Duncan Real Estate identified the tenant as JLG Industries Inc., a manufacturer of high-level access equipment, such as boom lifts and telescopic handlers, headquartered in McConnellsburg, Pa.

Matan did not respond to Commercial Property Executive’s request for additional information, but its announcement stated that 280,000 square feet of space remain available at 8484 Progress Drive and the adjoining 8480 Progress Drive. Both buildings feature high-bay space and reportedly are suitable for a variety of office, R&D, and other technology-focused users.  

The 177-acre R&D park is immediately south of the Monocacy River and already home to Charles River Laboratories and the National Cancer Institute’s 332,000-square-foot Frederick National Laboratory Facility. Matan’s vision for the park encompasses additional facilities for the federal government, educational institutions, an incubator and private-sector companies. The park’s green space includes water features, multiple gazebos and more than 5 miles of walking trails.

READ ALSO: The Most Active Life Science Markets in the US

Matan reported that Riverside Research Park is approved and ready to build with 1.4 million square feet of planned lab, manufacturing and office space.

Matan Cos. was represented in-house by Leasing Director Brad Benna, and the tenant was represented by Tim Shanklin of Tyler Duncan Real Estate.

Public and private entities expand

The life science sector in Maryland’s I-270 corridor also known as the BioHealth Capital Region totals nearly 12.5 million square feet of lab space, driven in large part proximity to such federal agencies as the National Institutes of Health and the Food and Drug Administration, according to a brand-new report from Cushman & Wakefield.

On the private-sector side, AstraZeneca is a big player, having expanded its presence by almost 300,000 square feet last year and with plans for further investments.

Although overall vacancy rose to 14.0 percent, Cushman & Wakefield reports that “suburban Maryland’s supply is not as overbuilt as other top markets, given the overall inventory and size.”

Rents for R&D space in Montgomery County average between $40 and $45 per square foot, triple net. a level that Cushman & Wakefield anticipates will be stable as current space is absorbed. Fortunately, no new space is in the pipeline.

Last September, a joint venture of Matan Co., Rockefeller Group, Mitsubishi Estate New York, Chuo Nittochi and Taisei USA LLC began construction on the first phase of Port 460 Logistics Center in Suffolk, Va., about 20 miles from the Port of Virginia. When it delivers, the campus will total about 5 million square feet.

The post Matan Cos. Lands New Tenant for DC-Area Project appeared first on Commercial Property Executive.

Insurance brokerage company Lockton has signed a 52,961-square-foot office lease with Granite Properties and Highwoods Properties at Granite Park 6, in Plano, Texas. The company’s corporate relocation is scheduled for 2026.

Cushman & Wakefield, together with Stream Realty Partners, worked on behalf of the tenant. An in-house team represented the ownership in the lease deal.  

Lockton plans to move 9 miles south from its current office location at Dallas Parkway where it leased 18,000 square feet. The company will occupy two floors at Granite’s 422,109-square-foot building and will join Atlantic Aviation and Stonebriar Commercial Finance in the property’s tenant roster, CommercialEdge shows.

Lockton’s current deal quickly follows the company’s signing of a 100,000-square-foot lease earlier this month at the 15-story Victory Commons One, Dallas Business Journal reported.

As of February, the office vacancy rate in Dallas clocked in at 24.0 percent, up 330 basis points over a 12-month period, according to a recent CommercialEdge report, and was higher than the 19.7 percent national average rate.

A newly LEED Silver-certified building

Located at 5525 Granite Parkway, the property is just off Texas State Highway 121 and 25 miles north of downtown Dallas. The office building is also some 20 miles northeast of Dallas-Fort Worth International Airport.

Completed in 2023, the 19-story tower is part of the 90-acre mixed-use Granite Park. Amenities at the LEED Silver-certified asset include a 150-seat lecture hall, three conference centers, a terrace connecting to a fitness studio and indoor customer lounge on the sixth floor, as well as 35,000 square feet of ready suites ranging from 1,500 to 5,500 square feet. 

Cushman & Wakefield Executive Managing Director Mike Mayer and Managing Director Josh Goldsmith, together with Stream Realty Partners Managing Director Dan Harris and Executive Vice Chairman Randy Cooper worked on behalf of Lockton.

Granite Park 6 in-house leasing team led by Directors Robert Jimenez and Burson Holman, and Leasing Manager Elizabeth Fortado represented the ownership.

The post Lockton Signs 53 KSF Office Lease at Dallas Tower appeared first on Commercial Property Executive.

Commercial real estate brokerage is a business for entrepreneurs. Even within larger firms, dealmakers are responsible for making their own fortunes. Such an environment also fosters large egos. Under current conditions, many of these egos are expected to strike out on their own.

At the beginning of 2025, CRE is like a boxer who has taken a few tough rounds but might have found a second wind. The cost of capital is higher-for-longer, but deal volume is ticking upward, at least for most areas and a good number of asset classes.

That sets the stage for CRE pros, and especially brokers, to form new ventures. This comes with some caveats, however. No one is predicting a gold-rush, but steady movement instead.

READ ALSO: CRE Veterans Offer Advice to Aspiring Brokers

For individual brokers, the 2023 and 2024 malaise meant depressed deal volume, less opportunity and less financial gain. On the other hand, harder times can make for bolder CRE entrepreneurs. That’s especially the case for those, such as brokers, whose rise or fall tends to depend on their own initiative.

“The best businesses are built in downturns, right?” quipped Johnny Noon, CRE director of engagement for the National Association of Realtors. He added that there’s less competition in such an environment, allowing those who are nimble enough to take advantage.

“Entrepreneurs know their markets and whether (or not) there is going to be a need for brokerage services or opening a franchise—whatever the climate,” added Noon, who has extensive experience in retail site selection, retail leasing, business development and store construction.

“They also ask: ‘Am I going to differentiate myself from the competition?’” said Noon. “What’s going to set me apart, and do I have the tools and resources available to me to be successful?”

Growing interest

Though no one tracks the number of pros hanging their own shingles each year, anecdotal evidence suggests that despite the softer conditions the less-than-robust conditions, some brokers will be heading out.

Noon reported that his organization services more than 180,000 members that are involved in CRE in some way or another, a total that has increased 16 percent over the last two years, even as the markets slumped.

READ ALSO: CRE Sentiment Soars to New High

“We’re definitely seeing a lot more traction with people wanting to break into the business,” Noon said. “That has been happening despite a tighter market in terms of volume and what’s going on in the capital markets. But it’s also a different market. With all the tools and resources that are out there, I think the barriers to entry are a little bit lower now.”

The best businesses are built in downturns, right?

—Johnny Noon, Director of Engagement for CRE, National Association of Realtors

Compensation is a strong motivator when forming new brokerages and other CRE startups, according to Graham Beatty, president of Ferguson Partners. In its latest real estate hiring and compensation hiring survey, the firm found that modest salary increases are in the works in more CRE companies than not. Also, there are three times more firms looking to increase hiring in 2025 than there are planning reductions.

In the short term, compensation seems to be rising again, which would argue against startup formation. But the picture isn’t quite that simple.

“Oftentimes, at inflection points, you see executives make decisions around striking out on their own,” observed Beatty. “One of the inflection points that a lot of individuals are dealing with now is that the value of their long-term compensation has been negatively impacted by the last few years. Because of that impact, some of the golden handcuffs on executives have eroded.”

A generational cliff?

In its 2025 CRE outlook, Deloitte noted a somewhat surprising trend that could, in the long run, open opportunities for entrepreneurs. Namely, CRE is facing a retirement cliff. In the next decade, 40 percent of the U.S. workforce will reach the age of retirement. That means a new generation is going to take the reins.

Real estate companies should align with the expectations of the next generation and take steps now to fortify their talent pipelines, according to Deloitte. Millennials and Gen Zers—some of them anyway—will be every bit as interested in the potential rewards of running their own CRE businesses.
Image by IPGGutenbergUKLtd/iStockphoto.com

CRE breeds entrepreneurs

Being an entrepreneur—in real estate or elsewhere—is often about more than money. The Ferguson findings, for example, hint that some employees are itching to go on their own.

More than half (58 percent) of respondents saw no change in voluntary turnover last year compared to 2023. However, 21 percent reported increases, with the same percentage finding decreases in voluntary turnover. The most cited reason for leaving was a lack of career mobility and professional development, the report noted.

READ ALSO: Another Survey Indicates Optimism by Investors

“It’s hard to be a non-entrepreneur and grow rapidly in this industry,” noted Collete English Dixon, executive director of the Marshall Bennett Institute of Real Estate at Roosevelt University in Chicago. So, in a real sense, unless the market is truly horrible—think 2009, for example—the entrepreneurial urge in CRE is hard to suppress.

Some of the golden handcuffs on executives have eroded.

—Graham Beatty, President, Ferguson Partners

“Even if you’re working for one of the big brokerage houses, you’re still an entrepreneur, because you’ve got to build a business. You get to use their name, but it’s your business that you’re building.”

The CRE entrepreneurial bent starts early, according to Alisa Pyszka, Barry Menashe Family executive director at the Center for Real Estate School of Business at Portland State University. Moreover, the skill sets for CRE success often closely align with those needed to run a business. This tends to facilitate entrepreneurial forays.

“What makes everyone excited about this industry is a love of problem solving, and never taking ‘no’ for an answer,” said Pyszka. “The problem to be solved is: How do you always get the ‘yes’? That’s a defining characteristic of people in this industry.”

Read the March 2025 issue of CPE.

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Long Beach-based engineering and technical services provider Mangan Inc. has signed a 37,000-square-foot lease at Kilroy Realty Corp.’s Aero Long Beach office campus in Long Beach, Calif.

Mangan plans to relocate its headquarters from 3901 Via Oro Ave. to the new office space, with move-in scheduled for November 2025. JLL worked on behalf of the ownership in the leasing deal, while Savills represented Mangan.

Owned and managed by Kilroy Realty, Aero Long Beach is a 957,706-square-foot office campus completed between 1986 and 2000. The complex consists of six buildings located at 3750-3900 Kilroy Airport Way on a 50-acre site.

READ ALSO: Strong Deals and High Prices Keep LA Among Top Office Markets

Over the past 12 months, Kilroy Realty landed more than 15 leases at Aero Long Beach, encompassing more than 141,000 square feet. The property’s tenant roster features SCS Engineers, Canon Inc., DeVry University, Blue Shield of California, SCAN Health Plan and Cushman & Wakefield.

Buildings range in size from approximately 96,000 to 220,000 square feet across two to eight floors, according to the same data provider. 3880 and 3900 Kilroy Airport Way received LEED Silver certification, while the 3760 and 3840 properties were awarded the LEED Gold, CommercialEdge data shows. Amenities include open-air gathering spaces, a fitness center and an Everytable café.

The campus is adjacent to the Long Beach Airport, near Interstate 405. Downtown Los Angeles is 25 miles north.

JLL Managing Directors Jason Fine and Monica Enes worked on behalf of Kilroy Realty, while Savills Senior Managing Director Steve Pisarik and Senior Vice President Bruce Schuman represented Mangan Inc. in arranging the deal.

Los Angeles office vacancy and asking rates

The national office vacancy reached 19.7 percent as of January 2025, a recent CommercialEdge report shows. This represents a 180-basis-point increase year-over-year and a 10-basis-point decrease from the previous month. Los Angeles posted a 16.4 percent office vacancy rate in the first month of the year, lower than the U.S. average.

The national full-service equivalent listing rate was $33.38 per square foot in January. Los Angeles ranked forth among Western markets with highest asking rates, at $42.01 per square foot, trailing San Francisco ($70.56), the Bay Area ($54.38) and San Diego ($42.57).

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Miami International Tradeport is at 11130-11450 N.W. 122nd St. in Medley, Fla., just east of the Florida Turnpike and south of Okeechobee Road. The location provides easy access to Miami International Airport, PortMiami and major highways.

The buildings reportedly are suitable for logistics, distribution and manufacturing users and feature 30- to 36-foot clear heights, 54-foot column spacing and 130-foot non-shared truck courts, as well as ESFR sprinkler systems, LED lighting and ample parking.

Colliers’ EVP Erin Byers, Senior VP Lauren Pace, VP Ruben Suarez and EVP Steven Wasserman will be marketing the property, which has available spaces ranging from 34,000 to 140,000 square feet.

Mixed picture for Miami-Dade’s industrial market

The Miami-Dade industrial real estate market has seen net absorption fall to a negative 750,000 square feet over 12 months, as average vacancy has risen from 2.0 percent in 2022 to 5.5 percent at the start of this year, according to a January newsletter from Smith Commercial Property Group, of Doral, Fla.

“Tenant demand is slowing and rent growth has moderated after a sharp rise of 31.9 percent over three years,” Smith reported. “Despite these challenges, Miami remains a vital logistics hub with strong international trade links through its airport and port. Supply constraints, driven by geographical barriers like the Everglades, keep vacancy rates below the U.S. average, and rent growth is expected to pick up by 2026.”

This past November, BGO Cold Chain acquired Medley Cold Logistics, a 178,000-square-foot Class A cold storage facility in Medley, Fla., from Truist Securities for a reported $60 million. JLL arranged the deal for Truist. The one-story warehouse at 7600 N.W. 82nd Place is fully occupied by Quirch Foods.

The post Prologis Taps Colliers to Lease Miami-Area Business Park appeared first on Commercial Property Executive.

SCHEELS has signed a 210,000-square-foot lease at Brookfield Properties’ Mayfair Mall, a 1.2 million-square-foot property in Wauwatosa, Wis. The vacant space will undergo a full renovation and expansion before the opening of the new store, set for the spring of 2027.

SCHEELS leased the space that was previously occupied by Boston Store. The latter closed its doors in 2018, when its parent company The Bon-Ton Stores Inc. went out of business, BizTimes reported.

The Wauwatosa location is slated to become Wisconsin’s largest all-sports store and employ more than 500 people. The company has two more locations in the state, in Appleton and Eau Claire.

It will also be the 36th SCHEELS nationwide. The firm’s 35th location, a 240,000-square-foot property in Cedar Park, Texas, is scheduled to open in the fall of 2026.

Mayfair Mall, up close

Mayfair is an enclosed, two-level mall that was completed in 1957 and renovated in 2001. Its roster includes Macy’s and Nordstrom as anchor tenants, but also Barnes & Noble, Urban Outfitters, Gap, Five Guys and Victoria’s Secret, among others.

The mall occupies an 84-acre site at 2500 N. Mayfair Road near Interstate 41, less than 11 miles west of downtown Milwaukee.

Redevelopment plans in motion

In 2022, the city of Wauwatosa acquired the 15-acre Boston Store property with the intention of bringing it back to life and signed a development agreement with Brookfield in 2024. The agreement involved securing a new retail anchor for the vacant space and redeveloping the adjacent land into a multifamily community. The site is at the south end of Mayfair.

Brookfield initially secured Dick’s Sporting Goods as a tenant, according to Milwaukee Business Journal. However, the company decided to refuse the location in August 2024.

Now, with the SCHEELS contract in place, the city will transfer the store and 7 adjacent acres to Brookfield in exchange for about 4 acres owned by the property company, located to the south of the store, the same source reveals. More than 900 housing units and additional retail space will be developed across four buildings on that parcel.

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Seefried Industrial Properties and a U.S.-based family office have signed a 152,014-square-foot long-term lease at their 1700 Madeline Lane facility in Elgin, Ill., with David C. Cook, a 150-year-old Christian organization. The nonprofit will use the space as its main distribution center.

CBRE brokered the deal on behalf of the tenant, while the landlord was represented by Cushman & Wakefield.

The recently built Class A speculative industrial property is within Chicago’s Interstate 90 Golden Corridor submarket, and features 32-foot clear heights, ESFR sprinkler systems, a 2,980-square-foot office space, a drive-in door and 22 exterior docks. Additionally, it includes 138 vehicle parking spots and 35 trailer parking spaces. David C. Cook will be the anchor tenant at 1700 Madeline Lane, with another 168,932 square feet still available for lease.

READ ALSO: Top 10 Markets for Industrial Deliveries

The asset was developed by Seefired Industrial properties as a two-building industrial campus totaling 465,360 square feet. Earlier this month, the developer sold the second building, a 144,414-square-foot facility at 1705 Madeline Lane, to an Atlanta-based plastic molded parts manufacturer.

Chicago ends 2024 with high vacancy

At the end of last year, Chicago’s vacancy rate was 9.7 percent, marking a 570 basis-point year-over-year increase, a recent CommercialEdge industrial report shows, mainly due to the excess supply added between 2021 and 2022. The national vacancy rate stood at an average of 8 percent.

Meanwhile, Chicago’s pipeline decreased by 5.6 million square feet year-over-year to 7.6 million at the end of 2024. The pipeline represented 0.7 percent of total stock, below the 1.7 percent national average and other peer markets such as Phoenix (5.3 percent), Kansas City (3.9 percent) and Dallas (1.9 percent).

The post Seefried JV Signs 152 KSF Chicago Tenant appeared first on Commercial Property Executive.

Aaronson Rappaport Feinstein & Deutsch LLP has decided to have its headquarters remain at the Grand Central district tower through at least 2042, having signed a 15-year lease extension with L&L Holding Co.

The space totals 55,269 square feet at 600 Third Ave., the firm’s contemporary 42-story Midtown East office tower, where it has been a tenant since 2010. The law firm will maintain the 42,764 square feet it occupies on the fifth and sixth floors.

Another law firm, Bond Schoeneck & King, signed a seven-year lease extension at 600 Third Ave. It has occupied space there since 2014. It will maintain the 12,505 square feet it occupies over the whole 22nd floor through at least 2033.

The property at 600 Third Ave., built in 1970, carries 575,254 square feet over the entire western blockfront between East 39th and East 40th Streets. It was recently renovated, including lobby upgrades and building system improvements.

READ ALSO: Top 100 Office Leases of 2024 Point to Stabilization

L&L Holding was represented by an in-house team of Jonathan Tootell, Tanya Grimaldo and Giannina Brancato. Mark Weiss and David Mainthow of Cushman & Wakefield, and Larry Bank of Matador Capital Management represented Aaronson Rappaport.

Bond Schoeneck & King was represented by Jeffrey Peck and Daniel Horowitz of Savills.

Peck told Commercial Property Executive that pockets of the NYC real estate market are tightening.

“However, there are still many value opportunities available,” Peck said. Most landlords are willing to negotiate beneficial deals for tenants that include building space with no out-of-pocket costs—including furniture and wiring, he added.

“It’s still a favorable time to be a tenant, especially when partnering with a real estate advisor who knows which landlords are ready, willing and able to compete for high-credit occupiers.”

Flight to quality as the new standard

Some Midtown NYC corridors are seeing premium office rents approach pre-pandemic levels while lease activity is booming, according to Lisa Flicker, senior managing partner & head of real estate at Jackson Lucas. In these areas, availability has dropped to its lowest point since 2021, signaling a robust recovery in prime office space.

“Reflecting the momentum in executive hiring within the office asset class, the premium sector is experiencing a notable rebound,” Flicker said.

The flight to quality is no longer a trend but the new standard, driven by companies reassessing remote work and increasing demand for high-quality, centrally located office spaces, she explained.

As firms push for more in-office time from their executives and team members, they raise the bar by investing in workplaces with top-tier amenities like fitness centers, cafes, conference rooms, outdoor spaces and childcare facilities. “Beyond perks, I see in-office factors like air quality and lighting becoming factors in attracting top talent,” Flicker added.

Leasing activity in Midtown saw remarkable growth in the fourth quarter of 2024, a strong sign of a continued rebound for the sector, according to AmTrust RE President Jonathan Bennett.

“Primely located office buildings with access to numerous transportation options and quality retail and restaurant offerings continue to see strong tenant demand,” Bennett told CPE.

The upward trajectory for these assets led to AmTrust RE’s acquiring 360 Lexington Ave., a 24-story office tower steps from Grand Central, late last year. “With a positive outlook on the future of Midtown’s market, we expect modern, tenant-focused office properties to continue seeing strong leasing activity,” Bennett said.

Given the “return to office” mindset in many industries across the city and the U.S., many people want to live near work.

For example, at The Perrie condo development on 234 East 46th St., more than 50 percent of buyers and prospective buyers work just blocks away at an office ideally located like 600 Lexington, according to Nick Riback of Corcoran.

Nearby 520 Fifth Ave. is set to offer over 200,000 square feet of boutique office space and residences, with over 90 percent sold. This property, on the same street as the Empire State Building, will be the second-tallest building on Fifth Avenue and a 10-minute walk from the 600 Third Ave. property. JLL is the leasing company for the building’s commercial office space.

Two years ago, law firm Polsinelli extended and expanded its lease at L&L Holding Co.’s 600 Third Ave., signing a 10-year extension through 2036 at the 42-story skyscraper, adding 13,129 square feet on the 33rd floor.

The post L&L Holding Signs Lease Extensions in Manhattan appeared first on Commercial Property Executive.

MLB Network is planning to move all operations to 25 Market St. in Elmwood Park, N.J. The content platform of Major League Baseball will occupy the entire 207,000-square-foot building that was developed by Crow Holdings and completed last year. CBRE negotiated the lease on behalf of the tenant, while JLL represented the owner.

MLB Network will relocate from Secaucus, N.J., where it has been since its opening in 2009. The platform will be fully operational at the new location by the 2028 baseball season.

READ ALSO: Top Destinations for Corporate Relocations

MLB Network creates about 3,000 hours of live programming each year, and it is also a production house. The platform helps produce content for MLB Local Media, Friday Night Baseball on Apple TV+, Roku’s MLB Sunday Leadoff, and MLB’s digital platforms and partners. All together, MLB Network created more than 400,000 pieces of content for all of MLB’s platforms in 2024.  

Out of the ashes

The warehouse rises on the former site of the Marcal Paper Mills factory, which had been there for about 90 years. In 2019, most of the 36 structures on the Marcal site burned down in a fire.

The developer acquired the 12-acre parcel in 2022 and built the facility on speculative basis. A brick facade and black window mullions inspired by the original industrial property pair with large, translucent light boxes in a design that is new, but also plays tribute to the former factory.

Designed by M+H Architects, the facility has 32 dock positions, two drive-in doors, a 60-foot speed bay and an interior clear height of 40 feet. The building will house all of the network’s production studios and offices, along with MLB’s video tape library.

Scott Gottlieb, Brendan Herlihy, Greg Barkan and Elliot Bok of CBRE represented MLB Network in the lease. The JLL team of Rob Kossar, David Knee, Ignatius Armenia, Chris Hile and Ryan Milanaik assisted Crow Holdings Development. 

Vacancy plateaus in New Jersey’s industrial market

Leasing volume in the New Jersey industrial market came in at 12 million square feet in the fourth quarter, which was higher than the trailing eight quarter average of 9.5 million square feet, according to JLL. Third-party logistics represented much of the demand.

That volume of leasing, along with a slowdown in new construction deliveries, means that vacancy in New Jersey industrial is plateauing, JLL reports. Vacancy was up only 28 basis points on average each quarter in 2024, a moderation from 2023, when the increase averaged 77 basis points per quarter.

Product construction is at its lowest point in two and a half years in New Jersey, JLL notes. The volume of new development is expected to remain around the 15 million-square-foot mark.

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Stark Office Suites has extended its lease at Jack Resnick & Sons’ 110 E 59th St. in Manhattan by 10 years. The flexible office space provider occupies the 22nd and 23rd floors of the 612,181-square-foot building. 

In conjunction with the renewal, Resnick and Stark have agreed to partner on upgrading the 26,568 square feet the latter occupies at the property. Renovations will include improvements to the reception, common areas, meeting spaces, kitchenettes and restrooms.  

Stark Office Suites opened its first locations in 2004 and has since grown to 13 flex office spaces across New York City, Westchester, Long Island and Connecticut.

A Manhattan tower on 59th Street

Completed in 1969 by Resnick & Sons and designed by W. M. Lescaze, the high-rise on 59th Street rises 37 stories just off Park Avenue in the Plaza District.

Its tenant roster features Zelnic Media Capital, Royalty Pharma, Cantor Fitzgerald and Estee Lauder. The property was awarded the LEED-Gold certification for operation and management, according to CommercialEdge information.  

There were 273 coworking locations in Manhattan as of November, totaling 11.3 million square feet, CommercialEdge research shows. Trailing behind Manhattan, Chicago and Washington, D.C., have 6.8 million square feet and 6.7 million square feet, respectively, out of the 136.3 million square feet of flex office spaces across the U.S.

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This shift is primarily due to an oversupply from record-setting development activity in 2021 and 2022, which have surpassed tenant demand, according to CommericalEdge data.

Leveraging its strategic location and well-developed rail and airport infrastructure, Chicago’s industrial market continues to demonstrate resilience and flexibility. Even with the pipeline shrinking to half of the previous year’s volume, the metro area remains a key player in industrial development. The Windy City delivered almost 14.9 million square feet of logistics space last year, while the investment volume reached roughly $2.7 billion.

Sales volume increases

Last year, Chicago’s industrial investment volume totaled approximately $2.7 billion, surpassing the $2.2 billion recorded in 2023. Despite this increase, assets traded at an average of $92 per square foot, up slightly from $89 the previous year. A total of 242 properties—amounting to approximately 32.6 million square feet—changed hands in the metro in 2024.

Only Kansas City ($42 per square foot) and Indianapolis ($73 per square foot) recorded lower numbers. Meanwhile, New Jersey ($213 per square foot), Dallas ($173 per square foot) and Phoenix ($162 per square foot) continued post high prices.

In one of the larger transactions of last year, Stonepeak purchased a three-building, 1.7 million-square-foot rail-served logistics portfolio for $125 million. The fully leased assets are part of CenterPoint Intermodal Center–Joliet/Elwood—the largest inland port in North America. The properties are in Elwood, Ill., at 26318-26634 S. Walton Drive, 21561 Mississippi Ave. and 26634 Mississippi Ave.

Industrial development still active

At the end of December, Chicago’s industrial sector had 7.6 million square feet under construction, according to CommercialEdge data. The pipeline represented 0.7 percent of total stock, below the 1.7 percent national average and other peer markets such as Phoenix (5.3 percent), Kansas City (3.9 percent) and Dallas (1.9 percent).

Near the end of last year, Trammell Crow Co. broke ground on the first building of Plainfield Business Center, an industrial campus to total more than 8 million square feet in Plainfield, Ill. Taking shape on approximately 52 acres at 26220 W. 143rd St., the property will feature 40-foot clear heights, 80 dock doors expandable to 160 and 211 trailer parking stalls. 

One month prior, CyrusOne also commenced construction on its second data center campus in Aurora, Ill. The project comprises two buildings totaling 446,000 square feet and will deliver an initial IT capacity of 40 MW with scalable capacity to meet future growth needs. The development is taking shape at 2725 Bilter Road.

Deliveries slow down

Last year, The Windy City delivered 41 properties totaling almost 14.9 million square feet—accounting for 1.4 percent of the metro’s total inventory, slightly lower than the national average of 1.8 percent. This amount was notably less than the 29.4 million square feet completed in 2023.

Among its peer markets, only Phoenix (32.7 million square feet) and Dallas (29.1 million square feet) recorded more completed space, CommercialEdge data shows.

HSA Commercial Real Estate delivered Highland Commerce Center of Somers, one of the largest speculative industrial buildings in Wisconsin. Located at 2655 113th Ave., the 918,884-square-foot distribution facility is directly off Interstate 94 at the Burlington Road Interchange in Kenosha.

Bridge Industrial also completed the 669,914-square-foot Building 2 and the 707,953-square-foot Building 3 of Bridge Point Melrose Park, a cutting-edge industrial campus that will exceed 1.5 million square feet in the coveted O’Hare submarket in Melrose Park, Ill.

Vacancy rate higher than the national average

At the end of December, the metro’s vacancy rate clocked in at 9.7 percent—above the 8 percent national average—climbing 570 basis points year-over-year and being the fifth-highest rate across top U.S. markets. Among peer markets, Indianapolis (9.8 percent) and Dallas (9 percent) recorded similar numbers.

In one of the largest recent industrial deals in Greater Chicago, Crow Holdings has signed a full-building lease at 9850 Mississippi St. in Merrillville, Ind. The more than 1 million-square-foot industrial facility is part of the 195-acre Silos at Sanders Farm master plan.

W. P. Carey also inked a 1.6 million-square-foot industrial lease at 701 Central Ave. in University Park, Ill. A global tech and logistics company occupies the entire building, marking it as one of the largest deals in the market.

The post Chicago Industrial Market Showed Resilience in 2024 appeared first on Commercial Property Executive.

CenterPoint Properties has signed a full-building lease with 3PL firm RJW Logistics Group for a 976,954-square-foot industrial facility in Joliet, Ill. NAI Hiffman represented the owner.

The property is at 2903 Schweitzer Road inside the 6,400-acre CenterPoint’s Intermodal Center – Joliet/Elwood, North America’s largest inland port.

BNSF Railway and Union Pacific Railroads operate within the park, while U.S. Route 6 and Interstate 80 are about 3 miles from RJW’s newly leased facility. Downtown Chicago is some 50 miles northeast.

