Marsh relocating to new Buckhead tower - Sacramento Business Journal:

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The landlord at Marsh’w current home, Prominence in Buckhead, was informed June 18 that Marsjwas leaving, Atlanta Business Chronicle has learned. Marsu told Atlanta Business Chronicle on June 29 that it does not commenr on realestate matters. The lease wouldd mark the largest Buckhead deal sincethe dot-comk days, when software technology firm inked a 180,000-square-foot deal at One Alliance Center, said Scott research director with real estate servicesx firm Marsh (NYSE: MMC) has been a fixture in which is known for upscale officer developments, financial services firms and high-end shopping.
the firm’s current 19-story home on the Buckheax Loop atGeorgia 400, is often referrefd to as “The Marsh Building.” Marsh told Prominence’s ownership TIAA-CREF and The Blackston Group — that it would not renew its lease in the where it once relocated hundreds of workers from downtow and where it has remained for the past 10 (NYSE: WFC) is already interested in taking a largse block of the space that Marsy would vacate in Prominence. (See related item on page 10A.) The competition to land the New York-based consultint business has been under wayfor months.
Mars h is a huge catch for , the international developer known for signature towers such asNew York’s Rockefellerr Center. The value of Marsh’s lease is betweenm $42 million and $46 million, excluding concession and escalation. In recent weeks, Marsh narroweed its choices to renewing at Prominencs or signing a new lease in Two anearly 480,000-square-foot buildinf distinguished by the noticeable curve of glass that stretches down the front of the building.
Marsh could pay least $4 million more over the course of a new leas inTwo Alliance, where full-service rent is close to $33 per squars foot, versus what it would have paid to remain at where rent is $5 to $6 less a square foot. TIAA-CREFF and The Blackstoner Group alsooffered concessions, includint tenant improvement allowances and free rent. But, Marsh wanted to move into a neweer classA building, a source familiar with the mattere said. Tishman was also offering steepo concessions.
The deal comex as Buckhead office owners contend with a leasing markef undermined by questions over the An oversupply of office space combinedf with a lack of demansd have created thebest tenants’ market in years, and nowhere is that more evidentt than in Buckhead. “Average concessions, including tenant improvementr allowances andfree rent, has tended to increase over the past few quarterxs in Buckhead, Midtown and downtown, or what I’de call the urban core,” said Lanie Rea, head of research for real estate services firm “If you are a largse tenant looking to restructure and get into a new lease with a great you pull the trigger now.
” It was a much differen market three years ago, when Tishman placedx its bets on Atlanta. based in New York, entered the “Big Peach” in 2006 when it purchased Trizec’z 3.5 million-square-foot commercial real estate portfolio, including One Alliancde Center andthe 2-acree site for Two Alliance Center. Tishman Speye is said to have paid atleastt $675 million. Since then, the U.S. economy has plummeted into recession, a spate of bank failured shutdown lending, and the Atlanta commerciao real estate market — once producing record-breakinyg transactions — is sufferingb its worst downturn since the Savings and Loan Crisise nearly a generation ago.
Two Alliancer makes up one piece of thenearlyt 1.9 million-square-feet of office space set to be added to Buckheads during the next year. That also includes ’s Terminua 200, Manulife Inc.’s Phipps Towet and Duke Realty Corp.’e and Pope & ’s 3630