LSI Renews 184,000 SF in $4M Industrial Deal

HOUSTON-LSI Integrated Graphics has extended its stay in West by Northwest Business Park by renewing its 184,000-sf lease. Once again, the tenant has signed for the long term, agreeing to a payout of nearly $4 million over the term.

Brian Gammill, managing director with Transwestern's Houston office, says when the lease came up for renewal in the 285,432-sf warehouse facility at 14902 Sommermeyer near Texas 290, LSI Integrated's management considered a build-to-suit. "Given the tightness of the market, and with land prices and construction prices going up, coupled with moving costs, they decided to stay in place," explains Gammill, who represented the New York City-based building owner, TIAA-CREF.

Gammill tells GlobeSt.com that LSI Integrated, a manufacturer of large signs, came on board in the mid-1990s, taking down 129,000 sf formerly occupied by Compaq Computers. Earlier in this decade, LSI Integrated expanded to 169,000 sf and then boosted its lease to 184,000 when it renewed the last time. During the most recent go-around, LSI Integrated was represented by J. Michael Hill of Michael Hill Properties in Houston.

The 23-year-old warehouse, occupied by LSI Integrated, is one of three buildings in the 800,000-sf West by Northwest Business Park, which is 100% occupied. LSI Integrated's neighbors include Sweet Mesquite, a restaurant chain, and Encore Bits.

Gammill says LSI Integrated first took the space after Compaq moved its facilities farther northwest because it had good lighting and 40,000 sf of office area, which is being used for administrative purposes. "It was a good fit for them in the beginning and it looks like it still is," Gammill adds. "It's interesting that the only two tenants that have been there over the years have been Compaq and this one."