EDEN PRAIRIE, MN-ADC Telecommunications is marketing for lease a 120,000-sf office building at its headquarters here to offset the cost of its 475,000-sf, 90-acre campus that it opened three years ago just as the telecommunications balloon was busting. The telecommunications firm has hired United Properties of Bloomington to market the three-story space.

The space, which is built out and features office furniture, high-tech infrastructure and other amenities, is being offered at $22 per sf gross for a term of 10 years, says John McCarthy, a vice president at United Properties. McCarthy is looking to lease all of the space to one tenant, not split it up. “They are taking advantage of underutilized resources– it makes good business sense,” McCarthy says.

ADC makes connectivity equipment for some of the nation’s largest phone and cable companies, and was growing quickly during the late 1990s. Once the bubble burst, the company had downsized dramatically and began laying off large numbers of people, leaving its headquarters less than half full. Some of ADC’s research and development employees work at the wing to be marketed, and they will be moved to other space on the campus. The wing to be leased includes ADC’s cafeteria, but ADC employees will still have access to it.

Although the market for office space in the Twin Cities remains tough, there are recent signs things are picking up, McCarthy says. United Properties put the vacancy rate at 18.3% for the Twin Cities as a whole in the first half of 2004. The area around Eden Prairie is slightly better, at 16.4%.

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