The value of the full-service lease is about $4.5 million, which translates to an effective annual rate of $24 per sf. The deal includes a tenant improvement allowance in excess of $800,000, or $30 per sf.
Scott Katcher, Studley's Los Angeles-based corporate managing director, represents Tetra Tech nationally. The building owner, City Centre Associates, was represented by Pat Pendergast and Ed Curtis of locally based Washington Partners.
Industry sources tell GlobeSt.com that Katcher was able to negotiate Tetra-Tech's lease in the building after negotiations broke down with another tenant who wanted the better part of both the fifth and sixth floors. The 22,000-sf fifth floor remains available at a full-service asking rate of $26 per sf.
Tetra Tech Inc. is consolidating two operating units in the building, Tetra Tech/KCM and Tetra Tech- Surface Water Group. Tetra Tech/KCM is currently located at 1917 First Ave., where it has operated for 65 years. The Surface Water Group is located on Post Alley.
Surface Water Group VP Mark Williams says the new lease should result in operational costs savings, among other things. "In a competitive market such as engineering, having an optimum work environment is critical to our success," he says.
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