However, Denise Hoffman of Martin Smith Inc., leasing agent andproperty manager for Museum Plaza, said today they are "innegotiations with Nordstrom to extend their lease," now scheduledto expire in February 2002. When asked about reports that Nordstromwas definitely moving, Hoffman responded, "People change theirminds. They're (Nordstrom) looking at staying." Negotiations forextension include a price of $25 per sf, and a term running to ornear 2010, when the building is expected to be demolished by itsowner, the Seattle Art Museum. Housed adjacent to the Museum Plaza,the Seattle Art Museum board has voted to eventually expand ontothe site now occupied by the office building, a fact all currenttenants are aware of.

The Museum Plaza, like Nordstrom, is keeping their options open.Anticipating the possibility of losing the tenant that now occupies85% of the building, Martin Smith, Inc. is negotiating withpossible replacements. "We keeping lots of fingers out their justin case," says Hoffman.