In the largest deal, Bank of America signed to take an additional 32,432 sf of office space at the 405,360-sf class A tower. The lease takes the bank's space to 296,637 sf, according to Anthony J. DeFazio, director of public relations for American Financial Realty Trust, the property's owner. The expansion will address Bank of America's future growth, AFR explains.
In addition, the Bethesda, MD-based Reznick Group signed an 11-year lease for 26,201 sf. The deal moves 60 employees from 309 E. Morehead St. And in the third deal, GW Fins, a New Orleans seafood restaurant, will open its first Charlotte restaurant with a 8,859-sf, 10-year deal at 525 N. Tryon, according to AFR.
AFR does not disclose its lease rates; however, DeFazio tells GlobeSt.com that the average rental rate in Charlotte is running about $23.50 per sf.
"The hot market in Charlotte is forcing tenants to lock-in expansion space ahead of time," Rick Eiseman, managing director of office sales and leasing at AFR, says in a release. "High-end office space has become very competitive. In these deals, we were able to provide just the right combination of flexible lease structures and high-end amenities that allowed the tenants to find the space they needed under extremely tight occupancy schedules."
In its mid-year 2006 Southeast report, GVA Advantis puts the Charlotte overall vacancy at 12.1%, the tightest it has been since 2001. With 1.5 million sf slated to come online in the city in early 2007, the overall vacancy rate could rise to the 13% range, the report adds.
David Dorsch of Colliers Pinkard led the brokerage team for AFR in all the deals. Maxwell Hanks and Brad Grow with Colliers Pinkard repped the Reznick Group. GW Fins and Bank of America were repped in-house.
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