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HOUSTON-To streamline space and costs at its headquarters, Horizon Offshore Inc. has signed a long-term, class A lease for 69,700 sf. The early renewal and extension cuts the headquarters space by nearly one-third.

According to Mark O’Donnell, senior vice president and co-branch manager in Studley’s Houston office, Horizon Offshore had taken down more than 90,000 sf in 2500 CityWest Blvd. in 2000. He says Horizon Offshore’s efforts to cut space involved two steps. Through the first move one year ago, the company subleased nearly 26,000 sf to Webxites and Fairwinds International Inc. in a short-term deal. Horizon Offshore then signed a new three-floor lease with building owner Thomas Properties Group, which was represented by Chip Colvill of Colvill Office Properties in Houston.

“They had a few years left to go on their original lease and were paying significantly above-market rent on the space,” O’Donnell says. “This new lease brings their overall rent down to a lower rate.” The building’s rate isn’t available, but the class A average in Westchase is $23.62 per sf.

Horizon Offshore did consider relocation. “This space worked well for them and they really didn’t want to move,” O’Donnell tells GlobeSt.com. “The restructure-extension was the most cost-effective thing we could do. It was a positive for the landlord and gave us more concessions on the package.”

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