Credit Suisse signs 180,000 square foot lease for temporary space in RTP

Credit Suisse signs 180,000 square foot lease for temporary space in RTP

The new owners of the recently acquired GlaxoSmithKline office and research campus in Research Triangle Park have already landed their first big office tenant deal – even if it is short term.

Executives with Credit Suisse (NYSE: CS) have signed a lease contract for close to 180,000 square feet of space in two office buildings on the former GSK campus – now called Parmer RTP – at 5 Moore Drive, company sources have confirmed.

Credit Suisse in May announced it would be expanding its technology center in Research Triangle Park with plans invest $70.5 million in the construction of a new 200,000-square-foot office building. The building would be built to accommodate 1,200 new technology, finance and risk management job positions.

But new office buildings take time to design, plan and build, and Credit Suisse’ real estate team is still in the early stages of planning. Company officials have said they plan to have the building, which will be built next to the company’s existing office building on Louis Stephens Drive, completed and ready for occupancy in 2019.

“In line with our announcement in May, Credit Suisse has leased temporary space at 5 Moore Drive in Durham County on a short term basis, while it continues to plan its development of a permanent real estate solution consisting of a new building,” Credit Suisse spokesman Thomas Baer stated in an email to Triangle Business Journal. Baer did not detail lease terms of the contract.

Credit Suisse’s Raleigh site lead, Jim Captain, says they expect the office space at Parmer RTP to be ready for employees to start moving in September, but recruitment for the new technology positions has already started.

Credit Suisse, as of June 30th, had 140 job listings posted for its RTP operations. It currently employs about 1,700 people in RTP.

GlaxoSmithKline also still employs about 2,400 people at the Parmer RTP campus. Following the sale of its buildings, the company leased back 700,000 square feet of space in four of the 22 buildings on the 1.8 million-square-foot campus.

Parmer RTP is now owned by an affiliate of California-based real estate investment firm Karlin Asset Management. CBRE-Raleigh is representing Karlin in its lease negotiations at Parmer RTP.

GSK sells RTP campus

GSK sells RTP campus

Source: Triangle Business Journal
Author: Marc DeRoberts

Pharmaceutical company GlaxoSmithKline has sold its 20-building campus at its North American headquarters in Research Triangle Park.

Parmer Innovation Partners bought the buildings and will rename it Parmer RTP. A GSK representative said the sale would have no impact on employee jobs. The company announced plans to sell the buildings in 2016.

Of the campus’ 1.8 million square feet, GSK will lease 700,000 square feet spread across four buildings it currently occupies. The company has signed a 10-year lease for the space.

In 2015, GSK cut about 1,000 jobs in the Triangle and consolidated its remaining staff and researchers in two buildings at 5 Moore Drive. It vacated seven buildings at its South Campus in RTP, which is able to accommodate about 1,300 employees, according to a marking flyer that advertised the buildings' potential. The “plug and play” campus already has a data center, a fitness center, auditorium and cafeteria, plus a lot of furniture and equipment configured for an open-floor plan. Real estate sources said Credit Suisse considered occupying a portion of the campus as it considered an RTP expansion.

Following the deal closure, Parmer said it plans to spend $80 million renovating the facilities.

Ben KilgoreLee Clyburn and Brian Carr with CBRE|Raleigh and Brian Scott of CBRE, Inc.’s New York office led the sale on behalf of GSK.

New $80M look for GSK's Triangle campus coming under ownership change

New $80M look for GSK's Triangle campus coming under ownership change

Source: WRAL TechWire
Author: WRAL TechWire

RESEARCH TRIANGLE PARK, N.C. — Glaxo Smith Kline's sprawling campus in Research Triangle Park is heading toward a major remodeling under new owner Parmer Innovation, which is promising "one of the most influential amenity parks in the Southeast."

Renamed Parmer RTP, the 1.8 million square feet of office space spread across multiple buildings will be upgraded through an $80 million investment.

And the drug giant will remain a major tenant, having agreed to lease some 700,000 square feet across four different buildings.

Much of that space will be occupied in the Charles Sanders Center (named after a former GSK CEO), which covers a 187,709 square foot main office facility, a 10,178 square foot recreation center, and a 3,169 square foot small office "Annex" building.

