PHOENIX-In a still-challenging office sector, free rent and tenant improvement packages continue to carry deals to the closing table. One tenant has moved into 32,910 sf at Four Gateway after landing a package filled with bonuses for a five-year commitment.

“It’s one of the crummiest submarkets in all of Phoenix. It averages about 26% office vacancy. There’s a lot of product there and the last couple of years it’s been a tenants’ market,” Dan Dobric, a broker at Presidio Commercial Services in Phoenix, tells

Eclipsys Corp. of Boca Raton, FL, signed a $3.7-million lease with Presidio Investments of Phoenix in the Four Gateway office building at 444 N. 44th St. Built in 1999, the 137,836-sf Gateway is one of the newer buildings in the submarket. The new deal boosted occupancy to 82%.

All would-be tenants are offered three months of free rent and a full TI package at Four Gateway. Dobric explains many tenants who were once located in the class B Gateway submarket have been able to upgrade to class A space for about the same price. He predicts that the amenities being offered will fill up the submarket in the next two years. Gateway’s other selling points include a positioning close to Sky Harbor International Airport and major freeways.

Dobric and Mike Myrick of Presidio Commercial Services represented both parties in the lease negotiation. Eclipsys provides software and related services to healthcare providers nationally.

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