HBS Systems Inc., with another headquarters office in Stratford, Ontario, took over the fifth floor of 275 W. Campbell Rd. in a deal bundled by Scott M. Jessen and Scott A. Morse, both with the locally based Morse Co., and Mark Sommer, president and COO of Beltway Commercial Real Estate, the building's new owner. Jessen tells GlobeSt.com that the lease helped "solidify Beltway's decision to buy" the building because it boosted occupancy to about 70%.
The 122,893-sf building traded in the last two months. Sources say it went for $45 per sf or $55 per sf less than it sold for six years ago.
Jessen says HBS Systems was looking for several years, exploring options that included buying or building. Office market conditions, though, now make leasing the more viable option, he says. The building's quoted rate is $15 per sf. "And we ended up with a better deal than that," he says, adding that a heavy finish-out and expansion space helped sway the decision to sign. "It was just such a good deal. It was the most competitive deal you'll find in the area, given the building and the finish-out."
HBS relocated from a Telecom Corridor building at 1702 Collins Blvd., where it filled about 27,000 sf. The new office, Jessen says, puts the team on one floor and cuts costs practically in half.
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