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SEATTLE-TeleCommunication Systems has subleased one-third of the World Trade Center North from Real Networks, which leased the entire 136,000-sf building from Equity Office Properties but never occupied it. The term of the 46,000-sf sublease, in excess of seven years, coincides with the end of Real Networks lease commitment.

TCS, a provider of software to wireless telecomunications carriers, currently leases a smaller amount of space from Real networks at WTC-North, with the bulk of its space located in the nearby WTC-West office building, which is owned by the Port of Seattle. The new lease, a net expansion, supercedes the existing sublease and allows TCS to consolidate its operations at WTC-North. Tenant improvements should begin in the next 90 days, with occupancy planned for the first quarter of 2004.

“The existing cabling and wiring and other features of the space afford TCS an excellent, cost-effective opportunity to consolidate our Seattle operations in a single facility,” says Richard Young, Executive Vice President and Chief Operating Officer at TCS. “We will now substantially upgrade our Network Operations and Data Centers for our wireless carrier service bureau business while lowering long term costs.”

None of the brokers involved in the transaction would detail the lease terms, but local brokers familiar with the transaction tell GlobeSt.com that the average effective rate over the life of the lease is in the mid-$20s per sf per year, full service. Market concessions have tended to include either free rent or cash to offset overlapping lease commitments as well as turnkey tenant improvements, according to local brokers.

TCS was represented in the transaction by Michael Dash and Garth Olsen of Cushman & Wakefield’s Seattle office. Real networks was represented by Doug Hanafin of Washington Holdings, a local brokerage firm with offices in Seattle and Bellevue. About half of WTC-North remains available for sublease. There is no asking rate for the space.

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