Suites Operator, Wilcox Align for 56,094-SF Trophy Center

The operator last year severed its franchise ties to HQ Global Workplaces and went out on its own with the Dallas-Fort Worth locations, which have been under franchise control for the last decade. Now re-branded as CEO, the operator has teamed with Wilcox to open a speculative center, CEO Penthouse Suites, on the upper floors of JPMorgan International Plaza II at 14221 Dallas North Parkway.

The floors have been configured into 72 individual offices, 19 mini-suites, seven conference rooms, a training room and board room. Shirley Cochrane, CEO's COO, tells GlobeSt.com that Wilcox approached the HQ franchisee in the summer with the idea. She says the partnership is leasing the premier office space, with CEO as the operator.

CEO started marketing the only new location it will open this year in late November, with doors quietly opening last month when a handful of executive suite clients set up shop in slightly less than 5% of the trophy space. The ribbon officially gets cut Jan. 16.

Cochrane, a former HQ Global Workplace executive, says CEO decided to bring out the center on a purely speculative basis. "We took advantage of a wonderful opportunity," she says, "and we're in the process of building the market." Marnie Stone is general manager of the penthouse center.

Taking a cue from the marketplace, CEO is offering a 20% cash-out commission plus 5,000 frequent flyer miles for commercial brokers closing deals on the suites that range from 100 sf to 1,375 sf. The deal is being sweetened with free rent, in some instances, and "very aggressive pricing," Cochrane says.

According to CEO, its rent for a typical executive center office, with all the amenities, varies with the market, but could go as high as $2,500 per month for large, exterior offices with premier views. At JPMorgan International Plaza, the asking rate for traditional office space had been running $24 per sf to $25.50 per sf annually.

Ohio Teachers Retirement pension fund, based in Columbus, is the owner of the JPMorgan International Plaza II, the tallest of the trophy trio developed by Wilcox, which now manages and leases the complex. The 351,000-sf JPMorgan International Plaza I is fully occupied while the third building, which delivered in 2002, has 326,891 sf out of 351,000 sf sitting empty.

CEO severed its ties to HQ Global Workplaces after last year's Chapter 11 filing in March 2002. HQ Global's majority owner is New York City-based FrontLine Capital Group. Its president, chairman and CEO is Scott H. Rechler, who also is co-CEO of Reckson Associates Realty Corp. of Melville, NY.