Tenant representative Micheal Palmer, senior vice president with CB Richard Ellis' Houston office says Banta's lease at 6315 West by Northwest was due to expire in late 2009. When property owner Claymoore Northwest Inc. represented by managing director Brian Gammill with Transwestern's Houston office wanted to renegotiate an earlier deal, Banta was willing to cooperate.
Though specific financial details were not available, similar air-conditioned industrial space in the northwest submarket can lease for between $.50 per square foot and $.55 per square foot, net. There were negligible TIs with the Banta lease. "The space had been very well maintained," says Palmer, who worked with CBRE vice president John Simons and associate Susana Rosas on behalf of Dallas-based Claymoore Northwest.
Palmer tells GlobeSt.com Banta was also considering relocation, especially given the consequences of the current market slowdown. The economic situation has put downward pressure on rents while slowing down leasing velocity and effectively making this a tenant's market.
"There were sites that were considered," Palmer acknowledges. "Ultimately, the landlord was aggressive and timely, and they made us a wonderful offer. Both parties, I think, appreciate the opportunity to renew early."
Transwestern built the single-tenant industrial building in 1999, which Banta took upon completion. Claymoore Northwest Inc. bought the asset as part of an industrial portfolio in 2004.
Palmer says with the economy continuing on a downward trend, building owners and managers are likely going to have to take proactive steps to keep tenants. "Tenants should be looking at what kinds of deals they can get in this market, while landlords need to consider what they can do before the lease term is up to get tenants to stay," he adds.
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