Currently, the Fayetteville, AR-based energy company occupies the third and fourth floors in the 155,236-sf mid-rise at 2350 North Belt East. Before the month ends, the firm's operating space will include the entire sixth floor and parts of the second and eighth.
Southwestern Energy's executives started to weigh expansion options about a year ago, says Lispah Hogan, principal of Newmark's local office, who represented the energy company. She tells GlobeSt.com that Southwestern Energy, which owns a corporate campus in Fayetteville, evaluated build-to-suits and land purchases as well as buying and rehabbing existing buildings in Greenspoint. The executives also thought about relocating to Downtown. In the end, the executive team decided to stay put and try to work out expansion space in the 23-year-old building, owned by Santa Ana, CA-based Triple Net Properties LLC.
Hogan says Triple Net Properties was willing to tear up the existing lease and do a new one at current market rates. "That's no small thing," she says.
Hogan says the reworked deal puts Southwestern Energy's rent well below the quoted rate of $17 per sf. "The economics were outstanding," she says, adding the deal includes the conversion of a 4,723-sf sublease.
With the expansion, Southwestern Energy becomes the largest tenant in the 98%-leased, eight-story building, which has been sporting the energy firm's sign at the top and on a monument since its move-in. Christe Cavaness of Triple Net Properties negotiated the building owner's terms.
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