A representative for the building's joint owners, Chicago-based Equity Office Properties Trust and the Macquarie Office Trust of Sydney, Australia, declined to disclose the value of the lease, its length and the average base rent at Promenade II. "We just don't disclose those details," the owners' representative tells GlobeSt.com in a phone interview.
However, Midtown office brokers familiar with the property and the rent structure in the submarket tell GlobeSt.com the lease is probably for at least 10 years at an effective rate of $23 per sf. That would make the estimated aggregate value of the lease $20 million, area brokers tell GlobeSt.com.
Bill Hollett, vice president of leasing for Equity's Atlanta region, says the architectural firm was sought as a tenant by several area building owners. "Equity's Office's relationship with TVS and our ability to understand the company's long-term business needs helped secure the renewal amidst the competitive market in Midtown," he says.
Hollett and David Danhof of Equity Office negotiated the lease renewal for the building's ownership.
In its newest analysis of the Midtown office submarket, locally based Richard Bowers & Co. finds the 12.4-million-sf market 87.22% occupied with average asking rents of $23.44 per sf. Bowers also shows 1.58 million sf of vacant space in Midtown with fourth-quarter net absorption of 165,762 sf and 470,632 sf for all of 2005.
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