Sovereign Bank Renews Lease on 110,323 SF at 75 State St.

The lease extension, which allows Sovereign to retain space it sublet several years ago on the first, third and fourth floors of the 780,000-sf tower, also keeps the property at full occupancy. In this area, 2005 fourth-quarter vacancy rates were 13.8%, Michael Joyce, with Richards Barry Joyce & Partners, tells GlobeSt.com. The lease also includes a bank branch office.

"They could have gone anywhere," Joyce says, "but it was important for us to keep them in the property because they're a great credit tenant and a real complement to the building. And it was important for the city too."

Although terms of the lease were not disclosed, Joyce says office space in the Financial District generally ranges in the $40 to $55 per-sf price range gross. The financial institution is among a number of other tenants located at 75 State St., including Wellington Management, Advent International and Fortis Investments.

Joseph P. Campanelli, president and CEO of Sovereign Bank's New England division, says in a statement that "this lease underscores our commitment to maintaining a significant corporate presence in Boston. [It] offers us a strong retail presence and an excellent setting in the Financial District."

Handling the lease negotiations for the tenant were Peter Farnum, Barry Hynes and Michael Kline, all with the Trammell Crow Co. in Boston. The owner, Toronto-headquartered Brookfield Properties, was represented by Joyce along with Thomas Ashe and Tom O'Regan, all with Richards Barry Joyce & Partners.