KPFF Consulting Engineers renewed its commitment for 9,763 sf under a five-year lease to keep its presence on the building's 10th floor. The company, which will pay about $900,000 over the lease term, has been at the same location for the last five years.
Joining the building's tenant roster will be the law offices of Katz & Bloom, which will take 2,230 sf on the 17th floor under a seven-year agreement negotiated for the firm by Jerry Noble and Brian Black of Dallas-based Trammell Crow Co.'s Phoenix office. The legal firm will pay about $300,000 for the office space. A June 1 relocation from smaller offices at 2600 N. Central Ave. is planned.
Jerry Jacobs, who along with Gwen Musfeldt and Larry Downey, all with Cushman & Wakefield of Arizona Inc., are the leasing agents for building owner, Gaedeke Landers of Dallas. Jacobs tells GlobeSt.com that despite the dual leases, the deal doesn't indicate a resurgence of interest in the city's CBD.
"We're not seeing a lot of people going to Central. They want to be in the suburbs," Jacobs noted. Lower lease rates on newer buildings is a prime reason behind that flight, he said. But that may all change soon. The creation of a bio-engineering science center in Central Phoenix coupled with the development of a light rail transit system could bring a boom to the CBD within the next 10 years, he predicted.
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