The upshot of the deal is half of Waterside Commons, a BOMA International TOBY winner in its class, is now up for grabs. Michael Lewis, senior vice president of leasing and marketing for the Fort Worth-based Crescent Real Estate Equities Co., tells GlobeSt.com that Sprint's new lease takes effect in July after being inked about six months early in yet-another blow for the 1420 E. Rochelle Dr. asset in the Las Colinas corporate hub. The 458,906-sf Waterside Commons' occupancy has been 70% since last year when the New York City-based Verizon Communications Inc. pulled out.
But, Lewis says, tours are starting to pick up after a long haul of few calls in a submarket that's consistently had one of the highest vacancies for two years. Though new numbers are still being calculated, Las Colinas' 21.8-million-sf inventory was 26.3% vacant at the 2004 close, an increase of nearly one point between Q3 and Q4, according to Cushman & Wakefield of Texas Inc.
Lewis says "word is starting to get out" that Waterside Commons has one large block available for takedown. There are proposals out, but only to full-floor prospects, Lewis says, adding there's nothing close to the finish line by any means. "We feel the market is improving," he says, "and there are some corporate relocations out there." The space is being pushed for $15 per sf to $19 per sf plus electric.
Waterside Commons was built 19 years ago for Sprint. It first rolled back to 350,000 sf, handed back some more and now it's giving back again. "I think they're through for now," says Lewis, who was assisted by Crescent's Julie Young team in bargaining the pact. Marti Nemer and Thomas Freeman with Jones Lang LaSalle Inc. represented Sprint.
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