60 South Sixth. Picture courtesy of KBS Realty Advisors
Infrastructure design agency HNTB has signed a lease with KBS Realty Advisors to occupy 15,187 sq. toes at 60 South Sixth in downtown Minneapolis. The tenant will relocate from town’s West Finish neighborhood to the thirty eighth ground of the Class A workplace constructing. JLL brokered the settlement on behalf of each events.
In accordance with CommercialEdge data, HNTB will be a part of the prevailing roster on the 710,332-square-foot constructing, together with Fredrikson & Byronhe, Prudential Capital Group, Harvard Providers Group, Capital Actual Property, Hessian & McKasyat and Stifel, amongst others.
The identical knowledge supplier reveals that KBS acquired the asset again in 2013 for $126.5 million, by way of the agency’s KBS Actual Property Funding Belief III. The property can be topic to a $613.2 million mortgage supplied by Financial institution of America, set to mature in 2031.
JLL Managing Director Brent Robertson and Vice President Andrea Leon brokered the lease signing on behalf of KBS, whereas Senior Vice President Eddie Rymer represented HNTB. Earlier this month, the owner signed one other 49,490-square-foot lease on the lately renovated Northland Heart workplace park in Bloomington, Minn.’s industrial district.
A revamped workspace
60 South Sixth spec suites. Picture courtesy of KBS Realty Advisors
Because the acquisition, KBS invested greater than $24 million in upgrading the property that dates again to 1991. Final yr, the corporate allotted greater than $6.5 million to the modernization of the health middle and customary areas. KBS can be within the means of designing a brand new tenant lounge space, indicating that additional enhancements are underway.
In the beginning of this yr, KBS unveiled a pair of absolutely furnished spec suites spanning two flooring at 60 South Sixth. Positioned on the eleventh and twelfth flooring, the seven suites characteristic a variety of facilities, together with café areas, collaboration hubs, non-public cellphone areas, shared assembly areas and a wellness room.
60 South Sixth is situated on the Nicollet Mall, providing entry to close by eating and retail choices. Minneapolis−Saint Paul Worldwide Airport is a few 13 miles from the property, whereas College of Minnesota is lower than 3 miles away.
Leasing workplace house in Minneapolis
60 South Sixth foyer. Picture courtesy of KBS Realty Advisors
A latest JLL report reveals that within the fourth quarter of 2022 the quantity of workplace house leased within the Minneapolis-St. Paul market reached a complete of over 900,000 sq. toes, exceeding the 820,000-square-foot common because the second quarter of 2020. Piper Sandler’s 113,000-square-foot dedication on the highest 4 flooring of North Loop Inexperienced performed a number one function on this improve.
The identical supply reveals that on the finish of 2022 whole workplace emptiness out there reached 19.5 %. The area’s unfavorable absorption for the yr hit virtually 3 million sq. toes. Class A workplace house wasn’t proof against unfavorable absorption, though it outperformed different asset lessons, bearing a emptiness charge of 17.7 %.
