McGraw-Hill will fill the space with operations currently located at three other properties, creating its western regional headquarters in the building. McGraw-Hill was represented in its lease negotiations by Jim Boyle and Brian Beswick of Trammell Crow.
"The Spear Street corridor is a good, safe location with a lot of great amenities," says Beswick, explaining in part why McGraw-Hill chose the location. As well, Beswick says the company was able to reduce its rental obligation while expanding its operations.
Beswick declined to provide the details of the lease, but local brokers tell GlobeSt.com that the full-service market rate for similar space is in the mid-$20s per sf per year and that market concessions have included either a lower face rate or several months of free rent in addition to an above-standard tenant improvement allowance. "We negotiated as many concessions as we could and believe we got them the best deal," says Beswick.
To occupy the new space, McGraw-Hill will be vacating space at 88 Kearney St. and 199 Fremont in the South Financial District, and 55 Francisco in the North Waterfront District. The lease fills a majority of the vacanct space at 160 Spear St, which is owned by Hill Companies/ING. Zach Siegel and Susan Benton of Cushman & Wakefield have the leasing assignment for the building.
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