Real Estate Forum - May/June 2009

Total Number of Completed Leases: 189
Total Square Footage: 859,000 sf
Total Dollar Value: $320 million

DAVID LEVY
Principal
Adams & Co. Real Estate LLC
New York City

Manhattan office leasing specialist Levy says, “With office rents coming down, companies will have greater access to central locations, such as the transit triangle located between Penn Station, Times Square and Grand Central.” He continues, “Location and proximity to transportation are key deciding factors for companies seeking space in Manhattan. It is a very good time to be in the market for office space.”

Last October, Levy completed a challenging 20,000-square-foot lease for Perry Ellis at 530 Seventh Ave. He had to negotiate three leases to free up the client to move into the furnished sublease.

Total Number of Completed Leases: 71
Total Square Footage: 1. 3 million sf
Total Dollar Value: $279.2 million

When the Department of Defense allowed its lease renewal option to expire at the Taylor Building in Arlington, VA last year, Stouffer saw an opportunity to obtain market-rate rents for the 524,867-square-foot office property. And he did just that in July when the department decided to stay. Stouffer, a Northern Virginia office specialist, helped negotiate a fixed five-year term at a rate of $36.25 per square foot—significantly higher than the renewal option rate.

“In recent years, Northern Virginia’s office market has benefited from growth in defense-related spending. With a new administration, budget allocations are certain to change,” he says.

t o rise, but long-term fundamentals remain favorable.”

“Fortunately, NoVa’s economy has diversified in recent years. In the short term, expect vacancy

SPENCER STOUFFER
Managing Director
Cassidy & Pinkard Colliers
Vienna, VA

ERIC LASTITION Senior Vice President Colliers International Torrance, CA

GEOFFREY LUDWIG Senior Vice President Colliers International Torrance, CA

GREGORY WALSH Associate Vice President Colliers International Torrance, CA

Total Number of
Completed Leases: 95
Total Square Footage:
1. 3 million sf
Total Dollar Value:
$165.8 million

Lastition, Ludwig and Walsh closed one of the most significant deals in El Segundo, CA last summer, when Northrop Grumman Corp. took all 333,000 square feet of the Continental Tower. The lease removed a large chunk of space from El Segundo’s office inventory, bringing office vacancy to 10%, the lowest in the area since 2000. The team hammered out the 10-year, $120-million agreement on behalf of landlord Barker Pacific, which was in the process of renovating the 16-story structure at the time of the deal.

“Although the velocity of transactions has slowed in the South Bay as a whole, we are still seeing tenant activity,” Lastition says. “Rental rates have begun to drop slightly, but we have seen more concessions being given by landlords instead of rental rate reductions.”