One of the towers in Southfield town center has lost its biggest tenant in what could be bad timing.
NTT Communications Corp., the Tokyo-based parent company of the cloud service provider formerly known as Secure-24, abandoned its approximately 100,000 square foot headquarters in the 4000 Town Center skyscraper off the Lodge Freeway and sublet the space along with a small 9,000 foot outpost square in Auburn Hills at 3250 University Drive.
Southfield’s lease was signed in September 2019, just months before the COVID-19 pandemic threw a wrench into the cogs of office markets around the world and forced businesses to rethink their space needs while remote working has become the norm for many.
Broker Steven Badgero, Associate Vice President of the Southfield office of Colliers International Inc. which represents NTT, confirmed that the sublet space is NTT’s new headquarters and that it was released on last month.
A SEO on the Colliers website states that the asking rate is $ 19 per square foot per year for the space, which is on the second through eighth floors.
An email has been sent to NTT’s general email account as well as a spokesperson seeking information on why the space is being abandoned. It is not clear whether the company is moving employees to another space or moving away.
Steve Morris, a longtime tenant-focused broker who runs Farmington Hills-based Axis Advisors LLC, said it was unique that NTT decided to relinquish all of its corporate headquarters.
“They have arranged their entire space and have not gone hybrid,” he said, also adding that it is difficult to fill the sublet space because potential occupants want the sub-lessor to pay for. changes to the office, which the sub-donor is generally reluctant to do.
NTT acquired Secure-24, which was founded in 2001, in 2018 when it had around 600 employees.
It’s far from the only major Oakland County company to give up office space during the COVID-19 pandemic.
Earlier this year, Crain’s reported that others include Michigan’s Blue Cross Blue Shield, which had 118,000 square feet in Southfield for sublease, and Delphi Technologies, which had 102,000 square feet in Troy for sublease. .
CoStar Group Inc., a real estate information service based in Washington, DC, said that in the third quarter, for the first time since the COVID-19 outbreak, the amount of sublet space available at the nationwide has shrunk to about 205 million square feet. At the end of the second quarter, it was approximately 207 million square feet.
The 4000 Town Center building measures 396,000 square feet and was constructed in 1979, according to CoStar.
The 2.2 million square foot Southfield Town Center was purchased in 2014 by New York-based 601W Cos. For $ 177.5 million. In 2018, Crain’s reported that the complex had undergone some $ 56 million in renovations, including leasehold improvement allowances, under 601W ownership.
Earlier this year, it was revealed that Plante Moran had closed his own 125,000 square foot office at 27400 Northwestern Highway in the Victor Center building, put it up for sale at an undisclosed price, and leased eight floors. more in downtown Southfield to on top of the four it already takes, bringing its footprint to 192,600 square feet, up from 50,200.