HQ Tenant Taps 110,480 SF for Consolidation

When all is said and done, the consolidation to 330 Barker Cypress Rd. will result in an elimination of redundancies and a 10% reduction in space. The Newport Beach, CA-based KBS Realty Advisors terminated Alliance Wood's long-term lease in a 34,046-sf building at 16340 Park Ten in order to make the deal work.

Not only did the owner shave the rate on the class A-minus space, but it's kicking in $30 per sf for tenant improvements and a renovation to the four-story office building. Alliance Wood, a service provider for the energy industry, also has a sublease at 1311 Broadfield Blvd., but the plan is to partially sublet it to another branch of its parent company, the Wood Group. The remainder will be taken back by the sublessor, Transocean. Alliance Wood's lease on its third location, 16420 Park Ten, will expire in February 2007.

Mark O'Donnell, senior vice president and co-branch manager in Houston for Studley, says the consolidation site search encompassed about 18 months. He says Alliance Wood examined space at 1400 Broadfield Blvd. and had considered restacking its offices in one or more of the existing locations. He tells GlobeSt.com that the ability to structure a deal with its existing landlord to forgive several million dollars on an existing lease was one reason why the engineering company decided to take the Parkview I space. Doug Little, vice president and leasing director for locally based PM Realty Group represented KBS.

O'Donnell says Parkview I's large floor plates--nearly 30,000 sf--helped to seal the deal. Another plus is the solid infrastructure that's already in place, thanks to Citigroup, which vacated the building last year. "They ran a call center there and there was a lot of already existing infrastructure in terms of power and technology," O'Donnell says, adding Citigroup's lease extends through October.

The building is outfitted with back-up generators for lighting and technology in the event of a power failure or disaster. The redundancy "allowed them to put a disaster recovery plan in place," the tenant rep says, "and they felt it would make them more competitive in terms of winning contracts."