Magellan to lease floor at Tulsa City Hall
BY KEVIN CANFIELD World Staff Writer
Saturday, January 26, 2013
1/26/13 at 8:11 AM
Read continuing coverage of Tulsa’s City Council.
Magellan Midstream Partners LP has signed a lease to rent a floor of space at City Hall, officials said Friday.
"It is a great opportunity for them and this is a company the mayor really wanted to land over here because of his commitment to the oil and gas industry," said Clay Bird, chief economic development officer for the city.
With Magellan's arrival, One Technology Center - which the city purchased in 2007 to be its new City Hall - is 92 percent to 93 percent occupied, Bird said.
"We are really pleased now with the occupancy of the building," he said. "We went through quite a dry spell without much interest. ... A lot of it had to do with the recession we went through."
Magellan will occupy 48,156 square feet on the ninth floor. The company has signed a five-year, two-month lease at a rate of $16.50 per square foot a year, or $794,574, Bird said.
Magellan spokesman Bruce Heine confirmed the lease agreement Friday but would not confirm details of the deal.
"One Technology Center is directly connected to Magellan's headquarters office," Heine said, adding that the new office space "will provide a campuslike atmosphere for our employees as our business continues to grow."
Magellan has more than 500 employees based in Tulsa, Heine said.
"We have been consistently hiring new employees for various responsibilities within our company," he said.
Former Mayor Kathy Taylor pushed for the consolidation of City Hall into the nearly vacant, 15-story One Technology Center at Second Street and Cincinnati Avenue. After much debate, councilors agreed to the purchase of the building through the sale of $76 million in tax-exempt revenue bonds.
Early on, some city councilors thought leasing space in City Hall would be nearly impossible because of the building's open floor configurations and a narrow market of potential tenants.
One Technology Center has 626,802 square feet of rental space. Only about 40,000 square feet remain open to lease, most of it on the 14th floor, Bird said.
Other tenants include Level 3 Communications, Deloitte, Bank of Oklahoma and Oklahoma Innovative Institute.
Together, they pay nearly $4 million a year in rent.
City Hall tenants
City officials announced Friday that Magellan Midstream Partners LP will begin leasing 48,156 square feet of City Hall in February. The new tenant raises the occupancy level of the building to about 93 percent. This is a list of the tenants and their annual lease payments.
Level 3: $2,480,656
Deloitte: $842,730
Magellan Midstream Partners LP: $794,574
BOK: $509,664
OII Datacenter: $75,000
City: $5,050,763
Total: $9,753,387
Source: City of Tulsa
Original Print Headline: Magellan signs City Hall lease
Kevin Canfield 918-581-8313
kevin.canfield@tulsaworld.com
Associated Images:
TOM GILBERT/Tulsa World file
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