HOUSTON-After more than 12 months of negotiation, Telecheck Services Inc. has signed a long-term renewal lease for 120,458 at Galleria Plaza I. The financial services company has been the lead tenant in the class A office building for more than 20 years.
With the renewal, the 217,000-square-foot office property at 5251 Westheimer Rd. is 97% occupied, according to David Baker of Transwestern. He represented the landlord, Chase Merritt Four Corners LLC, along with Kelli Crutchfield, also with Transwestern’s local office. Telecheck was represented by Scott Panzer and Steven Rotter of Jones Lang La Salle’s New York office and David Bale and Ronnie Deyo of Jones Lang La Salle’s Houston office.
“This location works for Telecheck,” Baker says. “They’ve been here long enough that it’s convenient for their employees and their clients.”
Baker tells GlobeSt.com that he believes Telecheck’s decision to stay in Galleria Plaza I was influenced by the significant renovation program that Irvine, CA-based Chase Merritt conducted at the property, which is part of a 424,295-square-foot mixed-use property that includes another class A office building, two retail buildings and two parking structures.
“Chase Merritt invested more than $5 million to bring the property to a higher level,” Baker says, adding that renovations included: an upgraded lobby, improved common areas, and a new storefront with canopy entrance to the building. Additionally, the owner installed for a new cooling and heating system, elevator improvements, an automated parking system and redid the landscaping and hardscaping.
“We felt we had a fair deal on the table – one that was a good deal for both parties,” Baker notes. As part of the new lease, Telecheck received a TI allowance that will allow it to make modifications to its current space.
“Like every other company, Telecheck’s business is constantly changing, so they need to make changes to their space,” Baker explains.
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