Hannah Grove, spokesperson for State Street confirms for GlobeSt.com that the financial firm will be subletting 250,000 sf of space at One Lincoln but she insists that the company always intended to sublet some of the tower's space.
And according to local brokers, the decision was anticipated. "It doesn't surprise me at all," Bill Collins, senior vice president at Spaulding & Slye Colliers, tells GlobeSt.com. "How often does a company get to lease one million sf of space? This way they were able to control their own destiny." Collins does not believe that State Street's decision was impacted by the recent downturn of the economy but he does acknowledge that it puts additional sublease space in a market that already has two million sf of sublease space. But Collins is quick to note that because the building is not slated to be completed until 2003 it will have less of an impact on the current market.
It is unclear how much State Street will be subletting the space for, but Collins estimates that they will probably ask for somewhere in the $60s per sf. State Street did not disclose how much it is subleasing the tower for, but sources tell GlobeSt.com that the rate is around $58 per sf.
This move comes now on the heels of Fidelity Investments' decision to sublet 70,000 sf at 260 Franklin Street. Fidelity's decision was eased somewhat by its decision to take 80,000 sf in one of its World Trade Center towers on the seaport. Reportedly, though, Fidelity's leasing agent, Trammell Crow Co., put out a notice stating that approximately 140,000 sf was available for rent in the building. Fidelity did not return calls by presstime but a spokesperson is quoted as saying that the company is evaluating what it will do with the other floors at 260 Franklin.
When State Street Corp agreed to lease all 36 floors of One Lincoln this past May it was considered one of the largest office leases in the city's history. The building is being developed by Gale & Wentworth, jointly with Columbia Plaza Associates, a minority-owned partnership that the city designated in the early 1990s to develop the property.
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