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Studley Relocates, Grows With Three-Year Sublease

SAN FRANCISCO-The tenant-representation firm inks a three-year sublease for 9,600 sf on the 14th floor of 150 California St.

By Brian K. Miller | Updated on December 03, 2007

SAN FRANCISCO-Studley, the commercial real estate brokerage firm that represents tenants exclusively, has closed a below-market transaction that will expand its Downtown presence. The local office of the New York City-based firm inked a three-year sublease for 9,600 sf of move-in-ready space on the 14th floor of 150 California St. The firm relocated last week from 5,300 sf at 505 Montgomery.

Both buildings are 24-story, class A properties in the North Financial District. Studley says its negotiated lease rate on the sublease at 150 California is approximately $36 per sf, which is a big discount to market rates. The average asking rate for class A office space in the North Financial District is more than $48 per sf, according to Cornish & Carey Commercial.

Studley co-branch manager Steve Barker tells GlobeSt.com that its all-in cost to get a similar quality space fully built out on a direct basis would have been in the $50s or $60s per sf. “In this market that doesn’t make sense,” says Barker, who says that the rise in average class A asking rates have outpaced the drop in vacancy as buildings changed hands at premium prices and the new owners push rents in an attempt to increase their rate of return.

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