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.
iXL is consulting and services company that integrates sales, customer service, training, production and distribution processes. Its clients have included British Airways, Budget Rent a Car, Citicorp, DuPont, FedEx, First Union and GE.
Earlier this week, iXL reported first quarter pro forma net loss of $25.3 million on revenue of $40.7 million, compared to a pro forma net income of $2.1 million on revenue was $101.3 million for the same period for 2000. At the close of market's Thursday, iXL's stock price stood at $1.44, up six cents on the day. The price is up from a 52-week low of 68 cents a share in December, but well below its 52-week high of $24.62 last May.
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