Expansion Pact Solidifies Lease-Up

HOUSTON-It’s taken 15 months, but a 68,210-sf office building in Houston’s northwest submarket has reached 100% occupancy. The “no vacancy” sign goes up because an existing tenant expanded.

The four-story building, 8300 FM 1960, lost two full-floor tenants in January 2002 to slash occupancy to 57%. Taking an extra 1,407 sf to fill the building is Tammany Oil & Gas LLC, a tenant since June 2002. The firm, which now leases 4,442 sf, holds a long-term lease for the office area.

“To lease up FM 1960 in 15 months, we did three things,” Wanda Wilson of PM Realty Group in Houston tells GlobeSt.com. The measures consisted of a targeted marketing campaign, renovations to the common areas and deals with free rent and lower first-year rent for the first full-floor tenant signed. “Then, with the remaining new tenants needed to fill up the building, we were able to rent the space at market rates,” she says.

The Newport Beach, CA-based Koll Bren Schreiber Realty Advisors is the building owner, which is represented by PM Realty Group’s Marci Phillips and Wilson. Nancy Rust of Rust Realty in Houston bargained the lease expansion terms on behalf of the tenant.