The Wisconsin-based retail chain will use the class A space for a customer service and operations center and initially will employ 150 people. Within three years, it expects to expand the workforce to more than 1,000 employees.

Local sources confirm that San Antonio and Oklahoma City were the two city finalists vying for the Kohl's deal. "Building tours started in fall of 2009, and the deal was negotiated over the last few months," says Stephen Hall, the managing director in the San Antonio office of GVA Cawley who represented the landlord, Dallas-based Myers & Crow. "This tenant was well-prepared and very analytical in their approach to the market and the business terms."

Kohl's was represented by Rick Hughes of Cushman & Wakefield and Tim Terrell of Stream Realty Partners.

Hall tells GlobeSt. that Kohl's plans to move into Westover Office Center I in July 2010. Located at 10000 Rogers Run, the two-story office building was completed fourth quarter 2008. The asking rental rate for Westover Office Center was $15.75 per square foot, triple net basis.

The building, which Myers & Crow developed on a speculative basis, received LEED Silver certification from the U.S. Green Building Council. "We understand that LEED Silver designation was important to Kohl's," Hall says. "They are a very 'green' company, and I am sure they will operate the building in a very environmentally conscious manner."

The Texas Enterprise Fund contributed $750,000 toward Kohl's incentive package, and the city of San Antonio provided a 50-percent tax abatement for six years, according to Hall. In addition to Kohl's, the Alamo City recently has attracted a number of large corporate users including Whataburger Inc., Medtronic and Allstate Insurance Co.