"It would have hurt us to lose three large tenants [STMicroelectronic as well as AHA Consulting Engineers and MarketSoft, which both renewed 20,000 sf] but as a result [of these signings] it stabilized our operations and put us in a position to take advantage of an improving market," John Fenton, president of Essex River Ventures, tells Globest.com. Imprivata, Inc. signed a 12,667-sf renewal/extension deal and Accurev inked a similar one at 7,033 sf.

Lexington Corporate Center is located about one mile from Interstate 95 and is comprised of four interconnected buildings totaling 285,113-sf. The site was originally developed in the 1960's and was completely renovated in 1998 into a class A office campus. Amenities include a full-service cafeteria with indoor and outdoor dining areas, a fitness center with lockers and showers, and a parking ratio of 3.75/1,000.

Essex purchased the property in August for about $35 million with joint venture partner Praedium Group at a time when the vacancy rate for the complex was 57%. Aggressive leasing efforts have since lowered the rate to about 35% at the site, and Fenton says there is another "50,000 to 75,000 sf in the pipeline," but sees renewals as the source of continued success. "Tenant retention is the key because transaction costs are high," he says. "It's [also] important because vacancy rates are so high. It's improving, but its still a very competitive marketplace."

Brendan Carroll, research director at Richards Barry Joyce and Partners, whose firm represented the owners, agrees that the market is improving. RBJ reports list the current Route 128 West vacancy rate at 16.7%, with average rents just over $25 per sf. Vacancy rates for the market were at 22.5% at the close of 2003 and have steadily dropped, according to Carroll. "We've seen a multiple quarter decline in vacancy rates throughout Route 128 West, and that has resulted in a lease rate firmness that we have not seen in years," he says.

Essex River Ventures was represented b partner Jonathan Varholak and associate Ron Friedman of RBJ, as was tenant Accurev. The Nordblum Co. represented AHA Consulting Engineers. STMicroelectronics was represented by the Staubach Co., and T3 Realty Advisors represented Service Integrity and Imprivata, Inc.