Farella will increase its space at 235 Montgomery St. from92,000-sf to 112,000-sf under the terms of the new 10-year leaseagreement. Farella will occupy the entire high-rise elevator bankof the building, which will be named Farella Tower.

"We are thrilled with the deal," says Bill Schlinkert, managingpartner of Farella Braun + Martel. "In the process of searching forspace to occupy after our current lease expires in 2003, we metwith BT and were impressed with their ability to assess our needsand help us strategize on issues that were important to us, such aslong-term growth. BT was able to strike a deal that allowed us toexpand at our current location on favorable terms, giving us acompetitive economic advantage for years to come."

BT Commercial Real Estate/NAI, the firm that represented Farellain the transaction, says that an extremely favorable long-term ratestructure was negotiated for the space. BT Commercial declined toreveal what the rate was, but says that significant landlordfunding was included in the deal for the improvement of the newlyleased space and for the refurbishment of existing space.