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Phillips Lytle considering Delaware Ave. for new HQ

Mon, Sep 20th 2010 12:00 am
By JAMES FINK
jfink@bizjournals.com | 716-541-1611

Phillips Lytle LLP is considering a Delaware Avenue site for its downtown office.

Representatives of the law firm, as well as Uniland Development Co., confirmed that a parking lot south of New Era Cap Co.'s corporate headquarters is a possible site.

Phillips Lytle currently leases 85,000 square feet on six floors at HSBC Center. The lease expires in December 2013. For the past year, Phillips Lytle has been scouting locations - including remaining in the 38-story HSBC Center.

With more than 300 workers and potentially 85,000 square feet at stake, the lease is one of the most coveted in downtown Buffalo.

"We are working on a few alternatives in the central business district for Phillips Lytle and are excited to be a part of the project." said Therese Hickok, Uniland senior marketing manager.

David McNamara, law firm managing partner, said the Delaware Avenue site is on the firm's short list - but there are other possibilities.

"They (Uniland) did give us a detailed proposal that is under consideration," he said.

He is looking to have a final decision by the end of the year.

"If we move, we need to be in our new offices by January 2014," McNamara said.

The planning and municipal approval process could take as long as nine months, with construction taking up to two years.

Phillips Lytle also was pitched to serve as anchor tenant in a renovated Gen. Donovan State Office Building on Main Street along the northern edge of the Canal Side development.

All sites under consideration are downtown.

If the Delaware Avenue site is selected, it would be the fourth major development Uniland has undertaken in an area that runs from Huron Street south to Mohawk Street. Twenty years ago, the company built the Federal Center at the corner of Delaware Avenue and Mohawk Street. It also constructed the Niagara Center on South Elmwood Avenue and, last year, opened the Avant building.

Uniland developed a multi-tenant office building at 285 Delaware Ave. that is anchored by M&T Bank.

Various design plans for the parking lot site are being developed.

"We think we could get by with something less than 85,000 square feet by just having a more efficient space-utilization plan," McNamara said.

Phillips Lytle is not the only tenant that may move from HSBC Center. Anchor tenant HSBC Bank USA is considering its options, including expanding the HSBC Atrium or occupying a projected 16-story tower proposed for the Webster block that will help anchor the Canal Side development.

In addition, Jaeckle Fleischmann & Mugel LLP is considering options as its lease at 12 Fountain Plaza comes up for renewal. The law firm currently leases 40,000 square feet.

Both Jaeckle and Phillips Lytle are using Studley Real Estate Group to help with their site searches.