iXL's senior vice president of Real Estate Coart Johnson tells GlobeSt the Atlanta-based systems integration consultancy had planned to floors 18-25, but will is keeping only a small staff in the Bay Area. "We signed a 15 year lease, and we paid a lease termination fee and are now no longer involved with the property," said Johnson, declining to get into specifics.
The decision to terminate the lease was made following an unsuccessful attempt to sublease the building. The Staubach Co.'s Kevin Brennan, the one hired to find a sublease tenant, declined to comment, citing a confidentiality agreement. Tishman's Jeff Cushman also declined comment.
Other sources say high rents may have been part of the decision to give back the space. The 15 year lease reportedly included rates of approximately $77/sf for the first five years, $ 82/sf for the next four and as much as $87/sf for the remaining six years.
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