Colliers: Top US Office Leases In Q3
The US office market continued to see positive momentum in Q3 thanks to strong job gains and renewed GDP growth. Vacancies declined 10 basis points as net absorption and rental rates rose in the quarter, according to a recent Colliers International report.
The economy rebounded to 2.9% in Q3, and the workforce added an average of 206,000 jobs in July, August and September, spurring further growth in the market.
Colliers is confident Q3's robust office leasing has set the stage for a solid end of the year. Listed below are the top office leases in the country from Q3 2016, according to Colliers.
Coach Inc (new)
Address: 10 Hudson Yards
Market: New York
Size: 694k SF
In a sale-leaseback deal, European insurer Allianz purchased a 44% stake in Related Cos’ 10 Hudson Yards, which included Coach's $750M 740k SF office condo.
Random House Inc (renewal)
Address: 1745 Broadway
Market: New York
Size: 631k SF
Random House inked a new deal extending its lease to 2033; it was set to expire in 2018. The publishing giant said the new lease came with “greatly reduced long-term rent.”
Address: Moffett Gateway
Market: Silicon Valley
Size: 596k SF
Google leased all of Jay Paul Moffett Gateway's project last quarter. The $180M project includes two seven-story office towers with a parking structure, a green roof and a fitness center.
Address: 600 Hidden Ridge
Size: 576k SF
Verizon reached a $344M agreement to remain at its longtime Verizon Hidden Ridge campus, signing a new 20-year lease in Q3.
Address: 5 Giralda Farms
Market: Northern New Jersey
Size: 431k SF
Pharmaceutical giant Allergan signed one of the largest New Jersey leases of the year when it relocated its US headquarters, taking over the entire floor for a 13-year term.