Including a full-floor lease signed this month, brokers now have filled six of the eight floors vacated by Arthur Anderson last fall. The four-year-old property is owned by Chicago-based Cousins Property and Myers Development of San Francisco.
Phil Tippett, the CB Richard Ellis broker that's filling the space for the second time, tells GlobeSt.com that after falling from 98% occupied to 62% occupied as a result of Enron, occupancy at the 387,430-sf Downtown office tower is now back up to 85%.
"Just another sign that even in a soft market, good spaces in good locations are still in demand," says Tippett. "There are a lot of tenants within the market that are looking."
To fill the space, Tippett inked a pair of two-floor leases last year with Ziff Davis Publishing (8th and 9th floors) and Nextant (10th and 11th floors) and this year, in the past two months, inked two single floor leases, one with California Appellate Project (6th floor) and the other with Hong Kong Bancorp (7th floor).
All of the leases were signed at lease rates in the mid-$30s per sf per year, full service, including furniture. Arthur Andersen's lease rate was in the mid-$40s.
The 12th and 14th floors at 101 2nd St. remain available. "There's still a lot of activity," says Tippett. "There are lots of tenants from within the market that are looking to upgrade."
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