Piper Jaffray & Company has entered into a new, $44.5 million lease for its Minneapolis headquarters at US Bancorp Center—and the lease agreement cuts in half the amount of space that the company currently controls.

Piper Jaffray currently controls 239,762 square feet of space at 800 Nicollet Mall, which is owned by Piedmont REIT of Norcross, Georgia. But the new lease—which carries an 11.5-year term—is for 123,882 square feet, according to documents that Piper Jaffray recently filed with the U.S. Securities and Exchange Commission (SEC).

However, Piper Jaffray’s office space reduction isn’t as drastic as it might seem: The company is currently subletting 93,000 square feet of space to other companies, spokeswoman Jennifer Olson-Goude told Twin Cities Business on Tuesday. In other words, the space that the company actually occupies will shrink by 22,880 square feet when the new lease takes effect.

Olson-Goude said that Piper Jaffray will give up some of its floors when the new lease takes effect, although it has some excess space that will be able to house employees following the consolidation.

Piper Jaffray has been in the same building since the tower was constructed in 2000 and before it spun off from U.S. Bancorp in 2003, according to Olson-Goude.

The new lease begins June 1, 2014 and expires November 30, 2025, although it includes an option for Piper Jaffray to terminate on January 31, 2022. The company can also opt to extend the lease for up to two five-year periods.

Rent per square foot is $15.95 for the first year and increases with each subsequent year, capping at $21.45 for the last six months.

In April, after a steep decline in first-quarter profits, Piper Jaffray announced plans to reduce its work force by 2 percent to 3 percent—or up to 30 employees. The company also said at the time that it was considering reducing its office space in an attempt to cut costs—although Piper Jaffray has about 30 office locations and the announcement didn’t refer specifically to the headquarters location, according to Olson-Goude.

According to a Piper Jaffray SEC filing, Minneapolis-based Greiner Construction will renovate the space that the company occupies sometime after the new lease takes effect. The lease calls for the landlord to provide an “improvement allowance” of $7.8 million, or $63 per square foot, to Piper Jaffray.

For the new lease, Piper Jaffray was represented by brokers from Jones Lang LaSalle, and the landlord was represented by Cushman & Wakefield/Northmarq.

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