CHARLOTTE, NC-Three companies have inked separate deals to take the 19-story office building a 525 N. Tryon St. to the 100% mark. The leases total 67,492 sf and include one expansion.

In the largest deal, Bank of America signed to take an additional 32,432 sf of office space at the 405,360-sf class A tower. The lease takes the bank’s space to 296,637 sf, according to Anthony J. DeFazio, director of public relations for American Financial Realty Trust, the property’s owner. The expansion will address Bank of America’s future growth, AFR explains.

In addition, the Bethesda, MD-based Reznick Group signed an 11-year lease for 26,201 sf. The deal moves 60 employees from 309 E. Morehead St. And in the third deal, GW Fins, a New Orleans seafood restaurant, will open its first Charlotte restaurant with a 8,859-sf, 10-year deal at 525 N. Tryon, according to AFR.

AFR does not disclose its lease rates; however, DeFazio tells GlobeSt.com that the average rental rate in Charlotte is running about $23.50 per sf.

“The hot market in Charlotte is forcing tenants to lock-in expansion space ahead of time,” Rick Eiseman, managing director of office sales and leasing at AFR, says in a release. “High-end office space has become very competitive. In these deals, we were able to provide just the right combination of flexible lease structures and high-end amenities that allowed the tenants to find the space they needed under extremely tight occupancy schedules.”

In its mid-year 2006 Southeast report, GVA Advantis puts the Charlotte overall vacancy at 12.1%, the tightest it has been since 2001. With 1.5 million sf slated to come online in the city in early 2007, the overall vacancy rate could rise to the 13% range, the report adds.

David Dorsch of Colliers Pinkard led the brokerage team for AFR in all the deals. Maxwell Hanks and Brad Grow with Colliers Pinkard repped the Reznick Group. GW Fins and Bank of America were repped in-house.

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?


NOT FOR REPRINT

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

 

GlobeSt Net Lease Spring 2024Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information
 

GlobeSt

Join GlobeSt

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

  • Free unlimited access to GlobeSt.com'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 ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

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