PALO ALTO, CA-According to the Jones Lang LaSalle research team, many law firms, it seems, are playing musical chairs and are trading spaces. Amber Schiada, research manager for Northern California for the firm, tells GlobeSt.com that many assume at Palo Alto's tenant base is dominated by technology startups and venture capital companies, but law firms also have a significant presence in the market.
According to Schiada, “about 22% of the Palo Alto office market is leased to law firms, and the bulk of leases expire in 2015.” Currently, she says, “high leases rates could pose a problem for tenants looking to renew or expand in the next few years as rents are expected to keep going up.”
She explains that most of the recent law firm deals have been renewals “since there is a shortage of supply, and in some cases firms simply traded space.”
One interesting example she points to is Simpson Thatcher and Pillsbury Winthrop, which traded places on Hanover Drive.
In another example, Kirkland Ellis subleased space from law firm WilmerHale before securing their own space on Hillview Drive, which incidentally was a former Simpson Thatcher office, she says. “With most law firm leases in Palo Alto set to expire in 2015, competition will heat up and firms could find it difficult to expand within the submarket.”
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
