Staubach leads nuclear energy giant to biggest lease in the US this year.

A team of Staubach specialists pulled out all the stops to help Pennsylvania retain one of the state's largest employers and complete the biggest lease in the US this year. Nuclear energy giant, Westinghouse Electric, signed the 772,000 s/f lease for a new global headquarters and engineering center in Cranberry, PA, and beat competition from around the country.

"The challenge we knew from very early on was the limitations of the economic development programs avail able in Pennsylvania," said Jay Koster, managing principal of Staubach's capital markets group in New York. Staubach served as exclusive advisor to Westinghouse on the deal. "Given the substantial programs available else where, it appeared it might be difficult to have Pennsylvania come close economically to being a long-term cost effective solution for them."

However, working with the state's economic development corporation and various government staff and politicians, Staubach was able to thrash out a deal that got both sides "close enough" so the economics were "not as hugely favorable" to the other states.

Westinghouse has been located in PA in some shape or form for nearly 100 years and that longstanding relationship was paramount in the company's considerations as it examined growth options to address the explosion in the nuclear energy industry in recent years.

Said Koster, "The lease was driven by Westinghouse's need to add substantially to their labor force over the coming years--over 1,200 new employees--and how the figure out where they were going to house them.

"They have operated successfully in Pennsylvania for a long time and can recruit the right people in that market. They also understand the business environment there and remaining in the state would involve much less disruption to their business at a time when it is growing dramatically."

On August 1, Westinghouse entered into a 16-year lease transaction for the development of a 772,000 s/f corporate headquarters and engineering center in Cranberry.

The proposed office complex is owned by Wells Real Estate Investment Trust II Inc., and will be developed by Trammell Crow Real Estate Development & Investment, Inc.

The three-building, two phase project will be delivered between mid-year 2009 and mid-year 2010. The planned facility will accommodate more than 2,800 employees, and potential future expansions of the 82-acre complex could accommodate in excess of 1.2 million total square feet.

Wells has been part of more than a dozen build-to-suit developments nationwide, for tenants such as Merck, Northrop Grumman and CitiFinancial. "We pride ourselves on being the landlord of choice to some of the world's greatest companies--and often, that means helping them meet their needs for new facilities and increased space," said Joe Oglesby, senior vice president of Wells. "The Westinghouse campus will be another great example of that capability."

CB Richard Ellis/Pittsburgh, LP represented Wells in the lease negotiations. Jeremy Kronman, CBRE/Pittsburgh's executive vice president, commented, "This is a powerful deal for this region, with a major corporate presence in a growing industry now secured for Pittsburgh's future--against global competition. And as for the real estate, this will be one of the premier office headquarters complexes in the United States and in Pittsburgh.

"Locally, in less than 24 months, Wells now owns more than 1.2 million square feet of Pittsburgh's trophy Class A office space which can be expanded to more than 1.8 million square feet. They are a major player nationally and now in Pittsburgh, and we are pleased to have them as a client. We will continue to work hard to grow their investments here with them."

Jeff Goggins, managing director of Trammell Crow Company, said the firm was excited to develop the project. "We look forward to building this state of the art facility, which will have an enormous positive impact on the region," he added.

"Westinghouse is a powerful global name, and we're honored to help them meet their growth needs in Pennsylvania," added Jeff Gilder, chief investment officer for Wells. "This is going to be a true Class-A corporate campus that should serve Westinghouse--and our investors--well for many years to come."

Tony Greco, senior vice president Human Resources and Corporate Relations for Westinghouse, said the new facility will help Westinghouse fulfill the world's growing need for safe, clean and economical electricity. "Our new facility will be highly efficient and cost competitive, enabling us to better serve the needs of our customers and the nuclear power industry well into the future," he said. "Equally important, by working with Staubach, we were able to secure a site in Western Pennsylvania, avoiding the costs and disruption that would have accompanied a move to another state."

The Staubach team which was responsible for the lease included Ann Marie Woessner and Amy Gerber of Staubach Business and Economic Incentives; Drew Saunder and Robert Ageloff, of Staubach Corporate Services; and Michael Hochanadel, senior associate of Staubach Capital Markets.