Griffin Capital Essential Asset REIT Inc., a publicly registered non-traded real estate investment trust, has signed five lease transactions in 2018 totaling 606,250 square feet or 3 percent of the REIT’s total portfolio.
The four renewal or replacement tenants had an average remaining lease term of two years prior to adding approximately 7.2 years of additional duration. Combined with a new lease totaling 10 years of primary term, the collective lease duration for this group of tenant leases totals 9.3 years on average, thereby increasing the portfolio total to 6.6 years of remaining lease term. As of the second quarter, the company’s portfolio, based on square footage, was approximately 95.8 percent leased.
“This significant leasing activity demonstrates the management team’s creativity, tenacity and persistence in executing renewal, replacement and new lease transactions that both maintain and add value to the portfolio,” said REIT president and chief investment officer Michael Escalante.
The lease transactions include:
- Leidos Inc., a tenant since 2009, extended its lease for 110,300 square feet at Franklin Center through July 2026. The 200,600-square-foot property is located in Columbia, Maryland.
- PPG Industries Inc. signed a new 10-year direct lease to secure its occupancy through December 31, 2030 at 400 Bertha Lamme Drive in Cranberry Township, Pennsylvania. PPG previously subleased the entire 118,000-square-foot property from October 2013 through the end of 2020.
- Community Insurance Company Inc. renewed its lease for 223,500 square feet for the entirety of 4241 Irwin Simpson Road in Mason, Ohio through November 30, 2026. Community Insurance, whose lease would have otherwise expired in early 2019, also occupies an adjacent 213,000-square-foot building that is owned by the REIT.
- Two new tenants will move into the 222,700-square-foot Parkland Center in Milwaukee. Fidelity Information Services LLC leased 124,550 square feet commencing in January 2019 and ending December 2026. Equiniti Trust Company will lease 29,900 square feet for a 10-year term commencing in October 2018.
Griffin Capital Essential Asset REIT oversees a portfolio of 76 office and industrial properties purchased for a total of $3.2 billion. The company’s initial public offering was declared effective by the Securities and Exchange Commission in November 2009. The REIT closed its follow-on offering in April 2014 and has raised a total of approximately $1.5 billion in investor equity, according to Summit Investment Research. Griffin Capital Essential Asset REIT is one of several REITs sponsored or co-sponsored by Griffin Capital.