Armada Hoffler Announces Office Lease With Duane Morris LLP at Wills Wharf in Harbor Point
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Insights
The recent office lease agreement between Armada Hoffler and Duane Morris LLP significantly impacts the commercial real estate market in Baltimore's Harbor Point. The transaction elevates the office occupancy rate to an impressive 97.1%, which is particularly noteworthy against the backdrop of national office sector trends that have been challenged by shifts toward remote work. This lease not only underscores the success of Armada Hoffler's strategic development but also highlights a potential shift in tenant preferences toward mixed-use environments that offer both work and lifestyle amenities.
From a market perspective, such high occupancy rates can signal investor confidence and potentially lead to increased property values in the area. For stakeholders, the immediate benefit lies in the stability and predictability of rental income, which is crucial for the company's financial health and stock performance. Long-term benefits may include attracting further high-caliber tenants and potentially enabling Armada Hoffler to command higher lease rates in the future due to the area's desirability.
Armada Hoffler's announcement of securing Duane Morris LLP as a tenant is a robust indicator of the company's financial trajectory, particularly in terms of revenue from property leasing. With the office occupancy rate now at 97.1%, Armada Hoffler is positioned to have a steady stream of rental income, which is beneficial for cash flow and could result in a positive outlook on the company's earnings. Investors and analysts typically view high occupancy rates as a proxy for financial stability and in this case, it could lead to a favorable reassessment of Armada Hoffler's stock.
However, it is also important to consider the lease's terms, including duration and rental rates, as they will ultimately determine the financial impact. Furthermore, the ability of Armada Hoffler to maintain high occupancy rates amidst changing work trends will be critical in assessing the long-term sustainability of their revenue model.
The leasing of nearly 10,000 square feet at Wills Wharf to a prestigious AmLaw 100 firm like Duane Morris LLP is a testament to the strategic planning and development executed by Armada Hoffler. The LEED Silver certification of the mixed-use building reflects a growing trend in real estate development where environmental sustainability is becoming increasingly important to tenants. Moreover, the location between Harbor East and Fell's Point, along with the mix of other high-profile tenants, positions Harbor Point as a prime real estate hub that could catalyze further economic growth in the region.
For other developers and investors, this serves as a case study on the importance of location, amenities and sustainable development in attracting top-tier tenants. The success of Harbor Point could incentivize similar mixed-use projects, as they seem to align well with current market demands for dynamic work environments.
AmLaw 100 firm brings mixed-use project’s office occupancy to
VIRGINIA BEACH, Va., Jan. 18, 2024 (GLOBE NEWSWIRE) -- Armada Hoffler (NYSE: AHH) secured a significant new office tenant at the Company’s Wills Wharf office building in Baltimore’s Harbor Point neighborhood. Global law firm Duane Morris LLP signed a lease for nearly 10,000 square feet at Wills Wharf.
The transaction brings total office occupancy at Harbor Point to
“This lease with Duane Morris LLP reinforces the unique appeal of Wills Wharf and strong demand for office space within Harbor Point,” said Louis Haddad, President and CEO of Armada Hoffler. “Employees of corporate office tenants want to work in dynamic mixed-use environments. Providing such a collaborative workplace in a vibrant community has become imperative for employee recruitment and retention.”
An AmLaw 100 law firm, Duane Morris LLP has more than 900 attorneys in offices across the U.S. and internationally. It represents a broad array of clients, spanning all major practices and industries.
“We first began conversations with the Duane Morris team in 2018, before Wills Wharf had delivered,” remarked Peter Jackson, Vice President of JLL. “We are thrilled they see the value and quality of Armada Hoffler's investment and steadfastly believe the property is the ideal office for their business needs. We look forward to seeing their continued success and growth at Harbor Point.”
Positioned at the gateway to Baltimore’s Inner Harbor, Wills Wharf is a LEED Silver mixed-use building offering 325,000 square feet of Class A office and premier hotel space. With unparalleled waterfront views, Wills Wharf is located within walking distance to all amenities and open spaces that Harbor Point has to offer. Situated between Harbor East and Fell’s Point, Harbor Point is Baltimore’s largest downtown waterfront development site with capacity for up to 3 million square feet of mixed-use space on 27 acres.
Peter Jackson, Tony Gross, and Rob Freedman of JLL represented Armada Hoffler in the transaction. David Fields of CBRE represented Duane Morris.
Tenants include Franklin Templeton, Transamerica, EY, Jellyfish, Bright Horizons and Canopy by Hilton.
To learn more about Wills Wharf visit http://www.willswharfbaltimore.com/.
In addition to Wills Wharf, Armada Hoffler’s Harbor Point assets include both Constellation and Thames Street Wharf office buildings, as well as 1405 Point and 1305 Dock Street apartments and retail. The Company is also in partnership with Beatty Development Group to build mixed-use developments, Allied | Harbor Point and T. Rowe Price’s new global headquarters in Harbor Point.
About Armada Hoffler
Armada Hoffler (NYSE: AHH) is a vertically integrated, self-managed real estate investment trust (“REIT”) with over four decades of experience developing, building, acquiring, and managing high-quality multifamily, office, and retail properties located primarily in the Mid-Atlantic and Southeastern United States. We also provide general construction and development services to third-party clients, in addition to developing and building properties to be placed in our stabilized portfolio. Founded in 1979 by Daniel A. Hoffler, Armada Hoffler has elected to be taxed as a REIT for U.S. federal income tax purposes. For more information visit ArmadaHoffler.com.
Contact:
Chelsea Forrest
Armada Hoffler
Director of Corporate Communications and Investor Relations
Email: CForrest@ArmadaHoffler.com
Phone: (757) 612-4248
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