This year, National Instruments Inc. will move from its 136,000-sf Millennium Building at 6504 Bridgepoint Parkway to a new building on its north Austin campus. It had planned to lease the Millennium to Trilogy Software. Trilogy, however, has told National Instrument it will not occupy the building because of "economic hardship." The companies are in talks about Trilogy buying out its commitment to National Instruments.
National Instruments disclosed the situation in a quarterly filing with the Securities and Exchange Commission. In the filing, National Instruments said Trilogy is in default on its lease terms.
It is not surprising that Trilogy isn't taking the space. It, like many other companies in the late 1990s, grew quickly and sewed up space at a furious pace. Over the past year, however, Trilogy's space has receded by nearly 100,000 sf in Plaza on the Lake at 5001 Plaza on the Lake Drive. It has reached arrangements with other Shepherd Mountain building owners to vacate or sublease other committed space. Last October, Trilogy subleased about 13,000 sf in Shepherd Mountain Plaza in what were characterized as fast-track deals.
Trilogy also expects to reach an agreement with National Instruments, Reed Byrum, the Trilogy spokesman says. "We've made a proposal with cash on the table to have National Instruments re-assume that (space)," he tells GlobeSt.com. "We have a strong balance sheet and positive cash flow. We just aren't in the business of real estate and really want to get out of it."
National Instruments executives were at the company's annual user conference and were unavailable for comment. In the SEC filing, the company said it intends to enforce the terms of the lease.
The dispute comes within a few months of National Instruments' move into its new research and development building on the 169-acre campus along North MoPac Boulevard. The employees, says spokeswoman Kathleen Fisher, are due to occupy the office space in the coming months.
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