IBM has been an IBM Building tenant for the past 39 years. The company most recently leased about 77,000 sf on floors 6-11 and also the 20th floor, but was subleasing one of those floors. Under the new agreement, IBM will occupy 54,831 sf on floors 7-11.
Occupancy is now 93% in the building, which was built in 1964 and renovated in 1987. As part of the deal, in partnership with HOK Architecture and Seattle-based Burgess Weaver Design Group, Unico reconfigured and will renovate each of IBM's floors to meet their needs with regard to an efficient workplace. The cost per sf of the improvements was not immediately available.
The lease rate on the deal also was not revealed, but rates generally have been running at a 10% to 25% discount to asking rates once concessions like above-standard tenant improvements and free rent are figured into the equation. The annual full-service asking rate at the IBM Building is $25 for lower floors in the building and $27 for the upper floors.
Jim Rock, Unico's Director of Leasing for the Metropolitan Tract represented Unico in the transaction. Jane Blair of CB Richard Ellis represented IBM.
The IBM building sits on a piece of the six-block Metropolitan Tract that Unico Properties developed and manages in partnership with the University of Washington. Vacancy on the Tract is 5%. The average Downtown vacancy is 15%.
Major properties on the Tract include the IBM Building, Rainier Tower, Puget Sound Plaza, Financial Center, Skinner Building and Cobb Building. In Early January, the international engineering firm Skilling Ward Magnusson Barkshire renewed for 10 years at Rainier Tower, where it keeps its 28,000 sf headquarters.
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