Both Law Management II Inc., a law office, and Vanguard Corp. of America, a medical billing office, have extended the terms of their leases in the building. The combined value of the two leases is estimated at $2.56 million.
Law Management II signed an additional seven-year lease with property owner 485 Properties LLC for 9,557 sf of office space. The exact value of the lease was not disclosed, but brokers familiar with the area estimate space in the building is renting for about $30 per sf. At that rate, the lease is worth just over $2 million.
In addition, Vanguard Corp. expanded from about 2,300 sf to 4,610 sf for four years. The estimated value of that entire lease is $553,200.
R. Michael Erickson, who represented 485 Properties LLC in both transactions, tells GlobeSt.com that extending leases with these existing tenants says a lot for the building.
"We are all aware of the aggressive nature of the current office market and the need to attract new tenants to our buildings," Erickson tells GlobeSt.com. "However, the landlord understands there is no better prospect than your current tenants and no better endorsement of your building than an extension or renewal by an existing tenant."
Erickson, first vice president with the Palm Beach County office of CB Richard Ellis Inc., was the only broker in both deals.
Law Management II, one of the building's original tenants, has been there since 1986. Vanguard has been a tenant there for three years.
The 11-story, 145,000-sf Plaza is located at 5355 Town Center Road. The building's current occupancy is 84%.
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