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PHOENIX-The US Department of the Interior’s Bureau of Land Management has inked a 10-year lease for 40,902 sf of class A office space in Phelps Dodge Tower. The deal has a payout of $10 million, according to industry experts familiar with the deal.

The agency plans to relocate into the One Central Ave. high-rise in October, vacating roughly the same amount of space at 222 N. Central Ave. “The larger floor plates in Phelps Dodge Tower offer better efficiencies for BLM,” says Mike Ragland, a senior associate with CB Richard Ellis Inc.’s local office.

Ragland tells GlobeSt.com that BLM wanted its office to be near existing government offices and had a lot of options. “They went through a list of 20 buildings,” he says, adding Phelps Dodge Tower’s location, amenities and secure parking helped to close the deal.

With the BLM lease, Phelps Dodge Tower is 95% occupied, according to Ryan Property Management. The 20-story, 410,000-sf building was built in 2002 by Ryan Cos. for Phelps Dodge Corp.’s headquarters. The Fortune 500 company occupies 173,800 sf. Last year, Minneapolis-based Ryan sold the tower to Chicago-based Copper Square Associates LLC.

Ragland represented BLM in the lease negotiations. Patti Gentry of Coldwell Banker Commercial along with Brad Anderson and Luke Walker with CBRE’s local office negotiated terms for the building owner.

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