READ ALSO: Industrial Sector Transitions as Supply Shrinks

The cross-dock building features 40-foot clear heights, 70-foot speed bays, four drive-in doors, 100 loading docks, as well as 220 trailer and 387 car parking spots, among others.

RJW’s newest distribution center is part of its rapid expansion. As of December, the firm had more than 7.3 million square feet of warehouse space across the Chicago and Dallas transportation hubs.

NAI Hiffman Executive Vice Presidents Dan Leahy and Adam Roth represented the owner. The team negotiates on behalf of CenterPoint all the leases inside the master-planned intermodal development.

Windy City’s industrial leasing activity slows down

Chicago industrial leases dropped 25.8 percent year-over-year to 26.8 million square feet in 2024, according to a fourth-quarter report by Cushman & Wakefield. Manufacturing, transportation and warehousing companies comprised the bulk of activity, accounting for 62.9 percent of the new deals signed last year.

Agreements past the 250,000-square-foot mark decreased to 16 in 2024, down from 26 in 2023, the report revealed. John B. Sanfilippo & Son Inc. signed one such lease last June, when the food industry company committed to 444,600 square feet at Venture One’s 729,823-square-foot facility in Huntley, Ill.

As fewer deals closed, the vacancy rate climbed 20 basis points over the year, reaching 4.7 percent in December, the same source shows. Despite increasing, the index remained on par with the 10-year average of 4.7 percent.

The post CenterPoint Secures 1 MSF Tenant in Chicagoland appeared first on Commercial Property Executive.

Commercial property insurance company FM Global has signed a 32,000-square-foot office lease at 1906 Reston Metro Plaza in Reston, Va.

Owned by Comstock Holding Cos., the 150,000-square-foot tower is part of the three-building Reston Metro Plaza complex, part of the larger mixed-use Reston Station development.

FM Global joins other tenants such as Qualtrics and Neustar, the latter having signed the 100,000-square-foot lease with Comstock in 2019. Google, Spotify and ICF International also have established headquarters at the Metro Plaza district.

The office complex has access to the Wiehle-Reston East Station, on Metro’s Silver Line. Dulles International Airport is some 8 miles away, while Washington, D.C. is 20 miles southeast.

READ ALSO: Top 100 Office Leases of 2024 Point to Stabilization

As of December, office vacancy in the metro clocked in at 18.5 percent, 60 basis points higher over a 12-month period, a recent CommercialEdge report shows, but was below the 19.8 percent national average rate.

The Reston Metro Plaza office complex

Comstock Holdings Cos. completed the office towers in 2020. A year later, the company secured $350 million in refinancing from Blackstone and DivcoWest.

The 15-story, 150,000-square-foot 1906 Reston Metro Plaza has a LEED Silver certification and is the second office building of the three developments. Designed by architect Helmut Jahn, the 365,000-square-foot 1900 Reston Metro Plaza is the first of the three office towers and features the Spaces. coworking location. The third building is the 1902 Reston Metro Plaza which encompasses 250,000 square feet.

Apart from its office complex, the 90-acre Reston Station also includes residential units, dining and retail spaces. The development is one of the largest mixed-use properties in the Mid-Atlantic region. The ownership plans to deliver this year 500 more residential units and a JW Marriott Hotel & Residences.

The post Comstock Inks 35 KSF Lease at DC-Area Tower appeared first on Commercial Property Executive.

The survey also found that renewals accounted for 68 percent of the new agreements, marking a 10 percent increase compared to 2023.

The report also showed that more than 50 percent of renewing tenants maintained their existing footprint, and nearly one-third expanded. Three-quarters of those who moved out expanded their space with preference to Class A “trophy” space.

Technology companies led the list with 29 of the largest leases, followed by finance & insurance at 15.

“The rise of GenAI technology and implementations in businesses have been a driver of newly leased space as either new startups pop up or existing firms expand to develop these capabilities,” Ermengarde Jabir, Moody’s Director of Economic Research, told Commercial Property Executive.

For example, in San Francisco, arguably one of the most impacted office markets during the current cycle, a fair amount of recent absorption has been related to the need for office space associated with AI endeavors, she said.

Those relocating gave the nod to “vibrant mixed-use” districts, defined as having a dense population, closeness to retail, dining and culture and prime office buildings.

The Northeast (42 percent) and Pacific (17 percent) regions held the greatest amount of square footage on the list. On a market level, Manhattan dominated, securing the largest share of the top 100 leases by a substantial margin, with 24 large leases signed.

More space enhances productivity

“While the office leasing market has been in a downturn for several years amid shifting workplace strategies and elevated vacancy rates, several sectors continue to display resilience and even expansion,” Nick Schlanger, director of research services at NAI Hiffman, told CPE.

Growth among professional services, life science and tech firms has been a key driver of large lease transactions, as these industries maintain a strong need for high-quality office environments, Schlanger observed.

“Across these sectors, the push toward premium office space reflects a broader shift: rather than leasing just for capacity, companies are securing space that enhances productivity, aligns with corporate culture, and provides a competitive edge in recruitment and retention.”

Schlanger said that in two of the largest office leases in the Greater Chicago area last year, Medline Industries expanded its footprint in both the CBD and the suburbs.

The medical supply giant signed a long-term lease for an additional 110,000 square feet at the Merchandise Mart, bringing its total space there to 161,000 square feet. Simultaneously, Medline secured a 214,560-square-foot lease at 2375 Waterview Drive in Northbrook, marking the largest new suburban office lease since 2022.

“Medline’s expansion highlights the resilience of health-care and life sciences firms, which continue to grow their office presence even as other sectors recalibrate. These companies prioritize high-quality space to support corporate operations, innovation and workforce needs, reinforcing their role as key drivers in today’s office market.”

Altered remote policies have an impact

“We are firm believers in urban office space and have seen a dramatic uptick in activity in early 2025,” James Grady, senior vice president of leasing for Synergy, told CPE.

Synergy is one of Massachusetts’s largest and most active commercial landlords, and it owns a significant number of downtown Boston office buildings.

READ ALSO: Which Asset Classes Stole the Spotlight in 2024?

“We have witnessed a noticeable surge in office leasing activity, not just in the broader market but also across Synergy’s significant portfolio. As more and more companies continue to alter their remote work policies, we anticipate this momentum will only grow.”

There is increased collaboration between landlords and tenants, as both sides work together to create office environments with on-site amenities that support these evolving policies, he added.

B and C products not seeing the pop

David Curry, partner at Farrell Fritz, P.C., said he is seeing a similar trend at the higher end of the office market, which is not translating to the lesser B and C products.

“The vast majority of these spaces are in top Class A office buildings,” Curry told CPE. “Class A office remains a desired commodity despite the generally flat overall performance of office.”

According to Curry, businesses remain willing to spend record rents on full-service, high-end spaces their employees want to come to, and their clients are impressed by.

These spaces offer amenities such as dining options, fitness centers and other recreational spaces. They are typically newer buildings with open floorplans and more natural light, which enhances the work experience and fosters collaboration. “Such Class A amenities offer these companies a leg up to recruit the best and brightest talent,” he said.

READ ALSO: What’s Defining Office in 2025?

Curry added there has also been an increasing “mandate” to return to office in the years since the COVID-19 pandemic.

“Many companies believe that productivity, collaboration and comradery among its staff suffer the more their employees are permitted to work remotely,” he said. “A growing number of large and influential Class A tenants are requiring their workforce to return to the office by increasing their ratio of in-person workdays to remote workdays or eliminating the ability to work remotely entirely. This shift in policy requires additional square footage.”

Curry said this trend is likely a sign that these top companies are thriving and expanding their workforces, requiring more space, which is a welcome economic indicator.

Larger office spaces can fill that expansion and/or consolidate operations that may be spread among multiple locations. These consolidations can be meaningful ways to cut overhead costs and increase efficiency.

The post Top 100 Office Leases of 2024 Point to Stabilization appeared first on Commercial Property Executive.

Law firm Freshfields has signed a 117,000-square-foot, long-term lease at Midtown Center in Washington, D.C. Carr Properties owns the 869,000-square-foot, two-building office complex. CBRE brokered the deal on behalf of both parties, while Carr Properties also had in-house representation.

Freshfields will occupy floors six through eight at the property’s West Tower, more than doubling its presence in the metro.

The firm will relocate from 700 13th St., N.W., an almost 244,000-square-foot office building where the company has been located since 2014. The leased space at that property comprised 52,000 square feet, according to the Washington Business Journal.

READ ALSO: What’s Defining Office in 2025?

Midtown Center is now more than 80 percent leased. The roster also includes Fannie Mae, which downsized its headquarters from 713,500 square feet to 340,000 square feet in August.

The 14-story property is at 1100 15th St., N.W., in downtown Washington, D.C., four blocks north of The White House. Ronald Reagan Washington National Airport is 4 miles southwest.

Midtown Center, up close

Carr Properties completed Midtown Center in 2017, using funds from a $525 million construction loan from Wells Fargo Bank, CommercialEdge shows. In 2021, the company sold a 49 percent stake in the asset to IGIS Asset Management, in a deal that valued the asset at $980 million.

The Class A property consists of two LEED Gold-certified buildings connected by three pedestrian bridges. Features include floorplates averaging 75,500 square feet, 16 passenger elevators and a 45,000-square-foot retail plaza.

Amenities include a fitness center, yoga room, rooftop terrace and bike room. The owner plans to add new amenities to the buildings, including conference and entertainment centers, as well as a rooftop penthouse.

CBRE Executive Vice President Amy Bowser and Senior Vice Presidents Brooks Brown and Harry Stephens, along with Vice Chair Rob Copito, arranged the lease. Carr Properties’ in-house representation comprised Senior Vice President Kaitlyn Rausse and Director Ryan Lopez.

D.C.’s office vacancy sees minor change

Washington, D.C.’s office vacancy rate clocked in at 18.5 percent at the end of December, 60 basis points higher year-over-year, but still below the 19.8 percent national average, the latest CommercialEdge office report shows. The metro’s listing rate during the same period was $41.4, marking a 1.8 percent increase compared to December 2023.

A few months ago, ArentFox Schiff signed a roughly 120,000-square-foot lease also at Midtown Center. The firm will relocate its headquarters to the property in early 2028.

The post Carr Properties Lands 117 KSF Lease in Downtown DC appeared first on Commercial Property Executive.

The non-profit organization Visit Phoenix has signed a 24,722-square-foot lease at RED Development’s mixed-use CityScape in Phoenix.

Visit Phoenix will relocate its offices from 400 E. Van Buren St., less than one mile from CityScape. The tenant will establish its headquarters at the new space and will move to the location in the fourth quarter of 2025.

JLL represented both parties in the lease negotiations.

The 1.2 million-square-foot property features a 27-story office tower, retail, dining and entertainment spaces, as well as the Kimpton Palomar hotel.

READ ALSO: Phoenix Office Market’s Small Wins Add Up

The office component’s tenant roster includes Alliance Bank, United Healthcare and Gust Rosenfeld and is currently at 6.0 percent vacancy, Phoenix Business Journal reported.

The office tower at CityScape

Located at 1 E. Washington St., the property is in downtown Phoenix, in the city’s central business district. Phoenix Sky Harbor International Airport is some 4 miles southeast.

The 641,718 rentable-square-foot office building came online in 2010 and features 23,600-square-foot floorplates and 33,000 square feet of retail space. Amenities include shared conference rooms, a fitness center and some 2,670 car parking spaces. In 2024, the high-rise became subject to a $170 million loan originated by Western Alliance Bank, according to CommercialEdge information.

JLL Executive Vice President Mike Gordon worked on behalf of Visit Phoenix in the lease negotiations, while Senior Managing Director Ryan Timpani and Senior Vice President Brett Thompson represented the ownership.

The office market in Phoenix had a vacancy rate of 19.4 percent as of December 2024, a 40-basis-point uptick over a 12-month period, but slightly lower than the national average of 19.8 percent, a recent CommercialEdge report shows. The metro’s asking rents reached $28.4 per square foot, up 2.7 percent year-over-year.

The post RED Development Inks Lease in Downtown Phoenix appeared first on Commercial Property Executive.

Community Healthcare Network has signed a 12,083-square-foot, long-term lease at 44 W. 28th St., a 192,000-square-foot office building in Manhattan’s Flatiron District.

Denham Wolf Real Estate Services worked on behalf of the tenant, while CBRE represented the landlord, Stellar Management.

CHN is one of the largest affordable community health care providers in New York City. The tenant will relocate its headquarters at the building’s fifth floor, with moving-in scheduled for this fall. Other tenants include J.T. Magen & Co., YellowHammer Media Group and Stellar Management, according to CommercialEdge information.

The current ownership picked up the asset in 2007, in a $51.5 million deal and in 2019, the property became subject to a $78 million refinancing package, originated by Flagstar Bank, the same source shows.

Completed in 1911, the 16-story building underwent cosmetic renovations in 2008 and features five passenger elevators, 12,000-square-foot floorplates and 9,000 square feet of first floor retail space.

The property is across from Madison Square Park and the 28th Street subway station. John F. Kennedy International Airport is some 15 miles southeast.

Director of Occupier Services Lauren Davis and Transactions Manager Cameron Tuttle with Denham Wolf Real Estate Services worked on behalf of the tenant. CBRE’s Senior Vice President Caroline Merck and Vice President Jacob Rosenthal represented Stellar Management during negotiations.

Manhattan’s low vacancy

The office sector is expected to continue to struggle in 2025 as it’s still adapting to the post-pandemic changes, a recent CommercialEdge report shows. Despite return-to-office policies from some companies, the national vacancy rate clocked in at 19.8 percent as of December last year, marking a 150-basis-point increase over a 12-month period. Office vacancies continued to grow throughout 2024, with the six of the top 25 key markets witnessing an increase by more than 500 basis points.

Nevertheless, Manhattan marked the lowest office vacancy rate in the Northeastern U.S., with 16.6 percent as of December, while also being ranked the fifth lowest on a national level. The borough’s asking rents reached $68.4 per square foot—the highest in the North region and the second-highest in the U.S., after San Francisco’s $70.6 per square foot.

One of the largest deals closed recently was the 147,543-square-foot lease signed by The Federal Deposit Insurance Corp. The government agency will fully occupy three floors, as well as a partial floor for the next 10 years at the 1.6 million-square-foot, 1166 Avenue of the Americas.

The post Stellar Management Lands HQ Lease in Manhattan appeared first on Commercial Property Executive.

FS Investments and Brandywine Realty Trust have entered a 16-year lease agreement for 117,000 square feet at 3025 JFK Blvd., a mixed-use tower within Philadelphia’s $3.5 billion Schuylkill Yards master-planned development.

The alternative asset manager is planning to relocate its global headquarters to the new space in early 2026. The company’s move from its current headquarters at Navy Yards will grow its footprint by 46 percent at 3025 JFK Blvd., where it has taken up four floors.

FS Investments has been in Philadelphia since its inception in 2007 and at Navy Yards since 2015. The company will bring its 300 local employees close to key transit connections at 30th Street Station, which is undergoing a large-scale restoration and renovation.

READ ALSO: What Defines the Best CRE Investments Today?

The 28-story mixed-use building at 3025 JFK Blvd. features 200,000 square feet of office space, a 29,000-square-foot indoor-outdoor amenity floor, 9,000 square feet of ground-floor retail and 18 floors of luxury residential. It also provides tenants and residents direct access to the newly expanded High Line Park.

Tactix Real Estate Advisors represented FS Investments in the transaction, according to The Real Deal. Last year, Goodwin Procter also signed a lease at the building, which is now 80 percent leased.

Schuylkill Yards’ progress

Last year, Brandywine Realty Trust and Drexel University topped out 3151 Market, a 435,000-square-foot 14-story life science building at Schuylkill Yards.

The tower at 3151 Market St. spans 14 acres in Philadelphia’s University City district. Offering 417,000 square feet of best-in-market lab and office space, 18,000 square feet of retail and amenity space, and 6,000 square feet of terrace space, it opened in 2024.

There are currently 65 office, life science and retail tenants at Schuylkill Yards. Upon completion at the end of the decade, the master-planned development is expected to total 6 million square feet of space across various property types.

Philadelphia’s office market performance

The prices for office space in Philadelphia decreased for the second half of 2024, according to CommercialEdge. Fundamentals did not improve over that time, with vacancy increasing by 510 basis points over the past 12-month period ending in October.

The muted supply pipeline had just 1.9 million square feet under construction. Four out of the five projects underway in October were life science assets, reinforcing the market’s emergence as a growing hub for the sector.

The post Brandywine Realty Secures Major Lease in Philadelphia appeared first on Commercial Property Executive.

The 226,000-square-foot transaction worth roughly $375 million closed in late December. It is one of the largest biosciences transactions in the Peninsula market and the largest new lease overall in San Mateo County, the San Francisco Business Times reported.

The deal comes at a time when the life science market in the Bay Area is struggling with job cuts and an industry slowdown.

WRNS Studio designed Elco Yards, which sits at the edge of downtown along the Caltrain corridor.

Cushman & Wakefield’s Ben Paul, Mike Courson, with Newmark, and Matt Germino, with CBRE, represented Chan Zuckerberg in lease negotiations. Paul will handle marketing.

CZI is an entity formed by Meta Platforms CEO Mark Zuckerberg and his wife, Priscilla Chan.

READ ALSO: Life Science Trends to Watch in 2025

The asset’s top-quality microscopes were a key reason for CZI’s decision, as they could help the company better understand how cancer cells influence tumor growth.

Lay of the land

IQHQ acquired Elco Yards from Greystar in November 2021. The surroundings include about 670,000 square feet of life science and office space and hundreds of planned residential units within 8 acres.

CZI occupies one of Elco Yards’ four buildings, each averaging over 200,000 square feet. The organization recently completed a 111,000-square-foot expansion at its nearby headquarters. The company’s mission is to study and eradicate human disease.

Redwood City is home to several life science companies.

iO Life Science is a virtual incubator for medtech inventors, early-stage startups and entrepreneurs. It provides resources and expertise to help fast-track innovations from ideation to commercialization.

Redwood LIFE is an innovation-focused environment with lab space and amenities that inspire collaboration and breakthroughs.

180 Life Sciences is dedicated to addressing pathological inflammation and developing therapeutics to treat diseases caused by inflammation.

The post Chan Zuckerberg Institute Lease Boosts Bay Area’s Life Science Sector appeared first on Commercial Property Executive.

Oncology practice New York Cancer & Blood Specialists has signed a 35,469-square-foot lease at Youngwoo & Associates’ Radio Tower in New York City’s Washington Heights. The tenant will occupy the entire eighth, ninth and eleventh floors at the property starting this summer.

Avison Young and Savills worked on behalf of the ownership, while Schuckman Realty represented the tenant.

NY CBS has upward of 30 locations and 35 hospital affiliations in Bronx, Manhattan, Queens, Staten Island, and Brooklyn, as well as in Nassau and Suffolk counties. The oncology practice offers services such as imaging, therapy, surgery, on-site lab, psychology and nutrition, among others.

A mixed-use high-rise

Located at 500 W 181st St., the property has access to the Washington Bridge and Interstate 95. Yeshiva University is nearby, while Columbia Presbyterian Hospital is 1 mile away.

Radio Tower came online in 2022 as the first mixed-use development in Northern Manhattan in the last 50 years. The 22-story, 305,000-square-foot building comprises a 85,000-square-foot, 221-room hotel, 167,000 square feet of office space and ground floor retail. Amenities at the high-rise include tenant lounge, bike storage, rooftop bar and conference space, as well as indoor parking with 169 spots and a 13,000-square-foot event space.

Avison Young Principals Marty Cottingham and Michael Gottlieb, together with Director Patrick Steffens, Senior Director Joel Wechsler and Senior Associate Alexis Odgers worked on behalf of the ownership in the lease transaction. Savills Vice Chair Arthur J. Mirante, II assisted Avison Young. Schuckman Realty Associate Broker Ari Malul represented NY CBS.

Manhattan holds on

The office sector will continue to face challenges this year, as the pandemic effects on the market are still unfolding. Despite return-to-office policies from some companies, the national vacancy rate increased in 2024 and climbed to 19.8 percent at the end of December, a recent CommercialEdge report shows. One initiative in New York City is the Office Conversion Acceleration program which encourages adaptive-reuse practices such as converting buildings to data centers, coworking hubs and residential projects.

Nevertheless, Manhattan is staying afloat, registering a 16.6 percent vacancy rate as of December, posting a 20-basis-point increase over a 12-month period, according to the same report.

Among the largest deals closed recently was the 10-year lease signed by The Federal Deposit Insurance Corp. to occupy 147,543 square feet at the 1.6 million-square-foot, 1166 Avenue of the Americas in Manhattan.

The post Oncology Practice Signs 35 KSF Lease in Manhattan appeared first on Commercial Property Executive.

TailoredSpace has opened its latest coworking space in Orange County in San Clemente, Calif. This marks the city’s first full-service flex office.

The 10,500-square-foot location provides conference rooms, coffee and snacks, parking space, as well as member events and parties. The interior design represents a combination between a residential living room and a commercial space.

Other tenants at the property include Melin, 24 Hour Fitness and Saddleback Church.

Located at 100 Avenida La Pata, the building is some 3 miles from downtown San Clemente and has access to Interstate 5. John Wayne Airport is 28 miles away.

Lee & Associates Senior Vice President Tim Walker worked on behalf of the landlord in the transaction.

Orange County coworking footprint

Completed in 1999, the two-story, 43,560-square-foot building sits on a 9-acre site. The property has been under Metro Commercial Realty Corp.’s ownership since 2013, when W.P. Carey sold it for $11.3 million, according to CommercialEdge. In 2014, the asset became subject to a $15.5 million loan originated by EquiTrust Life Insurance Co., with a maturity date set for 2034, the same source shows.

The San Clemente office is the 10th TailoredSpace location in Southern California. The company’s coworking landscape includes nine other locations in Brea, Carlsbad, Chino Hills, Corona, Laguna Niguel, Rancho Cucamonga, Riverside, San Juan Capistrano and West Covina and plans to add five more coworking offices in the area this year.

TailoredSpace opened its Laguna Niguel location back in October 2024. The company occupies nearly 12,000 square feet on the entire first floor at a 280,979-square-foot retail campus, owned by Dunhill Partners.

The post TailoredSpace Expands Footprint in Orange County appeared first on Commercial Property Executive.

Moreover, the market had 8.2 million square feet under development during the same period, significantly surpassing the 3.3 million square feet recorded in December 2023.

Despite this growth, the metro’s vacancy rate increased 310 basis points year-over-year, as the influx in new supply put a dent in the metro-level average. Throughout the year, 9.3 million square feet of industrial space was delivered.

However, recent major projects underscore the market’s resilience and robustness. In January, Hines and Aubrey Corp. announced plans for a 10 million-square-foot mixed-use development, encompassing more than 2,390 acres. The industrial segment of this project will occupy more than 1,200 acres across two campuses, with the rest of the space being used for data center, retail, hotel and residential purposes.

Development pipeline grows, still below national average

At the end of December, Atlanta’s industrial sector had 8.2 million square feet under construction, more than double the 3.3 million square feet registered in December 2023. The 26 projects in the pipeline are expected to account for 1.4 percent of the metro’s total inventory.

The market’s development index was below the 1.7 percent national average, but above peer markets such as Chicago (0.5 percent), Indianapolis (1.2 percent) and New Jersey (1.0 percent). Phoenix (4.5 percent) continued to lead nationally.

At the end of the year, The Broe Group acquired a 14-acre site in Georgia’s Fulton County Industrial District for the construction of a 225,000-square-foot build-to-suit facility. The building will have rail service, with pad-ready construction expected this February.

Additionally, 18 projects totaling almost 4.9 million square feet broke ground last year. One of them is Stonemont Financial Group’s Stonemont Park 75 South, a 903,701-square-foot industrial development in Locust Grove, Ga. In June, the firm obtained a $42.5 million construction loan for the three-facility campus.

Industrial completions remain steady

Last year, Atlanta’s industrial market saw 26 properties coming online, totaling almost 9.3 million square feet—about 1.6 percent of the metro’s total inventory. This figure was slightly lower than the 9.7 million square feet completed in 2023.

Compared to peer markets, only Indianapolis (6.1 million square feet) and Kansas City (4.5 million square feet) saw less space delivered. Phoenix (32.7 million square feet) saw the most completions, followed by Dallas (29.1 million square feet) and Chicago (14.9 million square feet).

Last year, Panattoni Development completed the almost 1.4 million-square-foot Building 6 within Speedway Commerce Center, a 546-acre industrial campus in Hampton, Ga. Target agreed to prelease the distribution center in October 2023.

Assets trade for less, investment volume grows

Atlanta’s industrial investment volume reached roughly $2 billion last year, about $100 million higher than in 2023. However, assets traded on average for $108 per square foot, a slight year-over-year decrease from $116.

Among peer markets, New Jersey ($213 per square foot) and Phoenix ($162 per square foot) remained in the spotlight, while Chicago ($92 per square foot) and Indianapolis ($73 per square foot) were at the opposite end of the spectrum.

In one of the largest deals in the metro from last year, ATCAP Partners purchased Gwinnett Park, a 12-building, 753,700-square-foot light industrial park. Dogwood Industrial Properties, an investment platform of TPG Real Estate, sold the campus completed between 1973 and 1986.

Atlanta’s vacancy rate among the lowest nationally

At the end of December, Atlanta’s industrial vacancy rate clocked in at 6.8 percent, 310 basis points higher year-over-year. However, the figure is still 1.2 percent below the national average. Among peer markets, the metro had one of the lowest vacancy rates, while Indianapolis (9.8 percent) and Chicago (9.7 percent) had the most available space.

In November, Samaritan’s Purse signed a 172,000-square-foot, full-building lease at a warehouse at 1347 Highway 92 in Acworth, Ga. The charitable organization will use the space to process Christmas gifts for children. Prologis acquired the facility in 2023 from Link Logistics.

Other notable leases in the area include Souto Foods’ commitment to 200,000 square feet at Sugarloaf Logistics Hub, a 2.2 million-square-foot master-planned industrial development in Lawrenceville, Ga. Foxfield and AEW Capital Management are the owners of the property that also includes a cold storage element.

The post Atlanta’s Industrial Sector Among the Busiest in 2024 appeared first on Commercial Property Executive.

The maritime assurance and risk management firm DNV USA has signed a 62,779-square-foot lease at The Offices at Greenhouse, a 208,809-square-foot office property in Houston’s Energy Corridor submarket. The company will relocate from its current location in Katy, Texas.

The deal brought The Offices at Greenhouse to 74 percent occupancy, leaving 52,334 square feet available for lease. The tenant roster includes Patten Title Co., SPB Hospitality, Med Sales Institute and DSWi, among others, CommercialEdge shows.

Located at 19219 Katy Freeway, the property has access to Interstate 10. Downtown Houston is 23 miles away, while William P. Hobby Airport is some 34 miles southeast.

Transwestern’s Executive Managing Director Doug Little, Vice President Jack Scharnberg and Senior Vice President Kelli Gault worked on behalf of Capital Commercial Investments. JLL’s Senior Vice President Collin Grimes represented the tenant.

READ ALSO: What’s Defining Office in 2025?

Capital Commercial Investments acquired the asset last year. The company paid $17.6 million to seller KBS Realty Advisors in July, according to CommercialEdge. The property traded at $86.6 per square foot, a notable discount from the previous sale, closed in 2016 at $47 million, or at $231.4 per square foot, the same source shows.

After the acquisition, the owner commenced a capital improvement strategy at the property. Upgrades are ongoing and include the addition of EV charging stations, a fitness center and renovations of the outdoor spaces.

Built in 2014, the five-story Class A property has a LEED Silver certification and includes 40,000-square-foot floorplates, a tenant lounge, a conference center and 900 vehicle parking spots. Additionally, the building features car wash or detailing services, as well as bike storage.

In November last year, the company made another purchase in the same submarket when it picked up Energy Crossing II, a 327,404-square-foot office building, from Invesco Real Estate. At the time of the sale, the property was 30 percent leased.

Rising vacancies in Texas

The Southern region’s office markets registered high vacancies throughout 2024, with Texas markets posting some of the most notable surges of year-over-year increases, a recent CommercialEdge report shows. As of December, Houston’s office vacancy rate stood at 24.5 percent, above the 19.8 percent national average but it was the second-highest in the region, after Austin’s 27.9 percent rate.

Recent deals in Houston include Brookfield Properties’ 259,774-square-foot renewal agreement at its Allen Center office campus. Plains Marketing LP, a tenant at the property since 1992, extended its commitment through 2036.

In December, Prescott Group inked a 94,179-square-foot leasing deal with Ezee Fiber at its 567,333-square-foot building, currently undergoing upgrades. The tenant will consolidate two Houston locations into a large headquarters at the property.

The post Capital Commercial Inks 63 KSF Lease in Houston appeared first on Commercial Property Executive.

Rudin has secured another agreement for its 3 Times Square building in Midtown Manhattan, signing Spectrum Reach to an 11-year lease. The company will take over the 26th and 27th floors of the 30-story tower.

