In addition, HD Hudson Manufacturing decided to remain a tenant rather than an owner of its own space, according to Studley, which negotiated the lease extension for the company as well as analyzed its options. The deal includes a concession package, according to the tenant representation firm, which will allow HD Hudson Manufacturing to use its space more efficiently.
Although terms were not disclosed, published gross lease rates at the 32-year-old, 357,000-sf building start at $26 per sf. However, while North Michigan Avenue is the strongest of Downtown's major submarkets, vacancy has ticked up a full percentage point since the first quarter, according to Trammell Crow Co. research, and now stands at 12.2%.
Studley executive vice president Richard Schuham and managing director Andrew Kelly represented HD Hudson Manufacturing in negotiations with Paul Eleftheriou of CB Richard Ellis, who represented the partnership that acquired the 25-story building in 1999.
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