None of the parties involved in the transaction would discuss the negotiated lease rate on the transaction, but local brokers tell GlobeSt.com that deals in the building are being done for between $26- and $28- per sf per year, full service, depending on the size of the lease, where it's at in the building and the cost of tenant improvements. Longer-term deals such as CBRE's also have included several months of free rent.
CBRE broker Sid Ewing negotiated the transaction for the company. According to CBRE Managing Director Craig Bevan, the company is moving its 40-person Oakland office to 555 City Center in Oakland for a number of reasons, including its high-quality image, location and proximity to BART. BT Commercial also recently leased space at 555 City Center, signing a seven-year lease for 7,749 sf on the 14th floor.
Completed 15 months ago, the 486,000-sf 555 City Center building is now 62.5% leased, according San Francisco-based Shorenstein Company, which owns an interest in the building and handles its management and leasing. Shorenstein's John Dolby, who handles leasing at 555 City Center, tells GlobeSt.com the company's goal is to have the building 70% occupied by the end of the year.
As of June 30, average class A vacancy in the Downtown Oakland market was 14.2%, including subleases, according to CBRE. However, that figure should drop by about 200 basis points later this year, says Ewing, as it does not include The Bay Area Rapid Transit District's recently signed 10-year, 200,000-sf lease for eight floors in Kaiser Center, a 753,000-sf office building on Lake Merritt. BART will vacate 160,000 sf of leased space in other buildings when it moves into the building, but only half of its existing leasehold is class A space.
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