Spectrum Reach is Charter Communications’ advertising sales business. This fall, it will relocate from its current office at 1633 Broadway into what is also called the Thomson Reuters Building.

Spectrum Reach was represented by Robert Stillman, Cara Chayet and Liz Lash of CBRE. Thomas Keating of Rudin and the Cushman & Wakefield agency team of Ron Lo Russo, John Cefaly, Paige Engeldrum, Lou D’Avanzo, Mike Burgio and Dan Organ represented the ownership.

Rudin has been filling the 925,000-square-foot tower that overlooks the Hudson River lately. Remy Cointreau, Anchin, Block & Anchin and Touro University are other recent tenants. Thomson Reuters, an original tenant, has renewed.

Last February, law firm Kilpatrick Townsend & Stockton LLP signed a 10-year lease to take over the building’s 28th floor. In June 2023, Rudin signed a five-year lease with West Publishing Corp.

Focus on wellness and sustainability

The building, designed by Fox & Fowle Architects, opened in 2001 as the North American headquarters of Reuters Group PLC and received capital improvements through FXCollaborative in 2020. The work included a new, glass-walled triple-height lobby and a decorative sculptural façade screen, in keeping with the Times Square aesthetic.

READ ALSO: Office Sector Faces Ongoing Challenges Into 2025

Other upgrades include a touchless entry system, a fully renovated destination dispatch elevator system, a conference and event center, a coffee bar, a dining area and a fitness center with locker rooms.

The building’s floorplates range from 28,000 square feet to 35,000 square feet and are column-free.

WiredScore awarded the building a Platinum certification for its connectivity. It also gained a SmartScore Gold certification for its user experience and sustainability.

Additionally, the building achieved the WELL Health-Safety Rating for its efforts to emphasize health and wellness for building occupants. Its AI-driven Nantum OS improves building operational efficiency, decreases carbon emissions and optimizes indoor comfort.

The post Rudin Lands HQ Lease at Manhattan Tower appeared first on Commercial Property Executive.

Launched in 2020, Generate is the first drug generation company using a machine learning-powered generative biology platform with the ability to more quickly create new and more effective drugs on demand. The company unveiled its cryogenic electron microscopy laboratory at IQHQ’s life science district in Andover in June 2023.

The CryoEM laboratory is one of the largest of its type in the U.S. It is equipped with four microscopes that provide detailed molecular visualization enabling scientists to see the structure of proteins too small to be seen with traditional microscopes. The lab and its data are enriching the Generate platform leading to advancements in therapeutic design and drug discovery.

READ ALSO: What’s Defining Office in 2025?

IQHQ, a life science REIT and real estate developer, acquired the approximately 201,500-square-foot campus at 4 Corporate Drive in the 495 Corridor between 2020 and 2021. The REIT paid Eisai $35.9 million in March 2020 for the two-building, 18-acre campus, according to CommercialEdge. In spring 2020, IQHQ signed two long-term leases at the multi-tenant campus with UMass Lowell and Ora Inc., an ophthalmic contract research organization and product development firm.

Located in the Merrimack Valley East submarket about 20 miles north of Boston, Innovation Park was completed in 1987 and renovated and expanded in 2006. IQHQ also updated the campus by adding a café with indoor and outdoor seating, a fitness center and common-area improvements. The office and lab property has two low-rise buildings and 671 parking spaces. With renovations, the campus is now a 340,000-square-foot life science hub for biotechnology companies and life science manufacturing companies.

Growing life science portfolio

IQHQ, which acquires, develops and operates life science districts throughout the U.S., has been growing its presence in hubs including San Francisco, San Diego and Boston. In Boston, the REIT’s properties and projects include 109 Brookline Ave., a 285,000-square-foot lab and office building near the Longwood Medical Area, which IQHQ acquired from Equity Commonwealth in February 2020. That same year, IQHQ acquired Alewife Park, a 290,000-square-foot life science campus in Cambridge, Mass., in a $125 million sale-leaseback deal.

In April 2021, IQHQ and Meredith Management broke ground on Fenway Center, a $1 billion life science campus in Boston that will include lab, office and ground-floor retail space totaling almost 1 million square feet of space.

Nearly a year ago, IQHQ has topped out Spur Phase One, a 330,000-square-foot life science building in South San Francisco, Calif. Completion of the eight-story development is anticipated early this year.

The post IQHQ Inks Biotech Firm to Lease Renewal, Extension appeared first on Commercial Property Executive.

San Francisco-based flex office provider Pacific Workplaces will open in February a 13,000-square-foot coworking space on the seventh floor at 84 W. Santa Clara St. in San Jose, Calif.

The new location was initially scheduled for completion by September 2024. This is the company’s second coworking space in Silicon Valley, after opening another location in 2023 in Cupertino, Calif.

Amenities will include 51 private offices, six fully equipped meeting rooms, workstations, private phone booths and flexible desk options, designed by Workplace Studio and suited to elevate the coworking experience.

Other tenants in the building include TMC Financing, Hann Law Firm, Silicon Valley Accounting-Tax, Power Personnel and Innovar Marketing, according to CommercialEdge information.

Completed in 1976, the eight-story property is a Class B, 110,000-square-foot building. Pestana Properties owns the LEED Gold-certified asset, the same source shows. The mid-rise features 13,338-square-foot floorplates, three passenger elevators, 49 car parking spaces and 12,000 square feet of retail. Amenities include a conference center, tenant lounge and fitness center.

The property is in downtown San Jose, across the street from Blue and Green Line light rail stops and within 1 mile from the San Jose Diridon Station. The San Jose Mineta International Airport is some 3 miles northwest. Major thoroughfares in the area include interstates 280, 680 and 880, as well as State Route 87.  

The post Pacific Workplaces to Open Bay Area Location appeared first on Commercial Property Executive.

In the largest office lease ever recorded in Miami’s Wynwood submarket, Amazon agreed to occupy 50,333 square feet at Wynwood Plaza, a 1 million-square-foot mixed-use development.

L&L Holding Co. and Oak Row Equities are the owners. Shorenstein Investment Advisers is the project partner, while Claure Group serves as co-investor.

Cushman & Wakefield assisted the landlord in the deal, alongside with in-house representation, while Savills worked on behalf of the tenant.

Located at 95 NW 29th St., Wynwood Plaza is taking shape 6 miles from downtown Miami and will have access to interstates 95 and 195. Miami International Airport is some 8 miles west.

READ ALSO: What’s Defining Office in 2025?

Miami’s office vacancy rate at the end of December clocked in at 15.2 percent, posting the lowest rate among the top U.S. markets, the latest CommercialEdge office report shows. Despite a 110-basis-point increase, the metro’s figure was lower than the 19.8 percent national average.

A mixed-use campus in Miami’s Art District

The mixed-use campus broke ground in March 2023, after the developer secured a $215 million construction loan from Bank OZK. The project is scheduled for completion in the following months.

Wynwood Plaza will comprise a 12-story Class A, 266,000-square-foot office building and a residential component that will feature 509 luxury rental apartments. The property will also include 25,000 square feet of retail and a 26,000-square-foot outdoor public plaza.

The office component will have various amenities such as a fitness center, a cafe and bar lounge, rooftop private seating areas and conference spaces. Floorplates will range from 23,756 to 25,205 square feet.

L&L Holding Co. Vice President Bryan Lapidus, together with Cushman & Wakefield Managing Director Andrew Trench, Senior Director Edward Quinon and Vice Chairman Brian Gale, worked on behalf of the landlord. Savills Executive Managing Director Tom Capocefalo and Vice Chairman Mike Catalano represented the tenant.

The post Amazon to Open Miami Office appeared first on Commercial Property Executive.

IBM has inked a 15-year, 92,663-square-foot lease expansion at SL Green Realty Corp.’s One Madison Avenue in Manhattan. The agreement covers the property’s entire seventh floor, for which the asking rent was $110 per square foot, the Commercial Observer reported.

JLL’s Vice Chairman Patrick Murphy and Vice President Winston Schromm arranged the deal on behalf of IBM. SL Green was represented by JLL Vice Chairmen Paul Glickman and Alex Chudnoff, together with Executive Managing Director Ben Bass and Senior Vice President Diana Biasotti.

In 2022, IBM signed a 16-year, 270,000-square-foot lease at One Madison. The five-story office space opened September of last year.

SL Green acquired One Madison from MetLife Real Estate Investment in 2005. The 1.4-million-square-foot property traded for $801.7 million, according to CommercialEdge information. Last month, SL Green and its joint venture partners finalized a $1.25 billion mortgage modification and extension for the property, extending the final maturity date through November 2027.

A major adaptive reuse project

Originally built in 1893 to designs by Napoleon Le Brun & Sons, One Madison rises 26 stories in Manhattan’s Midtown South. SL Green, in a joint venture with National Pension Service of Korea and Hines, completed the property’s $2.3 billion redevelopment in September 2023. Architect Kohn Pedersen Fox oversaw the renovation, aiming to achieve LEED Gold certification. Amenities include an HVAC system that circulates 100 percent fresh air and a 7,000-square-foot tenant-only lounge, as well as several eateries and retail spaces.

One Madison’s tenant roster features Franklin Templeton, Coinbase and Palo Alto Networks, according to CommercialEdge. With IBM’s expansion, the office building is now 72 percent leased.

The office high-rise is across the road from Madison Square Park and the 23rd Street subway station and within a half mile of the Flatiron Building and Empire State Building.

The post IBM Expands Manhattan Office appeared first on Commercial Property Executive.

Law firm Jackson Walker LLP has extended and expanded its office footprint at Masaveu Real Estate’s KPMG Plaza in Dallas to a total of 147,915 square feet. Under the new lease, the company will occupy nearly six floors at the 500,000-square-foot property. Stream Realty Partners represented the owner, while CBRE negotiated on behalf of the tenant.

Jackson Walker relocated to KPMG Plaza upon its 2015 completion and became one of the building’s anchor tenants. The roster also includes Bell Nunnally & Martin LLP, UMB Bank and KPMG.

A Class A office building in Dallas

Masaveu acquired the Class A mid-rise in 2019 for $240 million from Civitas Capital Group, according to CommercialEdge information. A $111.7 million loan originated by Wells Fargo Bank financed the transaction.

Located at 2323 Ross Ave. in Dallas’ Arts District, the 18-story building features 26,000-square-foot floorplates and 20,000 square feet of retail space. Amenities at the LEED Gold-certified property include a fitness center and covered parking, as well as 24-hour security.

KPMG Plaza is near Interstate 345 and Highway 366, adjacent to a luxury hotel and within walking distance of Klyde Warren Park.

Stream Managing Director Matt Wieser, Executive Vice President J.J. Leonard and Senior Vice President Marissa Parkin worked on behalf of the ownership. CBRE Vice Chairman Phil Puckett and former Vice Chairman Jeff Ellerman—now Executive Vice Chairman at Stream—represented Jackson Walker.

Earlier this week, Stream became the exclusive leasing agent for Piedmont Office Realty Trust’s office campus in Irving, Texas. Leonard is part of that brokerage team as well.

The post Law Firm Expands Dallas Office Footprint appeared first on Commercial Property Executive.

BlackRock extended its obligation for all of the third and fourth floors, part of the fifth floor, and some ground floor space, while relinquishing half of the fifth floor. BlackRock has been a tenant in the building since 2010.

1 University Square Drive is a five-story, 330,000-square-foot Class A office building with a two-story atrium lobby, a full-service cafeteria with private catering, a media/conference room with seating for 48 and a fitness center with locker rooms and sauna. The 18.5-acre campus has extensive amenities that include newly revamped landscaping with a walking trail; bocce, basketball and pickleball courts; electric car charging stations; and a community garden. 

The property was completed in 2008 and is midway between Philadelphia and New York City along Princeton’s Route 1 Corridor. It’s less than 2 miles from downtown Princeton and has easy access to the Princeton Junction train station with AMTRAK/NJ Transit/Conrail serving the Northeast corridor.

READ ALSO: When Office Meets Hospitality

The JLL leasing team for 1 University Square Drive includes Executive Managing Director Tim Greiner, Managing Director Tom Romano, Senior Vice President Vinny DiMeglio, Vice President Mike Pietrowicz and Executive Vice President Jonathan Ortiz. BlackRock was represented in the transaction by JLL Chairman & President, New York Region, Peter Riguardi; Vice Chairman Matt Astrachan; Managing Director Nicole Tiger; Executive Vice President George Gemelos; and Associate Vice President Hannah Bernstein.

Other tenants in the building include engineering and environmental services firm Langan and investment consulting firm Mercer.

A JLL spokesperson stated that BlackRock’s return of 33,900 square feet (about 16 percent of the building’s total office space) to the landlord next summer will bring the building to an overall vacancy of 64 percent.

“This is a relatively small ‘post-Covid’ adjustment, compared to other companies that have right-sized their operations from leases executed before the pandemic,” Greiner told Commercial Property Executive. “Office tenants in general have embraced strategic real estate planning to streamline their operations and embrace new work models. This trend not only enhances efficiency and cost savings, but can also add much-needed high-end sublease space into the market, providing other tenants with greater access to premium office environments. The result is a more dynamic and flexible leasing landscape that supports evolving workplace needs.”

No shortage of downsizing

Speaking of downsized leases, last September Nuveen Real Estate signed Dr. Reddy’s Laboratories for 53,000 square feet at 600 College Road E. in Princeton Point, a two-building, 440,000-square-foot office campus in Princeton, N.J. The deal was arranged by Cushman & Wakefield.

The transaction was a relocation and downsize for the generic-drug maker’s North American headquarters. Princeton Point is part of Princeton University’s 2,000-acre master-planned business and research campus.

Overall vacancy in New Jersey’s office space market peaked in mid-2024 at 27.3 percent, but had slipped slightly by year’s end, “as tenants signed leases for higher-end workspaces and sublease availabilities trended lower,” according to a fourth-quarter report from JLL. Almost 500,000 square feet was absorbed in the fourth quarter, with the biggest share of that leasing coming from the legal sector.

The report foresees ongoing stabilization of New Jersey’s office sublease market, accompanied by downward pressure on overall vacancy.

The post BlackRock Signs Major Renewal, Extension in New Jersey appeared first on Commercial Property Executive.

JPMorgan Chase has signed a renewal and expansion agreement totaling 280,000 square feet in San Francisco’s Financial District, the San Francisco Chronicle first reported.

The company will expand its footprint at Hines’ 560 Mission St. building by 60,000 square feet for the next five years.

The deal comes as the company is asking its employees to return to the office five days per week. The expansion will also also enable JPMorgan Chase to relocate some of First Republic Bank’s former employees to 560 Mission St.

Following JPMorgan Chase’s takeover of First Republic Bank, which occupied 750,000 square feet of office space in downtown San Francisco until 2023, the company is now focusing on consolidating its workforce from the former bank’s space at 1 Front St. to the expanded office space in the Financial District.

First Republic Bank occupied some 460,000 square feet at Paramount Group’s 1 Front St., of which JPMorgan Chase initially agreed to keep some 300,000 square feet. In 2024, JPMorgan downsized its space there once again, marketing for lease another 244,000 square feet, according to The Real Deal.

The Class A office building at 560 Mission St., also known as the JPMorgan Chase Building, totals 667,782 square feet. Other tenants here include Ernst & Young, which occupies 122,760 square feet, as well as Seyfarth Shaw, Munger, Tolles & Olson and Arup, according to CommercialEdge. It is close to multiple bus and light rail stops that allow easy access to the Union Square area and to downtown San Francisco, while being 13 miles from San Francisco International Airport.

Hines developed the 420-foot-tall office tower in 2002 and has since continued to own and operate the asset. Rising 31 stories, the high-rise includes 21,698-square-foot floorplates, 5,000 square feet of retail space and 117 vehicle parking spots. The amenity package includes on-site food and beverages services, events, access to an outdoor plaza, dry-cleaning services, valet parking and EV charging stations.

San Francisco’s office market shows mixed signals

Despite being among the priciest office markets in the U.S., San Francisco recorded one of the highest vacancy rates in the nation, according to a recent CommercialEdge report. The metro had a 28.2 percent vacancy rate as of November last year, marking a 400-basis-point increase year-over-year, far outpacing the 19.4 percent national average.

The on-going struggles in the office sector have impacted the San Francisco market throughout 2024. In May, Google announced plans to exit its 300,000-square-foot space at One Market Plaza, as its lease will expire this April. The 1.6 million-square-foot office complex is owned by Paramount Group.

However, the market is also seeing notable leasing transactions. In November, Alexandria Real Estate Equities Inc. announced a long-term deal with Vaxcyte Inc. in San Carlos, Calif. The tenant signed a 10-year lease for 258,581 square feet at the company’s two-building Alexandria Center for Life Science.

The post JPMorgan Chase Commits to 280 KSF in San Francisco appeared first on Commercial Property Executive.

Piedmont Office Realty Trust has appointed Stream Realty Partners as exclusive leasing agent for The Connection, an office campus totaling 607,237 square feet in Irving, Texas. The Class A, three-building property is within the Las Colinas submarket of Dallas-Fort Worth.

Executive Vice President & Partner J.J. Leonard, Senior Associate Patrick Cruz and Managing Director Doug Jones with Stream Realty Partners’ Dallas Office division will handle leasing at the property.

The Connection, formerly known as Las Colinas Connection, includes the 231,681-square-foot building at 6031 Connection Drive, the 223,470-square-foot building at 6021 Connection Drive and the 152,086-square-foot building at 6011 Connection Drive.

READ ALSO: Innovative Solutions for Return-to-Office Challenges

The nine-, seven- and six-story properties feature floorplates between 27,464 square feet to 33,073 square feet, passenger elevators, on-site property management and a total of 2,089 parking spots. Amenities at The Connection include a conference center, a tenant lounge, outdoor patios, a fitness center and multiple services, such as shuttle services.

The current ownership bought the three buildings in a $124.8 million portfolio deal in 2022 from CarrAmerica Realty, according to CommercialEdge. Tenants at The Connection include Cardinal Financial Co., Epsilon Data Management and Gartner Inc., among others, the same source shows.

The approximately 20-acre office campus provides easy access to the Dallas metro, being close to Texas State Highway 114 and 183, as well as to interstates 635 and 35. Dallas Fort Worth International Airport is within 6 miles from The Connection, downtown Dallas is within 15 miles and Fort Worth, Texas, is within 27 miles.

High vacancy rates across Texas metros

The office sector continues to struggle with high vacancy rates, a recent CommercialEdge report shows. The national office vacancy rate as of November reached 19.4 percent, marking a 120-basis-point year-over-year increase. The Metroplex had a 23.9 percent vacancy rate, representing a 500-basis-point uptick while also being among the highest in the South region. Houston had a slightly higher rate at 24.2 percent, while Austin, Texas, recorded a 27.7 percent average vacancy and a 650-basis-point increase—the highest in the U.S.

However, several significant office leases still closed in Dallas-Fort Worth metro. A recent deal is Merit Energy Co.’s 104,034-square-foot leasing agreement at Two Lincoln Centre. The tenant will relocate its headquarters at the 620,000-square-foot office building, owned by Nuveen Real Estate.

Another significant deal is Bank of America’s 553,799-square-foot renewal in Addison, Texas. The tenant signed a 10-year deal at Hallmark Center I, with Stream Realty Partners representing landlord Office Properties Income Trust.

The post Stream Lands Dallas-Fort Worth Leasing Assignment appeared first on Commercial Property Executive.

Coworking and flexible office provider Venture X has signed a 30,262-square-foot lease at Cousins Properties’ Harborview Plaza in Tampa, Fla. The company will occupy the entire sixth floor at the property and is expected to move to Harborview Plaza in January 2026.

The present lease is Venture X’s ninth coworking location in Florida and the first in the Tampa Bay area.

JLL Executive Vice President Jim Moler and Senior Vice President Deana Beer worked on behalf of the ownership, while CBRE Senior Vice President K.C. Tenukas represented Venture X.

Harborview Plaza

Atlanta-based Cousins Properties owns and manages Harborview Plaza since its acquisition in October 2015 from Highwoods Properties. The office mid-rise traded for $49 million, according to CommercialEdge information.

Completed in 2002, Harborview Plaza is a Class A, 205,049-square-foot property covering a 6.7-acre site. The tenant roster includes Milner Inc., Mercer, HCA West Florida Division Office and First American Title Insurance Co., the same data provider shows.

The office building is at 3031 N. Rocky Point Drive West in the Westshore submarket, just off Florida State Road 60 and near Tampa International Airport. Downtown Tampa is some 8 miles east. Major thoroughfares in the area include interstates 275, 4 and 75.

Amenities at the property feature an on-site café, a fitness center, a conference facility, multi-level parking and free shuttle service to Tampa International Airport.

To address the demands of today’s hybrid workforce, coworking spaces are evolving. Operators are increasingly adopting business models similar to those in the hospitality industry, incorporating a diverse range of workspace types under consolidated networks.

The post Cousins Properties Secures Coworking Tenant in Tampa appeared first on Commercial Property Executive.

The mental health company ComPsych Corp. has signed a long-term, 50,000-square-foot lease at One Pru, in downtown Chicago.

The tenant will relocate from the current 152,000-square-foot space it occupies at NBC Tower and will establish its new headquarters on the 7th floor in the first quarter of 2027.

Riverside Investment & Development represented the ownership, while JLL worked on behalf of ComPsych.

One Pru is part of the 2.3 million square-foot The Pru, previously knows as Prudential Plaza, which also includes the 1.1 million Two Pru. Wanxiang America Real Estate Group has been the majority owner since 2018. The company owns the property together with Sterling Bay.

READ ALSO: What’s Defining Office in 2025?

The tenant roster includes Wilson Sporting Goods, Clark Hill, Lessen, The Terry Group and Hubbard Radio, among others, according to CommercialEdge information. Back in September 2024, it was announced that Expansive will occupy the 35th floor at Two Pru, marking its seventh coworking space in the metro.

Located at 130 E. Randolph St. and 180 N. Stetson Ave. in Chicago’s central business district, The Pru is across the street from Millennium Park and has access to multiple transportation options. Chicago O’Hare International Airport is 18 miles northwest of the property.

JLL Executive Vice President Brian Means and Senior Vice President Kellen Monti worked on behalf of ComPsych, while Riverside’s Senior Leasing Manager Annie Kwasigroch, together with Senior Vice President Dan Heckman, represented the ownership.

Current renovations at The Pru

Completed in 1955 and completely renovated in 2014, One Pru was the first skyscraper built in Chicago after World War II. The 41-story building features floorplates ranging between 22,000 and 70,000 square feet, 30 passenger elevators and 45,000 square feet of retail.

The ownership invested $50 million in 2024 in a new renovation plan for The Pru, currently underway, Crain’s Chicago Business reported. The upgrades will include a 20,000-square-foot conference center, coworking spaces and an entertainment suite.

Additionally, the outdoor deck will feature a pickleball court and a bar area. In the next two months, One and Two Pru will be connected through a glass-enclosed walkway, in order for tenants to easily access the 72,000-square-foot shared amenity space on the 11th floor.

The post Chicago Tower Lands 50 KSF Lease appeared first on Commercial Property Executive.

Foxx Development Inc. has signed a 102,099-square-foot, full-building expansion at Britannia Technology Park, a 203,244-square-foot industrial campus in San Diego’s Otay Mesa submarket. Hines owns the two-building property through its Hines U.S. Property Partners investment fund. Cushman & Wakefield represented the landlord.

Foxx initially committed to the 101,145-square-foot warehouse at 7222 Airway Road in mid-2024. The new deal, involving the facility at 7498 Colchester Court, doubled the tenant’s footprint at the campus, which became fully leased.

READ ALSO: SoCal Industrial Market’s Comeback Story

Britannia Technology Park comprises two facilities that were part of the 52-acre Brown Field Technology Park. Hines picked up the assets in late 2023 for $60.9 million from developer Murphy Development Co., according to CommercialEdge.

Completed in 2023, the buildings feature 32- to 34-foot clear heights, heavy power and office build-out components. Additionally, the campus includes rooftop solar capacity, a fenced yard area, outdoor patio spaces, EV charging stations, skylights and a total of 328 vehicle parking spots.

The campus occupies almost 14 acres near State Route 905, interstates 5 and 805 and Brown Field Municipal Airport. The U.S.-Mexico border is neighboring the property, while San Diego International Airport is 21 miles away.

Cushman & Wakefield Vice Chairman Brant Aberg negotiated on behalf of the landlord.

San Diego industrial leasing slows down

San Diego’s industrial vacancy rate reached 6.5 percent during the fourth quarter of last year, up by 50 basis points over the quarter, according to a Cushman & Wakefield report. The was the highest rate recorded in the market since the third quarter of 2014.

New leasing deals totaled 665,000 square feet during the last quarter of 2024, down 46 percent quarter-over-quarter. However, the leasing volume for the full year new deals increased by 8 percent when compared to 2023.

The post Hines’ San Diego Park Reaches Full Occupancy appeared first on Commercial Property Executive.

Jay Suites and Jay Conference have signed a 12-year lease extension for 60,000 square feet of shared space at 515 Madison Ave., a 370,000-square-foot office building in Manhattan’s Plaza District. GFP Real Estate owns the 42-story high-rise.

GFP Chair Jeffrey Gural arranged the deal spanning floors eight to 10 on behalf of both parties.

The flex provider, the largest privately held coworking company in New York City, first signed a lease at the property in 2019, when it occupied two floors. Later, the firm committed to another floor that houses Jay Conference, a conference center model catering to large-scale meetings.

READ ALSO: Elevating the Coworking Experience

The 515 Madison coworking location comprises 101 furnished executive suites ranging from single-person units to 20-people team spaces. Additionally, there are four flexible meeting spaces with a capacity of up to 24 people, multiple business lounges and phone booths.

Jay Suites currently has 13 coworking locations across the city. In August, the firm paid $35 million for 8 W. 38th St., a 142,000-square-foot office building in Midtown Manhattan, 1 mile from 515 Madison Ave. That building houses the company’s new conference rental business, located on the mid-rise’s third floor.

A historical building in the Plaza District

Also known as the DuMont Building, the office tower at 515 Madison Ave. is close to Rockefeller Center and 1 mile from the Empire State Building. Designed by John H. Carpenter, the high-rise was completed in 1932 and went through cosmetic renovations in 2010, according to CommercialEdge information.

One of the property’s most notable features is its broadcasting antenna, which was involved in the inaugural broadcasts of Allen B. DuMont’s experimental television station in 1938.

The building features nine passenger elevators and 8,000 square feet of first-floor retail space, with floorplates ranging between 3,956 and 16,346 square feet, the same source shows. Its tenant roster also includes Manhattan Five Partners and Wildes & Weinberg, among others.

Coworking sector is on the rise

The coworking sector is seeing continuous growth, providing solutions that address the evolving needs of the workforce. Nationally, there were 7,538 locations recorded at the end of the third quarter of last year, reflecting a 7 percent increase from the previous quarter, according to a CommercialEdge office report. The total square footage reached 133.5 million, representing a 450-basis-point growth.

Manhattan led nationwide for coworking inventory, with 11.2 million square feet. And the borough’s stock will soon grow, as The Malin announced plans to open a 32,700-square-foot coworking space in the Flatiron District this spring.

The post Jay Suites Extends Manhattan Shared Space Lease appeared first on Commercial Property Executive.

Private equity firm Incline Equity Partners has signed a 14,198-square-foot lease at 101 Park Ave., HJ Kalikow & Co. LLC’s Midtown Manhattan tower.

Incline Equity’s new space at the office building will be on the 47th floor, in addition to the existing 18,000-square-foot lease on the 46th floor. The company relocated to 101 Park Ave. in 2023, doubling its previous office space at 505 Fifth Ave.

JLL’s Vice Chairman Alexander Chudnoff, Senior Managing Director Nick Francic, Vice Chairman Harrison Potter and Senior Associate Kate Roush worked on behalf of the tenant, while Cushman & Wakefield’s Executive Vice Chairman John Cefaly and Managing Director Nicholas Dysenchuk represented the ownership in the transaction.

HJ Kalikow & Co. has owned and operated the property since it was built in 1982. The Manhattan tower is currently the subject of a $365 million 10-year fixed-rate loan originated by Bank of America in 2018, according to CommercialEdge information.

49 stories above Manhattan

The Class A, LEED Gold-certified property consists of 1.3 million square feet of space across 49 stories. The building features a five-story lobby entrance, as well as 30,000 square feet of retail space and a 17,000-square-foot, two-story museum. Amenities include full-time concierge services, Club 101, a dining club, a business and entertainment venue and a tech-enabled corporate event space. Federal Home Loan Bank of New York, Fox Rothschild LLP, Morgan Lewis and Hound Partners LLC are among the property’s tenants.

Located at the corner of 40th Street and Park Avenue, the office tower is less than 1 mile from the Grand Central – 42nd Street subway station, Bryant Park and Times Square.

Earlier this week, JLL and Colliers brokered a major office lease at 1166 Avenue of the Americas in Manhattan. The Federal Deposit Insurance Corp. signed a 10-year agreement to occupy 147,543 square feet at Edward J. Minskoff Equities’ property.

