Currently located in Bank of America Tower at 701 Fifth Ave., the firm is relocating its 600 employees to 240,000 sf of space on 10 floors in the 40-story IDX Tower at 925 Fourth Ave. Developer Hines Interests LP held a grand opening party for the building last month.
The new space has smaller lawyer offices and less space allocation per employee overall. "The key advantages include a reduction in overhead costs, utilization of the most current technologies and an optimally efficient space designed and built from specifications," says Gerry Johnson, managing partner of Preston Gates.
Johnson says the firm also benefited from prevailing economic conditions in building out, equipping, and furnishing its new space such that the work came in substantially under budget. Preston Gates' architect was Studios Architecture, Lease Crutcher Lewis served as the contractor, and the Seneca Group managed the project.
The search for a new location began almost four years ago, says Johnson. The firm will be up and running in the new location by Tuesday morning, January 21.
IDX Tower's 845,000 sf of office space is now 84% leased. Factored into the calculation, is 75,000 sf on floors 14-16 that is being held for a future expansion by anchor tenant IDX. IDX is paying a discounted fee to have that space held in reserve until the company needs it. Meantime, the building owner is offering the space for short-term lease at an annual full-service rate of $25 per sf.
Posted asking rates for the rest of the building's availabilities are much higher, between $28 and $32 per sf, triple-net. Net effective rents, however, are much lower, running at a 10% to 25% discount to asking rates when concessions like free rent and above-average tenant improvements are figured into the equation.
The brokers with the leasing assignment are Tim O'Keffe and Jesse Ottele of Colliers International. O'Keffe tells GlobeSt.com that he has in hand two letters of intent for the middle of the tower that add up to two full floors.
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