The Public Utilities Commission, which has been in the Borden Building for 12 years, renewed its 123,321-sf lease and expanded by 5,367 sf for a total of 128,688 sf on seven floors, including 2,000 sf of storage space. The Secretary of State renewed its 35,110-sf lease and expanded by 10,355 sf for a total of 45,465 sf. Both commitments are for two years, reflective of the state's biennial budgeting.
A source at the state tells GlobeSt.com that the annual full-service rate on the deals is $14.50 per sf for the office space and $7 per sf for the storage space. As for concessions, the source says Trizec is putting up $1.2 million for tenant improvements--$965,160 for the PUC and $250,000 for the Secretary of State. The combined value of the lease commitments is $5.1 million.
Marcey Early-Jeter, Real Estate Administrator for the State, negotiated on behalf of the State of Ohio in both transactions. Todd Hartman, Trizec's General Manager in Columbus, represented the property.
Chicago-based Trizec Properties Inc. is one of North America's largest owners of commercial office properties. According to the company's recently filed annual report, the Borden Building is Trizec's only Ohio property and one of the worst performers in the company's 69-building, 48-million-sf portfolio, which is concentrated in the metropolitan areas of seven major U.S. cities.
Completed in 1974 and acquired by Trizec at the end of 1998, the 569,000-sf Borden Building was 75% leased as of the end of March. The average occupancy in Trizec's overall portfolio is 89%.
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