This transaction follows a larger chunk leased to Aramark in July and takes occupancy in the 53-story trophy at 1717 Arch St. above the 90% mark. The building suffered a major exodus when Verizon downsized its space and relocated staff from about 25 floors to a New Jersey property. The Dechert law firm delivered another blow by relocating to Brandywine's Cira Centre.
General Re will relocate from Two Logan Square to half of the 17th Floor in Bell Atlantic Tower this December. "Economics was a key factor in the relocation decision as we were able to benefit from the pre-existing tenant improvements in the Verizon space," says Wayne Fisher, SVP and director of the local office of Grubb & Ellis. He and Ken Clyman, associate VP in the same Grubb office, represented General Re in the negotiations.
Roger McManimon, senior director of the local office of Cushman & Wakefield, represented Verizon. Verizon assigned subleasing of the building's vacated space to a C&W team headed by McManimon in summer 2004, and has re-stacked the space it continues to occupy in order to accommodate sublessors.
Fisher tells GlobeSt.com the value of the General Re lease is between $1 million and $2 million and confirms McManimon's previous disclosure that rent rates in the building "are in the low $20s per sf and will escalate over the term." McManimon conceded he was being "very aggressive." While the vacancy represented an opportunity for tenants to locate in a trophy "at very good rates," he said, "not all major tenants want to commit under a sublease that expires in six years."
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