(To read more on the net lease market, click here.)
LISLE, IL-With office vacancy still above 21% when available sublease space is added, the western end of the East-West Corridor is lagging behind the overall suburban market. However, that continues to work to tenants' advantage, as two recently signed deals prove.
Longmont, CO-based telecommunications company Intrado had two years left on its lease at the Lisle Executive Center 3030 Warrenville Rd., but struck a 28,000-sf renewal that cuts its occupancy costs by more than 21%, according to its brokers. M&M Orthopaedics had more than two years left on its deal at 4300 Commerce Ct., but increased its space there to 12,000 sf while cutting short-term occupancy costs.
"These two transactions are indicative of the East-West suburban office market," says Steinco Corporate Real Estate Advisors vice president Kevin J. McLennan, who represented both tenants. "Many believe the market is coming back, but the opportunity for office tenants to achieve significant rent savings is still there and will be there for quite some time."
Although terms were not disclosed, asking gross lease rates start at $20 per sf at Transwestern Commercial Services' 151,180-sf 3030 W. Warrenville Rd., according to Black's Guide, where vacancy is 21.6%. The building was part of the Great Lakes REIT portfolio sale. At Corporate West I at 4300 Commerce Ct., gross rates are $20 per sf. Vacancy at that 47,803-sf building is less than 5%.
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