Iconic Oakland office tower gets boost from key real estate lease

OAKLAND — A big workspace and creative office company has leased multiple floors in downtown Oakland’s iconic Tribune Tower building in a deal that’s poised to bolster the local economy and real estate market.

Regus, the largest provider of flexible workspaces for tenants, has leased three floors in the Tribune Tower at 13th Street and Franklin Street in Oakland, according to Lee & Associates, a commercial real estate firm. The building is owned by Highbridge Equity Partners, Alameda County property records show.

The rental deal, which provides a major boost to downtown Oakland’s office market, was arranged by brokers Cody Kollmann and Jeff Moeller of Lee & Associates San Francisco and by Joe McGlynn of Lee & Associates Oakland. Kollmann represented Regus in the deal while Moeller and McGlynn represented Highbridge.

Regus, which is one of the brand names of Switzerland-based IWG, a provider of workspaces worldwide, signed a lease to occupy 17,600 square feet on floors six, seven and nine of the Tribune Tower at 409 13th Street.

“IWG and Regus are looking for core markets that can offer spaces to occupiers that seek creative solutions to their workspaces,” said Kollmann, a founding principal executive with Lee & Associates San Francisco. “They are looking for good opportunities to lease space throughout the Bay Area.”

As part of the rental agreement, Regus also agreed to an option to expand by another 22,400 square feet, which would enable Regus to have a total footprint of 40,000 square feet in the Tribune Tower.

Highbridge bought the Tribune Tower in 2019, acquiring the highrise from an alliance of Harvest Properties and True North Management Group, which renovated and revitalized the landmark building.

Landing one of the world’s most successful providers of serviced workspaces as a major tenant is a big win for Highbridge and the building, which totals 95,000 square feet.

“Regus has a lot of corporations they work with, IBM, Accenture, McKinsey, consulting and I.T. companies,” said Douglas Abrams, a general partner with Highbridge.

PG&E, Kaiser, Block and Clorox, Blue Shield of California and other big organizations are all located in downtown Oakland. These big enterprises frequently seek out consulting and information tech experts for an array of projects.

“A project can be three months, nine months, a year or two years, and companies don’t want to sign five-year leases if they don’t need the space for that long,” Abrams said.

Regus also can tap into other occupants that want to be nimble and seek flexible spaces for shorter terms.

“It’s also the startup community, creative companies, as well as individuals who want to get out of their homes after they had been working from home for three years,” Abrams said. “People who are in shared workspaces find these are great networking opportunities.”

Occupants could begin moving into the spaces starting this summer now that Regus has launched interior improvements in the workspaces. The company signed a 10-year lease in the Tribune Tower.

“Regus really wanted to be in downtown Oakland and near a BART station,” Abrams said.

The building also has ground-floor amenities such as the popular Tribune restaurant and Modern Coffee beverage cafe.

The coronavirus unleashed seismic shifts in how companies viewed their space occupancy needs. Regus aims to tap into Corporate America’s quest for more flexible office space arrangements.

“Occupancy in leasing velocity is slow for big spaces,” Kollmann said. “As the market for big spaces is in a lull, creative co-working providers like Regus are thinking long-term and doubling down.”

Highbridge, Regus and Lee & Associates all believe the deal has the potential to attract a variety of new companies to the building and the area.

“This transaction can represent an uptick for the downtown Oakland office market,” Kollmann said.