Monday, April 21, 2008

Patton Boggs Finalizes 114,000-SF Relo Deal

After spending more than two years shopping the deal, Patton Boggs LLP has signed a 114,000-sf lease for the under-construction 2000 McKinney in Uptown. Sources say the move-in date of January 2010 coincides with the firm's lease expiration for 104,000 sf in Trammell Crow Center.
The law firm's brokerage team from Cushman & Wakefield of Texas Inc. is out of the country and unavailable for comment on the 4.5-floor deal. Industry sources tell GlobeSt.com that the class AA lease's term is 10 years, possibly as much as 15, with signing incentives most likely coming from the rate and tenant improvements rather than months of free rent. Law firm finish-outs typically cost $70 per sf to $100 per sf, excluding furniture and fixtures. In terms of rate, Uptown's new buildings are hovering $35 per sf.
The deal is one of, if not the, largest signings to date this year in the Downtown-Uptown marketplace. C&W's executive directors Greg Biggs, Randy Cooper and Rick Hughes and associate Travis Young were the tenant reps. Lincoln Property Co. senior vice president Elliot Prieur and vice president Jeff Montgomery are the point men for the Uptown project, being developed by Dallas-based partners, Lincoln and Corrigan Properties Inc. The 442,355-sf, 21-story office tower is slated to deliver in September.
The Patton Boggs deal has been kept relatively quiet despite the fierce competition to land the prestigious law firm. Sources speculate the length of time invested into the decision-making process simply wore down brokers. The irony is Downtown and Uptown rates have gone up since the process began, with the gap narrowing to just a few dollars' difference. Trammell Crow Center's quoted rate is $32 per sf plus electric, according to the North Texas Data Exchange.
It's a given that Trammell Crow Center's team tried to hold onto the law firm, but the 1.1-million-sf, 50-story high rise is 98% leased so expansion options were limited. Patton Boggs landed in the high rise in 2000, starting out with sublease space and expanding to floors 28, 29, 30 and 32. With 22 months before the floors go dark, it's a safe conclusion that the trophy space's remarketing will begin ASAP. CB Richard Ellis' senior vice president Dennis Barnes, vice president Worthey Wiles III and associate David Liggett hold the third-party assignment for the owner.
"Patton Boggs' growth in Dallas during the past 10 years created the need to consider a new location, which drew significant interest from the Downtown and Uptown real estate communities," Biggs says in a press release issued last night.