Parmer, which already operates a high-tech campus in Austin, Texas called Parmer Austin and another in the U.K., and GSK announced the deal on Friday. Financial terms of the sale were not disclosed. Corporate real estate firm CBRE negotiated the deal.

"The mission is to create environments where inspired entrepreneurship and strategic forward thinking unite to create value," Parmer says of its campuses.

GSK had been seeking to sell the campus as it over the past several years scaled back on operations in RTP. The comapny still has some 3,000 workers in the Park and also maintains a manufacturing facility in Zebulon. GSK had reduced Triangle headcount as more work was either outsourced or moved to another corporate campus in Philadelphia.

Parmer is promising a "refreshed" campus that will reflect the vision of its Austin development which is home to such companies as Apple, Allergan and General Motors.

Promised future amenities for Parmer RTP include:

  • Outdoor amphitheater
  • Food truck parking lot with permanent seating and facilities
  • Upgraded nature and exercise trails throughout the campus
  • Bike share program with permanent connecting paths throughout campus
  • A grand lawn, cornhole courts, chipping and putting greens, volleyball courts
  • Unique social gathering and meeting spaces with innovative architectural design

The redevelopment will occur around GSK as an anchor tenant, which has agreed to a 10-year lease. GSK said in the announcement that the deal is a "reflection of [its] continued commitment to RTP and North Carolina."

The new-look campus will put emphasize "amenities today’s millennial worker is seeking. From permanent food truck sites and outdoor meeting spaces to upgraded walking trails and a bike share program, new amenities will be added starting this summer to create the most amenitized and unique business campus in the southeastern U.S.," Parmer explained.

Other "distinctive new amenities – that should be a big draw for RTP – will be coming," the company added

GSK sells 20-building campus in RTP, will lease 4 buildings

GSK sells 20-building campus in RTP, will lease 4 buildings

Source: News Observer
Author: John Murawski

GlaxoSmithKline, once the largest real estate owner in Research Triangle Park, has sold what’s left of its once-sprawling RTP campus and will lease back a small portion of the property where 3,000 employees and contractors work. 

The deal, involving 20 buildings, was announced late Friday by Los Angeles-based Parmer Innovation Centers, which purchased the property, and by CBRE, a Los Angeles-based real-estate advisory that represented GSK in the real estate sale. The sale price was not disclosed. 

“It’s one of the largest deals in the Triangle, without a doubt,” said Brian Carr, a senior vice-president at CBRE’s Raleigh office. “It’s certainly one of the largest transactions in the last couple of years.”

Under the deal, GSK, one of the world’s largest pharmaceutical companies, will occupy four buildings on 700,000 square feet of property in a long-term lease, with renewal options. Parmer will take over 1.1 million square feet of vacant labs, plants and other abandoned facilities.

Parmer announced that it plans an $80-million renovation to modernize the site with permanent food trucks, outdoor meeting spaces, upgraded walking trails and a bike share program to create what the company dubs “the most amenitized and unique business campus in the southeastern U.S.” 

Parmer specializes in operating mega-sized corporate parks housing multiple tenants, with sites in Austin, Texas, and in the United Kingdom. The GSK deal opens a significant tract of real estate in the region for lease. 

“It’s a lot of space,” Carr said. “That’s the largest block of space in the market.”

Glaxo and Parmer declined comment, but provided brief statements. 

“This transaction reflects a global trend at GSK toward leasing office space and shifting to modern, collaborative workspaces,” the GSK statement said. “Continuing our 30-year history, GSK remains committed to our North Carolina employees and community. The sale of the campus will have no impact on employee jobs.”

Parmer said that the RTP site will be modeled on its Austin site, which spans more some 240 acres. 

GSK, which has been rocked by periodic layoffs, had announced one year ago that it planned to sell its properties, at the time assuring employees that the sale would not foreshadow the winding down of the company’s RTP operations. GSK’s real-estate sale announcement came a year after the company had consolidated its research-and-development functions in Philadelphia, eliminating more than 1,000 positions in RTP. 

The company’s presence in RTP goes back to 1970, when predecessor company Burroughs Wellcome established a headquarters here. Another predecessor, Glaxo, moved its headquarters to RTP in 1982. The companies later merged. 

GSK employed more than 5,000 in the Triangle and remains one of the region’s largest employers. In addition to the 3,000 workers in RTP, the company employs 800 at its drug manufacturing plant in Zebulon.