Concord Office Market Heats Up

Walnut Creek (April, 2012) — Cornish & Carey Commercial Newmark Knight Frank announced that in the first quarter of 2012 the city of Concord’s Class A office space realized over 85,000 square feet of positive absorption.  The flurry of recent office leasing activity resulted in both the highest absorption of Class A office space and the most significant vacancy rate decline in Concord in a single quarter since 2006.  At the end of the fourth quarter of 2011, Concord’s Class A vacancy rate was 20%; today the vacancy rate is just 17.77%.  High-end, Class A properties including One Concord Center, Corporate Centre and Metroplex have attracted the majority of the office tenants.

 

“We are very encouraged by the leasing velocity Concord is enjoying in 2012,” said Cornish & Carey Commercial Newmark Knight Frank’s Breck Lutz.  “While 2011 was a great year considering total square footage leased, absorption for the year was still negative. The recent leasing activity has resulted in positive 85,771 sf of absorption. We are hopeful that this quarter will mark the turnaround point for the region and that the market will continue to thrive and attract top firms from throughout the Bay Area.”

 

One Concord Center – 2300 Clayton Road

The 358,589 sf, 15-story property located immediately adjacent to the Concord BART station is owned by Swift Realty Partners.  Cornish & Carey Commercial Newmark Knight Frank’s Breck Lutz and Alex Grell represent the property for lease.  As a result of several new leases, One Concord Center, which had been more than 60% vacant in September of 2010, is now nearly 90% leased. Key leases completed in the last three months include:

  • Sutter Health agreed to lease 9,756 sf to accommodate a new division of the firm.
  • Independent Adoption Center agreed to lease 9,738 sf in a relocation from a Class B Pleasant Hill building
  • Bay Equity agreed to lease 6,487 sf and will relocate from San Francisco.
  • Cardno Entrix expanded into an additional 4,843 sf.
  • Towill Inc. expanded into an additional 2,712 sf.
  • Contra Costa Bar Association agreed to lease 2,285 sf and will relocate from Martinez.

 

Corporate Centre – 1320 and 1390 Willow Pass Road

In November of 2011, Westcore Properties purchased the 345,322 square foot (sf) property from Pearlmark Real Estate Partners (formerly Transwestern Investment Services).  Westcore selected Cornish & Carey Commercial Newmark Knight Frank’s Tom Fehr and Patrick Reilly to represent the property for lease.  In the past three months, the team has executed agreements to lease over 75,000 sf at Corporate Centre including:

  • Jenkins Insurance agreed to a 22,810 sf full floor lease and will relocate from another Concord property.
  • Ausenco PSI agreed to a 20,100 sf full floor lease and will relocate from North Concord.
  • Pinnacle renewed a 12,372 sf lease.
  • Eichleay expanded into an additional 3,394 sf.
  • USI Insurance agreed to a 3,076 sf lease and will relocate from an executive suite in Walnut Creek.
  • Gallagher Miersch renewed a 2,665 sf lease.
  • Lifeline Security and Automation renewed a 1,962 sf lease.

 

Metroplex Leasing – 1401 Willow Pass Road

Sierra Pacific Properties’ Metroplex is a 462,000 sf, two building property that has attracted several large tenants recently including:

  • Beverages & More agreed to lease 33,000 sf and will relocate from a Class C building in Concord.
  • Farmers Insurance/Zurich Financial Services, agreed to lease 17,464 sf and will relocate from 5099 Commercial Circle in North Concord.
  • Colonial Life agreed to lease 3,500 sf.

 

Additional Noteworthy Concord Lease

  • Coolsystems Inc. agreed to lease 19,305 sf at Sutter Square, a 174,689 sf building, and will relocate from Alameda.

 

# # #

About Cornish & Carey Commercial Newmark Knight Frank

A dominant regional real estate force since 1935, Cornish & Carey Commercial partnered in 2010 with Newmark Knight Frank, one of the largest real estate service firms in the U.S., to become Cornish & Carey Commercial Newmark Knight Frank.  Regionally, more than 280 agents in 13 strategically located offices throughout Northern California create a powerful combination of people and services that uphold Cornish & Carey Commercial Newmark Knight Frank core values of integrity and knowledge.  For further information, visit www.ccareynkf.com.

 

About Newmark Grubb Knight Frank

A part of BGC Partners, Inc. (NASDAQ:BGCP), Newmark Grubb Knight Frank is one of the largest commercial real estate service firms in the U.S. It brings together the strategic consultative approach to creating value for clients and leading position in the New York market that are hallmarks of Newmark Knight Frank, the complementary strengths of Grubb & Ellis in leasing and management, investment sales, valuation and capital markets services, and BGC’s financial strength, proprietary technology and unrivalled relationships with the world’s leading financial institutions and other outstanding businesses.

Newmark Grubb Knight Frank and its London-based partner Knight Frank together operate from more than 300 offices in established and emerging property markets on five continents. This major force in real estate is meeting the local and global needs of tenants, owners, investors and developers worldwide.

The Registry www.theregistrysf.com

West Coast Commercial Real Estate News