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Chevron Credit Union Leases Space in 500 12th Street
Chevron Federal Credit Union agreed to take 33,000 square feet of office space in 500 12th St. in Oakland City Center — the office complex’s largest new lease this year.
The credit union is moving from a nearby building at 475 14th St. in Oakland, where it occupied three floors, following the trend of most leases in Oakland coming from within the market.
“The lease filled a big chunk of space for us,” said Mike Keely, a broker with CB Richard Ellis who is head of leasing for City Center. “It was competitive like all the deals are.”
Chevron Federal Credit Union was founded in 1935 and has nine branches in California. The credit union’s new space in City Center was formerly occupied by law firm Weaver Austin Villeneuve & Sampson, which earlier this year moved to into 19,200 square feet in 555 12th St., also in City Center.
City Center is Oakland’s main downtown office complex. Last year, CB Richard Ellis Investors bought five buildings totaling 1.6 million square feet in the complex from Shorenstein Properties.
Since that deal closed in July, CBRE Investors has inked about 330,000 square feet of leases — mostly renewals or expansions. The occupancy rate is close to 92 percent.
The landlord has also worked on sprucing up the retail component, known as City Square, with new merchants such as Specialty’s Cafe & Bakery, Cupcake Cove and Faz, a full-service restaurant that will take over the former Verbena space and is scheduled to open soon.
Keely said the many buildings are close to full such as 555 City Center, which only has 4,100 feet available of 485,000 square feet.
A major tenant in that building, Ask.com, has offered 80,000 square feet for sublease.
As far as other direct leases in City Center, Farmer’s Insurance took 15,000 square feet on the fourth floor of 505 14th St. and is moving from Alameda.
Wells Fargo Bank leased 9,300 square feet on the 21st floor of 555 City Center as well as taking an additional 16,385 square feet in CIM Group ’s 1901 Harrison.
The “musical chairs” type of leasing has been going on for a few years with tenants looking for better or comparable space at lower rates.
Keely said the Oakland market could see more outside tenants now that lease rates in San Francisco have jumped and Class A vacancy in nearby markets like San Francisco and Emeryville is going down.
source: www.bizjournals.com