Moody's Big Lease?
We have the word on the biggest S.F. tenant wanting to make the jump across the Bay as of late: Moody's (we are guessing their credit score is OK enough to qualify for a new lease... we'll have to ask Standards & Poor's).
Sources tell us the ratings agency has an LOI to lease 80k SF in Oakland's 1221 Broadway, aka the Clorox Building, and will vacate the Orrick Building at 405 Howard (at least it's already used to being around sterile types). The reasoning for the exodus out of the city is the same one we keep hearing: rents are just too darn high. Pair that problem with larger blocks becoming very scarce and it's a no-brainer more S.F. tenants are considering Oakland space on the BART line for just $36/SF. The savings can be huge and many of the employees live in the East Bay, so it makes looking at that market an easy decision, one broker tells us.
Westcore bought the 24-story tower in late 2012 from the cleaning company, whose HQ still occupies over half of the 520k SF building. Cushman was hired soon after the purchase to market a big chunk of space up for grabs inside. (Now JLL reps the building and Cushman reps Moody's.) The potential move is still a ways away; Moody's downtown S.F. lease doesn't expire until mid-2015. The LEED Platinum building built in 1976 sits on the corner of 12th and Broadway in the heart of Oakland's City Center. Sources say Moody's is one of a few tenants working on deals in the building.