Search
 

Baker Hughes Finds 205,000-SF Sublease Tenant

HOUSTON-The engineering and construction firm Aker Kvaerner subleases two surplus buildings at west Houston office campus of Baker Hughes subsidiary WesternGeco.

By Jennifer Brenner Andrade | Updated on April 13, 2004

HOUSTON-The locally headquartered oilfield services company Baker Hughes has found a sublease tenant for two buildings totaling 205,000 sf that were previously occupied by its seismic imaging subsidiary WesternGeco. The sublease tenant is Aker Kvaerner, an engineering and construction firm. The buildings are located in what had been WesternGeco’s west Houston office campus on Briarpark Drive in the Westchase submarket. Baker Hughes declared the space surplus in November after WesternGeco consolidated into a single 250,000 sf building on the campus.Baker Hughes sublease broker, Studley’s Mark Russell, tells GlobeSt.com that negotiations with Aker Kvaerner began before the space ever really came to market. Studley SVP Mark O’Donnell represented Aker Kvaerner. A spokesman from Aker Kvaerner declined comment for this article.In March, Dana Commercial Credit Corp. sold the campus to Lexington Corporate Properties Trust along with three other Houston-area campuses, all of which are master leased by Baker Hughes on behalf of its subsidiaries. Lexington, which paid $119 million for the 1.1-million-sf portfolio, says Baker Hughes has 11.5 years remaining on its lease of the facilities. The exact length of Aker Kvaerner’s sublease agreement was not disclosed, nor was the rent rate. Average rents for direct class B space in Westchase are $16.92 per sf.Aker Kvaerner will gradually move into the two former WesternGeco buildings starting in June, says Russell. The firm is vacating 190,000-sf of leased office space at nearby Parkwood Circle. Aker Kvaerner is also vacating and selling a 225,000-sf research and development building at 1255 North Post Oak in Houston. David Cook with the Houston office of Cushman & Wakefield of Texas Inc. is handling the disposition. The asset is already under contract to an investment group and likely will be redeveloped for residential use, says Cook.

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.