Comerica Inks 30,000-SF Lease at Embarcadero Center

SAN FRANCISCO-Comerica Bank has inked a 10-year lease for 30,000 sf at Boston Properties’ Embarcadero Center. Currently spread out in three Downtown buildings, the bank is consolidating its local operations onto the 25,097-sf third floor of Two Embarcadero Center and will open a retail location at One Embarcadero in a 4,335-sf space currently occupied by Pottery Barn.The bank currently leases 16,452 sf at 275 Battery, also part of Embarcadero Center, and additional space in Spear Tower (One Market) and 201 Spear St. In June 2005, Comerica will vacate all three locations and relocate to One and Two Embarcadero. To make all of its existing leases concurrent, Comerica recently signed a one-year extension at 275 Battery.”By combining locations, we were able to eliminate redundancy and implement Comerica’s more efficient office standards,” says Brian Beswick, who provides real estate services for Comerica on behalf of Trammell Crow. “This will result in a 20% net decrease in real estate cost per employee.”Comerica landed at Embarcadero Center for a couple of reasons, Beswick tells GlobeSt.com. First, they were very interested in having everyone on a single floor, and the 25,000-sf floor plates at Embarcadero accommodated that need. Second, Beswick says Comerica wanted a very high-image retail space within the same complex, and they found it in the Pottery Barn space.Beswick declined to comment on the negotiated terms of the new lease. Other brokers familiar with the property say annualized full-service asking rates at Two Embarcadero are in the mid to high $30s on a gross basis and that deals are being done fairly close to asking rates, not including concessions, which in addition to a healthy tenant improvement allowance could include other concessions, such as moving expense reimbursements or free rent. Lynn Beteag, senior vice president of corporate real estate with Comerica, did not return phone calls seeking comment on the company’s new efficiency standards for office space. A source at Boston Properties also was not available for comment Monday afternoon. In general, the Downtown San Francisco office market is at the present time bifurcated, according to local brokers. Rents for view space are holding their own, and in some cases increasing, while non-view space rents are stagnant to decreasing.