No Vacancy Sign Is Up at 120,000-SF Office Building

The property at 3101 President George Bush Freeway had been bought in June 2000 by Bush Shiloh Ltd. from Centra, which had never fully occupied its 120,000-sf build-to-suit. Upon delivery in 1998, the insurance claims company had moved into about 90,000 sf for awhile and the balance had sat empty, Chris Cawley, marketing representative for Wilcox Realty Group in Dallas, tells GlobeSt.com. Myers & Crow of Dallas had been the developer.

At last, the property's been turned around, attracting two more Silicon Valley high-tech operations to the Dallas-Ft. Worth fold. Celion Networks Inc. and Mahi Networks Inc. have each leased 30,000 sf while Fujitsu Network Communications Inc. is taking 60,000 sf in an expansion of its Dallas holdings, says Cawley.

Fujitsu is planning an April move-in while the California-based operations already are occupying their office spaces, which represent their inroads into this market. Fujitsu, which owns a million-plus sf campus across the street, plans to use the extra space for a training center. "It was a logistical choice for our building," Cawley says.

The building is strategically positioned in a rapidly growing extension to the famed Telecom Corridor. The Texas 190 submarket, says Cawley, is "considered the new Telecom Corridor," crossing boundaries of Richardson and Plano. Celion and Mahi have elected to make their Texas inroads now in light of their home state's energy crisis. Besides, says Cawley, rents are better and so is the employment base. In sharp contrast, metroplex landlords are asking for six months' rent upfront and letters of credit while California landlords most often are requiring a year's rent in advance of occupancy, he explains.

Fujitsu has used an in-house broker for its nine-year signing. Celion, which has inked a 10-year lease, has been represented by Scott Collier and Laurie Wilkerson of the Staubach Co. Benton Rutledge of Colliers International has acted on Mahi's behalf in its seven-year contract. The structure has commanded a per sf rate of $17.50 triple net.