Piedmont Lands 182 KSF HQ Lease in Orlando
Piedmont Office Realty Trust has secured a leasing agreement for 182,000 square feet at the 501 W. Church building in Orlando, Fla. Travel + Leisure will fully occupy the property through 2040, starting in 2025 when its current lease at 6277 Sea Harbor Drive is set to expire. Stream Realty Partners and Newmark brokered the deal on behalf of the tenant, while the landlord was represented in-house and by CBRE.
Travel + Leisure plans to employ more than 900 individuals at the property. The city approved more than $6 million in incentives for the headquarters relocation, with the company set to receive up to $2.3 million through the targeted international headquarters relocation incentive and some $4 million through the community redevelopment agency’s High Wage/High Value Job Creation Program, as reported by the Orlando Business Journal.
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Completed in 2003, the building rises five stories. Piedmont picked it up from Equis Hospitality Management in 2018 for $28 million in an all-cash transaction, according to CommercialEdge data. Ownership plans to implement upgrades such as new signage and amenities including a fitness center and conference center ahead of the relocation. The tenant is also slated to spend $29.5 million for the build-out, Orlando Sentinel reported.
Located in downtown Orlando, 501 W. Church is next to the Kia Center and near Interstate 5. It is also close to the Church Street train station, and within walking distance of various entertainment and retail options.
Executive Vice President Alex Valente and Vice President Ben Mullenix represented Piedmont internally, along with CBRE Senior Vice President Michael Phipps and Vice President Colin Morrison. Stream Realty Partners Head of Strategy and Analytics Jason Warren and Executive Managing Director Greg Katz, along with Newmark Senior Managing Director Mike Hopper represented the tenant.
Orlando’s office market performance
As of March, the listing rate in Orlando was $24.44, having dropped by 60 basis points year-over-year, according to a recent CommercialEdge report. The vacancy rate in the metro clocked in at 17 percent, increasing by 0.7 percent over 12 months and below the national figure of 18.2 percent.
Piedmont Office Realty Trust operates a $5 billion portfolio located mainly across Sun Belt markets. Of the company’s total 16 million-square-foot footprint, roughly 1.5 million square feet are located within downtown Orlando.
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