None of the parties involved would be specific about the negotiated rental rate and concessions, saying only that the deal was done "in the low $20s," and that tenant improvement dollars were included for both the new and existing leasehold, allowing the firm to remodel its entire space.
The asking rate for the space was $22 per sf. Assuming the deal was done for $21 per sf, the deal value would be in the $1 million range, minus any free rent and the tenant improvement dollars, which were likely in the $10-to-$15-per-sf range.
Phillips & Co. Principal Tim Phillips tells GlobeSt.com he has been negotiating with EOP for about a year and that now is an outstanding time to lease in terms of rental rates and concessions. "EOP was very competitive with their proposal," adds Tom Remley of Grubb & Ellis, who represented Phillips & Co. with partner Julie Bennett. One Pacific Square is about 95% occupied. EOP's Kate Orr has the leasing assignment.
Phillips says he likes that One Pacific Square is close to the Downtown core and on the light rail line. He says he's expanding his operation because he sees a recovery in his industry in the next 12 to 18 months and wants to have in place more employees and better services for clients, such as a room for videoconferencing.
"Obviously, (the situation) is still very suspect in terms of revenue growth, but as the economy recovers, so will our industry," he says. "Soon after that we hope to see companies follow through with IPOs and corporate finance activity.
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