EOP Holds Onto Two Downtown Tenants

SAN FRANCISCO-Two Downtown office tenants have renewed their lease in buildings owned by Equity Office Properties Trust.

Arthur J. Gallagher & Co., a national insurance brokerage and risk management company, recently signed an eight-year renewal and expansion lease at EOP’s 580 California St. that significantly increases the firm’s space.

The company’s renewal means that the firm, which once held 16,000-sf, will now occupy 28,000-sf. EOP coordinated a complete build-out of the Gallagher’s new space while the company was preparing to move.

Jim Ousman, managing director of leasing for EOP’s San Francisco Region represented Equity Office, while a team of Cushman & Wakefield brokers represented Arthur J. Gallagher & Co. in this transaction.

In the second deal, Parnassus Investments, a mutual fund company, signed a seven-year lease renewal for its 16,000-sf office lease renewal at EOP’s One Market building. Ousman represented both EOP and Parnassus Investments in the deal.

According to Equity Office, the average asking rates for these downtown buildings were in the low $30′s, full service.