SAN FRANCISCO-Macys.com has signed a lease expansion of two additional floors for an aggregate 100,000 square feet of office space at the Monadnock building, located at 685 Market St. A subsidiary of Macy’s Inc., the online department store leased an additional 37,737 square feet at the 10-story tower in downtown San Francisco.
According to Macy’s Inc., the combined online sales volume of Macys.com and Bloomingdales.com was up approximately 29.3% year-over-year as of September 2010. As GlobeSt.com previously reported, Macys.com signed a 10-year lease for the top three floors of the building, which total 56,500 square feet, and a month-to-month lease for an additional 13,000 square feet on the sixth floor. At the time, the asking base lease rate for the space prior to negotiations was in the high $30s per square foot, however at the time, given Macy’s strong credit, long-term commitment and substantial space needs, sources told GlobeSt.com the retailer would likely received a discount as well as a tenant improvement allowance. At the time, Macys.com chose 685 Market St. for its historical significance and aesthetics, its natural light, and its proximity to its Union Square retail store and offices.
Daniel Cressman, executive vice president at Grubb & Ellis Co., represented Macys.com in the deal. “The continued increase in sales volume led the company to need additional space at the Macys.com headquarters,” says Cressman, who had previously represented Macys.com in its expansion to more than 60,000 square feet of space at 685 Market St., in 2008. Grubb & Ellis did not provide further lease terms to GlobeSt.com by deadline.
Scott Harper of Colliers International represented the property’s owner, Prudential Real Estate, in the expansion. Harper tells GlobeSt.com that he cannot share further lease terms or asking rates at the property at this time.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
