The project management, engineering and construction management firm signed a long-term lease for 20,485 sf with building owner, KBS Realty Advisors of Newport Beach, CA, and a long-term sublease for an equal amount of space with White Plains-based IBM Corp. Pegasus International will relocate in July to 777 N. Eldridge Parkway, consolidating two offices totaling 30,000 sf at 9821 Katy Fwy. and 9430 Old Katy Rd., says Jon Silberman of NAI Houston who represented Pegasus International in the transaction. Doug Little of locally based PM Realty Group bargained terms for KBS Realty Advisors.

"It was a bit more challenging because we had two different negotiations and two sets of documents," Silberman tells GlobeSt.com, adding one of Pegasus International's existing leases was expiring while the other one had to be terminated. "Their existing space wasn't laid out correctly for them so they decided to move."

Silberman tells GlobeSt.com that Pegasus International weeded the options down to seven buildings, but liked One Eldridge Place's location in the Energy Corridor. Equally important, he says, were the economics of the sublease space, which was far below the $23 asking rate. IBM, which still occupies one floor in One Eldridge Place, was represented in the sublease talks by John Pruitt in CB Richard Ellis Inc.'s local office. With the Pegasus International lease, the 12-story, 239,417-sf One Eldridge Place is 49% occupied. Its quoted rent is $23 per sf.