HOUSTON-Mustang Engineering has renewed its lease in its full occupancy of 17404 Katy Fwy. in the city’s Energy Corridor. The 248,872-square-foot office building is also known as Ten West Corporate Center II.

The term and lease rate with landlord Black Forest Ventures LLC were not disclosed. The owner purchased the building in August.

“I can tell you the tenant got a favorable rate,” says Sanford Criner with CB Richard Ellis. He represented the tenant with Steve Hesse. Joel DeSpain with Joel DeSpain Commercial Real Estate Services LLC represented the owner in the transaction.

Criner says the average office rate is $27.85, full service, in the corridor, one of the most desirable markets in Houston as measured by occupancy. “However, over the past year and a half occupancy has fallen from 96% to 88%. Some of that was due to new construction, about two million square feet has come onto the market,” he tells GlobeSt.com.

There hasn’t been a great deal of new demand, Criner says. “Leases tend to be no larger, just replacements, and there’s still people who are giving back space. We’re getting closer to the end of that period in Houston, but I think there’s a ways to go before vacancies peak,” he says.