The largest space to be vacated is the 100,000 sf office building the company occupies in Boynton Beach's Quantum Corporate Park, just south of its company-owned 542,000 sf office and manufacturing plant on Gateway Boulevard at Congress Avenue.
The asking rent for the subleased space is $9 per sf or $900,000 per year, according to Michael Falk of West Palm Beach-based McCraney Falk Commercial Realty Group, which Motorola has retained to find renters for the facilities. The rate would be higher if a tenant wanted to lease only part of the building, Falk tells GlobeSt.com.
Motorola still has four years remaining on a 10-year lease that it signed when the building was built in 1995. But Falk says the building's current owner, Miami-based Easton Group, is willing to work with new tenants to extend the lease for a longer term. Easton paid a German trust $8.3 million for the building this summer.
Two other Motorola spaces are up for sublease in Boynton Beach--17,000 sf off Woolbright Road, and a 7,000 sf computer training center on Congress Avenue. In addition, the company wants to sublease 5,000 sf at Peninsula Plaza in Boca Raton. The asking price for those facilities is $7 per sf net, according to Falk.
Workers who remain at the leased offices will be relocated to the company-owned building. Falk says that despite the area's high vacancy rate--close to 25% of sublease and direct rental space in Boca Raton; slightly less than that in Boynton Beach--he feels that a trend of companies moving north in South Florida over the last few years will help in seeking renters for the spaces.
"Over time, people first left Miami and went north to Fort Lauderdale to get out of Miami's congestion. Then, they left Fort Lauderdale's congestion and went north to Boca Raton. Now, they're going further north to Boynton Beach, where we can offer both less congestion and better than market rates," Falk says.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 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.
