The Park Place development in Annapolis has signed deals with six companies that officials say will bring 200 new jobs to the inner West Street complex by summer.
In an interview Friday, Park Place officials announced they have signed leases with real estate finance and investment firm Wrightwood Capital, consulting firm Wood MacKenzie and cargo and tanker shipping company Norden Tankers and Bulkers USA Inc.
Park Place also has signed deals with government contractor ViaGlobal, architecture firm Bignell Watkins Hasser and Towne Park, a hotel valet parking company.
All of the companies either have offices in Annapolis or are based in the city.
In addition, existing Park Place tenant Merrill Lynch will expand by 3,351 square feet, taking up a total of 18,000 square feet at Park Place.
The companies together will occupy 52,000 square feet of the 165,000-square-foot Park Place office building, which is now about 90 percent leased. The building is already home to biodefense firm PharmAthene, government contractor SensorCom and BOMI International.
Of the roughly 200 new jobs generated by the six recently signed companies, about 90 of them will be new to Annapolis, said Jeff Bach, a vice president with CB Richard Ellis who handles leasing for Park Place. Existing tenants in the office building currently employ around 200 people, he said.
By summer, the Park Place building will be bustling with about 400 jobs, Mr. Bach said.
The deals breathe new life into the $250 million Park Place mixed-use development of condos, shops and offices unveiled last fall.
“It’s coming to fruition,” said Jeremy Parks, vice president of Jerome J. Parks Cos., developer of the project. Mr. Parks said he was “very excited” about the new tenants. “We continue to move things forward,” he said.
Despite a downturn in the economy, Mr. Bach said he and CB Richard Ellis Senior Vice President Joe Ruzecki sealed up the deals in the first quarter. Several high-profile corporate users were attracted to the image of being at Park Place, he said.
Last year, there was a “complete slow-up,” as companies hesitated to make a move and the subprime mortgage market unfolded, but businesses were willing to make deals this year, Mr. Bach said. “The right tenants are willing to step up to the Class A project,” he said.
Mr. Bach said rental rates at Park Place range between $30 to $35 per square foot, although the development is willing to negotiate depending on the location within the office building.
Mr. Bach said he is “very optimistic” about leasing for the 110,000-square-foot office building under construction at Park Place, adding that he currently is in negotiations with companies. New tenant Bignell Watkins Hasser designed the second building.
Bob Burdon, president and chief executive officer of the Annapolis and Anne Arundel County Chamber of Commerce, said the fact that Park Place is signing deals now is a testament to the “resilience of this economy.”
And as new companies are added, the city expands its commercial tax base, which subsidizes the core services that residents enjoy, he said. “It’s a net giver-back into the economy if you will,” he said.
Mr. Burdon said the new Park Place employees are going to reinvest their earnings into the community. “Whenever you can bring in new employees, it really benefits,” he said.
Bill Greenfield, a leasing agent with Hyatt Commercial, said he was surprised that Park Place is signing so many deals given the weaker market. There are a number of tenants on the street looking for space, but most are smaller users, he said. “I’m happy for them,” he said. “Obviously there’s some larger users out there looking to relocate.”
Mr. Greenfield added that the new Park Place firms are good for the inner West Street area, which also is home to the Severn Savings Bank building where Hyatt Commercial is looking for a new tenant to fill space formerly occupied by Cafe Matisse. “We are working on something right now,” he said.
