Double Deal Seals 73,400 SF of Class A Space

Gallagher Braniff, the Houston office for Arthur J. Gallagher & Co., signed a 10-year pact to consolidate a 27,000-sf office from the Four Oaks complex and a 13,000-sf one at Bering Drive for the relocation from within the Galleria submarket to 3D/International Tower, Eric Anderson with Houston-based Transwestern Commercial Services tells GlobeSt.com. He says the firm was "very focused on the Galleria market" and considered many options before settling on 3D/International Tower.

Anderson wouldn't discuss the lease terms that led to the commitment, but did say that all recent deals for the familiar tower have been signed at market rate. The building's quoted rate is $22.50 per sf.

Anderson and Rob Neblett, also with Transwestern in Houston, along with Pat Caruso of LJ Sheridan Co. in Chicago represented Gallagher Braniff. The building owner, Chicago-based Transwestern Investment Co., used Houston's Eric Johnson to negotiate its terms. The Chicago investment arm purchased the building about nine months ago from JPMorgan Chase.

Anderson says 3D/International's lease was set to expire in July. The firm has been a building tenant for at least 10 years. According to Anderson, 3D/International considered space in the Galleria and the Westchase area of town, but decided to stay in the 22-story tower because of location, quality and services. Tim Relyea, Scott Wegman and Chris Oliver, all the Houston office of Cushman & Wakefield of Texas Inc., represented the design firm.

Anderson says 3D/International Tower has "realized great success" in the past nine months, closing more than 22,000 sf of smaller leases in the last half of 2002 to overcome the relative flat state of the Galleria submarket. He also credits a $1-million lobby expansion and renovation in 2001 and the location at the intersection of San Felipe Road and the 610 Loop West with the leasing momentum. The tower's occupancy is nearly 4% higher than the submarket average.