EOP senior vice president Pat Callahan would not reveal the financial terms of the deal. "With more vacancies in the current market, tenants can take advantage of long term planning, and that was really the key component in retaining (Heller)," Callahan told GlobeSt.com. "They wanted a fair-market deal that could take care of their future growth—and that's what we gave them."
Based on other recent deals, however, it's safe to assume EOP threw in a new-tenant-like tenant-improvement allowance, likely between $30 and $50 per sf. As to lease rate, a tenant of Heller Ehrman's size and tenure likely would get a substantial discount on the average annual full-service asking rate in town, which Callahan says is currently running in the high $30s per sf.
Heller has been a tenant in the tower since it initially opened its doors here in 1988 with 41,000 sf. At present, the firm occupies floors 57 and 59 through 62. As a condition of its continued occupancy, the firm requested it be given floor 58 to provide for completely contiguous space beginning next January.
To comply with Heller's request, Callahan says it was necessary to transplant another tenant to a different floor. When asked if EOP had to offer any concessions to the tenant to induce their cooperation in the move, he replied, "There were not really any concessions. (The tenant) wanted to make sure the space was designed to their specifications and they that would have a long-term transaction." Callahan declined to name the client that had been moved.
The lease renewal keeps occupancy at the 75-story Bank of America Tower at 85%, which means about 225,000 sf is currently vacant. Portfolio-wide, Callahan says occupancy is currently running 94%.
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