SAN FRANCISCO- Skadden, Arps, Slate, Meagher & Flom LLP recently renewed its 36,067-sf lease for two of the upper floors in Embarcadero Center Four. The law firm signed a 10-year lease to remain on the 37th and 38th floors of the 45-story building here that is part of the 3.76-million-sf Embarcadero Center that Boston Properties acquired in 1998 for $1.22 billion.

Jones Lang LaSalle managing director Erich Sengelmann and EVP James Miller represented Skadden Arps. Boston Properties represented itself. According to a recent Cushman & Wakefield quarterly market report, the negotiated lease rate on the Skadden Arps lease was $56 per sf per year. One local industry source tells GlobeSt.com that comparable view space is currently going for $60-plus per sf.

“Premier class A space is becoming tougher to come by,” says Sengelmann, who declined to confirm lease details. “Jones Lang LaSalle was able to leverage Skadden’s strong credit and lower-cost relocation alternatives to allow the firm to remain in one of the city’s premier office buildings at below-market rates, and Boston Properties was able to retain a premier law firm.”

Completed in 1980, Embarcadero Center Four has 938,165 sf of net leasable office space that was 96.1% leased as of the end of the year, according to the company’s 2005 annual report. The property is encumbered by a $138.11-million mortgage that comes due in early 2008 and carries an interest rate of 6.79%.

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