By Eliza Theiss, Associate Editor
Raleigh, NC-based Highwoods Properties has signed a 91,000-square-foot long-term lease at Highwoods Plaza II in Nashville with a current customer. The lease represents a 32,000-square-foot net expansion for the undisclosed customer, while also accessing an additional ten years of lease term.
The space was part of LifePoint Hopsitals’ recently vacated offices at Highwoods Plaza II. This latest lease, paired with another recently secured contract for 13,000 square feet, leaves 29 percent of LifePoint’s previous square footage vacant. According to a news release, Highwoods is in negotiations for the remaining 43,000 square feet of space.
In February 2014 LifePoint relocated its operations from Highwoods Plaza II to a seven-story Class A built-to-suit office tower at The Shops at Seven Springs. LifePoint’s new 203,000-square-foot home was developed and is owned by Highwoods.
Located in the Maryland Farms Office Park in Nashville’s Brentwood submarket, Highwoods Plaza II comprises 102,121 square feet of space across four floors. Built in 1997, the property is ENERGY Star certified and boasts several more eco-conscious features, such as high-efficiency lighting and HVAC drives, green cleaning and a recycling program.
“Nashville continues to be one of our best performing markets,” President and CEO of Highwoods Properties Ed Fritsch commented, adding, “The Brentwood submarket, where Highwoods Plaza II is located, is very strong, with vacancy of 6% at March 31.”
Although Colliers International’s data is slightly more conservative, it still reports a healthy 6.7 percent vacancy rate for the submarket, the fifth lowest within metro Nashville. Brentwood’s average asking rent rate of $23.25 per square foot is the fourth highest within the market.
Image courtesy of Highwoods Properties
Chart via Colliers International