First Phase of Metroplex Fills Up Fast

CONCORD, CA-The 231,000-sf first phase of the 462,000-sf Metroplex Office Centre here is leasing up quite nicely. The 10-story office tower–the first new office project in Downtown Concord in some 15 years–is 82% leased just 12 months after shell completion. The leasing broker, Scott Ellis of Colliers International, tells GlobeSt.com that the project proforma estimated the project would be just 30% leased by now.Developed by companies controlled by the Seeno family, the five-acre Metroplex development is located on Willow Pass Road between Interstate 680 and Highway 242. “One trend we’ve noticed is that most of the tenants we’ve leased space also looked further south to San Ramon but ultimately decided to pay slightly more to be closer to their employee base, which is moving east into Pittsburgh and Antioch,” says Ellis. “Another interesting fact is that not being right next to a BART station has not been a detriment, as some thought would be the case.” Why the tenants chose Metroplex specifically include its newness–a modern structure adhering to a whole new set of building codes and boasting the latest in Internet connectivity; its resort-like feel, with two-story atriums, palm trees and waterfalls; and its 4:1,000-sf parking ratio, says Ellis. “It’s by far the nicest building up here,” he says. “And it’s the right building for this market.”Indeed, its 24,000-sf floor plates turned out to be just the right size, with seven of the 10 floors leased by full-floor tenants. The largest tenants are Well Fargo, Fremont Investment & Loan, the University of Phoenix and Online Documents. Ellis declined to discuss the negotiated lease rates in the building, but other local brokers tell GlobeSt.com that deals have been done at around $27-$28 per sf per year, including tenant improvement allowances of between $25 and $30 per sf. Fremont Investment & Loan moved into the Metroplex this month with a five-year lease. The company, which was in a 25,000-sf space, now occupies 61,000-sf at Metroplex. The University of Phoenix will begin its five-year, 25,000-sf lease in July and Online Documents will begin its seven-year, 21,000-sf lease in August. Wells Fargo, which moved from the Shadelands business park in Walnut Creek to the Metroplex last June, leased 51,000 sf. Other tenants include Mutual of Omaha, Ciber, SCME Mortgage Bankers, Countrywide Home Loans and Pezzaglia & Rueb.The only space remaining is on the top floor, which likely will command a 10% premium compared to previous deals. Ellis says leases are out for signature that would soak up about 10,000 sf and push vacancy down into the single digits. There is as yet no timetable for the twin office tower that would complete the five-acre development. “We broke ground for the project in September of 2001,” says Doug Messner, a VP with the developer. “We are very pleased … .”The Seeno family owns Seecon Financial & Construction Co., which is the official developer of Metroplex, as well as Seeno Construction Co., Seeno Properties, Sierra Pacific Properties and a host of other companies that have built homes, shopping centers, schools and office complexes.