Telephone directory services provider Varetis AG has leased the top 10 floors of the 21-story Munich City Tower in downtown Munich, Germany. Varetis is the first tenant to sign a lease in the building, which was completed in April.
Varetis chose the 259,162 sq. ft. Munich City Tower largely for its location: more than 300,000 cars and 400,000 train commuters reportedly pass by the tower every day. The Varetis name will be featured on top of the building, though the name of the building will not be changed from Munich City Center. "Compared with the advertisement benefits we achieve, we even save money by moving to Munich City Tower," says Dr. Klaus Harisch, CEO of Varetis.
Ochtar Capital Partners, which advised the developers of the property, reports that Varetis will pay roughly $42 per sq. ft. of rent on an annualized basis, which will be the highest rental rate signed in Munich since 2001. The total space leased by Varetis was 59,200 sq. ft.
"The Varetis lease validates our long-term strategy of developing a premium quality landmark building in Munich that will attract top-quality tenants who see value in higher priced quality products. Munich City Tower illustrates that in a tough market there is a flight to quality, which is why this strategy is sound," says Digby Okell, principal with Ochtar Capital.