The department's new location at 4000 Central Ave. pushes occupancy to 82% for the 722,373-sf, three-building office component of the mixed-use City Square. Move-in is scheduled for June 1.
"The tenant improvements aren't part of the lease consideration, but the landlord is funding improvements," says Brigham Black, vice president of leasing for the San Diego-based Shidler Group, City Square's owner. The office component--3800 Tower, 3838 Tower and 4000 Tower--was built in the 1960s and 1970s and renovated at least twice.
Black says Shidler had earmarked about $10 million for upgrades and tenant finish-outs when City Square was bought last year. "We're well under way with spending more than half of that $10 million now," he says. "We're targeted to complete it all by early 2007."It was more than renovations that clenched the deal, however. "A factor for them that was communicated to us was an ability to provide a large block of contiguous space," Black tells GlobeSt.com. "It was also a significant factor for them to be close to or on the new light-rail line and within walking distance to restaurants."
Also important for the agency, Black continues, is the new office's next door location to the Hilton Garden Inn. "Many of the departments have out-of-town folks that are already using that particular hotel," he explains. "To have that hotel within walking distance was a real plus to them."
Black says another City Square lease is anticipated to close within a month. "We're in final lease documentation with a Fortune 500 tenant, which will take a full floor of 3838 Tower," he adds. "Once that is done, that would total 13,148 sf."
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