Piedmont Office Realty Trust Announces Second Quarter Leasing and Capital Markets Activity
ATLANTA - July 18, 2016 - Piedmont Office Realty Trust (NYSE: PDM) announced today that it secured approximately 573,000 square feet of total leasing and completed three capital markets transactions in the second quarter of 2016.
Significant leasing highlights for transactions of approximately 20,000 square feet or greater completed during the quarter included the following:
Boston, MA - Demandware, a Salesforce Company and an industry leader in digital commerce, signed a 181,680 square foot, 12+ year lease renewal and expansion through 2029 at 5 Wall Street in Burlington, MA. Involving multiple tenant negotiations, this new lease will phase in over the next three years as existing tenant leases expire, with Demandware expanding its presence in the building by 150,134 square feet.
Also in the Boston market, we completed two long-term lease renewals with the President and Fellows of Harvard College. At One Brattle Square in Cambridge, MA, we completed a 58,861 square foot, 15-year lease renewal and expansion through 2032. We also signed a 49,522 square foot, 15-year lease renewal (commencing in 2018) through 2033 at Piedmont's 1414 Massachusetts Avenue building in Cambridge.
Washington, DC - A major online retailer signed a 50,492 square foot, 7+ year new lease through 2024 for vacant space at 4250 North Fairfax Drive in Arlington, VA.
Also in Arlington, CliftonLarsonAllen, LLP expanded its total leased space, moving from 19,000 square feet at 4250 North Fairfax to 24,470 square feet at Piedmont's Arlington Gateway property, located at 901 N. Glebe Road in Arlington, VA for a 10+ year term expiring in 2027.
Atlanta, GA - Revenue Analytics, Inc. completed a 23,431 square foot, 7+ year new lease through 2024 for vacant space at Piedmont's Galleria 300 property, located at 300 Galleria Parkway in Atlanta, GA.
Chicago, IL - CivilTech Engineering, Inc. signed a 20,439 square foot, 9+ year new lease through 2027 at Two Pierce Place in Itasca, IL. The direct lease commences on the expiration date of an existing tenant's leased space in early 2018.
"We were pleased to see our leasing activity build momentum during the second quarter, which resulted in activity in line with our expectations, both in completion of new leases and significant lease renewals across several of our national markets," said C.A. "Bo" Reddic, IV, Executive Vice-President of Real Estate Operations for Piedmont.
Additionally, Piedmont completed the following capital markets disposition transactions on the West Coast during the second quarter:
- 1055 East Colorado (Pasadena, CA)- Piedmont closed on the sale of its 175,941 square foot, 5-story office building located at 1055 East Colorado Boulevard in Pasadena, California for $61.3 million or $348 per square foot. The property was constructed in 2001 and is 99% leased to multiple tenants.
- 1901 Main Street (Irvine, CA) - Piedmont completed the sale of this 172,767 square foot office building, located at 1901 Main Street in Irvine, California for $66 million or $382 per square foot. The 8-story property was constructed in 2001, and is 100% leased.
- Fairway Center II (Brea, CA) - Piedmont executed the sale of Fairway Center II, located at 675 Placentia Avenue in Brea, California for $33.8 million or $252 per square foot. The 133,943 square foot office building was constructed in 2002 and is 97% leased to multiple tenants.
"Completing the disposition of three of our four California assets further advances our portfolio refinement objectives as the Southern California market is not part of our targeted long-term portfolio composition" said Raymond L. Owens, Chief Investment Officer for Piedmont. "The transaction proceeds provide us with the opportunity to reduce our outstanding debt and to thoughtfully recycle a portion of the capital into investments located in our strategic operating markets," added Owens.
About Piedmont Office Realty Trust:
Piedmont Office Realty Trust, Inc. (NYSE: PDM) is an owner, manager, developer, and operator of high-quality, Class A office properties located in select sub-markets of major U.S. cities. Its geographically-diversified, over $5 billion portfolio is comprised of approximately 20 million square feet. The Company is a fully-integrated, self-managed real estate investment trust (REIT) with local management offices in each of its major markets and is investment-grade rated by Standard & Poor's (BBB) and Moody's (Baa2). For more information, see www.piedmontreit.com.
Contact: Kerry Hughes
Company: Piedmont Office Realty Trust
Phone: 1 770 418 8800