Phase I was to have included a 220,000-sf building, approximately 50,000 sf of which was to be retail. The newest revision puts the total space at about 132,000 sf. Phase I was to be also was to be anchored by Oxbow Financial, a local investment company that had signed on for 70,000 sf of the project's office portion. Oxbow is now taking a significantly smaller space in the building, which is no longer being marketed as the Oxbow Financial & Technology Center.
Mark Clirehugh of the Tacoma office of Kidder Mathews & Segner, leasing agent for Pacific Steps, tells GlobeSt.com that Oxbow has not made a final commitment on the size of the space, but estimates have been running about 20,000 sf. When asked how much space was available, the broker replied, 130,000 sf. The lease rate is currently set at $20 per sf net/net/net. A ground-breaking is yet to be scheduled.
Opus still holds an option to purchase Pacific Steps' 1.15-acre site from Pierce County for $1.9 million. The first option expired at the end of 2000, but it has now been extended for another year. Market conditions, says Clirehugh, will ultimately determine whether Opus will buy that land and when Phase I will get off the ground. "That is the $64,000 question," he quips.
Pacific Steps is not the only Opus NW office project that has not leased up as quickly as originally anticipated. Further north in Issaquah, along the Interstate 90 corridor, the five-story 156,000-sf Eastpointe is waiting for its first agreements to be signed on the building that is set for completion in April. Lease rates in that building are $24 per sf says Tom Bowman, one of the Cushman & Wakefield's brokers attempting to fill the property with tenants. Rumors had been flying about Boeing possibly taking on the majority of the building, but Bowman says he could not comment on whether the aerospace company was one of those currently in negotiations for Eastpointe. At this point, no leases have been inked.
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