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| Jeff Shaw |
ATLANTA, GA – Bridge Investment Group LLC’s (Bridge) subsidiary Bridge Office Fund Manager (Bridge Office) announced it has executed 61 lease agreements totaling 509,000 square feet across its national portfolio since the start of Q2, bucking conventional narratives on the U.S. office market while offering tangible evidence of success and opportunity for owners and investors in suburban areas that could be poised for an influx of new activity when the pandemic subsides.
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| Kevin Lott |
Notable transactions include a 78,627-square-foot extension at SkyBridge Towers in Bethesda, Maryland for a global nonprofit advancing military medicine; a 27,408-square-foot expansion/extension at Tower 1320 in Irving, Texas for an engineering company; and 15,235-square-foot expansion/extension at Denver West in Lakewood, Colorado for an technology firm specializing in alert systems for first responders.
“While the impact of COVID-19 has slowed new leasing tours by approximately
38%, our activity has not stalled and proposal activity remains steady,
especially for renewal/extension proposals as companies prepare for evolving
office needs,” said Kevin Lott, managing director of National Leasing at
Bridge Commercial Real Estate (BCRE).
“These results are a testament to not only the enduring quality of our properties in top suburban markets, but also our team’s ongoing dedication and creativity, including the recent launch of our digital portfolio and virtual tours to support leasing efforts.”
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| SkyBridge Towers, Bethesda, MD |
Since April 1, BCRE has seen a 9% increase in total square footage for new prospect proposals, as well as a 3% increase in new expansion proposals and a rise of more than 11% in total square footage of renewal/extension proposals.
The
data indicates COVID has impacted deal size more than the number of executed
leases, as companies consider leasing more space to accommodate for employee
comfort amid current social distancing guidelines.
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| Denver West Marriott Hotel, Lakewood, CO |
Bridge also reported rent collections for July averaged above 98%, with rent rates holding steady or slightly increasing in 15 of the 16 markets where the firm has a presence.
“While the U.S. office market as a whole has certainly seen a slowdown, the data clearly shows that the stark collapse in leasing activity that has taken place in urban core areas does not hold true in many suburban markets that are much better positioned to endure and rebound from the pandemic,” said Jeff Shaw, CEO of BCRE.
“With employees slowly returning to the office and several of our assets continuing to perform above pro forma rates across the country, we remain confident that the best attributes of suburban properties — spacious floor plans that enable social distancing, a sense of community, closer proximity to workers, and park-like settings — will be the driving force that draws people back.
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| Tower 1320, Irving, TX |
"These are areas that were already trending pre-pandemic due to the rise of amenity-rich environments with a renewed focus on walkability and experiences, and we anticipate that demand will gradually increase over the next year as the economy recovers and the impact of the virus subsides.”
For more information about BCRE including a complete list of office
properties, please visit https://bridgecre-office.com/.
Contact:
Nick Banaszak · Account Supervisor
1718 Peachtree St., Suite 1048
Atlanta, GA 30309
M: 256-457-5384
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