HOUSTON- Permian Mud Service Inc. has expanded its lease by 17,144 square feet in Phoenix Tower, bringing its total leased premises to 94,798 square feet. Phoenix Tower is a recently renovated 629,000-square-foot office tower located at 3200 Southwest Fwy. here in Houston.
The oilfield service company was represented in the lease expansion by Rob Neblett of Newmark Knight Frank. Tyler Garrett with Hines, property and leasing manager for the 34-story Phoenix Tower, represented building owner FSP Phoenix Tower Ltd. Partnership.
All of the equity interests in FSPLP are owned, directly and indirectly, by FSP Phoenix Tower Corp., a corporation sponsored by Franklin Street Properties Corp. Phoenix Tower Corp. is a Delaware corporation formed to purchase, own, operate, improve and reposition Phoenix Tower in the marketplace.
FSP and its affiliates own and operate approximately 1.5 million square feet of class-A office space in greater Houston, including the Offices at Park 10, Energy Tower I, and Eldridge Green (CITGO’s corporate headquarters). FSP, based in Wakefield, MA, is focused on achieving current income and long-term growth through investments in commercial properties.
FSP operates in two business segments: real estate operations and investment banking/investment services. The majority of FSP’s property portfolio is suburban office buildings, with select investments in certain central business district properties.
FSP’s subsidiary, FSP Investments LLC, is a real estate investment banking firm and a registered broker/dealer. FSP is a Maryland corporation that operates in a manner intended to qualify as a real estate investment trust for federal income tax purposes.
Hines tells GlobeSt.com that the owner, tenant, manager and broker do not want to provide any further information at this time. Earlier this year, another tenant, Fritsche Anderson Realty Partners, negotiated a lease renewal deal for 12,742 square feet at the building. Other tenants at the building include Phillips & Akers PC, Allen Boone Humphries Robinson LLP, Sprint Nextel, Idea Integration, Champion Technologies, Forethought National Life Insurance Co., the Lincoln National Life Insurance Co., TranSystems Corp., Network Appliance, and StarTex Power.
FSPLP purchased the tower from Peak Phoenix Tower LP in 2006 for an undisclosed amount. “Phoenix Tower is a signature landmark on the Greenway Plaza skyline,” said Hines SVP Charles Elder, at the time of sale. In 2009, at the direction of FSPLP, Hines revealed it had been involved in an ongoing improvement program at the building including: the installation of new spandrel glass panels to improve energy efficiency and overall appearance; renovation of building common areas; the addition of a conference facility; updated building entrances; and the addition of a Jack Nicklaus-designed putting green atop the building garage.
According to a recent office report from Grubb & Ellis, the local office market over the last two years, has watched vacancy climb to its highest level recorded since 2005, as companies felt the pinch of the recession and were forced to reduce their payrolls. In order to become more efficient, many companies either downsized or consolidated operations in order to shave operating costs, says the report. With vacancy close to reaching its peak, some companies, primarily in the oil and gas industry, have started to take advantage of soft market conditions with recent lease signings. “This is good news for landlords but the recent leases will not immediately counter the run-up in vacancy as most of the larger tenants will not occupy their space until the second-half of 2011 or beyond,” says the report.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