The post Incline Equity Expands Lease at Manhattan Tower appeared first on Commercial Property Executive.

The Federal Deposit Insurance Corp. has signed a 10-year office lease to occupy 147,543 square feet at the 1.6 million-square-foot, 1166 Avenue of the Americas in Manhattan. Edward J. Minskoff Equities owns condominium interests comprising floors two through 21—where FDIC will relocate—while Marsh & McLennan Cos. owns and occupies the remaining condominium interests.

JLL together with an EJME in-house team represented the owner, while Colliers led the negotiations on behalf of the tenant. Asking rents for the tower start at $80 per square foot.

The government agency agreed to fully occupy floors eight through 10, as well as partially occupy the seventh floor of the 44-story skyscraper. FDIC will relocate from the Empire State Building, where it occupies roughly 120,000 square feet.

Wells Fargo recently modified the debt on 1166 Avenue of the Americas, extending the maturity dates and altering interest rates on three loans totaling $235 million, according to The Real Deal.

READ ALSO: Office Report: Office Sector Decline Continues Amid Flexibility Shift

The tower debuted in 1975 with design services provided by Skidmore, Owings and Merrill. A partnership of Tishman Organization—the predecessor to Tishman Speyer—Stanley Stahl and Arlen Realty developed the building.

1166 Avenue of the Americas is roughly 3 miles northeast of downtown Manhattan, within walking distance of Bryant Park, Grand Central and the Rockefeller Center. Central Park is more than 1 mile from the property.

The WiredScore Gold-certified skyscraper features 39,075 rentable-square-foot floorplates and recently underwent a revamp that introduced a new conference center and destination-dispatch elevators, among other features. Also in the works are a new gym and lounge.

The tenant roster includes CNA Insurance, which recently inked a 40,240-square-foot deal to occupy the space for 15 years, and Axis Insurance, which occupies 40,240 square feet on the tower’s 17th floor.

The JLL team that represented EJME included Vice Chairmen Paul Glickman and Cynthia Wasserberger, as well as Senior Vice President Diana Biasotti, while the in-house EJME crew comprised Executive Vice President Jeffrey Sussman and Vice President Matt Pynn. Colliers Executive Vice President Connor Faught and Vice Chair Sheena Gohil negotiated on behalf of FDIC.

Manhattan’s office leasing activity takes off

Manhattan’s office market closed 2024 with a bang as new leasing activity in the fourth quarter reached 6.7 million square feet, the highest quarterly total since September 2022, according to a report by Cushman & Wakefield.

The strong quarterly activity rounded up the year with an annual total of new leases clocking in at 23.4 million square feet—outperforming 2023 by 30.2 percent—the same source shows. By adding renewals to the mix, Manhattan’s office leasing activity registered 32.4 million square feet, the highest figure since 2019.

Following four quarters marked by office vacancy increases, Manhattan’s rate inched lower by 20 basis points and stood at 23.3 percent in December, the report reveals. Although the market’s absorption rate wrapped up the year at a negative 6.2 million square feet, the prime office space of Class A assets was in high demand, posting a positive absorption of 372,589 square feet during the fourth quarter.

One of the market’s significant office deals recorded last year was New York University’s agreement to master lease Vornado Realty’s entire 1.1 million-square-foot building at 770 Broadway. The lease was possible as Meta Platforms announced plans to exit the building early this year.

The post Minskoff Secures 148 KSF Manhattan Office Lease appeared first on Commercial Property Executive.

BXP has signed an approximately 246,000-square-foot, 20-year lease renewal and expansion with KnitWell Group at 7 Times Square in New York City. The lease covers the existing roughly 191,000 square feet, plus two additional full floors that total a further 55,000 square feet.

KnitWell COO Patrick Walsh referenced the advantages of bringing all of the company’s New York–based associates into one building, given the need to collaborate across functions and brands. KnitWell’s fashion brands include Ann Taylor, Chico’s, Lane Bryant, Soma and Talbots. Chico’s, Soma and White House Black Market were added only in the past few weeks.

7 Times Square was developed by BXP in the heart of Manhattan’s Midtown and recently underwent an amenities enhancement with conferencing, client lounge and café services added. Its location puts the building in the middle of numerous transportation and dining options, as well as near Bryant Park.

READ ALSO: What’s Defining Office in 2025?

The 47-story, 1.3 million-square-foot, Class A+ property, also known as Times Square Tower, was completed in 2004, according to information provided by CommercialEdge.

A CBRE team led by Vice Chairmen Eric Deutsch and Ken Meyerson, Executive Vice President Jared Freede, Senior Vice President Ariel Ball and First Vice President Elliot Bok represented KnitWell in the lease negotiations.

Forward strides

The Manhattan office market has seen a recent surge of leasing activity, hitting nearly 7 million square feet in the year’s final quarter, which was 41 percent ahead of the five-year quarterly average, according to a fourth-quarter report from CBRE. Full-year leasing for 2024 hit 23.5 million square feet, which was a 24 percent increase over 2023.

And those figures didn’t reflect a situation of “musical buildings,” either. Net absorption for 2024 was nearly 7 million square feet, which in turn helped push the average availability down by 150 basis points from a year prior.

In October, Blue Owl Capital expanded its lease at Manhattan’s Seagram Building, from 168,597 to 238,673 square feet. Cushman & Wakefield represented the tenant, and owner RFR Realty had in-house representation.

The post BXP Lands Major NYC Lease Renewal, Expansion appeared first on Commercial Property Executive.

Digital marketing provider Trader Interactive has signed a 12,000-square-foot office lease at Armada Hoffler Tower in Virginia Beach, Va. The tenant will occupy the entire top floor at the property. Colliers and Divaris Real Estate brokered the deal.

The space was previously used by the landlord, Armada Hoffler, which had relocated. The roster also includes Aecom, CAR Group Ltd., Cushman & Wakefield and Legacy Business Advisors Mid-Atlantic, according to CommercialEdge. Six of the tenants have been occupying space at the building since its 2003 completion.

Part of a mixed-use district

Located at 222 Central Park Ave., the property has access to Interstate 264 and is near the Pembroke Office Park. Downtown Virginia Beach is 10 miles east.

The 23-story, 362,500-square-foot tower features 38,500 square feet of street-level retail and a nine-story parking garage with upward of 1,200 spots. The building was awarded the LEED Gold certification in 2017.

READ ALSO: What’s Defining Office in 2025?

Armada Hoffler Tower is part of Town Center of Virginia Beach, a mixed-use district that comprises 760 apartments, 620,000 square feet of retail and 800,000 square feet of office space spanning 25 acres. Despite its rental rates going up more than 20 percent since 2020, the campus’ office component had a 95 percent occupancy rate in the third quarter of 2024 and went up to 98 percent in the fourth quarter.

Nationwide, the office vacancy rate rose to 19.4 percent at the end of November, an increase of 120 basis points compared to the same period in 2023, according to a CommercialEdge report.

The Colliers team included Executive Vice President Perry Frazer and Senior Vice President Chris Kieran. President Michael Divaris, Executive Vice President Krista Costa and Associate Ashley Beck were part of the Divaris Real Estate team.

The post Armada Hoffler Secures Tenant at Virginia Tower appeared first on Commercial Property Executive.

Energy company Plains Marketing LP has extended its 259,774-square-foot lease at Brookfield Properties’ Allen Center office campus in Houston. The tenant has been occupying space at the 1.2 million-square-foot Three Allen Center building since 1992 and its new commitment will last through 2036.

The owner had in-house representation together with CBRE, while Cushman & Wakefield assisted Plains Marketing in the negotiations.

Allen Center’s tenant roster includes Guard and Grace, Mendocino Farms, Talos Energy, Freeport LNG and Castex Energy, among others, according to CommercialEdge.

Located at 500 Dallas St., 1200 Smith St. and 333 Clay St., the property is in Houston’s central business district. Allen Center has access to Interstate 45 and is 20 miles south from the George Bush Intercontinental Airport.

A renovated campus

The 3.2 million-square-foot Allen Center has been under Brookfield Properties ownership since 1996. The company had acquired the three-building asset from MetLife Real Estate Investment, CommercialEdge shows.

Completed between 1972 and 1980, the property underwent renovations finalized in 2021, which included an upgrade of the lobby and common areas, as well as its connections to the outdoor green spaces. Among its amenities is a tenant-only suite dedicated to breastfeeding mothers, as well as a wellness studio. The Allen Center received the LEED Gold and Energy Star certifications.

Cushman & Wakefield Vice Chairmen Trey Strake and Chris Oliver, together with Executive Managing Director David Guion, worked on behalf of the tenant. Brookfield Properties Vice President Tyler Merritt, alongside CBRE Executive Vice President Bubba Harkins, Senior Vice President Kristen Rabel and Senior Associate Jenny Sealy, represented the ownership in the lease negotiations.

The post Brookfield Lands 260 KSF Renewal at Houston Campus appeared first on Commercial Property Executive.

Alliance Industrial Company will break ground this quarter on the Alliance 985 Business Park, which is slated to be delivered in early 2026 at 3605 Atlanta Hwy Flowery Branch, Ga.

Avison Young has arranged the sale of the 66.75 acres of land needed for the development. The first building will be 113,536 square feet, and the second will be 426,872 square feet.

Alliance 985 Business Park boasts seamless access to I-985 and I-85, which, coupled with its proximity to the new Northeast Georgia Inland Port and access to a deep labor pool, makes it one of the most well-positioned products to launch in recent months, according to Chris Hoag, CCIM, senior associate, Capital Markets Group, Avison Young.

“This is extremely attractive to industrial users in the market today, especially as new product supply across the Southeast has dwindled due to elevated construction costs and heightened interest rates,” Hoag told CPE.

There has been an 80 percent decline in groundbreaking for new industrial projects in Q3, according to Avison Young’s Q3 2024 Atlanta Industrial Market Report, compared to the peak of development in 2021.

In 2024, industrial leasing activity by square footage has steadily increased to the highest level since 2022, indicating significant demand exists even as available supply dwindles.

“Heading into the new year, we anticipate construction starts for industrial product to trend back towards long-term historical levels as the market outlook normalizes in the post-election period and capital markets environment,” the report states.

Georgia has long been an industrial powerhouse at nearly 1 billion square feet of industrial space.

“Still, the Port of Savannah’s rapid growth, the nation-leading business-friendly environment, and the state’s growing population will continue solidifying that position,” Hoag said.

Logistics hubs such as UPS and FedEx are nearby, and the Northeast Georgia Inland Port provides a direct link to the Port of Savannah through the Norfolk Southern railroad.

In November, Alliance Industrial broke ground on Ironhead Commerce Center, a four-building, 906,271-square-foot industrial park in Northlake, Texas. The project is in partnership with Barings.

The post More Class A Industrial Coming to New Georgia Port appeared first on Commercial Property Executive.

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The post Top Posts of 2024: Readers’ Choice appeared first on Commercial Property Executive.

Los Angeles’ office sector is ending the year with a new supply struggle, while investment activity picked up, placing the market among the most active metros in the country in terms of transactions, CommercialEdge data shows. The increase is paired with one of the highest prices in the nation, as Los Angeles was the third-priciest office metro in the country as of October.

With the rise of office vacancies across gateway markets, Los Angeles has fluctuated throughout the year, showing a slight improvement in September. Despite the difficult office landscape, there were some notable office leases that closed in the metro, with one of them dubbed the largest new office lease signed so far in 2024.

As of October, the metro had 1.5 million square feet of space under construction across 13 properties, representing 0.5 percent of the existing stock—nearly half the national rate of 0.9 percent. The metro only outperformed Chicago’s 0.3 percent among gateway markets. Boston led the fold with 4.3 percent, followed by Miami (2.9 percent), San Francisco (2.3 percent), Seattle (1.3 percent) and Manhattan (0.6 percent).

L.A. office development continues on large-scale projects

When it comes to square footage, the City of Angels’ pipeline outperformed Chicago in absolute numbers, too (1.9 million square feet under construction), as well as Washington, D.C. (2.3 million square feet), while Boston led the nation in this regard also, with 10.4 million square feet underway.

The largest office development currently underway remains the 731,250-square-foot Century City Center, developed by JMB Realty. Rising 37 stories at 1950 Avenue of The Stars, the Class A high-rise’s construction started in August 2023, with completion scheduled for early 2026. The project is financed by a $575 million construction loan provided by Crestbridge.

Another notable project is Echelon Studios’ 388,000-square-foot office component at 5601 Santa Monica Blvd. Developed by BARDAS Investment Group, in partnership with Bain Capital, the creative office and studio will be part of the companies’ two-building, 600,000-square-foot campus project. The development, backed by a $300 million construction financing, commenced construction last month and is expected to come online in April 2026.

Developers started construction on eight projects in the first 10 months of the year, totaling 419,000 square feet. With planned and prospective projects added, the metro’s pipeline reached 2.8 percent of total stock—still below the national figure of 3.2 percent but higher than Manhattan’s 2.5 percent.

Meanwhile, developers delivered 1.2 million square feet of space across 15 properties, with one of the largest being the 331,000-square-foot office building at 444 Universal Hollywood Drive in Studio City, Calif. Developed by NBC Universal, the 11-story Class A+ building was completed in September. The amount of office space delivered in the metro marked a 28.6 percent drop in year-over-year completions.

Los Angeles’ office inventory shows strong candidates for office-to-residential conversions

As developers and office investors struggle with high office vacancy rates and shifting market conditions, the interest in office conversions is picking up across the nation. The Conversion Feasibility Index is a new tool developed by CommercialEdge that shows property-level scores based on a comprehensive list of building features, assessing the building’s potential for residential conversion.

The index showed that in July, Los Angeles had more than 20 percent of its existing office inventory as solid candidates for residential conversions, above the national average of 14.8 percent of total stock.

Some examples of planned office-to-residential conversions include the makeover of 6380 Wilshire Blvd., a 150,246-square-foot office building in the metro’s Wilshire Corridor submarket. Jamison Services, a prolific developer of office to apartment projects in Los Angeles, filed plans last year to convert the 1967-built property intro a 210-unit residential community. CommercialEdge data shows a CFI score of 79 points, making it a Tier II candidate.

Jamison Services is now converting the 18-story South Tower of The Towers on Wilshire office campus, with plans to add 255 residential units and an extra 19th floor. The 217,406-square-foot office property originally came online in 1961 at 695 S. Vermont Ave. CommercialEdge shows a CFI score of 81 points, making it a Tier II property.

Pricey deals put LA among best-performing metros

More than 10 million square feet across 53 office properties changed hands in the metro for a total of $1.8 billion through the first 10 months of this year, with Los Angeles ranking fourth among the best-performing metros in the U.S. The investment volume marked a 30.6 percent year-over-year increase—way above the national average of 4.1 percent but almost the same as last year’s data.

Across peer markets, the metro’s investment activity outperformed those of Boston ($1.1 billion), Chicago ($987 million), Miami ($983 million), San Francisco ($722 million) and Seattle ($668 million), while Manhattan led the rankings with $3.3 billion in sales.

Significant sales included the $185 million acquisition of 2220 Colorado Ave., a 201,006-square-foot office building in Santa Monica, Calif., occupied by Universal Music Group. The property was acquired by Drawbridge Realty from Clarion Partners, after 20 years of ownership.

Another notable deal was the $141.5 million sale of 9536 Wilshire Blvd., a 178,174-square-foot office property in Beverly Hills, Calif. The property is part of Wilshire Rodeo Plaza, a 300,000-square-foot office-and-retail asset spanning an entire city block. The Mateen Brothers, including Tinder founder Justin Mateen, acquired the asset from Nuveen as part of a $211 million deal, marking the largest property deal in this submarket since 2019.

Office assets in Los Angeles traded at an average sale price of $354 per square foot—above the national average of $177 per square foot and higher than the prices recorded in Manhattan ($344 per square foot), Seattle ($263 per square foot) and Washington, D.C. ($225 per square foot). Los Angeles ranked third across the priciest office markets in the U.S., with San Francisco leading ($392 per square foot) and Miami following ($369 per square foot).

Vacancy still on the rise, despite large leases

Los Angeles’ office vacancy fluctuated in 2024, but as of September it stood at 16.3 percent. One significant deal that closed recently is CIM Group’s 198,553-square-foot lease in downtown Los Angeles, at its City National 2CAL, a 1.4 million-square-foot skyscraper. The tenant is Southern California Gas Co., which will use the space at the property as its new headquarters. The deal is the largest new office lease signed so far in 2024.

Cruzan signed a 32,241-square-foot deal at its Wilshire & Pal, a creative office building totaling 110,000 square feet in Beverly Hills. The tenant is global music company Concord, which will move its Los Angeles office to the redeveloped property.

The largest lease extension in the metro remains Snap Inc.’s 467,000-square-foot deal at Santa Monica Business Park. The tenant signed a 10-year commitment at the 1.2 million-square-foot creative office campus, owned by BXP, where it was a tenant since 2017.

Los Angeles is still a coworking hotspot

As of October, the coworking sector in the City of Angels consisted of 6.5 million square feet, ranking as the fourth-largest flex office hub in the country after Manhattan (11.2 million square feet), Chicago (6.8 million square feet) and Washington, D.C. (6.7 million square feet). Other gateway markets with significant coworking footprints included Boston and San Francisco, with 4.8 million square feet and 3.6 million square feet, respectively.

Year-to-date through October, the flex office provider with the largest footprint in the metro was Regus (735,656 square feet), followed by WeWork (709,408 square feet), Spaces (594,194 square feet), Premier Workspaces (517,623 square feet) and Industrious (427,407 square feet).

The latter signed a 19,000-square-foot lease in Century City, Calif., in April at Watt Cos.’ North Tower of Watt Plaza, a 476,120-square-foot office property. The flex office provider entered into a 10-year agreement for a full floor of the property. During the same month, Industrious also opened a new 20,752-square-foot coworking location in Westwood, Calif. The flex office space is at Douglas Emmett’s Westwood Center, a 333,830-square-foot property.

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Workbox is entering the Washington, D.C., market with a 29,000-square-foot coworking space at 1333 New Hampshire Ave. NW in Dupont Circle. The new location is scheduled to open in February of 2025. 

The office building is a 360,000-square-foot property that The Meridian Group has owned since 2018. The company bought the asset for $136.5 million from BXP Inc. (formerly Boston Properties), according to CommercialEdge data. In 2021, the building was subject to a 10-year $187.7 million loan originated by KKR & Co. Inc. 

Ongoing expansion

Completed in 1978 and renovated in 1999, the Class A property in Dupont Circle rises 12 stories and includes first-floor retail space and underground parking. Workbox will occupy an entire floor that features offices, lounges and conference rooms for as many as 40 people. One of the property’s largest tenants is American Bankers Association, which currently leases more than 80,000 square feet, the same data provider shows.

Located in the Golden Triangle Business District, the office building is directly across from the Dupont Circle Metro Station, within 1 mile of the White House and some 2 miles from Embassy Row.

The lease in D.C. marks the company’s 12th coworking location nationwide. Earlier this month, Workbox launched a flexible office space in Pittsburgh. Slated to open in January 2025 at One PPG Place Tower, this 23,000-square-foot location is the company’s first coworking space in the Steel City. Workbox will occupy the entire 31st floor within the 40-story building.

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BXP has inked a 413,000-square-foot office lease renewal with Ropes & Gray at the Prudential Tower, a 1.2 million-square-foot building in Boston. The law firm will occupy the space through 2041.

Ropes & Gray moved into the upper floors of the high-rise in the fall of 2010. BXP’s headquarters is within its own tower, occupying 25,000 square feet, according to CommercialEdge data.

Additional tenants include Federal Home Loan Bank of Boston (39,185 square feet) and Big Pine Capital (17,000 square feet). The tower was 97.9 percent leased as of September, according to BXP’s supplement for 2024’s third quarter.

The 52-story tower at 800 Boylston St. debuted in 1965, featuring 28,500-square-foot floorplates. At 749 feet, it is the second-tallest office building in Boston after the 790-foot-tall tower at 200 Clarendon St., which is also owned by BXP, the same source shows. BXP, formerly Boston Properties, acquired Prudential Tower in 1998 for $388 million.

READ ALSO: Office Report: Office Sector Decline Continues Amid Flexibility Shift

The office high-rise is the largest property within the Prudential Center, a five-building, 3.6 million-square-foot office campus including 653,000 square feet of retail and about 3 million square feet of office space. The Center is within walking distance of the Charles River and about 2 miles from downtown Boston.

Prudential Center includes amenities such as a post office, car wash, direct connection with the Green Line MBTA station, as well as a 3,000-space parking garage, among others.

Greater Boston’s office leasing activity picks up the pace

Metro Boston witnessed a growth in aggregate office leasing activity for the third quarter in a row, with the figure clocking in at 1.9 million square feet from June to September and besting the previous quarter by 31 percent, according to a report by Avison Young.

The City on a Hill’s office availability rate stood at 28 percent in September, unmoved from June, the same source reveals. This marked the first time the index didn’t rise since 2022’s third quarter. Trophy buildings fared significantly better, with a rate of 17.3 percent.

The prime office space of trophy buildings was in high demand, accounting for 22 percent of all leasing activity during the third quarter, Avison Young shows. The figure was just 6 percent the previous quarter.

As return-to-office policies continue to evolve, Greater Boston’s Friday office visitations spiked 35 percent year-over-year through August, the report points out. The overall office visitation rate remained resilient, improving by 1.5 percent during the same period and reaching 57.3 percent of prepandemic levels in August.

BXP landed another lease renewal this summer when Bain Capital doubled down on its 378,000-square-foot agreement at 200 Clarendon St., formerly John Hancock Tower. The asset was 99 percent leased in September, BXP’s supplement shows.

The post BXP Lands 400 KSF Lease Renewal at Boston Tower appeared first on Commercial Property Executive.

Brookfield Properties has signed a full-building industrial lease with PrimeSource Building Products in Montgomery, N.Y. The tenant will occupy the entire 312,567-square-foot Maybrook Logistics Center. Newmark and Resource Realty of Northern New Jersey represented the tenant and the owner, respectively.

PrimeSource will utilize the space to facilitate the delivery of residential and commercial construction materials throughout New York, New Jersey, Connecticut and Pennsylvania.

Brookfield developed Maybrook Logistics Center with the help of a $31.4 million construction loan issued by Customers Bank in 2023, according to CommercialEdge data. The warehouse debuted this year on 40 acres at 134 Neelytown Road.

READ ALSO: You’ve Survived Till 2025. Now What?

Aiming for LEED certification, the industrial building features 36-foot clear heights, 60-foot speed bays, two drive-in doors and 74 loading doors. The property has 98 car and 129 trailer parking spaces.

The facility is less than 1 mile away from Interstate 84 and about 9 miles from New York Stewart International Airport. The location is also 3 miles from Medline’s 1.3 million-square-foot distribution center.

Another industrial tenant in the area is Amazon, which fully leased a 1 million-square-foot facility owned by Affinius Capital. That property is roughly 6 miles from Maybrook Logistics Center.

Newmark Executive Managing Directors Frank Puskarich and Art Ross represented PrimeSource Building Products. Resource Realty of Northern New Jersey Principals Tom Consiglio and Scott Peck negotiated on behalf of Brookfield Properties.

Brookfield Properties’ industrial footprint

Brookfield owns more than 45 million square feet of logistics space across North America. The company has an additional 24 million square feet of industrial space in its development pipeline.

One of the underway projects is Liberty Commerce Center, a 414,368-square-foot distribution facility in Jersey City, N.J. Brookfield acquired the development site in 2023 and completion is expected next year.

The post Brookfield Inks New York Full-Building Lease appeared first on Commercial Property Executive.

International private equity firm Cabot Properties has selected Kidder Mathews Asset Services to manage an industrial portfolio of eight properties totaling 984,218 square feet in the Greater Seattle area.

The portfolio is a key assignment for Kidder Mathews because of its quality assets and scale and the fact that large portfolios in the 1 million-square-foot range rarely come to market for third-party management. The selection of Kidder Mathews expands the commercial real estate firm’s footprint in the market and its reputation for managing high-profile properties in the Western U.S. like Starbucks’ Seattle headquarters.  

According to a company statement, Kidder Mathews has built a strong relationship with Boston-based Cabot Properties through its brokerage division. Extending the collaboration into property management highlights the synergy between the firm’s divisions.

READ ALSO: Industrial Demand Slips, But Avoids a Slump

Kidder Mathews Senior Vice President & Market Leader Shelley Ryan will oversee the portfolio with Senior Property Manager Lorna Faxon.

The properties in the portfolio are:

• 4156 B Place NW, Auburn, Wash., 17,630 square feet;
• 875 A St. Auburn, 31,210 square feet;
• 25811 74th Ave. S., Kent, Wash., 32,064 square feet;
• 4620 B St. NW, Auburn, 65,555 square feet;
• 2606 16th St. NW, Puyallup, Wash., 170,592 square feet;
• 4417 192nd E., Tacoma, Wash., 281,181 square feet;
• 3941 and 3703 I St., Auburn, Wash., 385,986 square feet.

More management roles

Kidder Mathews Asset Services had its highest revenue to date in the last year and now manages more than 57 million square feet of space across 800 assets. In July, Lift Partners appointed Kidder Mathews to manage 530,384 square feet of property in Northern California. Kidder Mathews now manages about 1.2 million square feet of industrial space for the San Francisco-based company. That assignment added four assets in San Francisco and one each in Menlo Park, Calif., Mountain View, Calif., and Burlingame, Calif.

Logistics-focused fund

The management deal comes nearly a year after Cabot closed Value Fund VII with a total of $1.57 billion in equity commitments. The vehicle, including leverage, is being used to acquire, develop and redevelop $3.5 billion of logistics assets in the U.S., Europe and Asia Pacific, with most of the capital being deployed in the U.S.

Fund VII focuses on acquiring, developing and redeveloping high-quality infill industrial assets in dynamic supply-constrained markets across top logistics markets. The fund will target investments mainly in multi-tenant buildings between 50,000 and 250,000 square feet. When the fund closed in February, it had already closed or committed $1.2 billion of capital across 30 markets, including Seattle, Chicago, Atlanta, Amsterdam and Sydney.

The post Kidder Mathews to Manage 1 MSF Industrial Portfolio appeared first on Commercial Property Executive.

Transwestern Real Estate Services announced Ezee Fiber has committed to 94,179 square feet in a 567,333-square-foot property owned by Prescott Group in the city’s Southwest Freeway submarket.

Tenants currently use this property at 5959 Corporate Drive primarily as an office and contact center building. Still, Todd Smith, chief technology officer of Transwestern’s Technology Properties Group, told Commercial Property Executive that this campus has significant immediate capacity for data center users. 

“This property with data center investment of up to and even beyond $500 million is feasible,” Smith said. “There’s room for the load of Nvidia chips and AI clusters today. MWs of capacity are there right now. There’s full fiber and power redundancy. And it’s ready to go to bring more power through separate vaults and separate lines if we need to.” 

READ ALSO: Placer.ai Office Index—October 2024 Recap

Transwestern’s Michelle Wogan and Paula Musa represented Prescott Group during lease negotiations. Wogan said this Houston Technology Center building is unique to the Houston market, given it has about 80,000 square feet of large floorplates and warehouse space, including four dock-high loading areas.  

“It’s the best of both worlds—office and warehouses/basements—something no other site in Houston can provide,” Wogan told CPE. 

“It’s an easy location to get in and out of and is full of the amenities that tenants such as Ezee Fiber wanted: a tenant lounge, a full-service onsite restaurant, conference rooms, a fitness center, move-in-ready office space, onsite security and onsite management.” 

Smith said the building (developed in 1977) was used for many large call centers for a long time, “but that’s an industry that has fallen on hard times lately,” and the fiber needed for those applications still exists. 

Meanwhile, Ezee Fiber will consolidate its two Houston locations into a single, larger corporate headquarters at the property, which can facilitate the thriving company’s expanding operations and ongoing growth in the market. 

The post Prescott Group Lands HQ Lease in Houston appeared first on Commercial Property Executive.

Meridian has signed a 23,000-square-foot lease at Broadway Medical Plaza, an approximately 60,000-square-foot recently converted medical office building in Oakland, Calif. Center for Elders’ Independence will occupy the space accounting for 38 percent of the building’s overall leasing footprint.

This will be the sixth Bay Area location for CEI, a Program of All-Inclusive Care for the Elderly provider. Tenant fit-out is already underway, with completion expected next spring.

Colliers worked on behalf of the landlord, while Sabre Real Estate group represented the tenant.

READ ALSO: Outpatient Facilities Step Into the Spotlight

Originally completed in 1966 as an assembly hall, the three-story building is at 3901 Broadway, less than 2 miles from downtown Oakland. Other medical providers in the area include UCSF Benioff Children’s Hospital, Sutter Health and Kaiser Permanente.

Meridian acquired the 1.3-acre property in March 2022 for $13.5 million, according to CommercialEdge information, and redeveloped it into a medical facility. A $35.2 million permanent loan from MidCap Financial financed this endeavor.

