DALLAS-A 10-year tenant with three years left on a lease has renewed at an LBJ Freeway office building after talks shaved enough off the old rate to glean a $150,000 savings with a new five-year term.

Paul Mason & Associates, a provider of bankruptcy recovery services, did a straight-up renewal on 11,098 sf of class B space in Northcreek Place I at 9441 LBJ Freeway. Gianni LaBarba of Mohr Partners in Dallas tells GlobeSt.com that the firm was paying $19 per sf, the going rate when the deal was signed in 1999. The neighboring buildings were checked out, but the stumbling block for a relocation was three years left on the pact.

“They liked where they were, but they just knew where the market was and they were paying more than everyone else,” LaBarba says of the sixth-floor office. “Their first choice was to stay and they got that.”

To get the rate they wanted, the firm’s executive team had to commit to a five-year term, explains LaBarba, who negotiated the pact along with president Bob Mohr. Reiner Brasch with the locally based Mullen Co. represented the building owner, Northcreek Business Park Ltd. of Dallas.

According to the North Texas Commercial Association of Realtors’ database, the 154,123-sf building has 29,212 sitting empty. The open space is tagged at $9 per sf to $15 per sf.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.