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Stifel shrinks Baltimore presence as it moves from downtown to Harbor Point

By meerna Jul11,2024
Stifel shrinks Baltimore presence as it moves from downtown to Harbor Point

Investment banking and wealth management firm Stifel Financial Corp. is the latest office tenant to move out of downtown Baltimore, downsizing its space.

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Courtesy of Armada Hoffler

Wills Wharf Building at Harbor Point

The company has signed a lease for 35,000 square feet at the Wills Wharf building in Harbor Point, building owner Armada Hoffler announced Tuesday.

Stifel occupies an 84,000-square-foot building at One South Street in Midtown, where its name is displayed, according to the Baltimore Business Journal.

A Stifel spokesman said: Bisnow The company is retaining one floor of offices at One South Street. Cushman & Wakefield, the building’s leasing agent, announced Wednesday that Stifel had signed a 21,000-square-foot expansion.

The new deals reduce the company’s total square footage in Baltimore by about 21% to 56,000 square feet.

JLL’s Peter Jackson represented the landlord in the Wills Wharf transaction, while Cushman & Wakefield’s David Downey Jr., Courtenay Jenkins and Scott Shelbourne represented Stifel in the new lease and renewal. Cushman & Wakefield’s Linn Worthington represented One South Street’s landlord, YBL Equities.

The One South Street building was sold a year ago to BHN Associates for $24 million, down from the $66 million it sold for in 2015, The Baltimore Sun reported. BHN and YBL are subsidiaries of the same company, a Cushman & Wakefield spokesman said. C&W said the new owner has made “significant” investments in the building and signed several expansions and one new tenant, Blades & Rosenfeld.

In the case of Harbor Point, the lease increases the occupancy rate of more than 1 million square feet of office space to 98%, Armada Hoffler said in a release. The Virginia Beach, Va.-based REIT owns the 27-acre mixed-use project on the waterfront between the Inner Harbor and Fells Point through a partnership with Beatty Development.

The 12-story, 330,000-square-foot Wills Wharf was built in June 2018 as the fourth building at Harbor Point. Two months later, it signed its first office tenant, digital marketing agency Jellyfish. Earlier this year, law firm Duane Morris LLP signed a 10,000-square-foot lease at Wills Wharf, moving from Harbor East.

Stifel’s move comes as another major financial firm is moving from downtown to Harbor Point later this year. T. Rowe Price announced in 2020 that it planned to vacate its 450,000-square-foot office at 100 E. Pratt St., which caused the building’s valuation to drop 45%.

Those changes have pushed the vacancy rate in Baltimore’s central business district to 21.6%, according to a second-quarter report from CBRE. But companies are downsizing due to remote work across the city, as Baltimore’s overall office vacancy rate stands at 20.8%. That’s up from 18.9% at the end of 2021 and 16.8% at the end of 2019.

By meerna

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