Broadway Medical Plaza has now two elevators, a modern HVAC system and new base building systems. The property also includes a redeveloped, 220-stall parking structure.

Colliers Senior Vice President Sid Ewing worked on behalf of Meridian. Sabre Real Estate Group Founders Douglas Hubert and Steve Polito represented the tenant.

Resilient MOB sector still subject to hurdles

Despite numerous challenges and ongoing economic volatility, the medical office market and the broader health-care sector have demonstrated remarkable resilience. This stability is largely driven by the increasing demand for medical properties, fueled by the growing elderly population, particularly Baby Boomers who are now reaching retirement age and require more health-care services.

However, the sector still faces significant hurdles, including workforce shortages and rising labor costs, which affect both profitability and patient experience. Additionally, the slow pace of new construction, due to higher costs of capital and materials, remains a critical issue.

The post Meridian Inks 23 KSF Bay Area Lease appeared first on Commercial Property Executive.

CBRE’s John Schlesinger represented the tenant, and his colleagues Jeff Keppen and Nicole Goldsmith represented the landlord.

This makes for 170,000 square feet leased at the building in the past six months, including four new tenants, one renewal and two expansions. Bank of America Plaza is renowned for being the tallest building in the Southeast, with nearly 1.4 million square feet of Class A workspace.

This deal extends the sector’s overall momentum this year after last year’s leasing activity met pre-pandemic levels, according to Savills.

So far this year in Atlanta, Avison Young reported that only 12 percent of law firms that have signed deals are downsizing their space, 23 percent are expanding and 26 percent are maintaining their original square footage when renewing their lease. The remaining 39 percent comprises new deals, which include new tenants and locations.

This trend is anticipated to continue since law firms are a heavy office-using industry—the third-busiest sector according to Avison Young’s Office Busyness Index.

While a couple of tenants announced major downsizes within Atlanta, this breakdown and comparison shows that law firms, whether they have an Atlanta presence or are new to the area, are currently active in the market and making moves on committing to office space, according to Avison Young’s analysts.

“Atlanta has seen an influx of new-to-market and existing law firms expanding their presence as the city continues to capitalize on its pandemic-induced population boom,” Rick Nash, principal, consulting & advisory tenant representation occupier services, Avison Young, Atlanta, told Commercial Property Executive.

The region benefits from a strong talent pipeline with many universities and law schools, Nash added. “Peachtree Street in Midtown has become a hotbed for office leasing activity, including law firms, given the multitude of residential, entertainment and dining options as employers look to recruit talent and encourage employees to return to the office.”

Atlanta’s strong office leasing activity

Cushman & Wakefield reiterated Atlanta’s stellar second half, reporting that the market saw 226,500 square feet of leasing activity in the third quarter, higher than the first two quarters combined.

Atlanta’s legal leasing levels in the first half of 2024 were 41 percent lower year-over-year compared to 2023. However, strong leasing activity from firms in the market, along with Morris, Manning & Martin’s 104,000 sf relocation—the largest lease nationally in the third quarter of 2024—has tipped the scales, placing Atlanta’s legal leasing activity 29 percent higher year-over-year than it was through the third quarter of 2023.

Despite the shift toward flexible work arrangements, prestigious law firms continue to commit to substantial office spaces in prime locations, recognizing the importance of in-person collaboration and the need for secure environments to handle sensitive information.

READ ALSO: How Neurodivergent-Friendly Office Design Can Benefit Everyone

There is also a growing emphasis on workplace amenities and experience in the legal sector, with features like state-of-the-art fitness clubs, food halls and modern conference centers becoming increasingly essential in attracting and retaining top talent, according to Edith Gonzalez, managing director, professional services, JLL Work Dynamics.

She told CPE that the choice of location in Midtown Atlanta, near Georgia Tech and numerous Fortune 500 companies, reflects another key trend: law firms are gravitating toward mixed-use, amenity-rich areas that offer easy access to clients, talent pools and innovation hubs.

“This strategic positioning is crucial for firms aiming to stay competitive in the legal services market,” Gonzalez said. “The deal [emphasizes] the ongoing importance of prime office space for law firms while showcasing the evolving expectations around workplace amenities and location—a trend likely to continue in major legal markets across the country.”

Key renewal at Citigroup Center

Also this month, Kluger, Kaplan, Silverman, Katzen, Levine, P.L. announced it has renewed its commitment to Citigroup Center in downtown Miami, relocating to a new premier 17,757-square-foot office space within the 34-story, Class A office tower.

Colliers Vice Chair Stephen Rutchik represented the long-term tenant in the lease renewal. JLL’s Steven Hurwitz, Doug Okun and Madeline Fine represented the landlords, Monarch Alternative Capital, Tourmaline Capital Partners and CP Group, in the transaction.

“Kluger Kaplan’s strategic relocation within Citigroup Center reflects a broader trend of law firms prioritizing workspace quality and employee experience,” Rutchik told CPE.

Their move to a new office allows them to create a state-of-the-art workspace with a modern layout that can accommodate their growing team and enhance collaboration, Rutchik explained. “The firm’s choice to stay in the recently renovated Class A office tower with stunning bay views and premier amenities demonstrates how top-tier law firms use their physical space as a competitive recruitment and client engagement tool.”

Opting for relocation

Many law firms are opting for relocation, according to Peter Billmeyer, SIOR, co-founder & CEO of Bespoke Commercial Real Estate and president of the SIOR Chicago Chapter.

Law firms, like most companies, have had to adapt to a post-COVID world, and what was an acceptable workplace no longer is and likely will never be again, according to Billmeyer.

“We are seeing a major flight to quality, with some old-school ‘White-Shoe’ firms downsizing and settling into their hybrid work strategies. At the same time, some upstarts are growing dramatically.”

It is refreshing to see law firm leaders putting their cultures and teams before their P&L, Billmeyer observed. “Old and new firms deserve great credit for evolving, doing more with less and being committed to a people-focused work environment. We can only hope that leads to a higher quality of life and more reasonable hourly rates.”

The post CP Group Signs Major Law Firm to Atlanta’s Tallest Tower appeared first on Commercial Property Executive.

“The landscape is transforming significantly,” according to Maddie Holmes, JLL’s senior research analyst, life science industry insight and advisory, and one of the report’s authors.

There’s a shift toward prime locations and quality assets, with AI driving scientific discovery and strategic space management, Holmes told Commercial Property Executive.

“Prime life science real estate locations are concentrated in established Tier 1 clusters like Boston/Cambridge, the San Francisco Bay Area and San Diego, with emerging markets such as Houston gaining traction,” said David Choukroun, vice president of investments at SPHERE Investments.

The most sought-after assets are Class A purpose-built lab and R&D facilities, high-quality spaces in desirable locations with amenities, energy-positive buildings and specialized biomanufacturing and GMP facilities, Choukroun explained.

“These prime assets are characterized by their proximity to major hospitals, leading universities and research institutions, access to skilled workforces and capital funding, strong property-level fundamentals with stable cash flows and the ability to support advanced infrastructure and technological requirements.”

Investors and companies are prioritizing these top-tier assets in prime locations, expecting them to absorb demand before secondary or underperforming spaces in the market, according to Choukroun.

Heavier venture capital funding will lead to more mid-size lab leases (20,000 to 50,000 square feet), allowing landlords to consider a multi-tenant lease-up strategy, according to Tucker White, U.S. life science lead, market intelligence, Avison Young.

“Lab tenants will begin to compete with office tenants in select life science markets as unleased life science projects start to gain interest from office occupiers looking to move to newer, better-located buildings,” he said.

P3s reshaping the market

Ecosystem resilience through incubators and public-private partnerships is reshaping the life science market, while global collaboration and cost optimization are becoming key priorities.

“CRE professionals in the life science sector must balance these evolving trends, adapting their strategies to support innovation while optimizing operational efficiency,” Holmes said.

The Philadelphia life science market ecosystem is emerging as a key player in driving innovation and growth in the sector. It is supported by a robust network of academic institutions, namely the University of Pennsylvania and Children’s Hospital of Philadelphia, pharmaceutical giants and biotech startups.

“The region’s resilience, underscored by its ability to attract talent and investment, positions it as a critical hub for research and development,” Todd Monahan, executive vice president & managing director, WCRE/CORFAC International, told CPE.

READ ALSO: The Most Active Life Science Markets in the US

“This dynamic growth is reshaping lab real estate, with incubators and public-private partnerships playing pivotal roles.”

Incubators like Blabs and Pennovation Works foster early-stage startups by providing cost-effective lab space, mentorship and resources to accelerate breakthroughs.

Meanwhile, P3s facilitate large-scale, state-of-the-art lab developments by merging public funding with private sector expertise, ensuring market stability amid economic fluctuations.

“Together, these forces create a sustainable ecosystem supporting innovation while meeting the increasing demand for flexible, high-quality lab space,” Monahan said.

Lab space must attract top talent

Companies now prioritize high-quality spaces in desirable locations with amenities to attract and retain top talent while enhancing productivity.

“Companies are placing greater importance on securing strategic real estate in key regions, as these locations are crucial in attracting top-tier talent and fostering innovation,” Daniel Maldonado, Unispace’s managing director of life sciences, Americas, told CPE.

“As organizations strive to remain competitive, the need for spaces that support collaboration, creativity and research excellence is becoming more pronounced.”

Companies now demand environments that meet all the criteria for research and innovation while creating quality-of-life benefits for employees that aid in recruitment and retention, according to Boston-based Mark Barer, director of development at Lendlease.

FORUM is a nine-story, 350,000-square-foot life science development in Boston’s Allston-Brighton neighborhood. It includes amenities designed to enhance the employee experience.

“Employees prefer live-work-play environments,” Barer said. “The development’s location in the Boston Landing area of Allston-Brighton provides employees access to a walkable urban district with a lively mix of retail, dining and entertainment options.

“Attracting talent from across the metro is made easier by the area’s nearby transit options, including the Boston Landing MBTA Commuter Rail station, Massachusetts Turnpike, MBTA bus routes and a Bluebikes station.”

AI to affect real estate management

In 2025, integrating AI and advanced technologies will significantly impact scientific processes and real estate management.

Organizations will leverage AI to accelerate scientific discovery and implement AI-driven workplace strategies that reflect the industry’s recognition of real estate as a critical strategic function.

“AI is revolutionizing scientific discovery and strategic space management by transforming research methodologies, accelerating experimental processes and reshaping laboratory infrastructures,” Choukroun said.

Through advanced machine learning models, AI enables faster hypothesis generation, predictive capabilities and cross-disciplinary insights, allowing researchers to process vast amounts of data and uncover complex patterns previously undetectable, observed Choukroun.

He explained that in strategic space management, AI is driving the evolution of laboratory design toward more flexible, technologically integrated environments that support both computational and experimental work, optimizing infrastructure through digital simulations and enabling more distributed, collaborative research models.

“This technological integration is fundamentally changing how scientific spaces are conceptualized, designed and utilized, creating more adaptive, efficient and innovative research ecosystems that can rapidly respond to emerging scientific challenges and opportunities.”

More laboratory facilities featuring significant data storage requirements due to the adoption of AI in R&D are expected, according to Adam Enright, vice president at PMA.

“Space needs for dry labs and computing labs will likely be greater than traditional needs. While we haven’t seen marked increases yet, we do anticipate that companies are still learning how to leverage AI—and it is only a matter of time,” Enright said.

There will be more focus on operational costs, and there is a drive to ensure they are providing a more critical focus on their real estate strategies, according to Jason D’Orlando, executive managing director of industrial and life sciences & project and development services lead at Mission Critical.

“We are seeing more requests and analysis to either find or build out spaces that shift toward more efficient building designs and energy optimization to meet cost-cutting pressures without sacrificing innovation.”

The post Life Science Trends to Watch in 2025 appeared first on Commercial Property Executive.

SouthState Bank has signed a long-term, 87,000-square-foot lease at Prominence Tower in Atlanta. New York Life Real Estate Investors owns the 433,000-square-foot office building.

Part of the deal involves SouthState Bank receiving top-of-building naming rights, as the company is now the largest tenant at the property.

Partners Real Estate’s Aileen Almassy and Andy Sumlin represented the owner, while JLL’s Josh Hirsh and Patrick Baughman worked on behalf of the tenant.

The Atlanta office market had a 17.8 percent vacancy rate in October, according to a recent CommercialEdge report. While 160 basis points lower than the national rate, the index was up by 80 basis points over the year.

LEED Gold-certified office tower

NYL Real Estate Investors acquired Prominence Tower in December 2018 from Crocker Partners—now CP Group—for $166 million, according to CommercialEdge data. A five-year, $86.6 million loan originated by Equitable financed the transaction.

Located at 3475 Piedmont Road NE in the Buckhead district, the Class A property rising 19 stories has average floorplates of 24,000 square feet. During the pandemic, the ownership invested $8 million in renovations and, in 2020, Prominence Tower received the LEED Gold and Wired Platinum certifications.

Property amenities currently feature a conference facility, lobby coffee bar, fitness center and bike storage room, as well as a seven-level parking garage attached to the main building. The tenant roster includes GE Digital, Jones & Kolb, Waypoint Residential, Prophet and NetRoadshow Inc.

The office building is some 9 miles from downtown Atlanta, within walking distance of many restaurants, shops and hotels. Buckhead MARTA station is less than 1 mile away; Georgia State Routes 141 and 400 are also nearby.

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Regus has fully leased 429 Lenox, a 45,789-square-foot Class A flex office building in Miami Beach, Fla. The lease covers more than 10 years, according to the Commercial Observer. 

Colliers Vice Chair Stephen Rutchik and Vice President Ana Paula worked on behalf of the landlords, Azora Exan, while JLL Executive Vice President Adam Bernstein represented Regus in the transaction. 

Azora Exan acquired the property at 429 Lenox Ave. in 2022 from Goddard Investment Group for $37 million, with the help of a 10-year $19 million permanent loan originated by Abanca Corporacion Bancaria, according to CommercialEdge data. 

WeWork, the building’s previous tenant, closed its flex office location in May. 

Originally designed by Kobi Karp, 429 Lenox was built in 1949 and underwent cosmetic renovations in 2000. The property features a fitness center and a rooftop deck. The five-story office building is divided into three floors of shared workspaces and private offices and two levels of parking. The new coworking location will function under Regus’ SPACES brand. 

Located in Miami’s South Beach neighborhood, the property is just off Florida State Road 907, which connects the office building to downtown Miami, some 6 miles west. Major thoroughfares in the area also include interstates 395, 95 and 195. The flex office is across the street from the Fifth & Alton shopping center, anchored by Target and T.J. Maxx.

Demand for flexible workspaces in Miami Beach continues to rise. The office market remains competitive, with an overall vacancy rate of 8.7 percent in the third quarter, and 340,298 square feet of new construction underway.

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A joint venture between Constellation Real Estate Partners and a real estate fund advised by Crow Holdings Capital has signed US ELogistics Service Corp. as a tenant at Constellation Post Oak, a 424,011-square-foot industrial park in Houston.

The logistics firm will fully occupy the property’s Building 1, which measures 302,825 square feet. Colliers represented the landlord, while Lee & Associates negotiated on behalf of the tenant.

Located at 14942-15012 S. Post Oak Road, Constellation Post Oak comprises the cross-dock Building 1, featuring a 36-foot clear height, and the front-load Building 2, a 121,186-square-foot facility with a clear height of 32 feet.

READ ALSO: E-Commerce Growth Revives Industrial Market

Both buildings share a 220-foot truck court, with an extra 185-foot court pertaining to Building 1. Parking includes a total of 270 car and 52 trailer spaces.

The 2023-completed campus is currently 82 percent leased. Signage manufacturing company D&R Signs also recently committed to 44,978 square feet at the property, with the assistance of Stream Realty Partners.

The 33-acre property is less than 7 miles from U.S. Route 90 and Interstate 69. The Port of Houston and the William P. Hobby Airport operate roughly 20 and 13 miles away, respectively.

Colliers Principals & Executive Vice Presidents Zack Taylor and Barkley Peschel represented Constellation Real Estate Partners. Lee & Associates Executive Principal Robert McGee negotiated on behalf of US ELogistics Service Corp.

Metro Houston industrial vacancy tightens

Greater Houston’s industrial leasing activity totaled 8.7 million square feet in the third quarter, according to a Colliers report. The volume marked an 18.7 percent decrease over the quarter.

Despite the drop, the metro’s vacancy rate dipped 40 basis points quarter-over-quarter, clocking in at 7.0 percent in September, the report shows. Less product hit the market, Houston witnessing just 2.8 million square feet of industrial deliveries in the third quarter, the lowest level since 2018.

In one of September’s deals, Ares Management secured a full-building lease at its 192,400-square-foot infill distribution facility. Safespill agreed to occupy the space.

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Gas firm Merit Energy Co. has signed a 104,034-square-foot lease at Nuveen Real Estate’s Two Lincoln Centre, a 620,000-square-foot office building in Dallas. The company will relocate its headquarters to floors 10 to 12 within the 19-story property.

Cushman & Wakefield brokered the deal on behalf of both parties. To accommodate the agreement, three tenants were moved within the Lincoln Centre campus.

Merit Energy will move from its current space at Galleria North Tower II, where it occupies nearly 127,000 square feet. That building, owned by DWS, encompasses more than 306,000 square feet and is less than 2 miles from the firm’s future location.

READ ALSO: Return-to-Office Traffic Reaches Record Level

Located at 5420 Lyndon B. Johnson Freeway, Two Lincoln Centre is part of a campus that comprises three office towers and a three-story creative office facility, along with a 500-key hotel. Amenities within the Lincoln Centre complex include conference centers with video conference capabilities, a food hall, a fitness center and a park.

Nuveen acquired the campus in December 2005 for $255 million, according to CommercialEdge information. MetLife Real Estate Investment sold the asset.

Built in 1981, Two Lincoln Centre was completely renovated in 2004 and underwent further upgrades in 2021. The Class A high-rise features floorplates averaging 33,529 square feet and 12 passenger elevators, as well as more than 2,020 parking spaces.

The property provides easy access to Interstate 635. Downtown Dallas is some 12 miles away, while the DFW International Airport is 15 miles southwest.

Cushman & Wakefield Vice Chair Matt Schendle, Managing Director Zach Bean and Senior Associate Mary Frances Burnette represented Nuveen, while Executive Vice Chair Jeff Ellerman and Executive Vice President John Ellerman negotiated on behalf of Merit Energy.

More vacant office space in the Metroplex

Dallas-Fort Worth’s office vacancy rate at the end of October clocked in at 23 percent, well above the 19.4 percent national index, according to a CommercialEdge office report. The metro registered a 350-basis-point increase year-over-year in vacant space. Only Austin (27.7 percent) and Houston (24.3 percent) fared worse in the South region.

In August, Bank of America signed a 553,799-square-foot lease renewal at Hallmark Center I in Addison, Texas. The entity occupies the whole campus owned by Office Properties Income Trust, while The RMR Group is the manager of the property.

A month earlier, Santander Consumer USA renewed its 211,087-square-foot lease at 1601 Elm St. Pacific Elm Properties owns the 50-story, 1.4 million-square-foot mixed-use tower that was completed in 1981.

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CJ Logistics America has leased Southport Logistics Park’s Building 1, a 1.1 million-square-foot warehouse in Wilmer, Texas, The three-building, 252-acre development owned by Logistics Property Co. is now fully leased.

The commitment marks an expansion for the supply chain subsidiary of South Korea-based CJ Group. The logistics firm also has a warehouse at 1501 Southport Parkway in Wilmer, less than 2 miles from the new location.

JLL’s Rob Wheeler, Trevor Ragsdale, Melissa Holland and JM Priddy of JLL represented the tenant. Kacy Jones and John Hendricks of CBRE, together with Max Mueller, Daniel Davidson, Jonathan Snow and J.C. Hay of LogiPropCo, negotiated on behalf of the owner.

A South Dallas industrial campus

Located in the South Dallas submarket, Southport Logistics Park is 1 mile east of Interstate 45, 5 miles south of Interstate 20 and across from the Union Pacific Dallas Intermodal Terminal. Downtown Dallas is some 15 miles away.

Building 1 is a cross-dock facility with a 36-foot clear height, 200 dock doors, 376 car stalls, 306 trailer stalls, 60-foot staging area, 570-foot building depth, 54-foot by 50-foot column spacing and an ESFR fire suppression system.

LogiPropCo signed Nike as a tenant for the 1 million-square-foot Building 3 in January 2023 and there is still a build-to-suit opportunity for a facility of up to 935,000 square feet. When complete, Southport Logistics Park will encompass more than 3.6 million square feet, according to CBRE.

Growing industrial portfolio

Chicago-based LogiPropCo focuses on the acquisition, development and management of logistics properties in key North American markets. Its portfolio comprises 57 buildings totaling 23.9 million square feet, with an estimated value of more than $4.1 billion.

The firm has made other investments in Texas, including its first foray into Austin this summer. The company broke ground on a two-building, 408,160-square-foot development in July, with delivery expected in the second quarter of 2025.

A month earlier, LogiPropCo signed a full-building, 550,000-square-foot lease with DW Distribution for its Southern Star Logistics Park in Midlothian, Texas. The agreement also included 25 acres of adjacent outdoor storage land, as well as dual-rail service.

Elsewhere in the U.S., the firm completed its first industrial development in metro Phoenix. The 615,000-square-foot speculative campus in Mesa, Ariz., has facilities ranging from 93,000 to 290,000 square feet.

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Workbox has leased more than 23,000 square feet of office space at One PPG Place Tower in Pittsburgh. Scheduled to open in January 2025, the new coworking location will cover the building’s entire 31st floor.

Highwoods Properties has owned the PPG Place complex since 2011, when it acquired the assets from The Hillman Co., according to CommercialEdge data.

The six Class A buildings came online between 1981 and 1984. Combined, the towers have more than 1.5 million rentable square feet, covering a 5.5-acre site. Amenities include lounges, conference rooms and a tenant-only fitness center. The properties share an underground parking space with 700 spots and eight EV charging stations.

Flex office within the Golden Triangle

One PPG Place is the centerpiece of the office complex, rising 40 stories high. The tenant roster comprises Deloitte, McKinsey & Co., Willis Towers Watson, Insight Global, Morgan Stanley Financial Advisors and Steptoe & Johnson.

The tower is at 1 Third Ave., within downtown Pittsburgh’s Golden Triangle. The property is adjacent to the historic Market Square and across the street from the Red, South Hills Village and Silver light rail lines and several bus stops.

The Workbox Pittsburgh – PPG Place is the company’s first flex office in the state of Pennsylvania and its 11th location nationwide. Six offices are in Chicago, while the other four are in Dallas; Columbus, Ohio; Minneapolis and Salt Lake City.

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This transaction reportedly bumps SL Green’s office leases executed so far this year to more than 3.5 million square feet, with a pipeline of more than 900,000 square feet.

485 Lexington Ave., also known as Grand Central Square, totals 904,165 rentable square feet of office space across 32 stories and dates to 1957, though it’s nonetheless still a Class A building, according to CommercialEdge. It has an overall vacancy of about 13 percent.

Travelers Insurance was represented by Robert Ageloff, Matt Astrachan and Kate Roush of JLL, and SL Green was represented by Paul Glickman, Alex Chudnoff, Diana Biasotti, Christine Colley and Kristen Morgan, also of JLL.

SL Green is the largest office landlord in Manhattan and holds ownership interests in more than 28 million square feet of Manhattan buildings.

Big money on the hunt

The lease announcement closely followed the news that a major Canadian pension fund, reportedly Caisse de Dépôt et Placement du Québec, has committed $250 million for a new SL Green opportunistic debt vehicle.

The fund, for which SL Green hopes to raise a further $250 million by year’s end, is said to focus on distressed credit opportunities in New York office and retail real estate, including existing loans, loan portfolios and controlling CMBS securities. The fund will also originate loans.

Manhattan’s office market saw 5.47 million square feet of leasing activity in the third quarter, which was 8 percent above the five-year quarterly average, according to a report from CBRE. In turn, overall availability declined by 50 basis points year-over-year, to 19.3 percent.

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99 Cents filed for Chapter 11 bankruptcy protection in April and announced plans to close all 371 U.S. stores by the end of May. The company cited inflation and shifting consumer demand as key factors that made its business model unsustainable. The retailer originated in 1982 in Los Angeles and expanded into Arizona, Texas and Nevada.

Hilco’s sale comes at a time when retail real estate, especially open-air, multi-tenant retail, is very strong, according to Mark Sigal, CEO of Datex Property Solutions.

“With historically low vacancy rates and strengthening rental rates, landlords can be choosier about the ideal tenant mix and overall consumer experience,” he told Commercial Property Executive.

At the same time, the dollar store category faces significant challenges with pricing, product mix and margin pressures, including exposure to potential tariffs under the new presidential administration, Sigal observed.

“It’s a category where the very definition of what a dollar store is and whom it serves is being questioned. We see this in a litany of new stories about dollar stores’ understaffing, poor merchandising and a consumer experience that does not inspire in an age of peak retail.”

Ironically, Sigal said, Dollar Tree, which previously acquired 170 of 99 Cents Only Stores locations (separate from this transaction), has struggled mightily in this regard, having to face off against Dollar General, who focuses more broadly on essentials and under-served markets, where there is less competition, and rents are lower.

“Toward this end, Dollar Tree has already divested 700 locations from its ill-fated acquisition of Family Dollar, a failed effort to more directly compete with Dollar General and has seen both its CEO and CFO resign in recent months,” Sigal said.

READ ALSO: Retail’s Post-Pandemic Recovery

As most of the locations sold by Hilco are in the 9,000- to 15,000-square-foot range, these are neither anchor caliber spaces nor easily sub-divided shop space, he added. And since Dollar Tree has already presumably cherry-picked the best locations for its stores, the Hilco locations are likely to be dominants by other retail categories.

How the retail landscape evolves

The bankruptcy and closure of 99 Cents Only Stores highlight several trends in the retail industry, Doug Ressler, manager Business Intelligence at Yardi, told CPE.

“Many retailers are struggling with increased costs for goods and operations, which can squeeze profit margins, especially for discount stores,” Ressler said. “Consumers increasingly seek convenience and value, which can impact traditional brick-and-mortar stores.”

The closure of 99 Cents Only Stores has created opportunities for other retailers. “For example, Dollar Tree plans to reopen nearly 200 shuttered locations under its own brand,” Ressler added.

The rise of online shopping continues to challenge physical stores, pushing retailers to adapt by enhancing their digital presence and integrating online and offline experiences.

“These trends suggest that the retail landscape will continue to evolve, with a focus on adaptability and meeting changing consumer needs,” according to Ressler.

There has been a continued slowdown in retail sales, according to Robert Martinek, director at EisnerAmper. Two areas of recent concern have been in retail pharmacies and casual dining.

“We have seen a bankruptcy in Rite Aid and the announcement of 1,200 + closings of Walgreens locations,” Martinek said. “Also, it was announced that CVS is undergoing a restructuring. Online pharmacies may have hastened this downturn.”

READ ALSO: How Dining Trends Are Reshaping Shopping Centers

Additionally, casual dining chains such as Friday’s, Red Lobster and TGI Fridays have experienced significant issues, he added. Since interest rates have expanded, cap rates have increased among “all” of the NNN sector. Dollar Stores have shown some resilience compared to casual dining and pharmacies.

Discount stores remain attractive

Discount and dollar stores remain highly attractive to net-lease investors, according to Eli Randel, COO at Crexi.

“This is often due to their strategic locations in underserved markets and their relative immunity to e-commerce disruption,” Randel said. They consistently rank among the top-searched property types, he added.

“While oversaturation and changing market dynamics have led to challenges for certain units in recent years, most dollar stores continue to perform very well, delivering strong yields backed by credit-rated tenants.”

There has been an increase of dollar stores popping up coast to coast, according to Ami Ziff, managing director of National Retail at Time Equities.

“We welcome these additions to many of our value centers,” Ziff said. Hundreds, if not thousands, of former drugstore locations have been backfilled by dollar stores, which are experiencing a rapid growth spurt and, in many instances, offer groceries in areas lacking supermarkets, he continued.

“The rents paid by dollar stores are often lower than those previously paid by drugstores, as the drugstore rents were inflated based on new construction combined with the fact that dollar stores generate lower average sales volumes than drugstores. However, the demand for spaces of this size remains strong nationwide.”

Earlier this year, Time Equities added a shopping center in Kansas City.

Portfolio liquidation in bankruptcy

The real estate portfolio liquidation process is not unique to the 99 Cents case, according to Patrick Collins, partner at Farrell Fritz PC.

“Commercial leases are often marketed by retailers undergoing liquidation in bankruptcy,” Collins said. “Whether a commercial lease is subject to being sold for value in a bankruptcy case depends on several factors, including the amount of rent stated in the lease compared with rent at the market rate for that location and the remaining lease term.”

The retailer in bankruptcy has a strong incentive to carry out the sales process as quickly as possible because landlords are entitled to collect rent during the pendency of the bankruptcy case until the lease is assumed and sold or rejected, Collins explained.

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Jones Day is the first office tenant announced for the 690-foot-tall tower dubbed one of Boston’s top projects that will redefine the city’s skyline. 

