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State Farm Beefs Up Lease for Under-Contract Building

SUGAR LAND, TX-With just weeks to go before it sells, the Two Sugar Creek lands a 29,477-sf expansion by two-year tenant, State Farm, which doubles the office size for a regional consolidation. The class A deal pushes occupancy to 93%.

By Jennifer Brenner Andrade | Updated on June 23, 2004

SUGAR LAND, TX-Within weeks of its sale, a 143,367-sf, class A office building in Houston’s southern sector has hit 93% occupancy with a State Farm Insurance Co. expansion that doubles its office space for a consolidation move. Sources say the five-year-old asset is under contract to sell for $19 million to $22 million to an out-of-state tenants-in-common buyer.

In a win-win deal for seller and tenant, State Farm, now occupying 29,344 sf, leased another 29,477 sf in Two Sugar Creek at 77 Sugar Creek Center Blvd. Eric Anderson, senior vice president for Houston-based Transwestern Commercial Services, tells GlobeSt.com that the Bloomington, IL-based insurance company added two years onto the original lease for a five-year, co-terminous end. State Farm, the lead tenant, moved into the building about two years ago. It will take over the extra space within 30 days.

According to Anderson, State Farm is consolidating several suburban offices at Two Sugar Creek, but it is not downsizing with the plan. The deal will light the entire fourth floor, which was vacated about four months ago by Fluor Corp. of Aliso Viejo, CA, and carves out a small office area on the first floor. The balance of State Farm’s space is on the third and sixth floors.

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