CPN - February 2009 - (Page 14)

TOP DEALS TOUGH TIMES in Success Stories of 2008 Deal flow slowed significantly last year, as the recession set in and the capital markets dried up. Although some interesting large deals did close, many took place in the first half of the year. In addition, many occurred in the stronger submarkets of their respective cities. This year, CPN features the largest deals, by dollar volume and across property types, in the 10 major commercial real estate markets, including signed leases, closed sales and developments that broke ground and are in progress. For deals that did not close but are worth watching, visit www.cpnonline.com. Atlanta Hotlanta Cools as Credit Markets Stall After years of rapid growth, Atlanta was largely stagnant in 2008 as the stalled credit markets and turmoil in the economy stayed the hands of industry players. Office occupancy decreased 425,000 SF during the year, and rental rates followed suit.Other than in the Buckhead submarket, development slowed to a trickle, good news for landlords. Medical office has continued to grow, delivering 650,000 SF in 2008, with another 200,000 in the pipeline. market hovered around $28 PSF, according to Grubb & Ellis Co. Sale: The AT&T deal also marked Atlanta’s largest sale,as Wells shelled out $275M for the property. Senior vice president of acquisitions Keith Willby represented Wells. Staubach Capital Markets represented AT&T. majority stake in 185 Franklin St., ties started construction of a 21-story, 883,770-SF office Russia Wharf, a $500M, tower in the Financial District. 854,000-SF mixed-use develThe seller, Verizon Commopment at 280 Conunications Inc., represented gress St. in the Finanby CB Richard Ellis Inc., cial District. Schedwill lease back 600,000 uled for completion SF and retain ownerin 2011, the project ship of 100,000 SF. will include 700,000 The buyers were repreSF of office space, Russia Wharf sented internally. 65 residential units and 60,000 SF of retail, Development: Boston Properrestaurant and public space. Chicago New Development to Shift Balance Despite plenty of new development, office vacancy in Chicago’s central business district dropped from 13.9 percent at the end of 2007 to 13.1 by year-end 2008, according to Shawn Mobley, executive vice president & managing director for Grubb & Ellis Co.’s Chicago offices. Rents rose from just under $32 PSF to $33.34 PSF. Back-office closings led suburban vacancy rates to rise from 20 to 22.4 percent. Industrial vacancy dropped from 9.8 to 8.6 percent. Lease: Hines signed law firm Baker & McKenzie to a lease for 300,000 SF on 12 floors in the 52-story River Point at 444 W. Lake St. in the West Loop. Occupancy is slated for early 2012. Bill Rogers of Jones Lang LaSalle Inc. represented the tenant, and Tom D’Arcy represented Hines internally. Sale: Hines also acquired One N. Wacker Drive, a 51-story, 1.4 MSF office tower in the West Loop, from a German investment fund managed by RREEF, for $540M. Amenities include a 9,000-SF conference center and a health club.Eastdil Secured L.L.C. represented the seller, and Hines was represented internally. Development: Central Grocers Inc. broke ground on its new headquarters in Joliet. The 934,490-SF building is the largest freezer/cooler property slated for construction in the United States this year. Grubb & Ellis represented the company in the acquisition of the land. Plans include 45,000 SF of office space, 340,000 SF of freezer/cooler space Central Grocers Inc. Headquarters Development: Crescent Resources L.L.C. broke ground in March on the $175M Phipps Tower, a 20-story, 486,000-SF office development in BuckLease: In a sale-leasehead. The project, a joint back deal with Wells Real Estate Investment Trust II Phipps Tower venture between Crescent and Manulife Financial, is slated to Inc., AT&T agreed to a new lease for its office campus in Buckhead. open next January. The property will include office space, a garden The telecom giant will continue to occupy the five-building, 1.2 MSF plaza, parking for more than complex for 15 years. Average 1,100 cars and a covered pedestrian connection to nearby Phipps Plaza. rents for Class A space in the sub- Boston Beantown Braces for Delayed Impact A tenant mix of education, healthcare and private financial management services has slowed the recession’s impact on Boston, which still enjoyed a central business district office vacancy rate of 8.3 percent at year-end, according to Cushman & Wakefield Inc. But average asking rents fell 7.3 percent to $46.45 PSF during the fourth quarter. A few tenants are on the hunt for blocks larger than 100,000 SF, but deals for 20,000 SF or less account for much of the new leasing in the market. 14 Lease: Wellington Management Co. leased 450,000 SF in a 700,000-SF office building under construction in the Financial District’s Russia Wharf. Chuck O’Connor of DTZ FHO Partners represented Wellington. The developer, Boston Properties Inc., was represented internally. Wellington Management’s rent will reportedly be around $55 PSF. Sale: In a $192M deal, a joint venture of Kennedy Associates Real Estate Counsel L.P. and Commonwealth Ventures L.L.C. bought a .cpnonline.com and 550,000 SF of ambient warehouse.The project is expected to be operational in the first half of 2009. Dallas-Fort Worth Metroplex Maintains Resiliency The Dallas-Fort Worth Metroplex displayed what Mark Fewin, senior managing director for CB Richard Ellis Inc.’s local office, called “a certain resiliency” in the face of the tough economic climate. The first half of 2008 was stronger than the second half, when declining oil prices and the global economic crisis dampened activity, but Dallas ended the year in decent shape.The office market, for instance, posted 3.3 MSF of absorption, according to Delta COMMERCIAL PROPERTY NEWS • Februar y 2009 • www http://www.cpnonline.com http://www.cpnonline.com

Table of Contents Feed for the Digital Edition of CPN - February 2009

CPN - February 2009 Contents Starting Line Buzzworthy Office Data/Analysis Washington, D.C., Market Profile Ranking: Mortgage Banks & Brokerage Firms Top Deals of 2008 Mortgage Banking Mexico Brokerage Sustainability CPN-Nielsen Claritas Special Report Resource Guide

CPN - February 2009

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