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IBM Takes 60,000 SF at Parkside Towers

FOSTER CITY, CA-Nearly 50% of the 400,000-sf, two-building complex has been leased in the past six months.

By Brian K. Miller | Updated on August 05, 2007

FOSTER CITY, CA-Tenants continue to flow back into Parkside Towers, a 400,000-sf, two tower office development here that was 85% vacant less than a year ago. IBM Corp. has signed a long term lease for 60,000 sf in the complex that drops availability to 30%, according to Cornish & Carey Commercial, the brokerage firm representing the building ownership, a 90-10 partnership of Sterling American Property Fund IV and Hines.

In what will be a relocation from 577 Airport Blvd. in Burlingame, IBM signed a 10-year lease for the West Tower’s entire fourth floor and a portion of the fifth floor. In May, Acxiom Corp. signed a long-term lease for the fourth floor in the East Tower. The asking triple net lease rate for the space as both deals were being hammered out was $2.95 per sf, assuming a $50-per-sf tenant improvement allowance.

Parkside Tower is located in the 1000 block of East Hillside Blvd. The complex was master leased prior to its 2002 completion by Inktomi, a data retrieval company. Inktomi never even began space planning before agreeing to pay $54 million later that year to terminate the $315-million lease obligation. In December of that year, Inktomi agreed to be acquired by Yahoo Inc. for $235 million.

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