SAN FRANCISCO-Acacia Pacific Holdings has subleased 75,484 sf of plug-and-play space at 50 California St. The insurance claim company inked a six-year lease for floors 11-14 in the building and soon will relocate from 37 Grove St. and 1200 Folsom St. The sublessor is Brussels-based global shipper DHL, which master leases about 95,000 sf of office space in the Shorenstein-owned building. DHL, which keeps a retail location on the ground floor, vacated its office space last year concurrent with the relocation of its US headquarters to Florida.Christopher T. Roeder and Matt Griffin of Cushman & Wakefield represented DHL in the transaction. Jack Shanfeld of Los Angeles represented Acacia Pacific. Roeder tells he started marketing the space in May. “DHL was extremely pleased that we were able to find a large tenant that needed to move in and start paying rent immediately,” says Roeder. “They will be able to recoup a good percentage of their leasehold obligation going forward.”Roeder declined to discuss the financial details of the agreement, but did say the negotiated rate was a significant discount to what a direct deal might be signed at and included a fully furnished, plug-and-play space. Local sources tell that a direct rate in the building for a large tenant would be in the mid-to-high $20s per sf per year. “The fact that the floors came with furniture and cabling in place was a big factor in completing this deal as Acacia Pacific plans to occupy in the next few weeks,” adds Roeder.Cushman & Wakefield’s third quarter statistics show that vacant sublease space accounts for just 23.2% of the total amount of vacant space citywide, considerably down from the high of 47.1% registered at fourth quarter 2001. The transaction ranks as the second largest sublease deal of the year, behind Gymboree’s 162,371-sf deal at 500 Howard St., according to C&W.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.



Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join now!

  • Free unlimited access to's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.