The 15-year lease will begin following the completion of the building, estimated to be in June 2025. Jones Day, which currently occupies the 21st floor at 100 High St. in the Financial District, will be located on the tower’s 23rd and 24th floors. It marks the firm’s first move within Boston since entering the market in 2011. The new office will provide a Class A+ workspace for employees with flexibility for future growth. Jones Day has more than 2,400 lawyers in 40 offices across five continents, including 1,700 in the U.S.

Mixed-use skyscraper

The tower at 680 Atlantic Ave. is being built above South Station, Boston’s most connected and active transit hub. The project, a partnership between Hines, the Boston Planning & Development Agency and the Massachusetts Bay Transportation Authority, includes the redevelopment and extension of the South Station Transportation Center as well as the construction of the approximately 1.2 million-square-foot tower above the 1899-built South Station building. The redevelopment will increase the transportation hub’s capacity by approximately 50 percent and provide more convenient connections to the train and subway.

READ ALSO: The Long-Term Pull of Smaller Markets

Hines began work on the mixed-use project in January 2020, after it secured air rights along with an $870 million construction loan originated by The Children’s Investment Fund, according to CommercialEdge data. Designed by Pelli Clark & Partners, the building will have 680,000 square feet of office space. The upper 16 floors will feature 166 residential units branded and managed by The Ritz-Carlton. Residential sales are underway.

The project will also include a 1-acre private park 120 feet above the city, for tenants and residents, among its amenities. The developers are also building a parking garage over the outdoor areas and adding an indoor bike storage room. Additional amenities will include a conference center, private tenant lounge, fitness and wellness center, dining area and terrace with a swimming pool. The project will also improve the streetscapes with new sidewalks, granite curbs, streetlights and greenery.

The developers are aiming to achieve LEED Gold and WELL Gold certifications, as well as a BREEAM Very Good rating.

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Advanced therapy initiation and patient solutions provider AssistRx signed a 54,664-square-foot lease at Maitland Promenade II, a 230,366-square-foot office building in Maitland, Fla., an Orlando submarket. KBS Realty Advisors owns the building, according to CommercialEdge.

HLI Partners arranged the long-term deal on behalf of the tenant, while CBRE represented the landlord. AssistRx is expected to move in starting in the second quarter of 2025.

KBS Realty Advisors acquired the asset in December 2013 for $31.2 million from Flagler, CommercialEdge shows. The property traded for some 40 percent less than in 2008.

READ ALSO: Why AI Firms Are Taking a Measured Approach to Office Leasing

Orlando’s vacancy rate at the end of October decreased 40 basis point year-over-year, reaching 16.1 percent, according to the latest CommercialEdge office report. The metro’s listing rate during the same month was $28.16, slightly below the $32.79 national figure.

CBRE Senior Vice President Jay Dixon and First Vice President Colin Morrison represented the landlord. HLI Partners Principal Joe Hills worked on behalf of the tenant.

A two-building Orlando office campus

The five-story, Class A building came online in 2001 and features a cafe, a three-story parking garage, a fitness center, a conference center and about 1,140 parking spaces. Additionally, the facility has 2,000 square feet of retail space and is part of a two-building campus. The other property measures 241,659 square feet and was completed two years earlier.

Located at 495 N. Keller Road on more than 9 acres, Maitland Promenade II has access to Interstate 4. Downtown Orlando is 9 miles away, while Orlando Executive Airport is some 10 miles southeast.

In another Orlando lease this year, Travel + Leisure signed a 15-year, 182,000-square-foot deal at the 501 West Church building. Piedmont Office Realty Trust owns the five-story property that came online in 2003.

The post KBS Realty Lands 55 KSF Tenant Near Orlando appeared first on Commercial Property Executive.

In the Bay Area’s largest office lease so far since the pandemic, Snowflake Inc. has committed to 773,000 square feet in Menlo Park, Calif., according to the San Francisco Chronicle. The data storage firm subleased the space from Meta and will occupy the office buildings within Menlo Gateway, a campus owned by Bohannon Cos. and Brookfield Asset Management.

JLL worked on behalf of Meta, which had preleased the space when it was still under construction, The San Francisco Standard reported. CBRE represented Snowflake. The leasing agreement is set to expire in 2033.

The Menlo Park location will be Snowflake’s largest North American office. Currently employing 7,000 people worldwide, the firm gave up its previous headquarters at 450 Concar Drive in San Mateo, Calif., in 2021 and indicated a Bozeman, Mont., address as its main executive office. The company, however, still occupies roughly 200,000 square feet in San Mateo under a lease that will expire in eight years.

Menlo Gateway, up close

Menlo Gateway came online in two phases between 2017 and 2019. The mixed-use campus comprises four office buildings rising eight stories, along with three parking garages and a 230-key hotel. Bohannon completed the complex using funds from two loans totaling $302.3 million, CommercialEdge shows.

The office facilities are LEED Gold-certified and have floorplates averaging between 26,000 ad 33,000 square feet. Amenities include a fitness center, a business training facility, indoor and outdoor café seating, meeting rooms and a restaurant.

READ ALSO: How AI Firms Are Reviving Office Space Demand

Located at 100-190 Independence Drive and 101-155 Constitution Drive, Menlo Gateway is within 22 miles from downtown San Jose. The 16-acre property is also 18 miles from San Jose Mineta International Airport.

JLL Senior Managing Directors Mark Bodie and Toss Vallentine, as well as Vice President Clarissa Richardson, represented Meta in the deal. CBRE Executive Vice Presidents Luke Ogelsby and George Fax, along with Vice President Nick DeMartini, worked on behalf of Snowflake.

Bay Area office vacancy rate on the rise

The Bay Area’s office vacancy rate clocked in at 26.4 percent as of October, registering a 630-basis-point increase year-over-year according to a CommercialEdge office report. The index was the second largest in the West, surpassed only by San Francisco (27.7 percent), However, the area remained one of the priciest, with listing rates averaging $54.2 that month, well above the $32.8 national figure.

One recent notable deal was Vaxcyte Inc.’s renewal and expansion to 258,581 square feet at Alexandria Real Estate Equities’ campus in San Carlos, Calif. The property is expected to measure 1.4 million square feet at full build-out.

And, earlier this year, Intermolecular signed a 146,159-square-foot lease extension at an R&D building in San Jose, Calif. Cannae Partners and Blue Vista Capital Management own the facility that came online in 1980.

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Metropolitan Commercial Bank has renewed and expanded its office space at 99 Park Ave., a 600,000-square-foot Manhattan office tower. The company will bring its footprint at the Global Holdings-owned property to some 81,979 square feet.

The anchor tenant signed a six-year lease extension on its current 52,677-square-foot office space covering the building’s 12th and 13th floors. In addition, the bank leased the entire 11th floor with a new 15-year commitment for 26,802 square feet.

JLL Vice Chairman Paul Glickman and Senior Vice President Diana Biasotti worked on behalf of the tenant, while JLL Associate Vice President Kristen Morgan and Associate Harrison Potter represented the landlord.

Manhattan tower slated for renovation

Global Holdings acquired the office tower in 1990 for $104.5 million, according to CommercialEdge information. The property came online in 1953 and underwent cosmetic renovations in 2005.

Designed by Emery Roth & Sons with Art Deco interiors, the 26-story building has floorplates averaging 30,000 square feet, 12,000 square feet of retail space and a tenant-exclusive fitness center. Its roster includes Calypso Technology, Windsor Properties, Bosley, Gould Paper Corp., New York Bankers Association, AKAM, Lubert-Adler and Steward Partners, among others.

READ ALSO: Return-to-Office Traffic Reaches Record Level

The owner plans to invest $30 million to renovate the Class A tower. Designed by VOCON, the improvements will focus on the lobby, facade and amenity spaces. Plans call for a new conference center, entertainment lounge and tenant barber shop and salon. Completion is expected in the first quarter of 2026.

The property is in Midtown Manhattan, half-a-mile from the Empire State Building, Grand Central Terminal and Bryant Park.

Manhattan’s office market had a 16.7 percent vacancy rate in October, down 80 basis points over the year, according to a recent CommercialEdge report. The index was also 270 basis points below the national average of 19.4 percent.

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Omega Morgan, a specialist in moving heavy rigging and machinery, has inked a 250,020-square-foot lease for the entire Building D of The Cubes at Etna, a master-planned industrial park in Etna Township, Ohio, in the metro Columbus market.

The landlord, CRG, developed the spec building and completed it less than a year ago. Contegra Construction served as general contractor, while Lamar Johnson Collaborative was the architect.

Omega Morgan leased the facility as part of its ongoing expansion in the region. The company operates across much of the U.S. and Canada, and plans to utilize the building for distribution services across the Ohio Valley region.

Joe Kimener of CBRE represented CRG in the lease and Nick Tomasone of JLL negotiated on behalf of the tenant.

Part of a master-planned industrial campus

Building D has a rear-load design with 36-foot clear heights, 32 fully equipped dock positions (expandable to 50), a 60-foot speed bay and 62 trailer stalls. The facility is adjacent to the interchange of Interstate 70 and Ohio Highway 310, providing immediate access to major transportation routes.

The facility is the third development at The Cubes at Etna. The industrial campus occupies 305 acres of former farmland that CRG and its capital partner, LXP Industrial Trust, acquired in 2018. The property received a 15-year, 100 percent tax abatement.

The master-planned park also includes a 1.2 million-square-foot build-to-suit fulfillment center for retailer Kohl’s, that came online in 2020. A separate 1.1 million-square-foot speculative distribution facility, known as Building E, was completed in late 2022 and leased to a manufacturing tenant for a new distribution center.

All together, including the buildings at The Cubes at Etna, CRG has developed more than 53 million square feet of industrial projects nationwide. The Cubes is the company’s national industrial development platform.

Columbus industrial supply exceeds demand

Spec industrial deliveries in Greater Columbus in the third quarter of 2024 upped the market’s vacancy by 60 basis points, with overall vacancy now at 7 percent, according to CBRE data. However, buildings under 100,000 square feet were less available for lease, marking a 2 percent vacancy rate.

Vacancies were up even though construction activity dropped in Q3, with four industrial developments adding 2 million square feet to the market, CBRE reports. The completed square footage was down by 22 percent quarter-over-quarter and 50.4 percent year-over-year.

Besides Building D at The Cubes at Etna, other developments in greater Columbus have been fully leased recently, including Building A at Canal Pointe Industrial Park, Building 1 at Silicon Heartland Innovation Park, and 885 Stelzer Road. Also, 1050 Gateway Drive is 82 percent leased.

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Legal sector leasing volume from the first quarter to the third quarter increased by 29.9 percent compared to the same period last year, as shown in the firm’s latest research study.

Interestingly, downsizing transactions were up by 6.7 percent compared to 2023, reflecting law firms’ efforts to adapt their space utilization to shifting market dynamics.

“Over the past four quarters, quarterly leasing volume has averaged 2.3 million square feet, a notable rise from the 1.5 million square feet quarterly average recorded between 2020 and 2023,” according to the report. “This trend highlights the consistent leasing momentum of recent quarters, with volumes frequently surpassing pre- and post-pandemic levels over the past five years.”

A majority of firms want to stay in place, with 55.9 percent of leasing activity doing so this year through the third quarter, consistent with 2023 levels.

Occupancy changes showed 35.4 percent downsizes, 34.5 percent expansions and 30.1 percent negligible size changes.

After preferring relocations earlier this year, by the third quarter, renewals became more common as limited high-quality options, rising improvement costs and landlord financial constraints made moving less feasible.

READ ALSO: Return-to-Office Traffic Reaches Record Level

Because tenant improvement allowances increasingly fall short of covering build-out expenses, there has been a “steady shift” to longer lease agreements to manage record-high construction costs, the report indicated.

Focus on high-quality office spaces

“Law firms strongly prefer high-quality office spaces, even as other industries shift toward remote work,” Doug Ressler, business intelligence manager at Yardi, told Commercial Property Executive.

Law firms are leasing premium office spaces with modern amenities to attract and retain talent, Ressler observed. These spaces often include features like touchless elevators, networking areas and dining facilities.

“Many law firms relocate to prime locations, often taking advantage of favorable leasing terms in markets with high vacancy rates. This trend is particularly noticeable in cities like New York and San Francisco.”

Ressler said law firms have actively leased large amounts of space despite the broader office market challenges. For example, in 2023, law firms leased around 12 million square feet of office space in the U.S., with significant activity in major markets.

“These trends highlight the legal sector’s unique approach to office space, balancing the need for high-quality environments with strategic relocations to optimize costs and benefits,” Ressler said.

Need for in-person interactions

Law firms emphasize the importance of physical office space for collaboration, training and maintaining corporate culture, according to Michael Romer, Esq., co-managing partner, Romer Debbas.

According to Romer, this is reflected in their preference for spaces that facilitate in-person interactions.

“As law firms continue to face challenges posed by remote work and competing firms operating virtually or predominantly virtually, it is promising to see the legal community appear to recommit to an in-person model,” Romer said.

A physical office space where lawyers and staff can collaborate and share ideas is necessary for a law firm’s success and long-term survival, Romer observed. “The remote work concept can provide certain quality-of-life benefits to established attorneys. Still, it hinders the education and growth of the next generation of lawyers, not to mention office morale.”

The Savills survey focused on firms with 20,000+ in square footage, generally larger firms that thrive on institutional clients paying two to three times the hourly rates of small law firms.

“Office space expense is less of a concern for such firms,” Romer said. “Meanwhile, small to mid-size firms struggle to balance office space and the attorney talent needed to occupy it. Many producing attorneys who wish to remain remote would switch firms or look elsewhere if they had to report to the office daily.”

Firms continue to explore how their office space can be a tool in recruiting and retaining top-tier talent.

In many cases, they identify areas where they can create efficiencies within their physical spaces to offset the higher rental rates commanded by the newest and most attractive buildings that many firms have pursued, according to Stream Realty Partners’ Vice Chairman & Managing Director Craig Wilson.

“For many firms, being in a building with an energetic vibe, a complimentary tenant base and attractive, high-caliber amenities is paramount to large individual offices, libraries and some of the other fixtures of law firms of the past,” he told CPE.

The post Law Firm Office Leasing Maintains Momentum appeared first on Commercial Property Executive.

Carr Workplaces, a provider of short-term coworking and flex space, has signed a 26,331-square-foot lease with Comstock Holding Cos. in Arlington, Va. The new location is slated to open within The Hartford office building in the spring of 2025.

Comstock acquired The Hartford in 2020 for $128.8 million, with the help of an $87 million acquisition loan from Metropolitan Life Insurance Co., according to CommercialEdge information. 

Built in 2002, the Class A office building totals 211,450 square feet across nine stories. On the ground floor, the property features 20,000 square feet of retail space. The building was awarded LEED Gold certification for existing buildings operations and maintenance in 2012, followed by a recertification in April of this year. Amenities include a subterranean parking garage, bike storage, EV charging stations, a rooftop deck and a fitness center. 

The tenant roster includes Fraym, SQM Frontier Management, SIE Consulting Group, KVS Title, Inspire, Global Telesourcing and Aecom, among others.  

The Hartford is at 3101 Wilson Blvd., within Arlington’s Clarendon area. The office building is surrounded by eateries and retail options, including a Cheesecake Factory and Whole Foods Market. The property is also across the street from several bus stops, as well as the Clarendon metro station, where the Silver and Orange lines connect The Hartford to downtown Arlington in less than 1 mile and to downtown Washington, D.C. in less than 5 miles. 

The post Carr Workplaces Expands DC-Area Footprint appeared first on Commercial Property Executive.

Both investment volume and average sale price per square foot saw decreases at the end of the third quarter. Meanwhile, some significant office leases closed through the first nine months of the year, despite the heightened vacancy rate, as has been the case in most markets.

With office-to-residential conversions emerging as a trend across the country, CommercialEdge’s new tool, The Conversion Feasibility Index, is designed to highlight and evaluate which markets have strong repurposing fundamentals. While San Diego is not among the nation’s top markets for residential transformations, multiple Western markets have a percentage conversion potential between 15 to 20 percent and higher.

San Diego’s pipeline on the national podium

San Diego’s office sector had nearly 4.1 million square feet of space under construction spread across properties—the third largest pipeline among the best-performing markets in the U.S., only trailing San Francisco (4.7 million square feet) and Boston (11.6 million square feet).

The figure represents 4.2 percent of total stock, well above the national average of 1.0 percent and second after Boston’s 4.6 percent rate. When adding office projects in planning stages, San Diego’s share reached 6.8 percent.

Notable office projects underway include a 426,927-square-foot development at 4135 Campus Point Court, in the metro’s Torrey Pines submarket. Scheduled to come online by the end of 2025, the life science project is developed by Alexandria Real Estate Equities as part of its 2 million-square-foot Alexandria Point campus and is fully preleased by Bristol-Myers Squibb Co.

Another notable development is Bioterra, a 315,997-square-foot life science project at 5889 Oberlin Drive, within the University City submarket. With Longfellow Real Estate Partners as developer, the project broke ground in 2022 and is financed by a $165 million construction loan held by Bank OZK.

Developers delivered approximately 2.7 million square feet of office space across 12 properties, while construction starts included 1.2 million square feet across nine office projects. One of the significant completions in the metro was IQHQ’s Research and Development District, the first urban life science waterfront development in San Diego. RaDD’s The Rise (729,903 square feet), The Vida (396,154 square feet) and The Core (269,341 square feet) all came online in March.

Investment activity follows national pattern

Year-to-date through September, San Diego’s office sector saw $447 million in investments, with 26 properties totaling 2.1 million square feet having changed hands.

Significant office deals in San Diego included the $45.7 million sale of Symphony Towers, a 530,000-square-foot office asset in East San Diego. Originally completed in 1990, the Class A high-rise was purchased in September by Formosa. Irvine Co. sold the property, the second tallest skyscraper in the city, after more than 21 years of ownership.

The Hazard Center Office Tower also changed hands. The 268,645-square-foot office mid-rise was purchased by BH Properties for $40.3 million. Principal Real Estate Investors sold the 15-story building that previously traded in 2003.

Office properties traded at an average sale price of $196 per square foot, above the national average of $171 per square foot. The figure saw a significant drop since the $422 per square foot recorded at the end of May.

Across Western markets, Los Angeles led ($320 per square foot) and was followed by the Bay Area ($279 per square foot) and San Francisco ($268 per square foot). Only Phoenix ($174 per square foot), Portland ($132 per square foot) and Denver ($103 per square foot) recorded lower average sale prices when compared to San Diego.

Office vacancy rate keeps climbing

San Diego’s office vacancy rate reached 18.5 percent in September, below the national rate of 19.5 percent. The figure fluctuated from the 17.2 percent recorded in January, showing a consistent increase at 18.5 percent in May and at 19.1 percent in August. However, across similar markets, San Diego fared better than Austin (27.8 percent), Houston (25.2 percent), Denver (24.7 percent) and Portland (19.9 percent).

The asking rent prices in the metro averaged at $43.04 per square foot, on par with Los Angeles and outperforming the national average of $32.89 per square foot. Across similar markets, the Bay Area led with $54.74 per square foot, while San Diego was pricier than Denver ($30.79 per square foot), Houston ($30.14 per square foot) and Phoenix ($28.17 per square foot).

Significant office leases closed since the start of the year included Pfizer Oncology’s 230,000-square-foot deal at Torrey View, a life science project developed by Breakthrough Properties, a joint venture of Tishman Speyer and Bellco Capital. The tenant will occupy two of the three buildings at the 520,000-square-foot campus.

In June, Alexandria Real Estate Equities landed a 127,300-square-foot long-term agreement at its SD Tech by Alexandria Mega Campus in the Sorrento Mesa submarket. The tenant is a top-20 pharmaceutical company which signed a 10-year commitment at a 253,000-square-foot life science building, currently underway.

One month later, Lincoln Property Co. renewed the 134,000-square-foot, full-building lease with Charter Communications at Pacific Corporate Center, a two-story office property in the same submarket.

Coworking sector keeps steady

There were 2.1 million square feet of shared office space in San Diego as of September, on par with Nashville but more than in Austin (1.7 million square feet), Charlotte (1.5 million square feet) and Orlando (1.3 million square feet).

The rate of coworking space as percentage of total leasable office space stood at 2.1 percent, higher than the national average of 1.9 percent and outperforming Houston and Phoenix, both with 1.8 percent.

The flex office provider with the largest coworking footprint in San Diego remained Regus, leading with 299,162 square feet of space. The company was followed by Gateway Labs by Lilly (218,742 square feet), Premier Workspaces (122,948 square feet) and WeWork (105,282 square feet).

The post San Diego’s Office Sales, Prices Decelerate appeared first on Commercial Property Executive.

Brookfield Properties has tapped JLL as the exclusive leasing agent for Manhattan West’s office component, which spans 6 million square feet.

Chairman & President Peter Riguardi, Vice Chairs Paul Glickman and Matt Astrachan, Executive Managing Director Christine Colley and Senior Vice President Kristen Morgan, along with Vice President Seth Godnick, will lead the JLL team. The brokers will work alongside the property operator’s in-house team.

Manhattan West is a 7 million-square-foot, mixed-use campus comprising four office towers and an 844-luxury residential high-rise dubbed The Eugene, as well as a 164-key boutique hotel. Additionally, the live-work-play property has more than 240,000 square feet of retail space and is anchored by a 2.4-acre landscaped public plaza.

Manhattan West’s office component, up close

One of the buildings within the campus is One Manhattan West, totaling about 2.1 million square feet and rising 67 stories. Completed in 2019, the LEED Silver-certified skyscraper has tenants such as Skadden, NHL, Ernst & Young and Accenture on its roster.

Two Manhattan West came online last year and spans 1.9 million square feet across 58 stories. The tenant roster includes Cravath, KPMG, D. E. Shaw & Co. and Clifford Chance.

READ ALSO: Manhattan Office Shows Strength in a Still Lackluster Market

The 201,695-square-foot Lofts at Manhattan West is a 1913-completed building that rises 14 stories. Initially, the property was designed for industrial use, but was converted to office in 2002, according to CommercialEdge information. Brookfield acquired it in two interest-stake deals from Planned Parenthood for a combined $135.5 million.

Completing the mixed-use campus is Five Manhattan West, a 1.8 million-square-foot mid-rise that came online in 1969. The 16-story building was completely renovated in 2016 and 2024, the same source shows. The owner purchased it in September 2011 from Lone Star Fund.

All buildings are powered by renewable electricity sourced from run-of-river hydropower dams, contributing to a more than 80 percent reduction in direct carbon emissions.

Located at 401 & 389 Ninth Ave. and 424 & 450 West 33rd St., the properties have direct connectivity to Moynihan Train Hall and Penn Station. Numerous subway and train stations are also nearby.

Manhattan’s office vacancy rate drops

Manhattan’s office vacancy rate at the end of October clocked in at 16.7 percent, registering an 80-basis-point decrease year-over-year, according to a recent CommercialEdge office report. The borough’s figure was well below the 19.4 percent national average, with return-to-office policies helping the sector. Despite a shrinkage in lease sizes, leasing activity was on par with pre-pandemic levels.

At the beginning of the year, Vornado Realty Trust appointed Cushman & Wakefield as exclusive leasing agent for PENN 2, a Class A, 1.8 million-square-foot high-rise in Midtown Manhattan. That office building was completely redeveloped last year.

The post Brookfield Taps JLL for Big NYC Office Leasing Job appeared first on Commercial Property Executive.

Gateway Classic Cars has signed to become Greystar’s first tenant at the Class A three-building Caliber by Greystar industrial development in Peoria, Ariz.

Reportedly the world’s largest classic car sales company, Gateway currently operates 20 U.S. sales showrooms, as well as an online sales platform, all focused on classic, exotic, muscle, vintage and antique cars.

The company will occupy 43,809 square feet in Caliber’s 122,863-square-foot Building B. The 411,918-square-foot industrial campus also includes the 114,446-square-foot Building A and the 174,609-square-foot Building C.

Anthony Lydon, John Lydon, Hagen Hyatt and Kelly Royle of JLL represent Greystar as the exclusive leasing brokers for Caliber. Hyatt and Sam Wetherby, also of JLL, represented the tenant.

The industrial component of a mixed-use development

Caliber is the industrial component of Greystar’s $500 million, 88-acre Peoria Place master-planned development. At full build-out, the mixed-use property will include luxury apartments, build-for-rent homes and ground-floor retail in Peoria’s historic downtown.

The three industrial buildings were the first to get underway at Peoria Place, in May 2023. The mixed-use master plan is intended in part to revitalize downtown infill land and started rolling forward meaningfully back in 2020, when the city government approved rezoning.

READ ALSO: Phoenix Industrial Development Leads the US

The buildings are at 9303, 9451 and 9595 N. 79th Ave. and feature 32-foot clear height, 50- by 52-foot column spacing, LED lighting, ESFR sprinklers and 190-foot truck courts. The warehouses also include speculative office space with conference rooms, break rooms, open and private offices.

In addition, the electrical infrastructure of each facility offers tenants the opportunity to double their power capacity from 3,000 to 6,000 amps, supporting such capabilities as roof-mounted solar systems and EV charging stations.

Caliber is at the southwest corner of 79th and Grand avenues, directly along U.S. Route 60, 2 miles from Loop 101. The location has quick access to the Westgate Entertainment District, State Farm Stadium and Pioneer Community Park, an 83-acre public space with dog parks, an urban lake, public art and more than 10 lighted fields for various sports.

Desert emptiness

The metro Phoenix industrial space market saw 36 buildings totaling 9.6 million square feet delivered in the third quarter, according to a recent report from JLL. The 7 million square feet of this new supply that came onto the market vacant pushed overall vacancy up by 160 basis points quarter-over-quarter.

“Notably, properties built since 2023 account for nearly 75 percent of total availability, highlighting the rapid transformation of Phoenix’s industrial stock,” JLL reported. “Infill submarkets with older inventory and limited land availability have seen less speculative development and continued to maintain lower vacancy rates.”

The post Greystar Lands 1st Industrial Tenant at $500M Phoenix Mixed-Use appeared first on Commercial Property Executive.

These firms are delaying commitments while gradually expanding their footprints, to avoid significant swings in rapid expansions and subsequent downsizings.

Since the beginning of 2023, AI companies accounted for 20 percent of all leases signed in the Greater Bay Area and, together with other tech sectors, nearly 44 percent of all leasing activity.

AI firms’ lease terms generally lean toward three years rather than the average of approximately five years or more for non-AI tenants. Since the start of 2023, most AI leases (61 percent) in San Francisco were signed for sublease space. In Silicon Valley, 25 percent were subleases.

Newmark also reported that since the beginning of 2023, San Francisco AI firms signed on for an average of 4,700 square feet in the early stage, increasing to 9,200 square feet during their growth phase. As these companies hired more employees, their space needs jumped to an average of 28,500 square feet.

However, earlier this month, AI-powered company Notion signed a 105,000-square-foot, 10-year lease at The Monadnock Building. The 204,625-square-foot office building in San Francisco’s South Financial District submarket is owned by Brookfield Properties. Notion will occupy five floors at the 10-story property, with the option to expand.

Tech firms coming and going

San Francisco has now experienced flat or declining rents for eight consecutive quarters, Moody’s Data Scientist David Caputo told Commercial Property Executive. Among the 15 traditional tech markets, rents only declined in San Francisco (by 0.3 percent), according to Moody’s third-quarter data.

X’s San Francisco headquarters is relocating to Austin, Texas. Legal and financial disputes have surfaced, including a lawsuit against X for unpaid rent on its San Francisco headquarters and controversy over unauthorized modifications to its office space, Caputo said.

“This departure exemplifies a broader trend of tech companies scaling back their presence in downtown San Francisco,” Caputo added. “However, there is optimism for reversing this trend, fueled by the number of AI companies in the Bay Area.”

READ ALSO: Return-to-Office Traffic Reaches Record Level

These entities attract significant venture capital investment and show a marked preference for maintaining office-based work environments, according to Caputo. “Consequently, leasing activity has witnessed a 40 percent increase, with tenant demand surging. Over 25 AI companies have sought 1 million square feet of office space this year alone.”

He added that efforts by local officials and community organizations to revitalize downtown areas are noteworthy. Initiatives such as cultural events and pop-ups aim to rebuild office demand. These measures, with the growth of AI companies, are anticipated to reduce San Francisco’s vacancy rate by 2025.

The capital of AI

Not only have AI companies been responsible for leasing larger blocks of space in San Francisco over the past couple of years, but their rapid growth means that this activity has translated into positive absorption and occupancy growth, according to Robert Sammons, Cushman & Wakefield’s research director in Northern California.

San Francisco and the Bay Area have become the “capital of AI” not only because of the number of companies located there (730 at last count at the end of the third quarter of 2024 in the Bay Area, with 440 of those residing in San Francisco—out of 3,344 globally) but also because of the venture capital being pumped into them.

According to PitchBook, through the third quarter of this year, Bay Area companies have absorbed 67.8 percent of global generative AI funding and 31 percent of global funding into San Francisco-based companies alone. Over that time, 23 of the top 50 VC funding transactions went into Bay Area companies, with 10 in San Francisco proper.

