Michael Joyce, a partner at Richards Barry Joyce & Partners, represented property owner Brookfield Properties Inc. in the transaction, while Goodwin Proctor was represented by McCall & Almy.
The deal comes at a time when vacancy rates remain relatively high and rents continue their downward spiral. Joyce would not reveal the lease rates in this deal except to say that it was an "equitable arrangement." According to the most recent statistics by Cushman & Wakefield, average lease rates for the city's Central Business District are at $34 per sf, down slightly from $38 per sf in the first quarter of the year. Vacancy rates in the area are at 14.3%, up slightly from a year ago when the area's vacancy rate was at 13.4% sf.
The lease represents about a third of the 1.1 million-sf building. Joyce tells GlobeSt.com that the firm has occupied this space since 1986 and the lease was about to come up. He notes that Goodwin Proctor did look around at other space, but ultimately wanted to remain in this location.
"It's an interesting market for a tenant that size," says Joyce. "The rates can swing either way." Joyce contends that the deal demonstrates that well established, well managed properties are able to stay full even in the current market. Exchange Place is 99% leased and has been so for the past few years. "Well located, well managed assets will survive," he says. "There are enough options that people can choose but there is a reason people are staying [in these buildings]."
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