One of the brokers in the deal, Phil Mahoney of Cornish & Carey, briefly confirmed the deal for GlobeSt.com but did not discuss the negotiated lease rate. The asking lease rate, which assumed a full-building user, was $3.50 per sf (not including taxes, insurance and maintenance), he says, which translates to $9.5 million per annum.
Deals like this by the region's 800-pound gorillas have leasing activity on high on the Peninsula. One good example is Parkside Towers, a 400,000-sf office development in Foster City that was completed in 2002 and three years later remained 85% vacant. Including a 52,000-sf lease signed in May by Acxiom Corp., vacancy in the two five-story buildings is down to 44% and negotiations are under way for "a significant portion" of the remainder, listing broker Craig Kalinowski of Cornish & Carey told GlobeSt.com in June.
"…The mid-Peninsula where this building is located in seeing a tremendous amount of activity," he says. "Users to the north are being pushed south by Genentech and Amgen and users to the south are being pushed north by Google."
In February, Intuit Inc. staked claim to a three-building, 210,000-sf campus in Menlo Park, leasing two of the three 70,000-sf buildings in a deal that includes rights to lease the third, according to the leasing agents, Howie Dallmar and Kevin Cunningham of Cornish & Carey. Located at 180 and 190 Jefferson Dr. near the western approach to the Dumbarton Bridge, the three-story buildings have been vacant for several years.
"Intuit had a group looking for a campus environment over more than 100,000 sf," Dallmar says. "They couldn't find space in Shoreline, where the group is currently housed, because it also home to Google, which has had a huge appetite for picking up space there, so they looked north and south."
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