“Something to be aware of going forward—there will undoubtedly be M&A activity among some of these AI companies, which could either create further expansion among the winners or a decline in leasing and hiring as well; it’s just too soon to tell,” Sammons said.

AI talent is concentrated in the Bay Area

AI companies have nearly doubled their footprint since 2021, occupying close to 11.6 million square feet in the Bay Area, according to Chris Pham, senior research analyst for JLL.

“AI talent is primarily concentrated in the Bay Area, which will remain an AI superhub,” Pham said.

AI companies have been growing at roughly 37 percent on a compound annual growth rate since 2013, Pham added. The Bay Area AI footprint this year stands at 1.1 million square feet in the East Bay, 1.9 million square feet in the Mid-Peninsula, 3.8 million square feet in Silicon Valley and 4.8 million square feet in San Francisco.

READ ALSO: Are Coworking Networks the Future of Office?

New-to-market AI deals, primarily from new startups, make up close to 40 percent of the AI count this year in the Bay Area, Pham said.

OpenAI, Notion, Anthropic and many other AI firms generated leasing activity of well over 1 million square feet in 2024 alone, according to Markus Shayeb, senior vice president & San Francisco managing director of TRI Commercial Real Estate Services/CORFAC International.

“Numerous AI-related companies are searching for spaces exceeding 50,000 square feet, making up the majority of predicted office leasing activity in 2025 in San Francisco alone,” Shayeb said. “As many as 100 companies with less than 50 employees are searching for space.”

A struggle with gentrification and displacement

The Bay Area had seen a significant drop in office space occupancy since COVID-19, but now we’re seeing a surge in demand, particularly from companies focused on AI, said Mahalakshmi Balachandran, senior associate in the Northern California Office of McCullough Landscape Architecture.

This shift is driving a need for different types of spaces, such as those with a larger footprint for data centers. “At the same time, there’s a growing preference for sustainable building practices and adaptive reuse of existing structures. However, while AI brings new opportunities, it raises concerns about equity and accessibility.”

The Bay Area real estate market has long struggled with gentrification and displacement, Balachandran added. “Without careful oversight, AI could worsen these issues, making it harder for low-income and marginalized communities to own homes. When working with existing data, AI tools can reinforce existing patterns of exclusion within neighborhoods. There needs to be a cautious integration and approach to inferring the results of such analysis.”

The post Why AI Firms Are Taking a Measured Approach to Office Leasing appeared first on Commercial Property Executive.

TF Cornerstone has signed a 21,000-square-foot, 10-year extension and renewal with Criteo at 387 Park Ave. S. in Manhattan’s Flatiron District. Cushman & Wakefield worked on behalf of the landlord.

The commerce media company has been a tenant at the 232,000-square-foot office building since 2015, CommercialEdge data shows. Criteo occupies the top floor and the penthouse of the property, using this space as its North American headquarters. The renewed commitment occurred when the 13-story property reaching full occupancy.

Other tenants at 387 Park Ave. S. includes eRealty Advisors, The Corcoran Group, Optimus Marketing Inc., Coachieve and Third Republic, according to the same source. Last month, The Malin opened its new flex office location at the property, with a 20,000-square-foot commitment on the fifth floor. Additionally, the landlord has also expanded its own footprint here with an additional 7,000 square feet of space, now occupying a total of 59,000 square feet.

TF Cornerstone’s ownership of 387 Park Ave. S.

TF Cornerstone picked up the property in 2005 for nearly $68 million, according to CommercialEdge, later becoming subject to a $100 million loan held by Equitable Insurance Co., with a maturity date set for 2030. The 1910-built office mid-rise features 19,372-square-foot floorplates, 14,899 square feet of first-floor retail space, six passenger elevators and an on-site conference center.

The company renovated 387 Park Ave. S. between 2015 and 2017, with a more than $20 million investment. The property now includes an upgraded lobby, a glass façade on the lower three floors, new elevators and a roof deck amenity space wit a 1,700-square-foot conference room.

Situated between Union Square and Grand Central Terminal, 387 Park Ave. S. is 4 miles from the Upper West Side, 5 miles from the Financial District and within 18 miles of John F. Kennedy International Airport.

The landlord was represented by Chairman of Global Brokerage Bruce Mosler, Managing Director John Fitzsimons and Executive Vice Chairmen Ethan Silverstein and Mark Mandell with Cushman & Wakefield.

Notable deals in pricy Manhattan

As of September, Manhattan’s office vacancy reached 16.8 percent, marking a 90-basis-point year-over-year drop, while also being below the national rate 19.5 percent, a recent office market update shows. The borough remains the priciest market for office leasing, with asking rents averaging $67.93 per square foot, more than double the national listing rate of $32.89 per square foot.

Recent deals in the metro include SL Green Realty Corp.’s 72,515-square-foot lease at 245 Park Ave. Cushman & Wakefield represented the landlord in the 10-year lease signing with tenant Verition Group NY Inc.

Another significant commitment was a 53,779-square-foot expansion at the Empire State Building. Savills represented the tenant, law firm Hecker Fink LLP, that expanded its footprint at the 102-story skyscraper.

The post TF Cornerstone Inks Long-Term Renewal in Manhattan appeared first on Commercial Property Executive.

The in-state move brings it to 2000 Galloping Hill Road, about 9 miles southwest of Newark, N.J. It will be in a 62,000-square-foot space within the 1.2 million-square-foot building known as 15 NEST.

It is replacing the previous tenant, Merck, and is the first tenant there since Merck left. In October, Merck opened its new $317.2 million biosafety testing facility in Rockville, Md.

Revlon said the facility’s existing lab infrastructure was a key attraction.

JLL represented the ownership group of Onyx Equities, Machine Investment Group and Pivot Real Estate Partners, and Newmark represented Revlon.

READ ALSO: Will CRE Market Conditions Improve?

AI data center hyperscaler CoreWeave recently announced it plans to lease 280,000 square feet of space on the NEST campus.

New Jersey’s lab space demand

Newmark’s third-quarter life science market report for Northern New Jersey shows that 14 of the top 20 pharma companies and eight of the top 10 R&D companies are in the state. The market comprises 12.4 million square feet.

“Available lab space is limited despite new vacancies, and current demand for space exceeds 1 million square feet,” according to the report.

After a 10-year run of positive net absorption, the lab/R&D market is destined to break that streak in 2024, according to Avison Young’s life science report for the first half of 2024.

Meanwhile, JLL’s 2024 life sciences property report showed the cycle of softening lab demand has moderated. Most of this uptick in demand is concentrated in the top three markets, including Greater Boston.

Nonetheless, the HELIX project is New Jersey’s largest investment in life sciences and medical education. It is scheduled for delivery in the third quarter of 2026. The 570,000-square-foot property is in New Brunswick.

Construction is also underway at the 400,000-square-foot BeiGene manufacturing campus in Pennington. It is set to deliver in the first quarter of 2025.

The post Revlon Relocates New Jersey HQ appeared first on Commercial Property Executive.

International law firm Nixon Peabody LLP has renewed its lease at 799 Ninth St. NW in Washington, D.C., extending its 43,000-square-foot commitment. Brookfield Properties owns the 10-story, 204,028-square-foot Class A building in the city’s downtown. JLL represented the landlord, while Newmark negotiated the deal for the tenant.

The law firm initially signed a 15-year lease with Brookfield for 65,000 square feet across three floors in December 2013, according to media reports at the time. The firm’s lease at 401 Ninth St. NW was expiring in 2015 and Nixon Peabody chose 799 Ninth after considering more than 20 other buildings in D.C. and Northern Virginia, the Washington Post reported. Information on when the law firm reduced its current space at the building was not available at press time.

READ ALSO: DC Office Sector Struggles to Maintain Course

Brookfield Properties acquired 799 Ninth in 2012 from AEW Capital Management for $106 million and fully renovated the property, which was built in 2001. One of the top 10 LEED-certified office buildings in Washington, D.C., the property received LEED 2009 Existing Buildings Operations & Maintenance Gold certification and Platinum certification in May 2019. In 2018, it earned the Energy Star label.

JLL’s Executive Managing Directors Doug Mueller and Evan Behr, alongside Senior Vice President Thomas Myers, represented the landlord in the lease extension signing. Executive Managing Directors Bill Anderson and Edwin Clark of Newmark worked on behalf of Nixon Peabody.

A sustainable property

Located in the East End submarket adjacent to the 2 million-square-foot mixed-use CityCenterDC development, the building is one block from three Metro lines. It is a 100 percent electric building and by the end of this year, the property will be powered by 100 percent zero-emissions electricity sourced from nuclear power plants.

These efforts are part of Brookfield Properties’ broader commitment to transition its entire U.S. office portfolio to clean electricity by 2026. The transition to zero-emissions power at 799 Ninth will completely eliminate direct carbon emissions at the property and allow tenants, including Nixon Peabody, to report zero Scope 2 emissions associated with their leased office space.

The building also includes D.C.’s first community solar project, a solar installation that was part of a green lease between Nixon Peabody and Brookfield Properties. The installation includes rooftop solar arrays, a terrace-level setup and the district’s first vertically mounted solar wall, with beehives from Brookfield’s urban beekeeping initiative. The project has evolved into New Partners Community Solar, an independent 501(c)(3) nonprofit supported by pro bono legal services from Nixon Peabody.

Tenants at 799 Ninth St. NW

In addition to its green initiatives, 799 Ninth’s amenities include a fitness center, rooftop terrace, EV chargers and bike storage. The property has 10,563 square feet of ground-floor retail space including eateries Boqueria, Poke Papa and Five Guys. The building also has 156 parking spaces in a subterranean garage.

The office property has 21,900-square-foot floorplates. Other tenants include the U.S. Department of Treasury, WorkChew, BDO, Spencer Stuart, American Investment Council, American Gaming Association and another global law firm, Norton Rose Fulbright, according to CommercialEdge.

The post Brookfield Inks 43 KSF Lease in DC appeared first on Commercial Property Executive.

Most recently, Bayview Asset Management renewed its 55,071-square-foot lease at the Office at Merrick Park, a Class A office space located at 4425 Ponce de Leon Blvd. Colliers Vice Chair Stephen Rutchik and Vice President Tom Farmer represented landlord Brookfield Properties, while Matthew Cheezem of Cushman & Wakefield worked on behalf of the tenant.

This lease renewal—one of South Florida’s largest office deals this year—highlights Coral Gables’ competitive edge against other markets in the region. Commercial Property Executive asked Farmer to talk about trends shaping Coral Gables’ growth as a premier business destination in South Florida.

READ ALSO: Growth in Office Tenant Costs Moderates

How has Coral Gables grown into such a sought-after submarket? What has led to its competitive standing?

Farmer: Coral Gables has historically been a premier suburban office market, due to its location within easy reach of all of Miami-Dade County and defined by Mediterranean architecture, and its stellar demographics. In recent years, rent appreciation and constrained supply in the Miami CBD has caused office tenants to look further afield, and Coral Gables has reaped the benefits—maturing into a strong, stable market. 

Is there a particular sector or tenant type showing increased interest in the area?

Farmer: Tenants are looking for exciting spaces in office buildings that reflect their image to clients and help them to attract and retain talent. Coral Gables has delivered that in recent years. Many sectors, including financial service firms, law firms, coworking operators, biomedical research, travel and tourism, and tech firms have established new locations in Coral Gables. 

After securing a lease renewal for almost half of the space at Merrick Park, Brookfield Properties now intends to begin capital improvements at the building. What impact do you expect these renovations to have?

Farmer: Brookfield Properties, who have owned Merrick Park since 2018, decided it was time to invest in the asset, with the focus on overall tenant experience, after analyzing the competing properties and feedback from prospects and existing tenants. The capital improvements are focused on visitor sense of arrival which begins in the parking garage, extend through the ground-floor lobby, and to the office elevators. The renovations are set to begin in November and should be completed by the third quarter of 2025. 

Besides the building’s fresh look after the renovation, what else will be making it stand out among competitors in the market?

Farmer: The Offices at Merrick Park offers unique advantages, relative to the competitive set in Coral Gables. As traffic around Alhambra Circle becomes more congested, Offices at Merrick Park offers a much easier commute for tenants and visitors from Coral Gables, Pinecrest or South Miami neighborhoods. Additionally, it has an above-market parking ratio of 4:1,000 square feet, and it’s connected to the adjacent Shops at Merrick Park Mall, offering access to all the amenities and food and beverage options the mall offers. 

To what extent do such improvements matter in attracting high-profile tenants considering the ongoing trend toward hybrid and remote work?

Farmer: Ownership groups, such as Brookfield Property Group, have made deliberate efforts to improve their assets to make them more attractive to office users which, in turn, has made it easier for employers to not only bring employees back to the office but also attract new talent. Several have made the decision to update lobbies and common areas.

Other capital improvements such as the addition of fitness centers and conference facilities, which are generally free of charge for tenant usage, have also been very impactful. Many landlords have also made the decision to take existing vacancies and create move-in-ready spec office spaces with upgraded finishes to meet tenant demands. The Offices at Merrick Park offers shorter commute times to and from many Miami suburbs, which supports hybrid work particularly well. 

Speaking of Miami suburbs, what attributes set Coral Gables apart from other high-demand business areas in South Florida?

Farmer: Coral Gables is centrally located within the county and offers an outstanding quality of life, with some of the best schools in the nation, cultural amenities, upscale retail and dining options that support tenants’ decisions to office away from the CBD, with the added advantage of lower office rental rates.

Home to the University of Miami—a private research university and academic health system—Coral Gables offers a highly skilled workforce, in which more than half of residents are fluent in another language and nearly 70 percent hold a bachelor’s degree and 25 percent have graduate or professional degrees—about three times the Miami-Dade County average. 

How do you see office space offerings in this submarket evolving over the next few years?

Farmer: Our expectation is that ownership groups will continue to invest in their assets, improving them aesthetically as well as adding amenities to capture activity from both relocating and new-to-market tenant users. We also expect landlords to continue the trend of having robust spec suite programs.

Landlords will continue to engage with architectural design firms to stay ahead of emerging trends to create move-in ready office spaces that meet the demands of the market. The introduction of Agave Holdings’ The Plaza Coral Gables as well as the 4225 Ponce from Constellation Group and The Boschetti Group—currently under construction—have raised the bar in Coral Gables in terms of office product quality and tenant experience. Existing office landlords have taken note and are making the necessary improvements to stay attractive and relevant.

The post How Coral Gables Is Cementing Its Status as a Top Office Market appeared first on Commercial Property Executive.

BXP has chosen CBRE as its exclusive leasing agent for 343 Madison Avenue, the developer’s 950,000-square-foot office project that’s underway less than a block from Grand Central Terminal in Manhattan.

In fact, the 46-story tower will have direct access to Grand Central’s Madison Concourse between 44th and 45th streets.

The building was designed by Kohn Pedersen Fox as a fully electric, zero-carbon workplace and will feature a hospitality-inspired amenity package. For starters, a double-height lounge and conference space on the 45th and 46th floors will include indoor and outdoor dining and collaboration spaces, with biophilic terraces overlooking Midtown Manhattan. Other amenities include a lobby café and bicycle storage with cabanas and showers.

CBRE’s brokerage team of Howard Fiddle, Peter Turchin, John Maher, Evan Haskell and Caroline Merck will lead the building’s leasing campaign.

READ ALSO: Sage’s CEO on the New Realities of Manhattan’s Office Market

343 Madison Avenue’s 40 workplace floors range from 27,500 square feet in the podium to 22,000 square feet in the high-rise. Among those are specialty floors with private terraces and increased ceiling heights that will let clients design a multi-functional workplace to accommodate a variety of work styles and space needs.

In addition to a fully electric building design, the tower will feature zero on-site combustion and a high-efficiency direct outside air system. Its targeted sustainability certifications include LEED Platinum, Well Core, Energy Star 85+, Fitwel and WiredScore Platinum.

In the first phase of the 343 Madison Avenue development, construction recently began on a new accessible street entrance to the Long Island Rail Road’s Grand Central Madison Concourse at 45th Street and Madison Avenue.

Manhattan’s robust leasing activity

In July, CBRE, which had already been a decades-long tenant at 200 Park Ave., also known as the MetLife Building, extended its 180,000-square-foot lease into 2037. Further, the company assumed the responsibilities of exclusive leasing agent and property and asset manager for the owner, Irvine Co. 

Manhattan’s Midtown submarket has the majority of the top office leases in the third quarter, according to a report from CBRE. These include Christie’s renewing 373,000 square feet at 20 Rockefeller Plaza, Willkie Farr & Gallagher LLP renewing and expanding for 316,000 square feet at 787 Seventh Ave., Ares Capital Corp. renewing and expanding for 307,000 square feet at 245 Park Ave. and Balyasny Asset Management renewing and expanding for 164,000 square feet at 767 Fifth Ave.

Overall, Midtown had seen 11.1 million square feet of leasing activity by the end of September, versus 7.9 million over the same period last year. The average availability was 17.4 percent.

The post BXP Unveils NYC Skyscraper Design, Taps Leasing Agent appeared first on Commercial Property Executive.

Samaritan’s Purse has signed a lease to occupy the entire 172,000-square-foot warehouse at 1347 Highway 92 in Acworth, Ga. Prologis owns the facility, according to Cherokee County records. Lee & Associates negotiated on behalf of the tenant while the owner had in-house representation.

The nondenominational evangelical Christian organization plans to use the space as a processing center for Operation Christmas Child, a charitable effort involving the shipping of gifts to children worldwide. Including this new space, Samaritan’s Purse will use eight warehouses across the U.S. to process the gifts.

READ ALSO: SIOR Special Report: Q&A With the President

Prologis paid $24.6 million for the asset in 2023, acquiring it from Link Logistics, public records show. The 2016-completed building has 32-foot clear heights, 43 dock doors and two drive-in doors, as well as 149 auto parking spaces. It also includes 8,249 square feet of office.

Samaritan’s new warehouse is less than 1 mile from Georgia State Route 92 and Interstate 75, as well as roughly 30 miles northwest of downtown Atlanta and about 41 miles from the Hartsfield-Jackson Atlanta International Airport.

Lee & Associates Partner Brett Chambless, SIOR, represented Samaritan’s Purse. Prologis Senior Vice President Kent Mason led the negotiations on behalf of the owner.

Metro Atlanta industrial vacancy rate below historical average

Atlanta’s industrial vacancy rate grew 50 basis points quarter-over-quarter, to 7.4 percent in September, according to a report by Cushman & Wakefield. Despite the increase, the percentage was still under the 20-year historical average of 7.9 percent. New industrial leasing activity hit 7.3 million square feet in the third quarter, the highest it’s been since 2022’s fourth quarter.

As industrial deliveries softened—just 4.9 million square feet in the same period, the lowest since 2021’s second quarter—and the 10.1 million-square-foot pipeline registered in September tapered off, metro Atlanta’s vacancy rate is slated to stabilize in 2025, Cushman & Wakefield forecasted.

Last month, Souto Foods agreed to occupy 200,000 square feet at Foxfield and AEW Capital Management’s upcoming 2.2 million-square-foot master-planned industrial development in Lawrenceville, Ga.

The post Prologis Secures 172 KSF Industrial Lease in Metro Atlanta appeared first on Commercial Property Executive.

Brandywine Realty Trust has signed a 119,000-square-foot lease at 250 Radnor, a life science and office building in Radnor, Pa., a Philadelphia suburb. The tenant is a global industrial solutions company.

The 168,000-square-foot property is the adaptive reuse of a former medical office building. The facility, designed to fully accommodate lab tenants such as West Pharmaceutical, Quanta Therapeutics and Penn Medicine, is now fully leased.

Design firm NORR oversaw the repositioning project that was completed in 2022. Building additions comprised a coffee bar and lounge, a redesigned lobby and multiple healthy building practices.

READ ALSO: How AI Firms Are Reviving Office Space Demand

Brandywine Realty Trust acquired the asset in January 2021 from Penn Medicine, according to CommercialEdge information. The company paid $20.3 million—or $81 per square foot.

The four-story facility originally came online in 1989. The mid-rise features floorplates averaging 25,370 square feet and 250 parking spaces. Located at 250 King of Prussia Road, the building is about 18 miles from downtown Philadelphia and 21 miles from the city’s international airport.

The property is also part of the Radnor Life Science Center, a 26.6-acre complex consisting of four Class A life science buildings totaling nearly 1 million square feet. Brandywine recently completed 155 Radnor, a 145,000-square-foot office building that is already fully leased to Arkema S.A., a global supplier of specialty materials.

Philly vacancy rates on the rise

Metro Philadelphia’s office vacancy rate at the end of September clocked in at 17.8 percent, up 380 basis points year-over-year, but below the 19.5 percent national figure, according to a CommercialEdge report. The market fared better than New Jersey (20.2 percent), while Boston (16.4 percent) and Manhattan (16.8 percent) had less vacant space.

Earlier this fall, law firm Potter Anderson & Corroon LLP renewed its headquarters commitment at 1313 N. Market St., a 530,000-square-foot property in Wilmington, Del. The company will occupy the 82,757-square-foot office space for another 13 years.

And, more recently, Arcfield committed to 36,000 square feet at Rubenstein Partners’ Chesterbrook Corporate Center, a 14-building office campus spanning 1.1 million square feet, also in Wayne, Pa. The company is the first to take space at the recently upgraded property, located some 9 miles northwest of 250 Radnor.

The post Brandywine Lands 119 KSF Office Tenant appeared first on Commercial Property Executive.

Additionally, 11 office developments came online in Dallas during the same time frame, totaling more than 1.6 million square feet of space. The market’s office vacancy rate, however, rose 390 basis points year-over-year, clocking in at 22.9 percent.

Office-to-residential conversions remain a focal point for investors and office owners, especially given the sector’s fluctuating metrics. According to CommercialEdge’s Conversion Feasibility Index, a tool designed to evaluate the practicality of repurposing buildings, Texas markets may not rank among leading U.S. metros, but there is significant potential for this transformation across the nation.

Dallas’ sales volume ranks high nationally

Dallas’ office investment volume year-to-date as of September reached roughly $1.1 billion. The metro ranked fourth nationally, following Manhattan ($2.7 billion), Washington, D.C. ($2 billion) and the Bay Area ($1.8 billion).

Assets in the Metroplex traded for $128 per square foot on average. Despite the figure being way below the $171 national average, sales metrics in the market remained consistent. Dallas’ average price per square foot in the first half of the year clocked in at $127 per square foot, according to prior data.

Peer markets such as Austin ($379 per square foot), San Diego ($196 per square foot) and Phoenix ($174 per square foot) fared better, while Houston ($104 per square foot) was at the opposite end.

In September, a joint venture between Enverra Real Estate Partners and Gulf Coast Western acquired the 230,000-square-foot Parkway Office Center North and South in Dallas. The two-building campus’ former lender, Principal Financial, sold its interest in the loan to the duo, foreclosing on the previous borrower.

Construction pipeline outpaces national trends

At the end of September, The Metroplex had about 4 million square feet of office space under construction, accounting for 1.4 percent of total stock, above the 1.0 percent national rate. When factoring in projects in the planning stages to that figure, the market’s share jumped to 6.2 percent.

The metro lagged behind peer markets San Diego (4.2 percent) and Austin (3.6 percent), while Atlanta (1.0 percent) and Houston (0.7 percent) were at the other end of the spectrum.

Earlier this year, the $4 billion life science Texas Research Quarter innovation district in Plano, Texas, received developmental approvals from the Plano City Council, as well as a financial plan for a tax increment financing reinvestment zone. NexPoint is the developer of the project, which will see the addition of more than 3 million square feet of space.

Completions in the Metroplex almost halve

A total of 11 office properties came online in Dallas year-to-date as of September, totaling more than 1.6 million square feet. This accounts for 0.5 percent of the market’s existing inventory, just under the 0.6 percent national figure. Year-over-year, office completions in the metro almost halved.

Among peer markets, Atlanta (1.2 million square feet) and Houston (1.4 million square feet) trailed Dallas, while Austin (2.0 million square feet) and San Diego (2.7 million square feet) outpaced the Metroplex.

In September, Fenway completed the renovation of The Gild, an office campus consisting of two 20-story towers and two two-story concourse buildings. The upgrades of the 900,000-square-foot property amounted to $50 million.

Vacancy rate well above the national average

Dallas’ vacancy rate in September clocked in at 22.9 percent, considerably above the 19.5 percent national average. This also marks a 390-basis-point rise year-over-year, with return-to-office policies failing so far.

Among peer markets, the Metroplex had one of the highest vacancy rates and was followed by San Diego (18.5 percent), and Atlanta (20.5 percent). Markets with significantly larger vacancy rates were Austin (27.8 percent) and the Bay Area (25.3 percent).

Earlier this year, Bank of America signed a 10-year lease renewal for its 553,799-square-foot space at Hallmark Center I in Addison, Texas. Office Properties Income Trust owns the two-building campus completed in 1977 and 1997, managed by The RMR Group

The Metroplex’s listing rate during the same month clocked in at $30.64, slightly below the $32.89 national average. Miami ($52.87) and Austin ($45.99) led the South region.

Dallas shared office space remains steady

Dallas-Fort Worth’s shared space inventory as of September totaled almost 5.3 million square feet across 279 locations. This accounted for 1.8 percent of the market’s total rentable office space, just below the 1.9 percent national rate.

The market was on par with Houston and Phoenix, but surpassed the Bay Area (1.3 percent). Among the largest U.S. markets, Miami took the lead with 3.8 percent of shared office space. Regus had the largest share of coworking space in the Metroplex, about 585,000 square feet, followed by Lucid Private Offices (442,627 square feet) and Cado (274,500 square feet).

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A joint venture between Woodmont Industrial Partners and Sagard Real Estate has secured a 104,451-square-foot industrial lease at its 210,000-square-foot facility in Monmouth Junction, N.J. Federation Distribution Services Inc. agreed to occupy the space for 65 months. JLL and Lee & Associates represented the owner and tenant, respectively.

Federation joined recycling provider GDB International on facility’s tenant roster. The new tenant is a 3PL provider that, with this lease, now has more than 500,000 square feet of space in New Jersey alone.

Woodmont and Sagard wrapped up an extensive, two-phase overhaul on the property this June. Prior to the renovation, the 1973-completed facility spanned 144,451 square feet. As part of the facelift, the owners constructed a new, 65,000-square-foot expansion, along with new dock doors, as well as lighting and fire-safety systems, among other improvements.

READ ALSO: Industrial Demand Slips, But Avoids a Slump

The 12-acre property is at 461 Ridge Road, a little more than 5 miles away from U.S. Route 1 and Interstate 95, which connect Florida and Maine, as well as less than 2 miles from New Jersey’s U.S. Route 130.

Woodmont Industrial Partners resulted through the joint venture between Woodmont Properties and the 3PL provider Romark Logistics. The company focuses on acquiring and developing industrial assets in port and transportation corridor markets.

Last month, Woodmont inked a 30,046-square-foot industrial lease at another recently renovated warehousing facility in Lyndhurst, N.J. Nemo Tile occupied the space, according to Real Estate NJ.

JLL Senior Managing Director Gary Politi and Senior Associate Michael Viera represented Woodmont and Sagard in the leasing negotiations. Lee & Associates Senior Vice President Monica Franco led the proceedings on behalf of Federation Distribution Services.

New Jersey vacancy climbs amid strong leasing activity

New Jersey industrial leasing volume grew 19.4 percent quarter-over-quarter, clocking in at 8.0 million square feet in the third quarter, according to a report by Cushman & Wakefield. No higher quarterly figure was registered since the first three months of 2022.

Despite robust activity, The Garden State’s industrial vacancy rate stood at 7.7 percent in September, a 60-basis point increase compared to June. One of the driving factors behind the rise in availability was the fact that 84 percent of the new industrial space delivered during the quarter came online unoccupied.

RK Pharma’s deal to occupy 406,669 square feet at 148 Princeton Hightstown Road was another industrial lease that closed during the third quarter, the same source shows. Ares Management owns the 574,169-square-foot industrial park, according to CommercialEdge data.

The post Woodmont and Sagard Ink 104 KSF New Jersey Industrial Lease appeared first on Commercial Property Executive.

Law Firm Snell & Wilmer has signed a 57,326-square-foot renewal and expansion at Plaza Tower, a 460,000-square-foot office building in Costa Mesa, Calif., within the South Coast submarket of Orange County. JLL and CBRE negotiated on behalf of the tenant, while Cushman & Wakefield worked on behalf of the landlord.

The property is part of South Coast Plaza, a three-building office collection totaling nearly 1.3 million square feet of space. The ensemble is owned by C.J. Segerstrom & Sons, CommercialEdge shows.

The deal represents one of the largest law firm leases signed in Orange County this year. Snell & Wilmer’s expansion will accommodate more than 70 lawyers, marking the company’s 35th anniversary in the metro. The firm will upgrade its office space, spread across three floors, at the 21-story office building.

