Hughes Center PreLeasing Brisk
Owners of the Hughes Center are probably pretty happy as they have 60% of their newest class A office building leases already in hand. Not bad since the $72 million, 11-story, 240,000-sf tower isn’t scheduled for completion until early 2007. Crescent Real Estate Equities is also confident that by the time the building is completed that it will be 93% leased by February 2007. More than half the space that’s already been taken in the new building will be occupied by Boyd Gaming, Eschelon Resorts and the Snell & Wilmer law firm. The per-sf price range for the existing buildings in the development ranges from $2.60 per sf for the lower floors of the older buildings to $3.05 per sf for the upper floors of the newest building.
According to Crescent, if demand continues, they have enough land at the Hughes Center to develop another 500,000 sf. The next building has already been designed and will be an eight-story, 170,000-sf tower scheduled to break ground in 2007. The starting triple-net lease rate for that building will be $3.25 per sf due to rising construction costs.