READ ALSO: CRE Sentiment Index Hits All-Time High

Other tenants at Plaza Tower includes Ducommun Inc., IBM, CONTAX SAP Partner, Edelman Financial Engines and Porsche Design of America Inc., among others, according to CommercialEdge. The same source shows that the law firm has been a tenant here since 2014 and it previously occupied 53,000 square feet.

JLL Managing Director Kevin Bender and CBRE Executive Vice President Charles Nixon represented the tenant during leasing negotiations. Cushman & Wakefield’s Executive Director Robert Lambert and Executive Vice Chairman Rick Kaplan assisted the landlord.

Prime office space in Orange County

Plaza Tower is at 600 Anton Blvd. and features floorplates between 20,624 and 22,802 square feet, eight passenger elevators, 1,500 square feet of first-floor retail space and 1,874 parking spots. Completed in 1992, the landmark property was designed by architect César Pelli, and its amenities include a fitness center with locker rooms, on-site dining options.

The building offers access to the South Coast Plaza’s more than 250 boutiques and restaurants, as well as to Segerstrom Center for the Arts. The 5-acre property allows easy access to Interstate 405 and is 2 miles from John Wayne Airport, 5 miles from downtown Santa Ana, Calif. and 10 miles from downtown Orange, Calif.

According to JLL’s third-quarter office report for Orange County, the leasing volume in the metro increased by 5 percent on a quarter-over-quarter basis, with the largest deals being renewals. At the end of the third quarter, the metro’s total office vacancy stood at 17.4 percent, below the national figure of 19.5 percent.

The post Segerstrom Inks 57 KSF in Orange County appeared first on Commercial Property Executive.

Global law firm Paul Hastings LLP has signed a 37,000-square-foot long-term lease at Knox Street, a mixed-use development in Dallas. A joint venture of BDT & MSD Partners, Trammell Crow Co., The Retail Connection and Highland Park Village Associates is behind the large-scale project. CBRE worked on behalf of both parties.

The 1 million-square-foot mixed-use development broke ground in late 2023. The project’s 150,000-square-foot office component is now fully preleased two years before its completion.

Upon delivery, the building will comprise seven stories of boutique office space with amenities such as a fitness center with high-end locker rooms, a tenant lounge and a café. The first two floors will include retail and dining options.

Paul Hastings joins anchor tenant ISN Software Corp. at the property that is scheduled to be completed by late 2026. BDT and MSD will also occupy space in the office tower.

READ ALSO: Growth in Office Tenant Costs Moderates

Knox Street will also include The Knox Hotel & Residences, managed by Auberge Resorts Collection, more than 100,000 square feet of retail and restaurants, as well as a 0.5-acre park with a direct connection to the Katy Trail.

The area has been a bright spot for landlords and tenants as the district promotes walkability, cultivates green space and has a highly social atmosphere. It is also a gateway to Highland Park.

CBRE’s Executive Vice President Trey Smith, alongside Senior Vice Presidents Alexandra Cullins and Ben Davis, negotiated the lease on behalf of the ownership. Paul Hastings was represented by Vice Chairmen Clay Hammerstein, Phil Puckett and Ken Rapp, together with Executive Vice President Harlan Davis and Transaction Manager Morgan Griffith, also with CBRE.

Recent office leases in Dallas

Nearby, law firm Walters, Balido & Crain has signed a seven-year lease renewal and expansion at Meadow Park Tower. The firm has been a constant presence in the 262,776-square-foot office building for the past 11 years.

Additionally, law firm Gray Reed signed a long-term commitment at 1845 Woodall Rodgers in Dallas, occupying two floors at the nearly 50,000-square-foot building. The tenant will beginning construction of its new office space next year.

The Dallas office market witnessed a 22.9 percent vacancy rate in September, up 390 basis points over the year, according to a recent CommercialEdge report. The rate was also 3.4 percent higher than the national average.

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On the first day of CREtech New York 2024, discussions around specific uses of ever-more sophisticated proptech took a back seat to the larger employee retention, revenue generation and sustainability goals of some of the industry’s top owners, operators and tenants.

The new flight to quality

At the conference’s first panel discussion, a group of real estate directors at Fortune 500 companies shared what they are looking for the most in their office spaces and tech stacks, at a deeply uncertain time for the sector.

Where the flight to quality has long been associated with the shiniest amenities, some tenants now put physical and mental wellness, location, leasing term flexibility and operator sustainability commitments above a fitness center or ground-floor retail space. “I don’t consider it to be a flight to quality. It’s an expansion of the definition of quality,” said Laurie Rothenberg, global real estate & workplace strategy lead counsel at Pfizer.

Frank Cuevas, vice president of global real estate at McKesson, sees this as especially applying to opportunities for interpersonal collaboration at the office. “The biggest amenity is seeing other people,” he said.

Applying these principles to building designs and technology adoptions is more difficult. “We’re in such a unique time where real estate has changed more in five years than it has in the last five decades, and people don’t know what they want,” said Cuevas. “Employees want to be at home, yet they want better technology. They want spaces that are quiet, and (also) spaces that are vibrant.”

READ ALSO: Growth in Office Tenant Costs Moderates

If there’s one thing that tenants universally want, however, it’s spaces that bolster physical and mental wellbeing. “It’s not just the building; is there access to fresh air and open spaces?” asked Elaine Schultz, vice president of workplace services Americas at Salesforce. “Is this where you are going to put your innovation center and top customers?”

Another area that captures Cuevas’ sentiments is lease terms. Now, companies such as Interpublic Group want shorter terms that have more opportunity for expanding or downsizing as they see fit.

In practice, applying the above principles to the design process leads to floorplans that resemble coworking and residential spaces, with tenants preferring flexible desking options right next to bookable conference rooms. “This has always been important for Salesforce; we purposefully pick residential finishes, so it feels like you are not just inside an old-fashioned cubicle farm,” Schultz said.

Sustainability: from boiler room to boardroom

These more pragmatic views on office work also apply to tenants’ and operators’  views on using technology for meeting their sustainability commitments. For their part, the tenants stressed using accurate measurement tools for energy expenditures and carbon emissions as being equally important to a landlord’s commitment or a building’s LEED certification. “It can have all the bells and whistles, but you need to get value out of it,” Schultz said.

And that’s not just a sentiment held by the tenants; it’s being directly observed by both property owners and the proptech industry itself. “It’s the tenant’s action driving the occurrence of penalties, which are a direct hit to (a building’s) NOI,” said Jonathan Pearce, senior managing director of leasing at Hines. “A lot of it is due to the total cost of occupancy, and it’s not just about the rent; end users are massively focused on their carbon footprint as well.”

Such a strategy is also embraced on the operator end. A panel of executives from BXP discussed the latest uses of technology for meeting the firm’s sustainability commitments, some of the most aggressive in the industry. And the efforts are paying off. The firm’s Manhattan properties are 91 percent leased.

But commitments themselves are getting harder to make. “It’s the hardest time to do public target setting because a lot of the low-hanging fruit has been picked,” said Ben Myers, the firm’s senior vice president of sustainability.

Now, decisions that BXP makes around using new technology for meeting sustainability commitments must have on-the-ground support from engineers and maintenance personnel, all the way up to the C-Suite; “from the boiler room to the boardroom,” as Myers put it.

One leg up that the firm has is its vertical integration, and its creation of an in-house data collection and analysis platform. In one case, the company tightened and sealed an entire building’s windows, but would still have HVAC energy expenditures that were exceeding its standards. In turn, the operational team monitoring the building’s emissions on a 24/7 basis led to the firm avoiding $3 million in additional costs.

Don’t jump on the proptech bandwagon

The executives see competent personnel and a willingness to experiment with new technologies over simply adopting the latest proptech as the key to achieving sustainability goals. “Take the technology, model it, and see what works; if you don’t have the wherewithal to throw an idea on the table, nothing is ever going to move the needle,” Myers advised.

At the same time, there are some solutions that should be avoided outright. Data lakes can overcomplicate any attempts at monitoring and modeling energy efficiency, while AI is best used as an assistant to the goals of sustainability teams, and not an outright replacement for them. “If anyone tries to sell you a data lake right now, run from that solution,” cautioned Jennifer Nuckles, CEO of R-Zero. “It’s frustrating to the CRE owner when you have to deal with 26 different vendors.”

If possible, stakeholders would do well to develop their sustainability-oriented tech stacks in-house. “We like the idea of a walled garden, but you need something that is completely open source,” Pearce said. “Companies that went big on those are finding that they have to rebuild.”

The post CREtech Special Report: Industry Leaders Talk Brass Tacks appeared first on Commercial Property Executive.

Built in 1963, Biltmore Fashion Park was Arizona’s first luxury outdoor shopping and dining center. The iconic property is known for its architecture, high-end retailers and restaurants and community events.

RED, a Phoenix-based commercial real estate company with a mixed-use and retail portfolio, acquired the remaining 50 percent ownership of the property from Macerich for $110 million in July, according to the Arizona Republic newspaper.

Earlier in the year, Macerich had filed plans with the city of Phoenix to build a mixed-use high-rise at the corner of 24th Street and Camelback ranging from 140 to 165 feet tall. The proposal is still under review but is expected to include residential offerings, upscale hotel accommodations and office space. Further details about RED’s plans for the mixed-use destination were not released at this time.

READ ALSO: How Dining Trends Are Reshaping Shopping Centers

However, RED is planning a strategic revitalization of Biltmore Fashion Park, including making improvements to landscaping and upgrading lighting. The company, which recently relocated its headquarters to the center, has also signed several new retail tenants. They will join anchors Macy’s, Saks Fifth Avenue and Life Time Fitness, and more than 65 specialty retailers including Anthropologie, J. Crew, Gorjana, Ralph Lauren, Lululemon, Pottery Barn and Sephora. The center’s dining options include Capital Grille, Blanco Cocina + Cantina, Zinburger, Ambrogio15 and True Food Kitchen.

Rye 51, a high-end menswear retailer offering custom suits, slacks, shirts and styling services, has relocated to a new 2,400-square-foot space between Tumi and Soma. Warby Parker eyewear company is slated to open in March 2025 in a more than 2,000-square-foot store next to Soma and Cornelia Park. Apex Tailoring, a luxury tailoring and custom suit boutique with a focus on menswear, will open in December in an 894-square-foot pop-up spot next to Macy’s. Another pop-up, PILLAR, an activewear and leisurewear retailer, is opening its first brick-and-mortar location in a 1,068-square-foot space next to Life Time Fitness this week.

More RED projects

RED Development, which is celebrating its 30th anniversary this year, is known for its mixed-use and retail properties across the Southwest and Midwest. Among its high-profile developments in the Phoenix area include PV, the $2 billion redevelopment of the former Paradise Valley Mall, and The Grove, a $500 million development on the Camelback Corridor. Last year, RED formed a joint venture with Globe Corp. to build a 150-acre mixed-use development in Goodyear, Ariz., that will create an upscale entertainment hub called GSQ with dining, retail, multifamily, office and hotel offerings.

In Dallas, RED and joint venture partner KB Asset Management Co. Ltd. refinanced the office and retail component of The Union, an 800,000-square-foot mixed-use property in the Uptown submarket, last month with a $227 million loan from Goldman Sachs.

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Avison Young’s Chris Godfrey, Kirk Rich and Monica Speak with the firm’s Atlanta office leasing team represented the landlord. Patrick Braswell of Record Real Estate Partners LLC represented e|spaces.

Atlanta’s Class A properties are steadily seeing more people returning to the office, up 10 percent from 2023, according to Avison Young’s Office Busyness Index.

Return to office is trending, with less than 20 percent of workers choosing fully remote positions, according to an August survey by Lincoln Property.

“Atlanta is booming with growth and opportunity across all types of businesses, which makes this an ideal market for e|spaces,” Jon Pirtle, president & CEO of e|spaces, told Commercial Property Executive.

“The 1600 Parkwood Circle location is perfectly positioned in the Cumberland/Galleria area offering free parking and easy access to Buckhead, Midtown, Marietta and downtown.”

READ ALSO: Are Coworking Networks the Future of Office?

The property’s central location is surrounded by key corporate offices, retail, dining and entertainment options, making it convenient for professionals from all types of industries, Pirtle added. “Parkwood in particular provides a flexible, high-quality workspace that supports the diverse needs of Atlanta’s active business community.”

Coworking’s definition

Coworking means different things to anyone asked, Pirtle said.

“We are not a big, open space with a bunch of cubicles, tables or lounge furniture,” he explained. “Our spaces are designed for productivity, providing a true mix of professional, private offices and suites with great views, a variety of meeting rooms with the latest technology and capabilities, and collaborative workspace for those seeking a flexible option.”

Entrepreneurs, small business and corporate teams often have different needs, but seek a perfect mix, according to Pirtle. “Whether you are an individual needing a private office or a team of 20 to 50 needing a private suite with shared space, we have you covered with solutions that prioritize privacy, productivity, professionalism and premium amenities.”

e|spaces has locations in Nashville, Tenn., Chattanooga, Tenn., Knoxville, Tenn., and Orlando, Fla. Members in one market are able to use facilities in the others.

Pirtle said that all e|spaces locations are performing successfully because the company caters to its community. “What’s right for Orlando, for example, may not be right for Nashville or Atlanta—whether it’s the physical location within the market, or balancing office suites versus meeting rooms, or even prioritizing amenities like free parking and onsite fitness centers.”

The post Coworking Firm Enters Atlanta appeared first on Commercial Property Executive.

That is a reduction, but not as much (so far this year) as during 2023, when active requirements were down 7.6 percent compared with the year before. But even that figure represents more of an adjustment than a slump, since active space requirements ballooned during 2021 and 2022, up 22.3 percent and 31.5 percent year-over-year, according to JLL data.

“We expected there to be a deeper fall in demand compared to last year,” JLL Global Head of Industrial Research Mehtab Randhawa told Commercial Property Executive. 

That tends to indicate that while the pandemic-inspired boom may be over, it hasn’t been followed by a complete bust, but rather an adjustment. When the boom ended, that left occupiers with a dawning realization of higher costs for space, among other squeezes on the industry, so deliberations on leasing are taking longer, Randhawa pointed out.

Tenants are still actively looking for industrial space, but they are also taking more time in doing so, weighing their relatively limited choices carefully, the report explained. Also, the path from inquiries to signed leases is resulting in fewer deals, despite significant interest in space. Many potential deals are simply falling through without reaching completion.

“There’s been a slowdown in decision-making,” Randhawa said. “Rents are expensive, land is expensive to build, and there’s been a reset happening to their entire global supply chain network. So they’re reevaluating their portfolios.”

While overall demand has slowed or come to a complete halt in some cases, there is, however, higher confidence that space requirements will eventually result in actual deals.

Thus, current market conditions don’t amount to a slump, since underlying demand remains robust. A number of factors are sustaining demand, such as the construction machinery and materials subsector, whose growth is partly fueled by federal infrastructure investments and sustainable building initiatives. Though perhaps not inking deals for space with the same gusto as during the pandemic, traditional retailers are also still demanding industrial space.

That is also true for manufacturing facilities, which account for 15.6 percent of overall industrial requirements, up 20 percent compared with a year ago, and totaling 123.9 million square feet so far in 2024. The figure is not only up for the year, but positively mushrooming since the pre-pandemic era—up more than 354 percent compared with 2018.

The pandemic dislocated world supply chains and forced U.S. companies to rethink where they make goods, and how they get them to market. Reshoring trends and supply chain restructuring are prompting manufacturers to establish or expand facilities, spurring further demand, the report says.

READ ALSO: Why Things Are Looking Up for Ports, Supply Chains

The trend is expected to continue, JLL predicted. Next year, manufacturing facilities will account for over 19 percent of space demand. As recently as 2020, that figure was only 4.9 percent.

Regarding the expansion of manufacturing in North America, and the expansion of space for those facilities, Randhawa noted that there will be much more such demand in the coming years.

“These are longer-term facilities,” she said. “They aren’t like warehouses and distribution buildings, which you can build in 10 to 12 months. Some of the industrial facilities take years, and there are different life cycles for each of these projects. Some users are still in scouting mode, looking for the next location where they can plant their flag.”

Industrial demand shifts to the Midwest, Great Lakes

There is also a geographical shift underway in the industrial market, the report posited, especially as manufacturing takes up a greater share of space requirements. Some markets have an edge due to a number of factors.

“Key markets such as Chicago, Dallas-Fort Worth and Phoenix are experiencing substantial manufacturing demand, driven by factors including land availability, power resources, labor accessibility and advanced manufacturing capabilities,” the report noted.

Regionally, there is an ongoing demand migration toward the central U.S.—namely, the Midwest and Great Lakes region, as more than a quarter of expansion requirements are in that region. According to JLL, this part of the country offers a number of competitive advantages to space users, such as a strong existing workforce, access to power and water, and a robust rail infrastructure.

The post Industrial Demand Slips, But Avoids a Slump appeared first on Commercial Property Executive.

Law firm Walters, Balido & Crain has signed a 38,194-square-foot, seven-year lease renewal and expansion at Meadow Park Tower, a 262,776-square-foot office building in Dallas.

JLL worked on behalf of the tenant, while owner Bradford MPT Partners was represented in-house by Bradford Commercial Real Estate Services.

The firm, which has been a tenant in the building for 11 years, renewed the lease about a year early. In addition, it picked up an extra 5,958 square feet and will occupy the last two floors of the 16-story property.

The company’s agreement also includes a tenant-improvement allowance to renovate both floors of its regional office. Bradford is completing lease renewals with three other tenants who will be moving to different spaces within the building to make room for WBC’s expansion needs.

READ ALSO: How AI Firms Are Reviving Office Space Demand

The owner acquired the asset at the beginning of 2022 from Novel Office, according to CommercialEdge. The firm used a $30.7 million loan from Simmons Bank for the purchase and, a few months later, took out a $35.7 million note originated by the same lender.

The Class A tower came online in 1986 and is now 96 percent leased. The building went through cosmetic renovations in 2011 and 2023. The latter involved a $10 million capex plan that resulted in the property earning the BREEAM accreditation for energy efficiency, boosting the workplace well-being.

Amenities include an updated fitness center, a cafeteria, EV charging stations, a dining area and lounge seating. The high-rise also has six passenger elevators, floorplates averaging 18,273 square feet and 755 parking spaces.

The building is at 10440 N. Central Expressway, adjacent to the Meadow Central Market shopping mall and 22 miles away from the Dallas-Fort Worth International Airport. Downtown Dallas is some 8 miles southwest.

Bradford Commercial First Vice President Jared Laake and Senior Vice President Richmond Collinsworth represented the landlord. JLL Sales Coordinator Taylor Messina and Executive Vice President Scott Hage worked on behalf of the tenant.

Dallas office vacancy rate climbs

Dallas’ office vacancy rate reached 22.9 percent at the end of September, registering a 390-basis-point increase year-over-year, according to a CommercialEdge office report. The figure is also well above the 19.5 percent national average, but below those registered in Austin (27.8 percent) and Houston (25.2 percent).

In August, Bank of America renewed its 553,799-square-foot space for another 10 years at Hallmark Center I in Addison, Texas. Office Properties Income Trust owns the two-building campus completed in 1977 and 1997, managed by The RMR Group.

More recently, another law firm committed to almost 50,000 square feet in Uptown Dallas. Gray Reed will occupy the space at 1845 Woodall Rodgers, an office building owned by Woodbine Development Corp. and First United Bank.

The post Law Firm Renews, Expands Dallas Lease appeared first on Commercial Property Executive.

Law firm Gray Reed has signed a nearly 50,000-square-foot, long-term lease at 1845 Woodall Rodgers in Dallas. A joint venture between Woodbine Development Corp. and First United Bank owns the 147,000-square-foot office building.

Woodbine Commercial arranged the deal on behalf of the ownership, while Newmark represented the tenant.

Gray Reed will occupy more than two floors at the property and will begin construction on its new office next year. Upon build-out completion, about 150 employees will relocate to the Uptown building from Santander Tower, a 1.4 million-square-foot high-rise located at 1601 Elm St. in the city’s CBD.

The firm will join tenants such as CornerStone Staffing, Inland Investment Group and Omniplan, according to CommercialEdge. The two owners also occupy a combined 40,000 square feet within the high-rise. After Gray Reed’s agreement, the building reached a 95 percent level of occupancy.

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The duo purchased the 17-story asset in March 2019 using funds from a $44.6 million acquisition and development loan originated by First United Bank, the same source shows. Karns Commercial Real Estate sold the property.

Completed in 1984, the Class A building was renovated in 2014 and underwent cosmetic upgrades in 2021. The high-rise features four passenger elevators, floorplates averaging more than 18,000 square feet, some 440 parking spaces and a coffee bar.

Located at 1845 Woodall Rodgers Freeway, the building is near downtown Dallas and close to several retail and dining options. The DFW International Airport is roughly 16 miles northwest.

Woodbine Commercial Managing Partner Alexis Martinez oversaw leasing efforts on behalf of the ownership. Newmark Executive Managing Director John Beach and Associate John Magness represented Gray Reed in the deal.

Office vacancy rate up in Dallas

Dallas’ office vacancy rate at the end of September clocked in at 22.9 percent, 390 basis points higher year-over-year and well above the 19.5 percent national average, according to the latest CommercialEdge office report. However, the metro’s listing rate during the same month reached $30.64, marking a 12.3 percent growth over a 12-month period.

In August, Bank of America renewed its 553,799-square-foot leasing agreement for another 10 years at Hallmark Center I in Addison, Texas. The RMR Group is the owner of the two-building campus.

A month earlier, Santander signed a 211,087-square-foot lease renewal at Santander Tower. Woods Capital subsidiary Pacific Elm Properties owns the mixed-use property that also features residential units and a 60-key hotel.

The post Law Firm Signs 50 KSF Lease in Dallas appeared first on Commercial Property Executive.

The firm announced that MacKenzie will succeed Jody Thornton in this position. Thornton will assume the role of executive chairman of Americas Capital Markets, where he will continue overseeing various initiatives.

MacKenzie has been a top producer for more than 10 years, handling 925 transactions totaling more than $35 billion across all property sectors and U.S. regions.

“We are very thoughtful about succession planning at every level of the company; it is a meritocracy that layers throughout our system and allows us to retain and grow our people over long careers at JLL,” MacKenzie told Commercial Property Executive.

Given the continued growth of the firm’s capital markets platform and its increased connectivity between business lines, the time was right for this move, MacKenzie commented.

“I’ve spent the majority of my career with this company, starting as an analyst nearly 20 years ago. I am extremely excited to move into this next chapter, which involves further building on the strong foundation leadership has formed and driving our teams to even greater success and innovation on behalf of our clients,” MacKenzie added.

READ ALSO: What to Watch for in the Trump Presidency

MacKenzie began as an analyst in the Dallas office in 2004 and was promoted to a role in production just one year later. He held various roles (at HFF and JLL), first moving to co-heading the Orange County office in 2011, then overseeing the Los Angeles and the Pacific Northwest offices.

Later, he was head of the West region and was added to the executive committee (HFF) in 2018.

MacKenzie helped direct the firm’s national initiatives, such as strategic transactions and private capital. Most recently, he was head of production for JLL Capital Markets.

As president, he will handle capital market transactions while assisting with the businesses’ strategic growth and objectives.

The post JLL Names New President for Americas Capital Markets appeared first on Commercial Property Executive.

With Meta Platforms set to leave 770 Broadway in Manhattan’s East Village early next year, New York University has agreed to master lease the entire 1.1 million square feet of office space at Vornado Realty Trust’s 14-story mixed-use building.

Under a letter of intent, NYU has an option to buy the office space in the 30th year and the 70th year of the lease.

“Both parties have signed a detailed letter of intent and expect to execute final binding papers shortly. I expect the closing and rent commencement would occur in January,” Vornado Chairman & CEO Steven Roth said during Tuesday’s third-quarter earnings call with analysts. “The master lease will provide for an upfront payment of prepaid rent sufficient to pay off our $700 million loan on the property, as well as an annual net rent over the lease term.”

Further details about NYU’s plans for the office space were not disclosed but the private university is one of the city’s largest and wealthiest landlords with more than 100 properties in Manhattan and Brooklyn.

“770 Broadway is an exciting and important development, critical to fulfilling NYU’s bold aspirations in science and tech, and important because of its proximity to our campus core’s science facilities. We look forward to finalizing this transaction and then sharing more about our plans,” John Beckman, NYU spokesperson, told Commercial Property Executive.

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Roth first hinted at a major upcoming deal during the firm’s August second-quarter earnings call. At that time, he said they had a “handshake deal” with an unnamed tenant to master lease all the office space.

Building spotlight

Meta, parent company of Facebook, Instagram and other social media apps and a tenant at the building since 2018, had at one point leased about 775,000 square feet but currently leases 500,000. Earlier this year, Meta announced it was cutting 225,000 square feet of space there as of June. In July 2022, the social technology giant halted plans to expand space at 770 Broadway and in the Hudson Yards development on Manhattan’s Far West Side as it reduced office space at numerous sites around the country amid layoffs.

Vornado has owned the building since acquiring it in 1998 for $149 million. Completed in 1906, the building takes up an entire block between Ninth Street on the north, Fourth Avenue to the east, Eighth Street to the south and Broadway to the west. Vornado completely renovated the LEED Gold-certified property, located on 1.4 acres, in 2000.

The property’s most current debt, a five-year $700 million loan from a private lender, was originated in July 2022 and is set to mature on July 1, 2027, according to CommercialEdge data.

The building has more than 166,000 square feet of retail including a Bank of America on the street level. Wegmans Food Markets occupies two levels—a lower level and street level—totaling about 87,500 square feet.

Vornado’s leasing activity

In late September, Vornado announced accounting firm Weaver and Tidwell LLP had significantly expanded its space at PENN 1, the recently redeveloped 2.5 million-square-foot office tower in the Penn District. The firm had been occupying 8,000 square feet on a portion of the 32nd floor but will now lease the entire 28th floor, with a long-term agreement for 36,500 square feet.

Vornado has leased 2.1 million square feet of office space year-to-date in Manhattan, Roth said during Tuesday’s earnings call. He added he was confident the REIT would sign between 3.5 million square feet and 3.8 million square feet of Manhattan leases this year.

Current office occupancy across Vornado’s portfolio was 87.5 percent in the third quarter, down from 89.3 percent in the second quarter, primarily due to the previously announced Meta expiration at 770 Broadway, Michael Franco, Vornado’s president & CFO, said during the earnings call.

“As occupancy rises, our earnings will go up. With a pending full building master lease at 770, our office occupancy increases by 330 basis points to 90.8 percent,” Franco told the analysts.

The post NYU to Lease 1.1 MSF at Vornado Property appeared first on Commercial Property Executive.

Lucid Private Offices has opened a 35,234-square-foot coworking space in Dallas. The company’s new location is spread across two floors at 8080 NCX, a 287,694-square-foot Class A office building owned by Intercontinental Real Estate Corp.

Cresa negotiated on behalf of Lucid Private Offices while Forge Commercial represented the landlord.

Dubbed Lucid Private Offices – NorthPark, the company’s new space is on the 15th and 17th floors of the mid-rise building. The location features 120 private and team offices, floor-to-ceiling glass windows, five conference rooms and a library.

Other tenants at 8080 NCX include Regency Centers Corp., Sequel Holdings and Powell Coleman & Arnold LLP, among others, according to CommercialEdge information.

READ ALSO: Flex Office Is Becoming Synonymous With Office

Intercontinental Real Estate Corp. picked up 8080 NCX in 2016, in a joint venture with Foundry Commercial. Gemini Rosemont sold the asset for $58.4 million. The partnership also took out a $23.6 million acquisition loan held by Principal Financial Group, with a maturity date set for 2026, the same source shows.

The 17-story building came online in 1984 and underwent cosmetic renovations in 1995. The property features ten passenger elevators, 16,900-square-foot floorplates and 1,007 parking spots. Amenities at 8080 NCX include an on-site cafe, fitness center, lounge, 24-hour security and key-card access.

Located at 8080 N. Central Expressway, the property has access to Dallas Love Field Airport. Downtown Dallas is 6 miles away, while Dallas Forth Worth International Airport is 22 miles west.

Principal John Pelletier and Vice President Austin Studebaker with Cresa represented Lucid Private Offices in the leasing negotiations. Forge Commercial’s Co-Founder & Partner Grant Sumner and Partner Taylor Lynch worked on behalf of the ownership.

The runner-up for coworking spaces across the U.S.

The leasing agreement marks the company’s ninth location in Dallas. The deal follows the flex office provider’s recent 3,000-square-foot expansion of its McKinney location at 7300 State Highway 121, where its total footprint reached 30,000 square feet, CommercialEdge also shows.

The total number of coworking spaces in the U.S. rose to 7,538 locations by the end of the third quarter in 2024, a recent CoworkingCafe report shows. This represents a 7.0 percent quarter-over-quarter growth, a positive evolution in line with the coworking industry trends. Of the top 25 leading markets in the country, Dallas-Fort Worth held the runner-up position with 279 flex workspaces, outperforming the long-time national leader Manhattan.

The post Lucid Opens Dallas Flex Office No. 9 appeared first on Commercial Property Executive.